LOCAL BODY LOANS

Otago Daily Times, Issue 22212, 15 March 1934, Page 9

LOCAL BODY LOANS

PROGRESS OF CONVERSION EFFECT ON INTEREST RATES. , (Peb United, Pbess Association,) WELLINGTON, March 14. Reference to the Local Authorities Interest Reduction and Loans Conversion Act was made by the* Prime Minister (Mr G. W. Forbes) at the municipal conference. He said the Act was passed 1 for the purpose of reducing the rate of interest which local bodies had to" pay on loans and also to bring them into the conversion scheme. It had been availed of by a large number of local authorities, and he desired to : impress on others the desirability of taking full advantage of the Act in order to get the local body finances on a sound basis. So far as the reduction in the rate of interest was concerned that depended '. a good deal on Parliament and might not continue, and he thought :it would be wise for the local bodies to act/without delay. ■■"'.': ,■•■ ; ',' / ■■'. y ''--/y..

The Loans Board up to the present had dealt with over £20,000,000 in' the waj of conversion, Mr Forbas said, representing about half the total local debt, but there was still a long way "to go. A pleasing feature about the scheme was that since the passing :of the legislation the rate of interest had fallen substantially. Local bodies were having: no difficulty in filling their requirements at 4J per cent., and In some cases at a lower 'rate. ■ '< •"" • - ■ ■