§ Mr. Kenneth Lewisasked the Chancellor of the Exchequer through what channels the borrowing requirement of around £20 billion during the next two years will be raised, broken down into the period 1974–75 and 1974–76.
§ Mr. DellThe hon. Member's estimate of the borrowing requirement is, of course, his own. The estimates for the two years 1974–75 and 1975–76 given in the Financial Statement and Budget Report amount to some £16.7 billion. Figures for the method of financing of the borrowing requirement are so far only available for the first three quarters of 1974–75 and are set out below. It is not customary to provide estimates for the future pattern of financing.
guarantee being given to the loan of 50 million United States dollars to the British Airways Board by the First National City Bank, guaranteed by him on 19th March 1975.
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§ Mr. DellThe purpose of the loan was to provide the British Airways Board with temporary finance for aircraft purchases in the United States, pending the completion of longer-term financing arrangements. It is normal practice for borrowings in foreign currency by nationalised industries to be guaranteed by the Treasury, since this ensures that the terms of such borrowings are the finest obtainable.