HC Deb 27 January 1969 vol 776 cc240-1W
101. Sir T. Beamish

asked the Chancellor of the Exchequer if he will list in the OFFICIAL REPORT the current arrangements under which short and medium term credit can be obtained by Her Majesty's Government from foreign central banks, the Bank for International Settlements and the International Monetary Fund, giving in each case the purpose for which drawings may be made, the maximum amount which may be drawn, the period for which loans are normally made, the date when the arrangements were negotiated, and the period for which they continue in force.

Mr. Taverne

Following is the information;(i) Facilities available to the Bank of England from

  1. (a) Central banks;
    1. (i) Reciprocal swap facility for $2,000 million between the Bank of England and the Federal Reserve Bank of New York to provide short-term mutual currency assistance (originally arranged in May, 1962, for $50 million, increased in 1963 to $500 million and since further increased on a number of occasions);
    2. (ii) Central bank credits of about $1,500 million were arranged in support of sterling in November, 1967.
  2. (b) B.I.S.: $2,000 million facility agreed in September, 1968, to offset fluctuations in the sterling balances of the overseas sterling area. The facility has a ten year life; drawings may be made during the first three years and the net amount ultimately drawn will have to be repaid between the sixth and tenth years.
(ii) I.M.F.: no current arrangement but the United Kingdom has unused drawing rights of $165 million. I.M.F. drawings, which are conditional, are to finance temporary deficits in the balance of payments and normally have to be repaid within 3–5 years.