§ Mr. Andrew SmithTo ask the Chancellor of the Exchequer what information he has on what percentage of the capital of British banks was represented by outstanding loans by major Third world borrowers in each of the last five years.
§ Mr. Lilley[holding answer 11 April 1989]: The percentage of the capital of major British clearing banks with exposure to highly indebted Third world countries represented by outstanding loans to those countries in each of the last five years is as follows:
Year Figures 1984 179 1985 128 1986 103 1987 81 1988 65 The figures for exposure do not take account of the provisions made by the banks against their loans to these countries. Net of provisions the banks' exposure to these countries represented 44 per cent. of their capital in 1988 (56 per cent. in 1987).