Overseas Loans and Credit Facilities (Hansard, 27 November 1967)

§ Mr. J. E. B. Hill
asked the Chancellor of the Exchequer whether he will list the loan and credit liabilities of the British Government which are affected by devaluation stating in each case, the date of borrowing, the terms of interest and repayment, the amount still to be repaid 23W and the extra cost of such interest and repayment consequent upon devaluation.

§ Mr. Callaghan
The overseas loan and credit liabilities of the British Government are all affected by devaluation: as

Loan Date of Borrowing Rate of Interest Period of Repayment Principal outstanding at 18th November, 1967 Additional Sterling cost of payments of Principal and Interest in 1968

(at $2.80) (at $2.40)

Per cent. £million £million £million

U.S. Line of Credit … December, 1945 2 1951–2004 1,103 1,287 7.1

Canadian Credit … March, 1946 … 2 1951–2004 323 376 1.9

Lend-lease … December, 1945 2 1951–2004 173 201 1.1

Portugal … November, 1945 ⅞ 1955–1973 24 27 0.8

Economic Co-operation Administration. October, 1948 2½ 1956–1983 99 115 1.3

Mutual Security Aid … March, 1952 … 2½ 1960–1987 16 18 0.1

E.P.U. Germany … April, 1959 … 3 1959–1971 30 34 1.3

Export-Import Bank credit (Military Aircraft Loans). April, 1966 … 4¾ 1966–1973 16 19 0.6

June, 1966 … 4¾ 1966–1973 11 12 0.3

August, 1966 … 4¾ 1967–1974 66 77 2.0

July, 1967 … 4¾ 1968–1975 20 23 0.4

I.M.F. … May, 1965 … — 1968–1970 500 583 ^*

I.M.F. … March, 1966 … — 1969–1971 44 51 ^*

Parallel Swiss Loan … May, 1965 … — 1968–1970 14 17 ^*

B.I.S. Loan … November, 1967 — 1968–1969 90 104 ^*

Swiss Bank Consortium October, 1967 5½ 1968 37 43 5.9

^*It is not customary to disclose details of the arrangements under which short-term assistance is given by Central Banks. The eventual total charges to be paid to the I.M.F. and Switzerland will depend on when repayment is made. I.M.F. charges are explained in" International Financial Statistics" (p. 59), which is available in the Library.

Mr. Edward M. Taylor
asked the Chancellor of the Exchequer if he will state the amounts which have been borrowed from, and the credits arranged with, international banks and foreign countries since October 1964.

§ Mr. Callaghan
Information about Central Bank credit facilities has been published in the Bank of England Quarterly Bulletin. These have just been augmented by new credits in excess of $1.5 billion. It is not the practice to give details of the current use of such facilities. On loans, I would refer the hon. Member to my Answer to the hon. Member for South Angus on 24th November. [Vol. 754, c.446.]

Loan	Date of Borrowing	Rate of Interest	Period of Repayment	Principal outstanding at 18th November, 1967	Additional Sterling cost of payments of Principal and Interest in 1968
	(at $2.80)	(at $2.40)
	Per cent.		£million	£million	£million
U.S. Line of Credit	…	December, 1945	2	1951–2004	1,103	1,287	7.1
Canadian Credit	…	March, 1946	…	2	1951–2004	323	376	1.9
Lend-lease	…	December, 1945	2	1951–2004	173	201	1.1
Portugal	…	November, 1945	⅞	1955–1973	24	27	0.8
Economic Co-operation Administration.	October, 1948	2½	1956–1983	99	115	1.3
Mutual Security Aid	…	March, 1952	…	2½	1960–1987	16	18	0.1
E.P.U. Germany	…	April, 1959	…	3	1959–1971	30	34	1.3
Export-Import Bank credit (Military Aircraft Loans).	April, 1966	…	4¾	1966–1973	16	19	0.6
	June, 1966	…	4¾	1966–1973	11	12	0.3
	August, 1966	…	4¾	1967–1974	66	77	2.0
	July, 1967	…	4¾	1968–1975	20	23	0.4
I.M.F.	…	May, 1965	…	—	1968–1970	500	583	^*
I.M.F.	…	March, 1966	…	—	1969–1971	44	51	^*
Parallel Swiss Loan	…	May, 1965	…	—	1968–1970	14	17	^*
B.I.S. Loan	…	November, 1967	—	1968–1969	90	104	^*
Swiss Bank Consortium	October, 1967	5½	1968	37	43	5.9
^*It is not customary to disclose details of the arrangements under which short-term assistance is given by Central Banks. The eventual total charges to be paid to the I.M.F. and Switzerland will depend on when repayment is made. I.M.F. charges are explained in" International Financial Statistics" (p. 59), which is available in the Library.