CONVERSION OF LOAN.
Rush of Applications in Australia. THREE-WEEK CAMPAIGN. United Press Assn.—By Electric Telegraph—Copyright. SYDNEY, August 10. The national conversion loan operation opened to-day under auspicious circumstances. Treasury and bank officials were inundated with applications for the conversion of existing bonds, which agregate £556,000.000, into I the new lower rate of interest stock in I accordance with the Rehabilitation I Plan. An intensive campaign will be carried out during the next three weeks to bring about the desired result. The general provisions of the conversion are as follow: On conversion all existing securities will be subject to a general reduction of 22} per cent in the interest yield, provided that holders of 3} and 3-1 per cefft stocks, who acquired such securities before August 4, 1914, shall not have the interest reduced below 3 per cent. The securities will be restricted to three flat rates of interest, viz, 4. 31. and 3 per cent and will be spread over ten fixed maturity dates. Existing securities (£450.000,000) now bearing interest at 5i per cent and over will be converted into 4 per cent at a premium. Existing securities (£45,000,- j 000) now bearing interest at 5 per cent | will be converted at option of holder { into 32 per cent stock at par, matur i ing in sixteen years, or 4 per cent stock j at a discount. Existing securities ! * £61,000.000) now bearing interest at less than 5 per cent will be converted at option of holder into 3 per cent stock maturing in seven years and thirteen years (at a premium) or into four per cent stock at a discount. The interest on the new securities will be free from the present Commonwealth super tax of 7} per cent. Other special conditions are applicable to existing tax free securities. LOAN ISSUES HARDEN. (Received August 11. 10 a.m.) SYDNEY, August 11 Commonwealth loan issues have registered an increase in* the investment market. Bank shares also advanced
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Bibliographic details
Star (Christchurch), Volume XLIV, Issue 189, 11 August 1931, Page 1
Word Count
325CONVERSION OF LOAN. Star (Christchurch), Volume XLIV, Issue 189, 11 August 1931, Page 1
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