HC Deb 05 April 1984 vol 57 cc1102-3
9. Mr. Skinner

asked the Chancellor of the Exchequer what further discussions he has had with Finance Ministers, and others, regarding international debt rescheduling; and if he will make a statement.

Mr. Lawson

I will be attending a meeting of the interim committee of the International Monetary Fund next Thursday at which international debt may well be discussed.

Mr. Skinner

Will the Chancellor of the Exchequer confirm that during the past six months the amount of rescheduling that has had to take place has increased by 35 per cent. and that the Brazilian ambassador said yesterday that the rescheduling being imposed upon Brazil was likely to lead to malnutrition and urban violence in a period of austerity? Will he also confirm that during this year, prior to the American presidential election, there will be an increase in interest rates as a result of which there will be greater restrictions on those countries that have rescheduled their debts——

Mr. Speaker

Order. In fairness, the hon. Gentleman has had a very good run.

Mr. Skinner

If the Government can take part in an exercise to reschedule so as to bail out banks that have been imprudent, will the Chancellor of the Exchequer tell us why they do not bail out the pits which they say are uneconomic?

Mr. Lawson

The hon. Gentleman is rather losing his touch. In regard to the problems of international debt, the international financial community — that includes the United Kingdom—is following a two-pronged approach. One is to give assistance to these countries; the other is to make sure that they put their own houses in order. Both elements are important.

Sir Anthony Grant

Is my right hon. Friend aware that an awful lot of nonsense is talked about rescheduling these debts, not least by the hon. Member for Bolsover (Mr. Skinner) but also by the right hon. Member for Leeds, East (Mr. Healey)? Is it not a fact that the British banks have behaved completely responsibly in this matter and in accordance with the best banking practice to reach agreement on the basis on which they have done.

Mr. Lawson

My hon. Friend is right. If there is scope for criticism of banks throughout the world — this applies more to American banks than to British banks—it is that they have allowed themselves to become overextended in these countries. Having had to face such a situation. they have behaved with considerable responsibility.