§ 31. Mr. David Mitchellasked the Chancellor of the Exchequer what is 181W currently the total of loans and borrowings in foreign exchange of the nationalised industries, local governments, and Government agencies, the proportion for which a liability has been accepted to repay at a rate of exchange for sterling other than currently ruling; and what is the consequent total contingent liability at the latest rate of exchange.
§ Mr. Denzil DaviesAll these loans are repayable in the currencies in which they were taken. The total outstanding is equivalent to £5.7 billion at current market rates, but repayments of principal occur only as loans mature, mainly after 1979. The amount of sterling necessary to repay the maturing loans will depend on the exchange rates then ruling.
$ million (to nearest $10 million) Her Majesty's Government $2.5 billion loan IMF drawings Standby credit facility Nationalised Industries Local Authorities 1970 … … … — — — — — 1971 … … … — — — 170 20 1972 … … … — — — — — 1973 … … … — — — 2,180 560 1974 … … … 1,500 — — 2,170 760 1975 … … … 1,000 — — 970 — 1976— … … … 1st quarter … … … — 1,210 — 700 — 2nd quarter … … … — 840 1,030 1,100 — 3rd quarter … … … — — na 850* — * Provisional estimate. Precise information of total interest payments to date on foreign currency borrowing by nationalised industries and local authorities is not readily available, but they are running at current interest rates at an annual rate of about $0.7 billion. Information about interest payments on central Government borowing in foreign currencies is published annually on a financial year basis. The latest available information relates to 1974–75, when the only relevant borrowing was the Her Majesty's Government $2.5 billion loan on which interest payments were equivalent to £14.3 million.