The Anglo-American Loan Agreement was a loan made to the United Kingdom by the United States on July 15, 1946, allowing its economy to stay afloat after World War II. The loan was negotiated by British economist John Maynard Keynes and American diplomat William L. Clayton. Problems arose on the American side, with many in Congress reluctant and with sharp differences between the Treasury and state departments. The loan was for a whopping $3.75 billion (about 10% of British GDP) at a low interest rate of 2%; Canada lent another $1.19 billion. The British economy in 1947 was hurt by a provision requiring the convertibility into dollars of wartime sterling balances the British had borrowed from India and others, but in 1948 the Marshall Plan included financial support that did not have to be repaid. The entire loan was repaid only in 2006, after being extended for six years.
