§ 44. Dr. Mawhinney
asked the Chancellor of the Exchequer if he will estimate by how much Third world indebtedness to British banks increases for each 1 per cent. increase in British interest rates.
§ Mr. Ian Stewart
As 1 per cent. rise in sterling interest rates would increase the servicing costs of non-oil developing countries' debt with British banks by at most around £29 million a year. There would be an offsetting increase of about the same amount in interest due on sterling deposits from these countries.