hockberg
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Bhakta
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# Posted: 29 Dec 2006 15:06
Britain has finally settled its Second World War debts to the US and Canada - 60 years after the loans were taken out.
It has paid back the final instalments of £42.5m to the Americans and £11.6m to the Canadians.
Washington loaned the UK £2.2bn in 1945 and Canada loaned £607m the year after - at just 2%.
Despite that favourable rate the amount now repaid is double that borrowed - £3.8bn to the US and £1bn to Canada.
And there were six years during that time in which Britain deferred payments because of political and/or economic crises.
Under the Lend-Lease programme, which began in March 1941, the then neutral US could provide countries fighting Adolf Hitler with war material.
The US joined the war soon after - in the wake of the attack on Pearl Harbour - and the programme ended in 1945.
Equipment left over in Britain at the end of hostilities, and still needed, had to be paid for.
Treasury Minister Ed Balls said: "This week we finally honour in full our commitments to the US and Canada for the support they gave us 60 years ago.
"It was vital support which helped Britain defeat Nazi Germany and secure peace and prosperity in the post-war period."
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