BRITISH BORROWING

Wanganui Chronicle, Volume 75, Issue 205, 31 August 1932, Page 8

BRITISH BORROWING

HUGE CREDITS REPAID UNITED STATES AND FRANCE I. British Official Wireless. ] Received Aug. 30, 6.15 p.m. RUGBY, Aug. 29, In view of the entirely inaccurate reports current in certain quarters regarding the repayment of the credits obtained last year from the United States, it is necessary to restate that all the sums drawn against that credit were finally repaid last April. Full details of the transactions undertaken during the crisis last year were as follows: Original Treasury credits from the United States. 200,000,000 dollars on August 28 of last year and from France 2,500,000,000 francs by the banks on September 10 and 2,500,000,000 francs by the public issue of bonds on September 10. The first repayment was made on March 4 of this year, when 150,000,000 dollars was finally repaid to the United States without the rihgt of withdrawal. On March 29 30,000.000 dollars were repaid but with the right to reborrow up to August 28, 1932, and on April 5, ’20,000,000 dollars were repaid under similar conditions. In regard to the credits from France, repayments were made this year as follows: March 1, 1,250,000,000 francs; March 2, 350,000/ 000 francs; March 24, 900,000,000 francs. All the repayments being made with the right to reborrow up to September 10 (the anniversary of the original loan). Thus the whole of the United States credit and half the French credit were repaid in March and April last and approximately half of this represented the final payment. The right of the British Treasury to redraw has never been exercise and will now finally lapse. Arrangements have been made for the final repayment on due date,. September 10, of the last outstanding portion of the original credits, namely 2,500,000,000 francs subscribed by the French public in the form of bonds. Thereafter the whole of the foreign credits acquired in the emergency last summer, whether current or in the form of contingent rights, will have disappeared, the repayments in all cases having been made in full.