LONDON, Dec 29: Britain paid the last instalment of its World War II-era debt to the United States and Canada on Friday, making its final $100 million payment to its allies. Britain was left with a debt of $4.3 billion to the US and $1.2 billion to Canada more than 60 years ago, when London took out loans to finance reconstruction.
Annual payments on the loans, taken out at 2 per cent interest, have since totalled nearly $10 billion or about twice the original debt in dollar terms.
“This week, we finally honoured in full our commitments to the US and Canada for the support they gave us 60 years ago,” Economic Secretary Ed Balls said in a statement.
“It was a vital support which helped Britain defeat Nazi Germany and secure peace and prosperity in the post-war period.”Most American assistance to Britain came through the Lend-Lease programme, which gave away nearly $27 billion worth of equipment, food, weapons and fuel to the British war effort. When the programme ended in 1945, Britain took out loans for reconstruction.—AP
