HC Deb 23 January 1945 vol 407 cc636-7
56. Mr. Craven-Ellis

asked the Chancellor of the Exchequer whether the Government will take steps which will result in a reduction of the present high rate of interest, 8 per cent., now chargeable upon the Greek External National Debt, as this might be a contributing factor to the present disunity in Greece.

Sir J. Anderson

I think my hon. Friend's Question must be based on a misconception, since it is not the case that a rate of interest of 8 per cent. is chargeable upon the Greek External Debt. I should perhaps remind the hon. Member that in January, 1940, as a result of negotiations between the Greek Government on the one hand and the Council of Foreign Bondholders and the League Loans Committee on the other hand, the Greek Government undertook to pay over a proportion of the interest on its external debt for the period from 1st April, 1940, until the end of the war, a moratorium being granted in respect of the remaining amounts due. As a result of the occupation of Greece by the enemy, the Greek Government was forced to suspend the service of its external debt in April, 1941, but in March, 1942, the Greek Government informed the Council of Foreign Bondholders and the League Loans Committee that it would carefully re-examine the question with them as soon as possible after the liberation of Greece and the establishment of a measure of recovery in her economic life, in order to reach a just and equitable settlement. It has not yet been possible for such re-examination to take place.

Mr. Craven-Ellis

While the rate may not be exactly 8 per cent., it is a very excessive rate. Does the right hon. Gentleman not think that these heavy rates of interest are likely to cause discontent in the minds of the Greek people?

Mr. Edgar Granville

Can the Chancellor say whether the Treasury expert who is at the present time in Greece dealing with questions of currency and so on, has discussed with members of the present Greek Government the question of converting Greek loans to a lower rate of interest?

Sir J. Anderson

It is fruitless to go on discussing this on a basis of complete misapprehension. There are numerous outstanding loans ranging from 2½ per cent. to 7 per cent., which is the highest. The overall figure is far below that of 8 per cent.