LOAN CONVERSION

New Zealand Herald, Volume 80, Issue 24759, 6 December 1943, Page 2

LOAN CONVERSION

LONDON OPERATION 1939 TERMS EXTENDED (Reed. 10.15 p.m.) LONDON, Dec. •! The New Zealand Government is inviting holders of 3J per cent conversion stock, 1939-45, to convert into 3.J per cent stocks maturing in 1949-54 and 1955-60 respectively, receiving £SO (sterling) of each issue for each £IOO (sterling) converted. In July, 1939, the Minister of Finance, the Hon. W. Nash, announced the terms under which an indebtedness in London was to be met bv a conversion loan of £16.000,000. These terms provided for an interest rate of 31 per cent and half-yearly payments in reduction of the stock. The last two payments were to provide for £3,500.000 for the year ending December 31, 1943, and a similar amount during the year ending December 31, 1944, the latter extinguishing tiio loan liability. It now appears that holders of the stock are invited to extend the term for the balance of the loan to alternative maturing dates, the Government retaining the usual option of paying off at the shorter of the two alternative periods shown. Assuming that repayments have been n!ade according to the original terms to June 30 of the present year, the amount now outstanding would be £5,250,000,' of which £1.750,000 is due at the end of this month.