New Zealand Gazette – 1987 – No. 146

Page 4141

✨ Public Debt and Financial Transactions



28 AUGUST THE NEW ZEALAND GAZETTE 4141

  1. The Public Debt of New Zealand—Inflation-adjusted Savings Bonds

This figure does not include the sum of $500,194,832 being the assessment by the Reserve Bank of New Zealand of the obligation at 30 June 1987 in respect of the premium on redemption.

  1. Swap Transactions

As permitted by Section 91A of the Public Finance Act, the Government has entered into three currency swap arrangements. Under such arrangements the proceeds of a borrowing are converted into a different currency and, simultaneously, a forward exchange agreement is entered providing for a schedule of future exchanges of the two currencies in order to recover the currency converted. The effect is to transform the cost of the original borrowing to a cost which reflects the market yield of the currency obtained in the conversion.

While it is impracticable to record the details of the swap arrangements in the public debt tables, the following schedule shows the effect of the swap transactions undertaken. The foreign currencies have been converted at bank rates prevailing on 29 May 1987.

Maturing Year Ending 31 March Currency $(000)
US$ Japanese Yen European Currency Unit
1992 ... 215,935 Cr 240,294 Cr ...
1992 ... 84,719 Dr 96,397 Cr ...
1993 ... 391,545 Dr ... 394,643 Cr
1994 ... 214,897 Dr 240,993 Cr ...
  1. Movements in Currency Values

In accordance with the Particular Accounting Policy adopted in respect of foreign currencies the exchange rates were officially realigned on 29 May 1987. The New Zealand dollar values of overseas public debt, investments, and cash holdings were adjusted accordingly. There were also several individual alterations during the quarter which necessitated adjustment to the New Zealand dollar values of the overseas investments and cash holdings concerned.

The total net decrease in the public debt of $298,820,000 arising from 29 May 1987 realignment consisted:

Realignment 29 May 1987 Increase $(000) Decrease $(000)
Loans denominated in—
Australian dollar 24 ...
Canadian dollar ... 479
Deutschemark ... 47,992
European currency unit ... 23,746
Indian rupee ... 89
Japanese yen 122,550 ...
Dutch guilder ... 4,940
Pound sterling 22,182 ...
... 50,624
Swiss franc ... 315,649
United States dollar 144,756 ...
... 443,519
IBRD loans (various currencies) ... 57
Net decrease 298,820 443,576
$443,576 $443,576


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✨ LLM interpretation of page content

💰 Inflation-adjusted Savings Bonds

💰 Finance & Revenue
Public Debt, Inflation-adjusted Savings Bonds, Reserve Bank of New Zealand

💰 Currency Swap Transactions

💰 Finance & Revenue
Swap Transactions, Public Finance Act, Currency Conversion, Foreign Currencies

💰 Movements in Currency Values

💰 Finance & Revenue
Currency Realignment, Exchange Rates, Public Debt, Overseas Investments