EXPIRING LOANS

Timaru Herald, Volume CLVI, Issue 23083, 23 December 1944, Page 5

EXPIRING LOANS

What Will New Zealand Do? N.Z.P.A.—Special Correspondent (8.50 p.m.) LONDON, Dec. 22. Little attention has so far been attracted by two New Zealand loans which have to be repaid next year, says the “Financial News.” They are £7,500,000 of 4i per cent stock and £9,500,000 of 3 per cent stock. The market is wondering what the procedure will be. “When attempting to assess the prospects of conversion or repayment,” says’ the journal, “one naturally thinks first of the amount of cash there is in hand. New Zealand’s overseas assets total about £35,000,000 a rise of £7,500,000 over the year. Assuming, which seems fair enough, that the bulk of this consists of sterling, there would be plenty of money for the cash payment of both Issues. All the same there are a number of possible reasons why a cash repayment should not be undertaken. The present level of sterling balances is due to abnormal wartime circumstances. We have made bulk purchases of New Zealand’s primary produce, but New Zealand has been unable to get many of our goods in

return. After the war the Dominion may require much of the money for restocking purposes. Again the financial arrangements between this country and New Zealand have not reached finality. In November it was mentioned in the House of Commons that the payment of sums due to the United Kingdom of up to £18,000,000 might be deferred for subsequent adjustment.” The “News” suggests that conversion is more probable. (Mr Nash, in a statement last night, said the subject had been under consideration and negotiation for some time, but it was unlikely that any further statement would be made until arrangements for dealing with the loans referred to had been completed.]