§ Mr. Canavanasked the Secretary of State for the Environment what interest rate is payable on European Investment Bank loans for drainage and sewerage projects such as those given to the South West water authority.
§ Mr. Giles ShawLoans from the European Investment Bank are negotiated by the National Water Council and attract the interest rate ruling at the time of negotiation. Such loans are taken when there is an advantage, allowing for cover against exchange risks, of about ½ per cent. over sterling borrowing from the National Loans Fund.
The rate of interest on a recent loan to the South-West water authority inclusive of exchange cover, amounts to 15.05 per cent.