§ Mr. Neubertasked the Secretary of State for Trade how much in total has to date been advanced to the Union of Soviet Socialist Republics under the terms of the agreement reached in 1975; what percentage this represents of the loan facility; what rates of interest and loan periods are applicable; and what has been the nature of the contracts financed under this scheme.
§ Mr. MeacherThe total value of contracts signed under the 1975 Anglo-Soviet Credit Agreement is £188 million, in respect of which loans supported by Her Majesty's Government have been entered into to a total of £154 million. This utilises some 20 per cent. of the aggregate amount of contracts provided for in the agreement. In accordance with normal practice, rates of interest and loan repayment periods are confidential to the contracting parties. The contracts financed under the scheme have been for heavy capital plant in a variety of industries.
§ Mr. Neubertasked the Secretary of State for Trade from what sources and, where appropriate, at what rates of interest Her Majesty's Government have secured the funds to finance the cheap credit scheme agreed with the Union of Soviet Socialist Republics in 1975.
§ Mr. MeacherHer Majesty's Government do not raise funds directly to finance exports generally, and no particular financing arrangements have been made for exports to the USSR under the 1975 Anglo-Soviet Credit Agreement. The refinancing scheme whereby Her Majesty's Government refinance part of the clearing banks fixed rate lending does not enable identification of particular contracts or of individual overseas countries. The interest rate at which Her Majesty's Government raise funds and the rate at which exports are financed are determined by different factors and are, therefore, not directly comparable.