HC Deb 13 December 1984 vol 69 c572W
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.