HC Deb 31 July 1984 vol 65 cc187-8W
Mr. Deakins

asked the Chancellor of the Exchequer how much of the foreign debt owed to United Kingdom clearing banks has been rescheduled in the past year; and if the Bank of England is satisfied that appropriate mechanisms exist to safeguard United Kingdom customers of the clearing banks against the consequences of any default by overseas debtors.

Mr. Ian Stewart

United Kingdom banks were owed some £20 billion by major countries which rescheduled their bank borrowings during 1983, but the Bank of England does not publish specific figures for those claims of United Kingdom banks which have been rescheduled. The bank includes capital ratios and provisioning in its regular confidential discussions with individual banks, and is satisfied that United Kingdom banks' position has been sustained.

Mr. Deakins

asked the Chancellor of the Exchequer what information is available to the Bank of England about overseas private creditors of the United Kingdom clearing banks in countries which are substantial debtors of those banks.

since the earlier answer referred to. Estimates of indirect tax payments in 1983–84 based on the same Survey are as follows:

Multiples of average earnings
75 per cent. 100 per cent.
£ per week per cent. of gross earnings £ per week per cent of gross earnings
Single person 21.55 16.8 27.25 15.9
Married couple 24.45 19.0 29.80 17.4
Married couple plus two children 24.03 18.7 28.75 16.8

There is no change to the other figures given for 1983–84 in the previous answer.

Mr. Ian Stewart

Separate information about overseas private creditors of United Kingdom clearing banks in countries which are substantial debtors of those banks is not collected by the Bank of England.

Mr. Deakins

asked the Chancellor of the Exchequer what controls are exercised by the Bank of England over the repayment of foreign debt to United Kingdom clearing banks; and what information is available to the bank about prospective bad debts in these circumstances.

Mr. Ian Stewart

The Bank of England regularly receives information from the United Kingdom clearing banks, including their provisions for bad and doubtful debts, and loans which are overdue. These matters are covered in regular confidential discussions between the Bank and individual banks.