§ Mr. Deakinsasked the Chancellor of the Exchequer whether the International Monetary Fund imposes any conditions relating to purchase of arms or level of military expenditure when making loans to, or rescheduling the debt of, developing countries; and what policy on these matters is put forward by the United Kingdom representative.
§ Mr. Ian StewartNo, the IMF does not impose any such conditions in its loans to member countries. The fund itself does not reschedule countries' debts, though other creditors may choose to take account of IMF conditionality in deciding whether to reschedule. United Kingdom support for applications for IMF loans depends on their technical merits.