PM Transcripts

FOR PRESS PM Z8/ 1963
NEW AUSTRALIAN CASH LOAN IN LONDON
Statement by the Prime Minister, the Rt. Hon. Sir Robert Menzies
The Prime Minister and Chairman of the Australian
Loan Council ( Sir Pobert Menzies) gave details tonight of a new
Australian cash loan which has been negotiated in London by the
Commonwealth Treasurer ( Mr. Harold Holt) with the approval of the
Loan Council. The loan will be for an amount of œ Stg. 20 million
million) and will carry an interest rate of 5j per cent
with an issue price of 98-i-. The loan will mature in April 1981-82.
Sir Robert said that f3tg. 5.7 million (œ CA7.1 million)
of the proceeds will be earmarked for the redemption of an
equivalent amount of Commonwealth securities which mature in
London on 1st January 1964. The remaining œ Stg. 14.3 million
(œ A17.9 million) will be available for the 1963-6+ Commonwealth
and State borrowing programmes approved by the Loan Council.
Sir Robert said that, in view of the difficulties
which Australia may face in borrowing in the United States for
the next few years as a result of the proposed Interest
Equalization Tax on foreign issues in that country, it was
particularly gratifying that the Treasurer had been able to
arrange such a large cash loan in London.
The new loan will be the fourth Australian cash loan
in London since 1958, the three previous loans being for amounts
of either œ Stg. 12 million or œ Stg. 15 million. Each of these was
issued at 5-L per cent, and the most recent loan ( in January 1963)
was for an amount of œ Stg. 12 million and had an issue price of 98.
The new loan will open for subscription in London on
W-Tednesday 2nd October.
CANBERRA. 27th September, 1963.