§ Mr. Roy Hughes
asked the Secretary of State for Trade what is the current value of interest rate support grants payable to the banks under the formula which was announced on 15th March 1972 for export guarantee loans.
§ Mr. Deakins
Under the March 1972 agreement with the London and Scottish clearing banks, the fixed interest rate receivable by the banks on the un-refinance portion of their export loans for capital goods is made up by the Export Credits Guarantee Department to agreed rates of return based on current market rates. The current average fixed rate of interest on outstanding loans, which relate to business taken on over a number of years, is 6.2 per cent. and the current agreed rates of return are 10.64 per cent. for loans outstanding at 15th March 1972 and 11.27 per cent. for subsequent lending. During the financial year 1975–76 interest rate support grants paid to the banks have totalled £13,868,963.