National Loans Fund: Wales

(asked on 25th March 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he plans re-finance loans issued to development bodies in Wales prior to devolution by the National Loan Fund.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 13th April 2021

There are currently no plans to refinance loans issued from the National Loans Fund (NLF) to development bodies in Wales prior to devolution.

All loans made from, or financed by, the NLF are subject to important provisions of the National Loans Act 1968, which sets out that the Treasury may not lend at a loss from the NLF.

To refinance the loans issued from the NLF, the outstanding balances would be treated as being repaid in full and reissued on the same day. The repayment would be calculated as the present value at prevailing interest rates of all amounts due to the NLF under the original terms, to ensure that the NLF were left in the same position as if the original loans had run until maturity.

Reticulating Splines