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Talbot And Peugeot (Loans And Guarantees)

Volume 15: debated on Monday 14 December 1981

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asked the Secretary of State for Industry what loans from Her Majesty's Government to Talbot or to Peugeot, or guarantees in respect of such loans, are at present outstanding; at what rates of interest; with what repayment dates; in what circumstances and under what terms the loans were made; and whether the money was for any particular purpose.

There is at present outsanding from the United Kingdom company a loan of £28 million, guaranteed by PSA Peugeot Citroen. The rate of interest is fixed at 11·9 per cent. and the loan will be repaid in half-yearly tranches of £2·8 million, the first to be paid on 31 December 1985 and thereafter on 30 June and 31 December each year. The loan was made under the agreement between the Secretary of State for Industry and PSA Peugeot Citroen dated 16 December 1978. The terms and conditions of this agreement together with a copy of the declaration of intent by PSA Peugeot Citroen have been placed in the Library.