§ Mr. Cantasked the Chancellor of the Exchequer (1) what was the amount of United Kingdom short-term sterling liabilities on 18th November, 1967 and 21st March, 1968;
(2) what was the additional cost in foreign currency of the increase in Bank Rate from 6½ per cent. to 8 per cent. in the period from 18th November, 1967 to 21st March, 1968 in respect of United Kingdom short-term sterling liabilities.
359W
§ Mr. Harold LeverIt is estimated that a 1½ per cent. increase in Bank Rate may entail a net interest cost to the balance of payments of around£25 million a year. But it is impossible to make a close estimate for a short period such as that mentioned in the hon. Member's Question, because a large part of our sterling liabilities consists of money invested here for different and varying terms at a variety of market rates.
Figures of sterling liabilities are published only quarterly, about two months after the end of the quarter. Detailed figures for end-September and end-December 1967 are published in Financial Statistics (Table 82 of the March edition); summary figures for end-March 1968 will be published in Economic Trends for May, with the usual further detail in the June edition of Financial Statistics. The figures are, of course, affected by many factors, besides changes in United Kingdom interest rates.
Lender Amount outstanding at 29th March, 1968 Repayment due (£ million) Portugal … … … … … … … 28 1955–1973 United States Line of Credit … … … … … … 1,262 1951–2004 United States Lend-Lease … … … … … … … 197 1951–2004 Canadian Credit … … … … … … … 369 1951–2004 United States Economic Co-operation Administration … … … 113 1956–1983 United States Mutual Security Agency … … … … … 18 1960–1987 Germany … … … … … … … 34 1959–1971 United States Export-Import Bank, Line of Credit (Military Aircraft Loans) 168 1966–1975 Swiss bank consortium … … … … … … … 43 1968 Bank for International Settlements … … … … … 104 1968–1969 International Monetary Fund (May, 1965) … … … … 583 1968–1970 Parallel Swiss Loan … … … … … … … 17 1968–1970 International Monetary Fund (March, 1966) … … … … 51 1969–1971 It is not customary to disclose details of short-term financial transactions between Central Banks.