RAISING OF LOAN

Otago Daily Times, Issue 23806, 12 May 1939, Page 8

RAISING OF LOAN

INTEREST RATE RESTRICTION HARBOUR BOARD’S EXPERIENCE (Per United Press Association) NEW PLYMOUTH, May 11. “1 am satisfied that we are paying one-half per cent, more for the new loan than we would have had to pay had we had a free hand to make our own arrangements,” said the chairman of the New Plymouth Harbour Board (Mr C. E. Bellringer), when reporting on the completion of negotiations for the renewal of a loan of £325,000 in connection with the redemption of two loans that fell due in London on May 1. More than 18 months was necessary to make suitable arrangements for the repayment of the loans, Mr Bellringer said. Efforts to raise the money in England failed, and an endeavour had been made to raise the loan in New Zealand, the board being prepared- to pay up to 4i per cent. As the authority of the Loans Board to raise the loan stipulated that the interest rate should be 3i per cent, the board was not permitted to offer a higher rate, and after exhausting all other avenues, It raised the loan in Australia at 4j per cent. “ Had we been allowed to go on the market when we began the negotiations,” Mr Bellringer declared, “I am sure we would have secured the money.”