§ Mr. Warbey
asked the Chancellor of the Exchequer what are minimum and maximum rates of interest at which loans have been made by the International Bank for Reconstruction and Development; what are the normal repayment terms; what is the rate of interest charged on loans made during the past year; and what, at this rate of interest, 19W is the total amount repayable per £1,000 of capital advanced.
§ Mr. Barber
The International Bank's Fourteenth Annual Report includes a statement of all loans made from the beginning of the Bank's operations up to 30th June, 1959. This shows that the lowest rate of interest on any loan made by the Bank has been 3¾ per cent.; that the highest rate during the period covered was 6 per cent. and that the period of repayment has varied from loan to loan. On page 12 of the Report it is stated that the interest rate on new loans by the Bank was 5⅜ per cent. in July, 1958; that by September of that year it had risen to 5¾ per cent. in May, 1959 it was increased to 6 per cent.
A commitment fee is charged by the Bank on any part of a loan which has been approved but not yet disbursed, and interest is charged on the amount of the loan which has been disbused but not yet repaid. The total amount due from the borrower per £1,000 of capital advanced depends therefore on the period over which disbursements and repayments are made.
§ Mr. Warbey
asked the Chancellor of the Exchequer what is the total amount of loans made to date by the International Bank for Reconstruction and Development; and what is the total sum repayable on these loans, including interest and any other charges.
The cumulative total of loans approved up to 30th June, 1959, was $4,426 million, as stated in the International Bank's Fourteenth Annual Report. The information requested in the second part of the Question is not readily available, but the Report shows the terms of each loan. Copies of the Report are available in the Library.