HC Deb 27 March 1975 vol 889 cc207-8W
Mr. Marten

asked the Chancellor of the Exchequer whether interest rates on loans from the European Investment Bank are at fixed rates or whether they move in line with commercial rates; and if he will give details of such loans.

Mr. Robert Sheldon:

The European Investment Bank finances its loans by borrowing on the capital markets, both inside and outside the Community, and its interest rates to borrowers move in line with the average rates charged on the markets. The interest rate charged on each loan is that in force on the date when the loan contract is concluded, and is fixed for the duration of the loan. The rate currently charged on loans is 9⅞ per cent.

The European Investment Bank has lent a total of £136.2 million for projects in the United Kingdom since 1st January 1973. For details of loans granted by the bank in 1973 and 1974, I would refer the hon. Member to the answers my right hon. Friend the Paymaster-General gave on 31st July 1974 to the hon. Member for Blackpool, South (Mr. Baker) and on 30th January 1975 to the hon. Member for Cardiff, North (Mr. Grist). In 1975 the bank has granted two more loans, £15.6million for the construction of Hunterston B nuclear power station in Ayrshire, and £7.8 million for the nuclear power station being built at Hartlepool. Both loans are at an interest rate of 9⅞ per cent.

Mr. Michael Latham

asked the Chancellor of the Exchequer whether he will specify the loans and guarantees approved by the European Investment Bank for projects in the East Midlands area since 1st January 1973.

Mr. Robert Sheldon:

The European Investment Bank has not so far granted any loans or given any guarantees for projects in the East Midlands area.

Mr. Nelson

asked the Chancellor of the Exchequer if he will specify the loans and guarantees approved by the European Investment Bank for projects in the South-East area since 1st January 1973.

Mr. Robert Sheldon:

Since 1st January 1973 the European Investment Bank has provided one loan of £7 million for investment in the South-East area. The loan was made to the Kent and Essex County Councils in October 1974 to help finance the construction of the second Dartford Tunnel. The bank has not so far given any guarantees for projects in the United Kingdom.

Mr. Shepherd

asked the Chancellor of the Exchequer if he will specify the loans and guarantees approved by the European Investment Bank for projects in the West Midlands since 1st January 1973.

Mr. Dell:

The European Investment Bank has not so far granted any loans or given any guarantees for projects in the West Midlands.