£340,000 LOCAL LOAN

New Zealand Herald, Volume LXXVI, Issue 23266, 8 February 1939, Page 12

£340,000 LOCAL LOAN

NEW PLYMOUTH HARBOUR LEVEL OF INTEREST POSSIBLY 4f PER CENT [by telegraph—own correspondent] NEW PLYMOUTH, Tuesday Authority for the New Plymouth Harbour Board to raise a loan in New Zealand to pay off London loans of £340,000, which fall due this year, has been given by the Local Government Loans Board/The terms on which permission to raise tho loan has been given could not be ascertained, but it is believed that the rate of interest will be or per cent and the term about 25 years. It is understood that an Australian financial concern operating in the Dominion is prepared to advance the money if the terms fixed by the Loans Board are-considered attractive.

The chairman of the Harbour Board, Mr. C. E. Bellringer, was unable to give any information to-night because he had received no official information from Wellington. Under the circumstances he said he could not say in what way the board's finances would be affected.

From a study of the board's balance sheet it would appear that if a reasonably long term has been approved for the loan the saving to the board will amount to several thousands a year. If the term is 30 years it will be as much as £7OOO, but a somewhat shorter term is probable in view of the conditions fixed for other local bodies seeking loan authorities. Although the board's indebtedness is approximately £424,000 in Isew Zealand currency, a loan for the total amount will not have to be raised, there being a sinking fund amounting to about £IBO,OOO. A good deal of this will be absorbed in exchange, which will cost the board about £84,000.