§ Mr. HainTo ask the Chancellor of the Exchequer what is the average interest rate for loans to business; and what are the comparable figures for the Group of Seven leading industrial nations. [38828]
§ Mrs. Angela KnightSpecific data on average interest rates for loans to businesses are not generally available. However, a Bank of England report, in the February 1993 "Quarterly Bulletin", showed that lending to small firms was largely related to money market rates. It is likely that lending to larger firms is also predominantly money market rate-related, although fixed rate finance has become more popular in recent years. Money market rates will therefore provide a broad guide to the general trend in interest rates on loans to businesses.
Data on comparable money market rates for the G7 countries can be found in "International Financial Statistics" published by the IMF.