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Building Societies

Volume 884: debated on Wednesday 22 January 1975

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asked the Secretary of State for the Environment what is the current position on Government loans to building societies; and what has been the cost to the taxpayer thus far of subsidising these loans.

Of the £500 million loaned to the building societies in 1974, £186 million has so far been repaid. All loans have been made at the rate of 10½ per cent. The only voted expenditure in addition to the loans themselves has been a payment of £555,270 to the Bank of England to cover the difference between the bank's minimum lending rate and the 10½ per cent. charged by the bank on the first £100 million of loans.