NEW ZEALAND FOREIGN DEBT EXPECTED TO KEEP FALLING
New Zealand's total foreign debt
will continue to decline as major energy projects are
refinanced, Finance Minister Roger Douglas said.
    Statistics Department figures show total debt fell to 32.94
billion N.Z. Dlrs in the December quarter from 33.42 billion in
September, although the government's share rose to 21.32
billion from 20.75 billion.
    Douglas said in a statement this was due to the boosting of
reserves to refinance so-called "Think Big" projects.
    "These reserves do not add to New Zealand's total
indebtedness.... They are money in the bank," he said.
    "As negotiations to refinance each Think Big project are
completed, existing loans will be replaced with debt currently
held in reserves for this purpose," Douglas added.
    This in turn will result in a drop in quasi-government and
private debt, he said.
    He said refinancing of projects allowed the government to
borrow on more favourable terms and to manage Think Big debts
more effectively.
    "Both of these will reduce the cost of Think Big to the
taxpayer over time," he said. "The refinancing also paves the way
to deregulation of the oil industry."
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