§ Mr. ViggersTo ask the Chancellor of the Exchequer if he will make a statement on the revised Bank of England guidelines to banks on their provisions for Third world debt.
§ Mr. Ryder[holding answer 2 February 1990]: The revised matrix guidelines are a supervisory tool to assist 474W banks in fixing provisioning levels against exposure to countries experiencing debt-servicing and repayment difficulties. Responsibility for formulating the matrix rests with the Bank of England.
§ Mr. ViggersTo ask the Chancellor of the Exchequer to what extent the Inland Revenue will take account of Third world debt provision by banks in allowing them tax relief.
§ Mr. Lilley[holding answer 2 February 1990]: Provisions by banks against Third-world debts are allowable for tax only to the extent that such debts are shown to be irrecoverable.