§ 55. Mr. W. Hamiltonasked the Secretary of State for the Colonies what was the average rate of interest charged on colonial development and welfare loans during the year 1962–63; and what were the normal terms of repayment.
§ Mr. SandysI assume that the hon. Member is referring to development loans under Section 2 of the Act. The average rate of interest was 6.45 per cent. The normal repayment terms were equal annual instalments, of principal and interest combined, over 25 years. Most of our aid under Section1 of the Act takes the form of outright gifts, but loans are sometimes made for projects which are expected to earn sufficient revenue to service a loan. In such cases the terms of interest and repayment are fixed according to the capacity of the particular project. Some are interest free. An average figure would therefore have no significance.