§ Mr. ShoreTo ask the Chancellor of the Exchequer, if the pound were still at its ceiling or floor within the exchange rate mechanism after the ending of the maximum648W duration of the very short-term fund facility, what would be the level of the debtor quota on which further support would be based.
§ Mr. Norman Lamont[holding answer 26 February 1991]: There is no fixed limit on the duration of the very short-term facility, though there are repayment obligations associated with loans made under it. The debtor quotas assigned to each EMS member are agreed by the member states. The United Kingdom's debtor quota is 1.74 billion ecu. The quotas may be altered, by agreement among the member states, at any time and are in any case reviewed every five years.
§ Mr. ShoreTo ask the Chancellor of the Exchequer after what period funds supplied under the ERM's very short-term fund facility and debtor quota renewal must be repaid.
§ Mr. Norman Lamont[holding answer 26 February 1991]: Very short-term facility (VSTF) liabilities must be settled by the last working day preceding the 16th day of the third month following the value date of intervention. Subject to limits, which are equal to twice the debtor quota of the EMS short-term monetary support (STMS) arrangements, VSTF liabilities may be renewed for a further three months on request. With the agreement of creditors VSTF liabilities may be renewed for an additional three months. Debtor quotas determine the amount of support each central bank may receive under the STMS arrangements. Use can be made of the support facilities of the STMS for a period of up to three months, and they may be renewed twice for a period of three months on request.