HC Deb 27 March 1929 vol 226 cc2449-50W

asked the Chancellor of the Exchequer whether he is aware that the loans of Colonial Governments are eligible as trustee securities in spite of the fact that the budgets of such Governments may not have balanced for three consecutive years, that revenue surpluses are not applied to the reduction of debt, and that an adequate sinking fund may not be maintained; and what action he proposes to take in the matter?


I have on previous occasions expressed the view that the provision of a sinking fund and the inclusion in the prospectus of detailed information as to the financial position of the borrower and the purpose for which the loan is required are desirable both in the interests of the investor and of the borrowing Government; and I believe there has been an improvement in these respects in recent years. I am not at present advised that there is power to compel borrowing Governments to comply with such conditions.

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