NEW ZEALAND LOAN

Southland Times, Issue 21072, 2 May 1930, Page 7

NEW ZEALAND LOAN

£5,500,000 FROM LONDON

DOMINION’S CREDIT HIGH.

(United Press Assn.

.—By Telegraph—Copyright)

London, April 30.

The financial correspondent of the Daily Telegraph states that, a New Zealand loan of £5,500,000 5 per cent, inscribed stock, 1949, is being underwritten at 99. A part is required to meet a short term loan maturing debt. New Zealand is always a popular borrower on London. While the depression in the pastoral industry has affected the exchange, the high standing of New Zealand’s credit is evidenced by the quotations of its outstanding loans.

LOAN FOR PUBLIC WORKS

STATEMENT BY SIR JOSEPH WARD.

(Per United Press Association.)

Wellington, May 1

The Prime Minister, in a telephone message from Rotorua stated that the Press cable to the effect that the New Zealand loan of £5,500,000 at 5 per cent., with currency to 1949, was being underwritten at £99 per cent., was correct insofar as the terms and purposes of the loan were concerned.

He stated that he would give further particulars later on after the public subscription lists had closed. Sir Joseph added, however, that the statement that part of the loan was required to meet short term maturing debt was misleading. It was true, he remarked, that part of the cash proceeds will probably be temporarily used to pay off treasury bills issued in London on account of exchange difficulties hindering the remittance of cash from New Zealand, which cash is at present invested here on fixed deposit. The loan, however, he stated was being raised for carrying on the public works programme of the Government and it . would be applied to that purpose within the current financial year.