— A (1) 7 —
# REPORT ON THE TRADE LOAN.
The sterling liability on 31st December stood at £415,000. During the course of the year under review, £435,000 was repaid as against £400,000 in 1926, and £550,000 in 1927. Loans obtained in London amounted to £1,800,000 and by the end of the year £1,385,000 had been repaid. The Hong Kong and Shanghai Banking Corporation are now the sole lenders.
All loans fell due for repayment at the latter part of 1927 and the beginning of 1928, but owing to the financial situation then prevailing it was decided not to put any undue pressure on the borrowers, and many loans were renewed on a month-to-month basis.
It was found necessary in four cases to resort to enforcement of the security, and no losses were sustained in this connection.
The Overdraft at Bank at the close of the year was $4,023,050.88.
The following table shows the financial position of the loan on 31st December, 1928:
Total of Loans issued from 16th November, 1925 on the security of Mortgages $15,628,782.84 Less redemption effected during the year: 1926 $2,604,930.00 1927 4,845,879.76 1928 3,403,560.02 Total $10,854,369.78 $4,774,413.06 Less amount written off as Irrecoverable 76,506.93 Total of Loans outstanding on 31st Dec. 1928 $4,697,906.13 Overdraft with the Hong Kong and Shanghai Banking Corporation on 31st Dec. 1928 $4,023,050.88 Interest in arrears on 31st December, 1926 $117,369.42 31st December, 1927 $206,818.64 31st December, 1928 $321,121.10