Commonwealth Countries (Loans) (Hansard, 28 April 1961)

§ Mr. Barber

Commonwealth assistance loans to independent countries of the Commonwealth are made under Section 3 of the Export Guarantees Act, 1949, as since amended. Table I below gives details of all such loans to these countries in respect of which formal loan agreements had been signed by 31st March, 1961; it does not show loans approved in principle, including substantial amounts for India's Third Five-Year Plan, for which the loan agreements still remained to be signed at that date.

Exchequer loans to dependent Territories are made under Section 2 of the Colonial Development and Welfare Act, 1959. Table II below gives details of issues under all such loans made by 31st March, 1961.

These tables do not include certain other loans to Commonwealth Territories provided under Departmental Votes, and they exclude all loans to non-Commonwealth countries.

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TABLE I
LOANS TO INDEPENDENT MEMBERS OF THE COMMONWEALTH UNDER SECTION 3 OF THE EXPORT GUARANTEES ACT, 1949, AS SINCE AMENDED
Col. 1	Col. 2	Col. 3	Col. 4	Col. 5	Col. 6	Col. 7
Country	Date of Loan Agreement	Amount of Loan	Rate of Interest per cent. on amounts drawn by 31st March, 1961 (See Note 1)	Terms of Repayment	Amounts issued at 31st March, 1961	Amounts from Col. 6 outstanding for repayment at 31st March, 1961
Number of half yearly instalments	Amount of each instalment (See also Note 4)	Period of Repayment
		(£m.)			(£'000)		(£m.)	(£m.)
Ceylon	17th March, 1961	2.5	See Note 2	See Note 2	See Note 2	See Note 2	Nil	Nil
India	(i) 30th June, 1958	15.0	5⅜—5⅜	4	3,750	1966–1969	150	15.0
	(ii) 19th December, 1958	28.5	4¾—5½	10	950	1964–1969	28.5	28.5
			30	634	1964–1969
	(iii) 23rd June, 1959	3.0	4½—6⅜	6	500	1964–1966	2.39	2.39
	(iv) 25th November, 1959	19.0	5⅛—6⅛	10	630	1965–1969	19.0	19.0
			30	423	1965–1979
	(v) 16th August, 1960	10.0	6¼—6⅜	10	330	1966–1970	10.0	10.0
			30	223	1966–1980
	(vi) 23rd December, 1960	5.0	6⅜	30	167	1966–1981	5.0	5.0
Malaya	17th February, 1960	2.25	5⅛—6½	15	150	1963–1970	0.175	0.175
Nigeria	17th May, 1960 (Loan available from 1st October, 1960)	12.0	5⅝—6⅜	39	310	1961–1980	3.13	3.13
Pakistan	(i) 2nd March, 1954	10.0	4	14	715	1956–1963	9.83	3.4
	(ii) 27th February, 1959	10.0	4½—6½	14	715	1962–1968	3.55	3.55
	(iii) 28th December, 1960	5.0	See Note 3	30	167	1965–1980	Nil	Nil
	(iv) 16th March, 1961	3.0	See Note 3	30	100	1966–1980	Nil	Nil
		125.25					96.575	90.145

NOTES

1. The rate of interest on loans under this Act is normally based on the rate at which H.M. Government could itself borrow for comparable periods, plus a small management charge. The rate is determined on this basis for each drawing on a loan, and the rates may therefore differ for drawings made at different times. Column 4 shows the range within which rates of interest were determined for drawings on each loan. For the year ending 31st March, 1961, rates ranged as follows according to the date on which drawings were made:—

For loans of a period up to one year 4⅝ per cent.—5⅞ per cent. For loans on a period over ten years up to fifteen years 5⅝ per cent.—6¼ per cent.

"over one year up to five years 4⅞ per cent.—6¼ per cent., over fifteen years 5⅝ per cent.—6⅛ per cent.

"over five years up to ten years 5½ per cent.—6⅛ per cent.

An exception is the loan Pakistan (i) which bore a fixed rate of interest at 4 per cent.

2. The rate of interest and repayment instalments on this loan will be linked with drawings when these are made.

3. No drawings had been made on these loans by 31st March, 1961.

4. The final instalment may differ from earlier ones.

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TABLE II
LOANS TO UNITED KINGDOM DEPENDENT TERRITORIES UNDER SECTION 2 OF THE COLONIAL DEVELOPMENT AND WELFARE ACT, 1959
Col. 1	Col. 2	Col. 3	Col. 4	Col. 5
Territory	Date of issue of funds (see note 1)	Amount	Rate of interest Per Cent. (see Note 2)	Amounts outstanding for repayment at 31st March, 1961
		£		£
Aden	4th March, 1960	700,000	5⅝	686,552
Bechuanaland Protectorate	(i) 10th October, 1960	177,000	6½	177,000
	(ii) 27th March, 1961	100,000	6½	100,000
British Guiana	(i) 9th March, 1960	312,500	5⅝	306,496
	(ii) 5th May, 1960	417,000	5⅞	417,000
	(iii) 30th September, 1960	312,500	6½	312,500
	(iv) 29th December, 1960	625,500	6½	625,500
Cyprus	28th October, 1959	1,100,000	5½	1,078,496
East Africa High Commission	(i) 6th January, 1961	750,000	6½	750,000
	(ii) 12th January, 1961	500,000	6½	500,000
	(iii) 15th March, 1961	3,000,000	6½	3,000,000
Kenya	(i) 4th November, 1959	1,500,000	5½	1,470,676
	(ii) 1st April, 1960	1,500,000	5⅝	1,500,000
	(iii) 6th July, 1960	1,000,000	6¼	1,000,000
	(iv) 20th September, 1960	2,000,000	6½	2,000,000
	(v) 22nd February, 1961	2,000,000	6½	2,000,000
	(vi) 21st March, 1961	330,000	6½	330,000
Nigeria	21st September, 1960	3,000,000	6½	3,000,000
South Cameroons	29th March, 1961	224,000	6½	224,000
Sierra Leone	(i) 3rd February, 1960	1,500,000	5⅝	1,471,183
	(ii) 24th March, 1961	1,500,000	6½	1,500,000
Swaziland	(i) 31st March, 1960	200,000	5⅞	196,290
	(ii) 21st May, 1960	100,000	6	100,000
	(iii) 10th June, 1960	220,000	6	220,000
	(iv) 27th October, 1960	400,000	6½	460,000
Tanganyika	22nd June, 1960	1,500,000	6	1,500,000
Uganda	(i) 4th March, 1960	3,000,000 (A)	5⅝	3,000,000
	(ii) 23rd July, 1960	3,000,000 (A)	6¼	3,000,000
		31,028,500		30,925,693
NOTES
1. This Table shows issues of funds only. Loans approved in principle are not made the subject of formal agreements and the terms are arranged at the time of each issue of funds. Total loan approvals, including the issues shown, amounted to £42 million by 31st March, 1961.
2. The rate of interest on loans under this Act is based on the rate at which H.M. Government could itself borrow for comparable periods, plus a small management charge.
3. All issues except those marked (A) are repayable by 25 equated annual instalments of principal and interest combined, beginning one year after date of issue. Issues marked (A) have been made on terms requiring interest only to be paid for the first two years. Repayment thereafter is by 23 equated annual instalments of principal and interest combined.

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