BRITISH FINANCES

Poverty Bay Herald, Volume LIX, Issue 17872, 31 August 1932, Page 7

BRITISH FINANCES

REPAYMENT OF CREDITS POSITION EXPLAINED THE FINAL LIQUIDATION (British Official Wireless.) Pec. 10 a.m. RUGBY, Aug. 30. In view of the entirely inaccurate reports current in certain quarters regarding the repayment of credits obtained last year from the United States, it is necessary to restate that, all sums drawn against that credit were finally repaid last April.

Full details of the transactions undertaken during the crisis last year were as follows: Original Treasury credits from the United States, 200,000,000 dollars on August, 28 Last year; and . from France 2,1500,000,000 francs by banks, on September 10, and 2,1500,000,000 francs by a public issue of Ibonds on September 10. Tlhe first repayment was made on March 4 of this year, when 150,000,000 dollars was finally repaid to the United States without right of withdrawal; on March 29, 30,000,000 dollars was repaid, but with , the right to reborrow up-to August 28, 1932; and on April 5, 20,000,000 dollars was repaid under similar conditions.

In regard to the credits from France, repayments were made this year as follow: March 1, 1,250,000,000 francs; March 2, 350,000,000. francs; March 24, 900,000,000 francs, all the repayments being made with the right to reborrow up to September 10, the anniversary of the original loan. Thus the whole of the United States credit and half the French credit wore repaid In March and April last. Approximately half 6f this represented a final payment. The right of the British Treasury to redraw has nevgr been exercised, and will now finally lapse. Arrangements have been made for the 'final repayment on the due date, September 10, of tho last outstanding portion of the original credits, namely, 2,000,000,000 francs, subscribed by the French public in the form of bonds. Thereafter, the whole of the foreign credits acquired in the emergency last summer, whether current or in the form of‘contingent rights, will have disappeared, the repayments in all cases having been made in full.