INTERNAL LOANS

Southland Times, Issue 21855, 4 November 1932, Page 7

INTERNAL LOANS

BORROWING BY GOVERNMENT. POSITION OUTLINED. (From Our Parliamentary Reporter.) Wellington, November 3. According to a reply to an urgent question asked in the House of Representatives this afternoon the New Zealand Government is still offering five per cent,’ for internal loans for the purpose of redeeming maturing loans. Mr A. D. McLeod asked the Prime Minister if it was correct, as had been reported by a Press cablegram, _ that the Australian banks were arranging to lend the Commonwealth £8,000,000 at 3J per cent, and if the New Zealand Government was borrowing money at 5 per cent, over a period corresponding to the Australian loans. Also, if the money borrowed by the New Zealand Government was for any special purpose and if the rate of exchange had any effect on the rate of interest. In reply the Prime Minister said that the Government had no further information than had appeared in the Press cablegrams. The New Zealand Government was borrowing at present in New Zealand at 5 per cent, with currency to September, 1937. The currency was being altered to June 15, 1940, as from the 7th inst. The proceeds of these issues were for the redemption of maturing loans. It was not considered that the exchange rate had anything to do with the rate of interest.