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Result of Commonwealth loan



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FOR PRESS

STATEMENT BY THE TREASURER

-THE RIGHT HONOURABLE HAROLD HOLT, M.P,

RESULT OF COMMONWEALTH LOAN '

Subscriptions to the Commonwealth cash loan

which closed on Tuesday, July 30th totalled £7*+·5 million,

representing an over-subscription of £29.5 million over

the nominal target of £45 million. .

Of the total subscriptions £13.5 million had

already been received by the 30th June in the form of

advance subscriptions, -and had thus already been recorded

in the Commonwealth’s accounts for 1962-63, Nevertheless,

Mr, Holt said, the amount of £61.0 million subscribed

to the loan since the beginning of July provided a good

start for the Commonwealth’s borrowing programme for the

current year. ■

Mr. Holt said that, although the loan was raised'

in a period which is normally the seasonally low point of

the year for liquidity, funds in the hands of private

investors and institutions were at unusually high levels.

In addition, some State authorities apparently had

considerable amounts of short-term funds available in

excess of their immediate requirements, and it appears

that some of these funds were subscribed to the loan directly

or indirectly through the money market.

Mr. Holt said today that he was pleased with the

result of the loan, which in some respects had been in ,

the nature of an experiment. It was the first Commonwealth

cash loan raised in July for many years, and was also on

issue for a 1 shorter period than usual.

While the success of the cash loan was largely

due to institutional support, smaller investors showed a

preference for subscriptions to Special Bonds, and net

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subscriptions to Series ”1" Bonds have been very

satisfactory.. The fact that subscriptions to Special

Bonds were higher than in any corresponding loan

campaign period last year was a further indication of

the growing appeal of this form of security for small

investors. '

CANBERRA.

4th August, 1963.

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