Lord CHELWOOD asked
Her Majesty's Government:
What are the prospects for a return to internationally agreed minimum rates of interest for loans and export credits to the Soviet Union, and why the formerly independent countries of Eastern and Central Europe have for years been required to pay less favourable interest rates that those paid by the Soviet Union.
§ Lord TREFGARNE
Interest rates for export credits to the Soviet Union, administered by the Export Credits Guarantee Department, are governed by the UK-USSR Credit Agreement which was signed in 1975. The term of the agreement expires in the near future and the review which is shortly to take place will include a review of the interest rates applicable to future export credits for the Soviet Union.
Interest rates for export credits to the remainder of the COMECON countries are those established in accordance with the international Consensus on interest rates for export credits.