HC Deb 07 November 1968 vol 772 cc162-3W
Mr. Arthur Lewis

asked the Chancellor of the Exchequer whether he will give details concerning the repayment to the Swiss banks of the £44 million for the 450 million Swiss francs borrowed just prior to devaluation; by how much in excess of the original borrowing the repayments have risen as a result of devaluation; what was the total interest paid; and to what extent these repayments were drawn from the Basle credit at the Bank for International Settlements.

Mr. Roy Jenkins

This loan was taken and repaid in Swiss francs. Its sterling equivalent at the market rate of exchange was £37.2 million at the time it was taken and £43.8 million at the time it was repaid. The difference of £6.6 million was due mainly to devaluation but also to a small extent to variations in the market rate of exchange within the permitted limits. The total amount of interest paid was 24.4 million Swiss francs; the sterling equivalent of this was £2 million at the time the loan was taken but was increased by devaluation to £2.25 million. The repayment was made out of the reserves and was not drawn from the Basle credit at the Bank for International Settlements.