LOAN REPAYMENT

Otago Daily Times, Issue 25881, 27 June 1945, Page 2

LOAN REPAYMENT

SHORT-TERM INTERNAL ISSUE The Government has requested the Reserve Bank to give notice of repayment at maturity to all holders of 3 per cent, stock and stock certificates maturing on July 15 next. The amount of the loan due for redemption is £2,144,910, all of which is domiciled in the Dominion, and on which the annual interest charge is £64,348. Tine loan is part of the National Development issue placed on the market on January 4, 1941. Two issues were concerned—3 per cent, stock issued at par, repavable July 15, 1945, and 31 per cent, stock issued at £97 5s per cent., repayable in 1956-59. The prospectus did not state the amount of loan required, nor was any period for application stipulated. The purpose of the loan was to provide capital for national development works, including railway construction and hydroelectric, land and forest development, as well as housing, roads, essential public buildings, and telephone and telegraph extensions. Little sympathy was shown in the market at the time with the purposes of the issue. The short-term issue was the least successful, and was withdrawn eventually on May 14, 1941, while the 3J per cent, issue remained available until July, when, owing to a falling tendency in gilt-edged interest yields, it be>?an to attract a largely-increased flow of investment, funds. The latest accounts show that £6,275,680 was invested in the 31 per cent, issue, which matures finally on January 15, 1959, and is repayable at the option of the Government at par at any time on or after- January 15. 1956, on three months' notice.