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Foreign Loans

Volume 893: debated on Monday 9 June 1975

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asked the Chancellor of the Exchequer if he will list in the Official Report the details of the overseas loans to United Kingdom authorities, including nationalised industries and local authorities, contracted since February 1970, and specify which loans

BorrowerAmount (million)
Local Authorities:
BirminghamU.S. dollars50
Swiss francs31*
BristolU.S. dollars15
U.S. dollars34
CoventryU.S. dollars25
U.S. dollars20
DundeeU.S. dollars25
EdinburghU.S. dollars25
GlasgowU.S. dollars75
U.S. dollars200
Local Authorities (continued):
Kent and EssexU.S. dollars9·8†
£ sterling2…8†
LanarkU.S. dollars30
LancashireU.S. dollars30
LiverpoolU.S. dollars40
Corporation of LondonU.S. dollars35
Greater London CouncilSwiss francs104…1
U.S. dollars25
U.S. dollars10
Swiss francs200*
U.S. dollars500
ManchesterU.S. dollars50
NottinghamU.S. dollars25
TeessideU.S. dollars25
Statutory Corporations:
National Coal BoardU.S. dollars50
U.S. dollars15
U.S. dollars5·6*
U.S. dollars10
U.S. dollars15*
£ sterling1·7
Deutsche marks25
U.S. dollars40·2
U.S. dollars23·5
U.S. dollars12
U.S. dollars46·5

include a provision for a guaranteed exchange rate for sterling against other currencies; and if he will estimate the additional cost of such loans implied by the devaluation of the pound since the loans were contracted.

I assume that the question refers to overseas loans by public sector bodies for domestic purposes for which an exchange cover guarantee is currently made available provided that the terms of the borrowing are acceptable. The cost to the Exchequer, if any, of exchange cover cannot be estimated now, as it will depend upon the exchange rate between the foreign currency and sterling at the time of repayment, and upon the movement of interest rates during the life of loans. Following is the information on overseas borrowings by public sector bodies for domestic purposes from February 1970 to 31st May 1975:


Amount (million)

Electricity CouncilDeutsche marks100
Deutsche marks35·1
Swiss francs200*
Swiss francs125*
U.S. dollars1,000
U.S. dollars500
U.S. dollars100
U.S. dollars25·1†
Deutsche marks10†
£ sterling3·1†
U.S. dollars11·3†
Deutsche marks8·8†
£ sterling1·6†
South of Scotland Electricity BoardDeutsche marks100*
U.S. dollars20
U.S. dollars30
U.S. dollars20
U.S. dollars50
U.S. dollars100
U.S. dollars26·4†
Deutsche marks8·8†
Dutch florins4·5†
£ sterling2·3†

Statutory Corporations (continued):

North of Scotland Hydro-Electric BoardU.S. dollars25
U.S. dollars12·5
U.S. dollars15†
£ sterling4·2†
British Gas Corporation/Gas CouncilSwiss francs75
Swiss francs150
Swiss francs100†
Deutsche marks42†
Swiss francs200
U.S. dollars20
U.S. dollars30
U.S. dollars250
Post OfficeU.S. dollars500
U.S. dollars100
U.S. dollars25
U.S. dollars100
U.S. dollars150
U.S. dollars125
British Steel CorporationU.S. dollars22*
Belgian francs475†
U.S. dollars50*
U.S. dollars13·6†
Belgian francs191†*
Dutch florins13†
£ sterling4·7†
U.S. dollars150*
U.S. dollars21*
U.S. dollars23*
U.S. dollars200
U.S. dollars11·2†*
£ sterling3·2†
U.S. dollars22·3†*
£ sterling2·4†
U.S. dollars54*
U.S. dollars26
National Water CouncilU.S. dollars400


1. Except those marked * all these loans are covered by the Treasury's exchange cover scheme.

2. Loans marked t are single borrowings in the mixture of currencies indicated.