Public Sector Exchange Cover Scheme

HC Deb 03 April 1985 vol 76 c674W

Mr. Merchant

asked the Chancellor of the Exchequer whether he has made any amendments to the terms of the public sector exchange cover scheme.

Mr. Ian Stewart

The scope of official exchange risk cover available to eligible bodies on new floating interest rate foreign currency borrowing has been broadened. Cover is now available to eligible bodies on such borrowing at a ¼ per cent. discount to variable NLF and PWLB rates. The terms announced on 7 November 1983, at column 9, which allowed for floating rate borrowing to be covered at the same guaranteed benefit on fixed rate NLF/PWLB rates as is already available where borrowing is at fixed foreign currency interest rates, are unaffected.