§ Mr. Gryllsasked the Chancellor of the Exchequer if he will list the rates of interest payable by the Exchequer on outstanding foreign currency borrowings made by public sector bodies where such borrowings are not made on a floating rate basis; and what is the method of defining interest rates where loans are on a floating rate basis.
§ Mr. Robert SheldonInterest on foreign currency loans raised by the nationalised industries and local authorities is paid by the borrower concerned, not the Exchequer. Whether details of individual loans are published is for the parties in each individual loan agreement to decide. Broadly, however, interest rates on fixed interest foreign currency loans by the public sector range from 6½ per cent. in 1969 up to 10½ per cent. in 1975, and are currently at 8½–9½ per cent. Interest rates on floating rate foreign currency loans are set at a margin over the London Inter-Bank offered rate for Eurodollar deposits of the appropriate maturity. The size of the margin is a matter for negotiation between the borrower and the lending authority.
§ Mr. Gryllsasked the Chancellor of the Exchequer if he will estimate the total interest paid or payable on outstanding foreign currency borrowings for each year since 1969 and for the current financial year.
§ Mr. Robert SheldonA very large amount of statistical effort would be required to provide a detailed answer. Broadly, however, total interest payments on foreign currency borrowing have been rising since 1969, and are now running at the equivalent of around £0.6 billion annually.
§ Mr. Gryllsasked the Chancellor of the Exchequer if all interest payments on foreign currency borrowings by public sector borrowings are payable in the currency in which the borrowing was made.
§ Mr. Robert SheldonYes, with very minor exceptions.
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§ Mr. Gryllsasked the Chancellor of the Exchequer if he will list the total of overseas borrowing due for repayment by public sector bodies in each financial year from 1976–77 onwards expressed in sterling terms (a) at the rate of exchange prevailing at close of business on 1st November 1976, (b) at the rate of exchange prevailing when each borrowing was made and (c) at the rates of exchange prevailing if the trade weighted depreciation of sterling was 53.9 per cent.
§ Mr. Robert SheldonDetails of future annual repayments on public sector overseas borrowing are not published. The sterling equivalent of loans outstanding at 1st November 1976, and valued at exchange rates prevailing on that date, amounted in total to £6.2 billion. The sterling equivalent of the same loans valued at the exchange rate prevailing at the time of borrowing amounted in total to £4.4 billion.
It is not possible to compute a valuation of these loans solely on the assumption of a given effective depreciation for sterling; the valuation would depend also on the specific exchange rates prevailing for individual currencies in which borrowing has been undertaken.
§ Mr. Robert Cookeasked the Chancellor of the Exchange whether he will publish in a table the borrowings from abroad by nationalised industries between June 1976 and September 1976 in the currencies in each case, together with the £ sterling equivalents as of today's date and the repayment date of each loan.
§ Mr. Robert SheldonThe following table lists total foreign currency borrowing, for each currency, by the nationalised industries during the period 1st June 1976–30th September 1976:
Million US Dollars 90 Dutch Florins 220 Deutschemarks 170 Swiss Francs 100 Yen 2,080 The current sterling equivalent of these loans is £570 million. It is not possible to say what the sterling equivalent will be at maturity; this will depend on the exchange rates prevailing when each loan falls due for repayment.
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§ Mr. David Howellasked the Chancellor of the Exchequer whether he will list all foreign currency loans on public sector account currently outstanding stating the original £ sterling value of each loan and the £ sterling cost repayment of the capital sums involved at today's rates of exchange.
§ Mr. Robert SheldonThe Government do not publish details of individual foreign currency loans: this is a matter for the parties to individual loans.
The original sterling value for public sector loans currently outstanding and
Foreign currency loans outstanding Sterling equivalent at 1st November 1976 £ million US Dollars … … … … … 6,158 million 3,881 Deutschemarks … … … … … 436 million 114 Dutch Florins … … … … … 4 million 1 Swiss Francs … … … … … 346 million 89 Belgian Francs … … … … … 140 million 2 Yen … … … … … 1,710 4 IMF Drawings SDR's (Credit Tranches/Oil Facility). 1,700 1,240 These figures include Her Majesty's Government's $2.5 billion loan, and foreign currency borrowing by public bodies such as the National Wales Council and the Post Office which are not nationalised industries. The figures do not include the short-term credit facility made available to Her Majesty's Government, drawings on which are repayable on 9th December.
§ Mr. David Howellasked the Chancellor of the Exchequer if he will specify the maturity dates of all foreign currency loans currently outstanding and owed by the British Government.
§ Mr. Robert SheldonThe maturity dates on outstanding foreign currency borrowing by Her Majesty's Government—apart from the long-term North American loans—are as follows:
Repayable HMG $2.5 billion loan 1981–1984 IMF Drawings: Oil facility 1979–1982 Credit tranches 1979–1981 Standby credit facility 9th December 1976