§ Lord BARNBYasked Her Majesty's Government:
With regard to Press reports of promised new disbursements to Zambia, Tanzania, and/or Kenya, if these are outright grants in aid and if so are they " tied " or if loans at what rate of interest and on what repayment terms.
§ Baroness LLEWELYN-DAVIES of HASTOEMy Lords, as the Secretary of State for Foreign and Commonwealth Affairs announced in another place on 14th January, he offered Kenya and Tanzania during his recent visits assistance amounting to £2.5 million each, tied to British goods and services, in order to help alleviate their severe balance of payments difficulties. The terms of the loan to Kenya will be 2 per cent. interest and repayable over 25 years with 7 years' grace. The terms of the aid to Tanzania have not yet been finally decided, but will be at least as favourable as for the capital aid offered last summer, i.e. 45 1497WA per cent. grant and 55 per cent. loan, interest-free and repayable over 25 years with 7 years grace. No new capital aid has been offered to Zambia.