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Ww 2 brit loan

Source: TW

the Anglo-American Loan was extraordinarily generous by the standards of international finance. The 2% interest rate was far below market rates, and the 50-year repayment period was exceptionally long. For comparison, commercial international loans at the time typically had much higher interest rates and shorter repayment periods.

Some key favorable terms:

2% annual interest rate
50-year repayment period
No repayment required if British economy wasn’t strong enough (though this provision wasn’t invoked)
Grace period before payments had to begin

The main strings attached were policy-related rather than financial:

Making sterling convertible to dollars (which proved problematic when attempted in 1947)
Ending Imperial Preference trade arrangements
Participating in post-war international economic organizations

While the loan did represent a significant debt burden, its terms were deliberately structured to be as manageable as possible given Britain’s post-war circumstances. This reflected both American strategic interests in maintaining a strong Britain and a recognition of Britain’s sacrifices during the war years before US entry.