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Building Societies (Loan)

Volume 886: debated on Monday 10 February 1975

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asked the Secretary of State for the Environment how much of the £500 million loaned to the building societies in 1974 has now been repaid.

£223 million of the £500 million loaned to the building societies in 1974 has now been repaid.

asked the Secretary of State for the Environment what arrangements have been made with the building societies for the repayment of the loan made to the societies in 1974 to keep down the interest rate.

The arrangements are that if in any month a building society with an outstanding loan has a net monthly inflow exceeding 0·28 per cent. of its assets, it makes a repayment on the last business day of the following month equivalent to half that excess. This should broadly achieve the published objective that the building society movement as a whole should repay each month, half of any net receipts in excess of £50 million. In addition, building societies may make premature repayments at any time.