§ Mr. Kenneth Clarkeasked the Secretary of State for Industry how many British firms received fixed-interest loans with a guarantee against exchange losses from the European Investment Bank in 1978: what was the total of such loans; and what part his Department has taken in the administration of the loan scheme.
§ Mr. Les Huckfield:During 1978, 12 British companies received fixed interest loans totalling £10.5 million from the European Investment Bank supported by an exchange risk guarantee. One company negotiated a direct loan from the Bank and the other 11 loans were 809W arranged by the Departments acting as agents of the bank under the £20 million scheme for small and medium-sized companies which my right hon. Friend the Minister of State introduced on 1st January 1978. The balance of this £20 million scheme has been allocated and will be disbursed to a further 20 companies during the early part of 1979.
My right hon. Friend recently announced the extension of this scheme to 31st December 1979 with an increased amount for 1979 of £30 million. Under the scheme the Departments concerned appraise applications normally at the same time as the company's application for regional selective assistance. They notify the bank of their decision and the bank then notifies the Departments of its decision. The Departments give the exchange risk guarantee and monitor the loan moneys.