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Interest Costs (Overseas Debts)

Volume 887: debated on Friday 7 March 1975

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asked the Chancellor of the Exchequer what is the annual interest servicing cost resulting from financing the balance of payments deficit by means of overseas borrowing and Government guarantees for public sector bodies.

It is not possible to give a precise figure of the annual interest servicing cost since a large part of this borrowing is on floating rate terms. But at present rates the sum of interest payments on the $2ยท5 billion Her Majesty's Government loan and on the foreign currency loans taken by nationalised industries and local authorities under the foreign borrowing programme is running at an annual rate of some $660 million.