§ Mrs. ClwydTo ask the Secretary of State for Foreign and Commonwealth Affairs, pursuant to the answer concerning the lack of a shadow programme between Vietnam and international financial institutions,Official Report, 2 April, column 889, if he will define the term shadow programme and give any examples of countries that have previously established such programmes.
§ Mrs. ChalkerThe term "shadow programme" refers to programmes of economic reform undertaken by a number of countries which have fallen into arrears on repayments due to the IMF, World Bank and regional development banks and have been declared ineligible for further lending. After approval by the IMF's executive board, these programmes are known as fund-monitored programmes (FMPs). They have specific targets and performance criteria, as in any normal IMF programme, but do not include any access to IMF resources. The purpose of an FMP is to allow a country to establish a track record of economic reform as a condition for international assistance with the clearance of arrears and for resumption of access to IMF lending. FMPs were agreed for Guyana in April 1989, Somalia in July 1989, and Zambia in March 1990. The executive board has not yet approved an FMP for Vietnam.