Finance Public and Private
The Government's Conversion Proposals
DunrNG the past week the Investment Markets have been very largely dominated by the Government's proposals to holders of debt maturing during the early part of the coming year. Altogether the total nominal amount of the maturing debt is a little over £200,000,000, the larger amount being in 5 per cent. National War Bonds, and the remainder in 31 per cent. War Loan and in 4 per cent. National War Bonds. In the case of the War Loan and the 4 per cent. Bonds repayment is at par, but in the case of the 5 per cent. War Bonds holders who do not convert have the right to receive redemption on the basis of 105 per cent.
The offer to all three classes of holders is to exchange into the existing 31 per cent. Conversion Loan, of which there is at present about £760,000,000 outstanding, redemption being at par on or after April 1st, 1961, at the option of the Government only, and with prices at their present level the Stock is therefore virtually irredeem- able.
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