you have to pay the little bills first......., page-13

Asanque
re discussion concerning CER/CNP hedgeing arrangements.
I spoke to GCFO Chris Nunn after yesterday's meeting re how close CER were to closing out hedges with CNP.

Without specific reference to any contacts, I was left with the following impressions:-
1. with the american interest rates at vitually zero and the OZ rates going up, and simularly with the US & Aust dollar differential going the same way, existing contracts are out of the money and will be for the foreseable future.
2.banks will not advance cash to pay out contracts so we will be stuck with the hedge deal for a while yet.