§ Mr. AllenTo ask the Chancellor of the Exchequer what guarantee obligations the Government have in respect of exchange losses on loans given by the European investment bank.
§ Mr. RyderThe Government have guarantee obligations against exchange losses on outstanding foreign currency loans from the European investment bank under the official exchange cover scheme and the exchange risk cover scheme for the private sector. However, there has been virtually no borrowing under the official exchange cover scheme since changes in the scheme were announced at the end of 1987, and the scheme for the private sector was closed in 1985.