HC Deb 12 March 1980 vol 980 cc572-3W
Mr. Marlow

asked the Chancellor of the Exchequer, in terms of discount against current and prospective interest rates, what has been the value in cash terms on a per annum and full term discounted value of loans agreed through all European Economic Community institutions for each European Economic Community country for each of the last three years and proposals agreed so far in the current year.

Mr. Lawson

[pursuant to his reply, 11 March 1980]: Loans by the European Investment Bank to the countries of the European Economic Community in 1977, 1978 and 1979 are given in the table below. Comparable figures so far for 1980 are not available. All the loans in 1977 and 1978, and 2241.8 million units of account of those in 1979, were made from the bank's own resources; the balance of 277 million units of account in 1979 came from the resources of the new Community instrument for borrowing and lending (the "Ortoli facility").

The breakdown between member States of loans from the European Coal and Steel Community (ECSC) is not available, but in each of the last three years ECSC loans to the United Kingdom totalled £135.2 million, £191.0 million, and £153.7 million respectively.

All these loans are in principle made at market rates of interest. However, Italy and Ireland benefit from interest rate subsidies under Council Regulation 1736/79 on some of their EIB and

1977 1978 1979
Amount in MUA* Amount in MUA* Amount in MUA* from Bank's own resources Amount in MUA* from New Community Instrument Total amount in MUA*
Belgium 62.2 58.4 58.4
Denmark 32.7 106.3 15.6 15.6
Germany 28.4 45.5 47.8 47.8
France 296.5 359.3 222.7 222.7
Ireland 79.0 117.4 252.9 86.7 339.6
Italy 425.7 845.1 905.4 85.0 990.4
United Kingdom 489.9 430.7 739.0 105.3 844.3
Total 1352.2 1966.5 2241.8 277.0 2518.8
* The unit of account used by the EIB since 1974 has been equivalent to the European unit of account, a basket of EEC currencies the value of which fluctuates; at present 1 EUA=£0.62.