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When did the UK repay its WWII loans?

When did the UK repay its World War II loans to the USA and Canada?

· Updated · No. 106

The wider world - War and conflict - War

Britain finished repaying American and Canadian loans from World War II on 29 December 2006, sixty years after borrowing $3.75 billion to rebuild after the war.

The UK finished paying off its World War II loan to the United States (and Canada) on December 29, 2006.

A close-up of vintage financial or diplomatic documents from the 1940s, showing typed text and official markings on aged paper
Historical financial documents from the post-war period, when the US provided reconstruction loans to allied nations Photo by RDNE Stock project on Pexels

Key Facts About the Loan:

  • The UK repaid loans taken during and after WWII.
  • The main loan was the Anglo-American Loan Agreement of $3.75 billion (about $57 billion today), provided by the US in 1946 to help Britain rebuild.
  • Canada also loaned the UK C$1.65 billion at the same time.
  • The loan was given at a low 2% interest rate, but post-war economic struggles made repayment difficult.
  • Payments were due annually on December 31, but the UK deferred payments six times due to economic hardship.

Final Payment:

  • The UK made its last payment of $83.25 million on December 29, 2006, officially clearing the debt.

This marked the end of Britain's financial obligations for WWII-related borrowing.

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