§ Mr. DalyellTo ask the Chancellor of the Exchequer if he will make a statement on ways in which the International Monetary Fund and World Bank responds to emergency situations such as earthquakes destroying oil pipelines with consequent effect on debt repayment.
§ Mr. LilleyBoth the International Monetary Fund and the World Bank are able to respond to unexpected exogenous shocks to mitigate the effects on a member's economy. For example, the International Monetary Fund counteracted the adverse effect on Ecuador's balance of payments, mainly resulting from damage caused to an oil pipeline by an earthquake, by disbursing SDR 42.7 million in the form of a contingency financing facility. The World Bank approved an $80 million emergency petroleum reconstruction project loan at the same time.