Finance Minister the Hon. David Saul said the move would also help "naive borrowers''.

The Truth In Lending Bill should be introduced to Parliament before the end of the year.

It would put Bermuda in line with other countries.

Dr. Saul said under the proposed law lenders would have to spell out the terms of a loan clearly to borrowers.

"It would have to be done in simple English, so there is no misunderstanding,'' he said.

For example, someone borrowing at seven percent would be told how much he has to pay a month, said Dr. Saul.

The borrower would also have to be informed how much he has to pay over a longer period, such as 10 years.

The legislation would require lenders to lay out a clear schedule of a borrower's repayments.

"It will not only help the little old lady, but also young couples seeking a mortgage,'' said Dr. Saul. "With this we are not casting aspersions in any way at those who lend money.

"It is as much to protect the naive borrower, and will make it clear to ordinary people what they are borrowing.'' Dr. Saul said penalties for lenders who fall foul of the Act would be outlined precisely in the legislation.

"In other jurisdictions there is very seldom any prosecution under such an Act.

"All it does is require more administration with those lending money.'' Dr. Saul said the Bermuda Monetary Authority believed the bill should be brought forward.

It provided protection with the financial revamping being carried out by Government.

Such revamping included Wednesday night's passing of The Interest And Credit Charges (Regulation) Amendment Act 1994.

Under the Act, Government removed the seven percent ceiling on interest rates.

It provoked alarm from some Opposition MPs.

Shadow Finance Minister Mr. Eugene Cox feared it could lead to mortgage rates increases.

But this was discounted by Dr. Saul, who predicted international interest rates would remain below double figures for the rest of the decade.

Yesterday Dr. Saul said Government intended carrying out further financial revamping by lifting the $3,000 limit on those planning to travel.

"It will probably be done sooner than later,'' he added.

Dr. Saul said the limit would probably be raised to $5,000.

"It will be done in increments. We want to phase it in over a period.'' Dr. Saul said Government had not immediately moved to ease the restriction because people were not taking the maximum allowance out of the country.

He also told MPs on Wednesday night the Bermuda Monetary Authority often allowed people to go above the $3,000 limit.