LOAN CONVERSION TERMS

Taranaki Daily News, 12 June 1931, Page 7

LOAN CONVERSION TERMS

INVITATION TO HOLDERS REDUCTION OF 22£ PER CENT —— ( BASIS TO BE VOLUNTARY CERTAIN TAX EXEMPTIONS By Telegraph—Press Assn. —Copyright. Rec. 12.?5 a.m. Melbourne, June 11. The general conditions of the Australian conversion loan of £560,000,000 have been approved by the Loan Council. Holders of bonds will be invited to convert their holdings into new stock, and upon conversion all existing securities will be subject to a general reduction of 224 per cent, in the interest yield, excepting holders of 3, 34 and 3J per cent, bonds, who acquired these before August, 1915. The new securities are to be restricted to three flat rates of interest—4 per cent., 3 7-8 per cent., and 3 per cent., and to be spread over'lo fixed maturity dates, subject to the Government having the right to redeem them after December, 1950._ Existing securities amounting to £450,000,000, bearing interest at st. per cent.and over, are to be converted into 4 per cent, securities at a premium. As a general rule each holding is to be spread equally over the 10 maturity dates. Conditions are also laid down dealing with existing securities, amounting to £45,000,000 and £61,000,000 respectively. Interest on the new securities will be exempt from the Commonwealth super-tax of 74 per cent, but will be subject to other ■existing Commonwealth and State taxation. , . . Provision is also made for the conversion of tax-free securities on a voluntary basis.