Citrus Growers (Loans).

Oral Answers to Questions — Palestine. – in the House of Commons on 29th May 1941.

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Mr. David Adams:

asked the Under-Secretary of State for the Colonies whether he is aware that the advance of about £500,000 to Palestine citrus growers is in loans granted from Palestine banks at a rate of six per cent. per annum; and whether, in view of the financial difficulties experienced by these growers, more reasonable terms can be arranged?

Photo of Mr George Hall Mr George Hall , Merthyr Tydfil Aberdare

The terms of the assistance to Palestine citrus growers which has been guaranteed by the Palestine Government were carefully considered in consultation with the High Commissioner, and his advice was accepted that it would be best to follow ordinary commercial practice, the rate of interest charged being that ordinarily applied to commercial advances.

Mr. Adams:

In view of the fact that the citrus growers' financial situation is very carefully examined before any loan is made, does he not consider that this is a very high rate of interest?

Photo of Mr George Hall Mr George Hall , Merthyr Tydfil Aberdare

It is the ordinary rate charged for such transactions.