§ 17. Mr. Jayasked the Chancellor of the Exchequer what undertakings about British credit and fiscal policy have been given by him to the International Monetary Fund in return for the loan from the Fund announced on 4th December.
§ Mr. H. MacmillanThe drawing and stand-by arrangement approved by the 1082 Fund was not conditional on any undertaking by Her Majesty's Government about their fiscal and credit policies. The Fund, however, noted, in approving the United Kingdom application for a standby arrangement, my statement of 4th December, in which I announced our intention to take all necessary action to strengthen the internal economy and to keep internal demand under restraint, in particular by the maintenance of the control over credit.
§ Mr. JayIs there, then, no foundation in the Press reports that such undertakings had been given by the Chancellor?
§ Mr. MacmillanNone, Sir. The position is exactly as stated in my Answer.
§ 18. Mr. Jayasked the Chancellor of the Exchequer what interest rate will be payable on the loan from the International Monetary Fund announced on 4th December.
§ Mr. H. MacmillanThe arrangement with the Fund falls into two parts, a drawing of U.S. $561.47 million, and a stand-by agreement of the equivalent of U.S. $738.53 million. On the drawing, we pay an initial service charge of ½ per cent. and charges which, if the drawing is taken for three years, are equivalent to an average annual rate of 1.52 per cent. On the stand-by, we pay a charge of¼per cent. per annum.
§ Mr. JayCan the Chancellor say what is the interest rate on the further loan from the Export-Import Bank?
§ Mr. MacmillanNo, Sir, because that is still under discussion.