Written question asked by John Austin (Labour) on Tuesday, 27 June 2000, in the House of Commons. It was due for an answer on Friday, 7 July 2000. It was answered by Richard Caborn (Labour) on Friday, 7 July 2000 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: To ask the Secretary of State for Trade and Industry, pursuant to his Answer of 22nd June, 352, column 236W, on Lesotho, if he will list the payments by Her Majesty's Government in respect of loans underwritten through the ECGD to the companies listed. - Inc figures and correct on to 352 c236W.

Answer: Mr. Austin: To ask the Secretary of State for Trade and Industry, pursuant to his answer of 22 June 2000, Official Report, column 236W, on Lesotho, if he will list the payments by Her Majesty's Government in respect of loans underwritten through the ECGD to the companies listed. [128569] Mr. Caborn: No claims payments have been made direct to the companies concerned as they are not the beneficiaries of the ECGD cover. ECGD's guarantee is given to the lending bank for any defaults arising under any loan agreement. Only one of the loans listed has so far given rise to claims payments, namely the loan made by HSBC to finance the Cairo Waste Water project in Egypt. On a closer examination of records, it is regretted that the value of this loan was incorrectly shown as £32.0 million in the answer provided to my hon Friend's earlier question on 22 June 2000, Official Report, column 236W. The total value of this loan was, in fact, £142.8 million. Claims including interest of the value of £190.8 million have been paid to the lending bank following a series of defaults under this loan of which some £43 million has been recovered to date. The balance of the debt has been rescheduled under debt rescheduling arrangements with Egypt.

Secondary information