§ Mr. Marten
asked the Secretary of State for Energy if he will set out the terms of the recent EEC loan of £31 million to the National Coal Board.
§ Mr. Eadie
The EEC recently announced that it had approved 14 NCB projects for which Community loans might be offered. Of a total of £31 million that is expected to be made available the National Coal Board has to date 651W drawn £10.6 million (US $20 million) on following terms:Rate of interest: 9.05 per cent. per annum.Period: Nine years.Repayments: Four instalments of US $5 million in each of the years 1984 to 1987.Use of funds: Improvements at 14 colliery locations.
The loans are covered by Treasury guarantee against exchange loss.