§ Mr. TyrieTo ask the Chancellor of the Exchequer if his Department will make all future UK quota increases to the IMF subject to parliamentary approval on the floor of the House [56525]
§ Ms HewittSection 1(2) of the International Monetary Fund Act 1979 stipulates that, before the Treasury may make an order increasing the UK's quota, a draft of the Order must be approved by a resolution of the House of Commons.
§ Mr. TyrieTo ask the Chancellor of the Exchequer what steps the Government are taking to ensure that recipient countries of loans satisfy more stringent disclosure requirements as a condition for further lending; and what are the current disclosure requirements. [56531]
§ Ms Hewitt[holding answer 26 October 1998]: As my right hon. Friend the Chancellor of the Exchequer said in his statement to the House on 2 November 1998, Official Report, columns 559-74, immediate action to promote transparency in fiscal policy, financial and monetary policy, and corporate governance should be key components in any reform programme which the IMF and the World Bank agree in coming months. The UK's Executive Director will carefully monitor IMF and World Bank programmes in this respect. He and other G7 Executive Directors have issued a joint statement which commits them to work towards greater disclosure in this area.
To promote greater transparency and disclosure of information in the public and private sectors, the Chancellor had previously called for the urgent 357W development and implementation of internationally agreed codes of good conduct that all countries should adopt and apply, on fiscal policy—which the IMF have now completed—monetary and financial policy, and corporate governance.
The G7 Finance Ministers and Central Bank Governors emphasised their support for this approach in their recent statement on strengthening the financial system. They called upon the IMF to publish in a timely and systematic way the results of its surveillance of the degree to which each of its member countries meets internationally recognised codes and standards of transparency and disclosure in the form of a Transparency Report.
The current disclosure requirements are decided on a case by case basis and relate to the performance criteria of each loan.
§ Mr. TyrieTo ask the Chancellor of the Exchequer if he will publish the report on the Mexican debt crisis written internally within the IMF by Alan Whittome. [56532]
§ Ms Hewitt[holding answer 26 October 1998]: The Chancellor has made clear his view that there should be a general presumption in favour of publishing IMF documents, except where this might compromise confidentiality. Decisions on the publication of Fund documents rest with the IMF Executive Board.
§ Mr. TyrieTo ask the Chancellor of the Exchequer if the Government will propose that the IMF be remitted to engage in market borrowing. [56530]
§ Ms Hewitt[holding answer 26 October 1998]: The Government have no plans to propose that the IMF be remitted to engage in market borrowing.
§ Mr. TyrieTo ask the Chancellor of the Exchequer if he will take steps to ensure greater transparency in respect of the disclosure requirements for countries in receipt of IMF loans. [56533]
§ Ms Hewitt[holding answer 26 October 1998]: In his statement to the Interim Committee of the IMF on 4 October, my right hon. Friend the Chancellor of the Exchequer said that, in most cases, there is a strong argument for publishing Letters of Intent thereby making it clear to the public what has been agreed between the authorities and the IMF. At that meeting, IMF Governors endorsed increased IMF transparency, including the broader publication of Letters of Intent. The Chancellor has continued to emphasise the importance of this in his capacity as chairman of the G7 Finance Ministers and Central Bank Governors. In their recent statement on strengthening financial systems, the G7 reiterated the need for greater transparency in respect of IMF programmes.
§ Mr. TyrieTo ask the Chancellor of the Exchequer if he will take steps to ensure that the IMF's accounts make provision for debts in the same manner as private sector institutions. [56529]
§ Ms Hewitt[holding answer 26 October 1998]: The Government believe that the Fund must perform its responsibilities in an open and transparent way that enhances public confidence.
The IMF's financial statements are prepared in accordance with generally accepted accounting principles and are certified as representing a true and fair view of 358W the Fund's financial position by an external audit committee. The IMF's Annual Report contains further information on its liquidity position and borrowing.
§ Mr. TyrieTo ask the Chancellor of the Exchequer if he will request the IMF to commission an independent study of the way they operate in respect of systemic risk in the global financial system. [56521]
§ Ms HewittThe Chancellor has called on the IMF to develop a formal mechanism for systematic evaluation, involving external input, of the effectiveness of its operations, programmes, policies and procedures.