PM Transcripts

FOR PRESS 70/ 1966
FINANCIAL ASSISTANCE BY AUSTRALIA TO NEV ZEALAND
Statement by the Prime inistZr. Mr. Harold Holt
Following discussions with the Prime Minister of New Zealand
( Mr. Holyoake) when he was in Australia last month, and discussions
in Cabinet, ithas been arranged that the Reserve Bank of Australia
will extend a credit of up to U20nto the Reserve Bank of New
Zealand. The credit will help New Zealand in its present balance
of payments difficulties.
As additional facility of up to $ Al~ m. will be made available
to the Reserve Bank of New Zealand on a stand-by basis.
Drawings under these credits may be made during the current
financial year 1966/ 67, and will help to finance New Zealand payments
in Australia. Funds drawn by the Reserve Bank of New Zealand will be
repayable by the end of 1971.
The arrangement represents a further tangible expression of
the close bonds between our two countries. For its part, the
Australia Government is pleased to be associated with New Zealand
in this way. We have growing obligations in the Pacific area, and
we recognise the importance of assisting one another in dealing with
our mutual problems.
Background Note
This is the second time Australia has provided direct balance
of payments assistance to New Zealand in recent years. In 1958,
a Central Bank credit of EAlOm. ( A2Om) was made available to New
Zealand. Drawings on the credit will carry interest at 6% per annum.