RENEWAL LOAN

Poverty Bay Herald, Volume LXVI, Issue 19885, 11 March 1939, Page 14

RENEWAL LOAN

!\l. PLYMOUTH BORROWING MONEY FROM AUSTRALIA WRONG VI FAY POSSIBLE STOCKRR OKER EXP IjAINS (Per Press Association.) DUNEDIN, this day. A correction of the impression that might be gained concerning the New Plymouth Harbour Board's arrangement to borrow £325,000 in Australia at 4:i per cent, owing to the impossibility of raisin;.; the money in New Zealand al the rale specified by the Local Government Loans Board, was given at yesterday morning's call-over of the Dunedin Stock. Exchange by the chairman, Mr. Barman Reeves, who is also president of the StockExchange of New Zealand. Mr. Reeves said he understood that the loan in Australia was merely a renewal of the old loan and that the rate fixed was 4.3 per cent. The impression of the Press Association message was that loans for local bodies were being raised outside the Dominion.

"The borrowing of £325,000 in Australia at 42 per cent would appear to be a renewal of the existing loan and must not be confused with the breakwater extension loan of £150,000, which was a new loan issued in New Zealand at 3J per cent, of which only £BOOO was applied for according to the statement of the chairman of the New Plymouth Harbour Board," said Mr. Reeves.

"The loan of £325,000 is merely a conversion or renewal, and has been raised apparently in Australia to pay oft the London loan," said Mr Reeves.