§ The National Debt decreased by £34 million in total over the year. Reduction in the debt resulting from the return to the Exchequer of £450 million out of the sterling capital of the Exchange Equalisation Account and from the application of sinking funds of £42 million were largely offset by additional borrowings of £331 million to cover the balance of the below-the-line deficit and by an increase of £107 million arising from the issue of two securities during the year at a discount.
975§ Eight hundred and twenty-four million pounds of 2½ per cent. National War Bonds matured on 15th August, 1956, and £658 million of this was converted into 4½ per cent. Conversion Stock, 1962, the rest being paid off. Further tranches of two existing securities were issued for cash during the year: £250 million of 3½ per cent. Treasury Stock 1979–81 issued at a price of 81 and £300 million of 3½ per cent. Funding Stock 1999–2004 issued at 80. Two hundred and two million pounds were lent back to the Exchequer by the International Monetary Fund, being the sterling equivalent of the dollars which we purchased from the Fund last December to reinforce our reserves.
§ In addition. Savings Certificates, Defence Bonds and Premium Savings Bonds brought in £100 million. The effect of the year's operations has been a reduction of almost £600 million in the level of Treasury bills outstanding. In other words, over the year the total of the National Debt was slightly reduced and there was a fairly substantial change from short-term to long-term borrowing.