COUNCIL HOPE TO SAVE INTEREST ON LOAN REPAYMENTS

Star (Christchurch), Issue 18890, 15 October 1929, Page 11

COUNCIL HOPE TO SAVE INTEREST ON LOAN REPAYMENTS

With the declared object of benefit ing by a reduction of interest on loans totalling £18,200, the City Council decided last night to pay off during 1930 those loans on which the interest was 6! per cent, instead of leaving them to continue until 1935. The question of repayment arose through the Finance Committee reporting that the council had the option to pay off several loans during 1930, the alternative being for the loans to continue until 1935. These loans bore interest at the rate of 6£ per cent, and it was anticipated that they could be raised at a rate not exceeding 5i per cent. That being the case, the committee recommended the council to exercise its option. The loans referred to were as follow: Municipal Buildings loan £5600, due June 1, 1930—Approximate amount to be re-raised, £4930. Sanitary works loan £7OOO, due July 31, 1930—Approximate amount to be re-raised, £5700. Linwood public works loan £7500, due August 1, 1930—Approximate amount to be re-raised, £6570. Total approximate amounts to be reraised, £18,200. It was recommended that the authority of the Local Government Loans Board should be obtained to raise the outstanding portions of the following loans, the sinking funds for which would not be sufficient to meet the loans when due:— Papanui channelling loan £IO,OOO, due January 1, 1930—Approximate amount to be re-raised, £9OOO. Papanui Town Hall and Library loan, city share £4024 4s lOd, due January 1, 1930—Approximate amount to be re-raised, £3500. Beckenham - Fisherton Recreation Ground loan of £750, due February 18, 1930 Approximate amount to be reraised, £SOO. City Borrowing Act loan of £35,000, due April 1, 1930—Approximate amount to be re-raised, £16,600. Total. approximate amount to be reraised, £29,600.