§ Sir F. WISEasked the Chancellor of the Exchequer the financial arrangements made by each nation with the United States of America in regard to the funding of loans; and the approximate aggregate total payment of interest and principal over the full period?
§ Mr. CHURCHILLThe arrangements for the funding of the British Debt to the United States of America are set out in Command Paper 1912. The debt is repayable in 62 years with interest at 3 per cent. for 10 years and at 3½ per cent. for the remainder of the period. The debts of Finland, Hungary, Lithuania.1170W Poland, Esthonia, Latvia and Czechoslovakia have been funded on substantially the same terms, except that in the case of Czechoslovakia payments up to 1943 are reduced, the later payments being correspondingly increased. The pie-Armistice Debt of Belgium is to be repaid in 62 years without interest. The post-Armistice Debt of Belgium is to be repaid in 62 years with interest at 3½ per cent. from the eleventh year onwards and at reduced rates (rising from about ¾ per cent. to about 2 per cent.) during the first 10 years.
The Debt of Italy is to be repaid in 62 years with no interest for five years, interest at one-eighth of 1 per cent. for 10 years, and at rates rising at intervals of 10 years to 2 per cent. in the fifty-sixth year.
No settlement has yet been reached as regards the French Debt and the agreements with certain Debtor States have not yet been ratified.
The amounts of the Debts as funded are as follow:
$ Great Britain … … 4,600,000,000 Finland … … 9,000,000 Hungary … … 1,939,000 Lithuania … … 6,030,000 Poland … … 178,560,000 *Esthonia … … 13,830,000 *Latvia … … 5,775,000 *Czechoslovakia … … 115,000,000 *Belgium: Pre-Armistice … … 171,780,000 Post-Armistice … … 246,000,000 *Italy … … 2,042,000,000 Total … … 87,389,914,000 or in round figures, £1,500 millions.
The aggregate total payments of interest and principal to be made in respect of the above total spread over the whole period of 62 years are:
or in round figures £3,000 millions.
$ Great Britain … 11,105,965,000 Italy … 2,407,000,000 Belgium … 727,830,500 Remainder (approximately) … 832,000,000 $15,072,795,500 * Agreements not yet ratified.