N.Z. INTERNAL LOAN FALLING DUE

Wanganui Chronicle, Volume 89, Issue 299, 19 December 1945, Page 5

N.Z. INTERNAL LOAN FALLING DUE

CASH OR CONVERSION OFFER BY GOVERNMENT NEW SECURITY AT PAR. (P.A.) Wellington, Dec. 18. The Government’s proposal for dealing with an internal loan totalling £8,931,900 domiciled in New Zealand and maturing on April 15, 1949, but on which the Government has an option to repay on or after April 15, 1946, was described by the Minister of Finance, Mr. Nash, to-night. “It is proposed to exercise the option on the latter date,” said Mr. Nash, “but the Government is offering conversion, particulars of which are contained in a prospectus which will be issued early in the New Year.” This week's Gazette contains formal notice of intention to repay the loan on April 15, 1946, Mr. Nash added, and the offer of conversion would be open for one month from January 15 to February 15, and holders of existing securities were entitled to apply during that period, for conversion of their existing securities at par into the new securities being offered- 3 per cent, stock, maturing on April 15, 1960-63. Holders who did not accept conversion would bt paid in cash on April 15, next.

Mr. Nash said the conversion offer would apply to death duty stock in the present loan. No premium was offered on conversion, as the Government considered that conversion at par was reasonable and in keeping with the present market conditions.