§ Mr. Lambieasked the Secretary of State for Scotland what are the rates currently prescribed by his Department as the rates at which the Highlands and Islands Development Board shall charge interest on its loans.
§ Mr. YoungerTreasury prescribes the rate of interest to be charged on loans made by the board. The commercial rate is currently 13 per cent. The board may also offer loans at a concessionary rate of interest, currently 10 per cent.
§ Mr. Lambieasked the Secretary of State for Scotland what are the rates currently prescribed by his Department for interest relief grants made by the Highlands and Islands Development Board.
§ Mr. YoungerRates of interest are prescribed by the Treasury. The rate for interest relief grants applied by the board is the difference between the commercial rate of interest and the concessionary rate of interest. This is at present 3 per cent. Where an interest-free period would have been given on a board loan interest relief grant may be given at a higher rate for the same period-up to three years-followed thereafter by grant at the basic rate for up to four years. The higher rate for interest relief grants is that of the commercial rate of interest, currently 13 per cent.