International Monetary Fund

HC Deb 21 March 1974 vol 870 cc1309-10

11. Mr. Pardoe

asked the Chancellor of the Exchequer when he expects to meet representatives of the International Monetary Fund.

Mr. Healey

I have no immediate plans to do so, but I hope to make many new contacts over the coming months.

Mr. Pardoe

What makes the Chancellor of the Exchequer think that the IMF will impose less stringent terms on our borrowing than it has imposed for Italy? Is he aware that the terms imposed on the Italians would be totally unacceptable to the British people?

Mr. Healey

I am well aware of the considerations which the hon. Gentleman has mentioned, but I remind him that since the present Government took office the effective devaluation of sterling in terms of a weighted average of foreign currencies has been substantially lower than in the last months of the previous administration. This is bound to have its effect on the attitude of the International Monetary Fund, should I approach it, though I have taken no decision to do so.

Mr. Norman Lamont

Will the Chancellor say what are the amounts of conditional and unconditional facilities available from the IMF? Is access to those facilities in any way affected by a currency floating?

Mr. Healey

The total credit facilities available to the United Kingdom from the IMF amount to $3.4 billion. I should be grateful to have notice of the second question.

Mrs. Winifred Ewing

In future borrowing, what importance will the right hon. Gentleman attach to offering North Sea oil revenues as security?

Mr. Healey

There is no indication whatever that such an idea is in the mind of any potential source of borrowing.