§ 5. Mr. Luardasked the Minister of Overseas Development what proportion of the British aid programme during the current financial year will be given at reduced rates of interest, free of interest and as outright grants; and what were the comparable figures for last year.
§ Mr. OramFigures for the current financial year are not complete. In the calendar year 1966, aid of the grant type—including, for example, technical assistance and contributions to multilateral agencies—constituted 52 per cent. of total disbursements, drawings from interest-free loans 20 per cent. and drawings on loans at reduced rates of interest amounted to less than 1 per cent. Comparable figures for 1965 were 57 per cent., 6 per cent. and less than 1 per cent. In addition, the value to the recipients of loans at full interest rates is frequently increased by the waiver of interest in the opening years.
§ Mr. LuardCan my hon. Friend give an assurance that it is still the Government's intention to increase the proportion of aid given either in the form of outright grants or free of interest?
§ Mr. OramYes, Sir. I can give that assurance. The figures I have given mainly represent drawings of loans negotiated some years ago. The pattern of interest rates for loans being negotiated at the present time is very different; 90 per cent. of the new loans which we undertook in 1966 were on interest-free terms.