HC Deb 18 October 1976 vol 917 cc359-60W
Mr. Blaker

asked the Secretary of State for Trade how much of the line of credit extended to the USSR by the right hon. Member for Huyton (Sir H. Wilson) in 1975 has been taken up to date.

Mr. Meacher

The total value of contracts placed to date under the agreement is approximately £42 million.

Mr. Blaker

asked the Secretary of State for Trade what will be the cost to the taxpayer, assuming current interest rates, of the export credit interest rate subsidy given under the line of credit arranged by the right hon. Member for Huyton (Sir H. Wilson) for the Soviet Government in 1975 if the whole of the line of credit is fully used, on those assumptions which the department considers realistic about the period of repayment.

Mr. Meacher

The rates of interest applicable under the United Kingdom/ Soviet credit agreement are dependent on a number of variables, including the size and value of individual contracts. They are also subject to periodic review. The agreed rate payable to the clearing banks in respect of export credit finance also varies. It is, therefore, not possible to produce a realistic estimate of the cost of such credit for the USSR.