LOANS TO EARTHQUAKE LOSERS

Northern Advocate, 1 December 1936, Page 9

LOANS TO EARTHQUAKE LOSERS

free of interest until end

OF TERM

Press Association. Copyright.'] HASTINGS, This Day. Loans made by the Government to individuals and companies, who suffered losses in the earthquake of 1931 a r r e to be free of interest for the remainder of the unexpired term. An announcement to this effect was made by the Hon. W. E. Barnard, M.P., last night, to a meeting of borrowers. The action of the Government is the Culmination of representations made by Mr Barnard and the Borrowers’ Association for several years, and the

announcement was received with genuine enthusiasm. A resolution was ' adopted expressing appreciation of the Government’s action, and of Jhe work done by Mr Barnard and other Hawke’s Bay members of Parliament. The decision of the Government was conveyed by the following letter to Mr Barnard from the Minister of Fi-

nance:—-“I am pleased to advise you that loans made to individuals under ■\ the provisions of the Hawke’s Bay f Earthquake Act, 1931, shall be free of interest for the remainder of the unexpired term of such loans. Repayment of principal will, however, com tinue on the existing basis until September 1, 1938, when the balance of the loan then outstanding should be repaid by equal quarterly or halfyearly instalments within the existing term of the advance. “Past transactions will not be reopened and any interest accrued to August 31, 1935, and still unpaid remains due leaving any case of hardship to be dealt with on its merits by the Minister of Finance. The right is reserved to charge interest on overdue instalments if necessary. “All existing unused loan authorities which are not in process of being taken up or have not been specially kept open for a defined period, shall be cancelled in the meantime, and such authorities can be taken up only after further investigation and sub-

ject to the special approval of the Minister of Finance.”