To ask the Chancellor of the Exchequer what estimate his Department has made of the maximum liability that could arise for the UK as a result of the deployment of the balance of payments facility which allows the EU to borrow money in its own legal personality. (278842)

[holding answer 9 June 2009]: The EC Budget and all member states take on a contingent liability as a result of lending from the balance of payments facility. The loan guarantee risk is borne by the Budget, but no specific budgetary allocation is made for this. Should costs arise from providing this facility, it would be for the Commission to propose, and Council and the European Parliament to agree, how that liability would be met from within the existing financial framework.