§ 10. Mr. David Steelasked the Minister of Overseas Development how the terms of debt relief to be offered by the United Kingdom to India at the forthcoming consortium meeting of donor countries compare with terms offered by other donor nations last year.
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Consortium Members Amount of Debt Relief (U.S. $ million) Type of Debt Relief Repayment Terms Grant* Element (per cent.) 1. Austria … … 0.89 Refinancing 24 years maturity including 7 years grace at 3 per cent. interest. 0.51 Grant (by reduction of interest). — 69.9 1.40 2. Belgium … 1.10 Cash Credit 25 years maturity including 7 years grace at 3 per cent. interest. 53.2 3. Canada … 0.91 Rescheduling Postponement for 10 years at 6 per cent. interest. 1.07 Cash Grant (to offset interest) — 65.4 1.98 4. France … … 5.00 Cash Credit 12 years maturity including 31½ years grace at 3.5 per cent. interest. 33.5 5. West Germany … 14.44 Refinancing 10 years maturity including 3 years grace at 3 per cent. interest. 8.00 Cash Credit 25 years maturity including 7 years grace at 3 per cent. interest. 4.85 Grant (by reduction of interest) — 50.3 27.29 6. Italy … … 5.50 Cash Credit 12 years maturity including 3 years grace at 4 per cent. interest. 30.1 7. Japan … … 16.83 Rescheduling 12 years maturity including 3 years grace at 4 per cent. interest. 30.1 8. Netherlands … 0.58 Grant (by reduction of interest) — 100 9. U.K. … … 18.00 Refinancing 25 years maturity including 7 years grace, free of interest. 76.1 10. U.S.A. … … 8.73 Rescheduling Postponement for 10 years without interest. 62.3 11. IBRD … … 15.00 Rescheduling Postponement for 10 years with rates of interest specified in applicable loan agreements. n.a. Total … 101.41 Average overall grant-element (excluding IBRD) 51.7 * Using a discount rate of 10 per cent.
§ Mr. PrenticeIf, as I hope and expect, all members of the Aid India Consortium agree to the continuation of the debt relief scheme in 1969–70 the United Kingdom contribution will again be by interest free loan for 25 years with a 7 year grace period. I will, with permission, circulate in the OFFICIAL REPORT details of the terms on which other donor countries contributed to the scheme last year.
Following is the information: