WAR DEBT

Southland Times, Issue 19388, 31 October 1924, Page 8

WAR DEBT

NEW LEGISLATION. WEIGHT FOR VEHICLES. POWERS OF LOCAL BODIES. (Our Parliamentary Reporter.) WELLINGTON, October 29. The Prime Minister made an interesting statement in the House of Representatives to-day inthe form of a return concerning the interest payments and methods of funding the War Debt. The amount of interest paid up to March 31, 1924, on the War Debt was £22.853,056. The War Debt at that date was £77,434,184 of which £25,924,904, being the balance of £26,340,245, is funded on an annuity basis at 6 per cent, on the original debt calculated to pay off the principal and interest in 36| years from date of agreement, viz., September 6, 1922. The amount of interest paid to Match 31, 1924 on this portion of the debt was £1,955,282 and the amount remaining to be paid to date of maturity is £29,380,608, making a total of £31,344,890. On the remaining portion of the war debt, viz., £51,509,280 the amount of interest charge at March 31, 1924 was £2,374,493 and on the present basis of sinking fund the total principal will be repaid in 33 years. The sinking fund, if accumulated at the present rate of interest for a further 33 years, will equal the total amount of War Debt then outstanding.

On the assumption that the interest rates on the loans are unaltered the total interests remaining to be paid on the War Loan will amount to £107,747,877. These figures are estimates and are subject to debt reductions, conversions and alterations of interest on loans issued for redemption purposes which may materially affect the ultimate amount.