asked the Secretary of State for Foreign and Commonwealth Affairs, pursuant to his answer of 11 March, Official Report, column 185, if he will list United Kingdom aid used in mixed credits and less concessional tied aid loans as a percentage of gross bilateral aid commitment, for each year since the aid and trade provision was introduced.
The first commitments under the aid and trade provision were made in 1978. The information requested is set out in the table
| Per cent. | |
| 1978 | 12 |
| 1979 | 16 |
| 1980 | 8 |
| 1981 | 12 |
| 1982 | 36 |
| 1983 | 9 |
| 1984 | 21 |
| 1985 | 5 |
| 1 Full data in these years are not available. The figures represent aid used in mixed credit commitments only, and are approximate. | |
asked the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the impact of the Organisation for Economic Co-operation and Development agreement on aid and export credits on United Kingdom aid and trade provisions.
The impact of the new agreement will be that the minimum grant element for tied aid credits (including mixed credits) supported by the aid and trade provision is due to be increased to 30 per cent, from 1 July 1987 and to 35 per cent, from 1 July 1988. For the least developed countries, the minimum grant element will be 50 per cent, from 1 July 1987. I am glad to say that the grant element will be calculated in a way which more nearly reflects the cost to individual donor countries of providing such finance, which will make it more expensive for countries with low interest rate currencies.