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Commonwealth borrowing for Australian shipping commission



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NO. 57

TREASURER

EMBARGO NOT FOR RELEASE BEFORE 5.00PM 2 JUNE 1977

STATEMENT BY THE TREASURER THE RT HON PHILLIP LYNCH M.P.

COMMONWEALTH BORROWING FOR AUSTRALIAN SHIPPING COMMISSION

The Treasurer, Mr Phillip Lynch, today announced that the

Commonwealth has arranged a loan with the Swiss Bank Corporation

(Luxembourg) Ltd, to assist the Australian Shipping Commission

(ANL) to make a final progress payment on the second of the two

bulk ore carriers, presently under construction for the Line at

the Gotaverken shipyard in Sweden.

The loan is in the form of a private placement for $US21 million

($A19 million). It carries an interest rate of 7.75 per cent

payable annually and was issued at par (100 per cent). The loan will

finally mature in eight years with repayments of $US2.1 million to be

made at the end of the fifth, sixth and seventh years and a final

repayment of $US14.7 million at the end of the eighth year.

Mr Lynch said the terms and conditions of the borrowing, which was

arranged with the approval of the Australian Loan Council, were very

favourable in present market conditions and confirmed Australia's

very high standing as a borrower in international capital markets.

CANBERRA ACT 2 June 1977