- Dec 10, 2007
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I just came across your question in another thread. I knew Canada had been paid. And looking it up, the USA was paid as well. This happened a couple of years ago.
Britain pays its last installment on World War II debt
The Associated PressPublished: December 29, 2006
LONDON: Britain paid the last installment of its World War II-era debt to the United States and Canada on Friday, making its final US$100 million (€75.91 million) payment to its allies.
Britain was left with a debt of US$4.3 billion to the United States and US$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 percent interest, have since totaled nearly US$10 billion, or about twice the original debt in dollar terms.
"This week, we finally honor in full our commitments to the U.S. and Canada for the support they gave us 60 years ago," Economic Secretary Ed Balls said in a statement. "It was vital support which helped Britain defeat Nazi Germany and secure peace and prosperity in the postwar period."
Most American assistance to Britain came through the Lend-Lease program — which gave away nearly US$27 billion worth of equipment, food, weapons and fuel to the British war effort. When the program ended in 1945, Britain took out loans for reconstruction.
Britain agreed to repay the money over 50 years, but the loan's terms allowed deferred payments when economic conditions were difficult. Britain deferred payments six times during the 1950s and 1960s, when unfavorable exchange rates and low currency reserves made them onerous.
The total amount borrowed is equivalent to about US$60 billion (€45 billion) in terms of today's purchasing power.