§ Mr. Campbell-SavoursTo ask the Chancellor of the Exchequer what conditionality has been applied over the funding of a stabilisation fund for the Russian rouble; and if he will make a statement.
§ Mr. NelsonI refer the hon. Gentleman to the communiqués issued by the G7 and G10 on 26 and 27 April 1992 respectively, which are being placed in the Library of the House.
At meetings in Washington on 26 and 27 April, the G7 and G10 supported the intention to establish a rouble stabilisation fund provided appropriate conditions were met. The fund, which would operate in conjunction with a comprehensive IMF programme, would be intended to help stabilise the rouble, facilitate convertibility of the currency, and promote confidence in the Russian reform effort.
The exact conditions that will need to be satisfied before funding is made available for a stabilisation fund will be determined by the IMF and G10 in consultation with the Russian authorities. These conditions will include the implementation of an agreed IMF programme. It is clear that a stabilisation fund would be effective only once a significant tightening of monetary policies had taken place, an appropriate exchange rate regime had, in the opinion of the IMF, been established, and an effective agreement had been reached on the management of monetary policy across the rouble area.
§ Mr. Campbell-SavoursTo ask the Chancellor of the Exchequer what assessment he has made of the extent the individual policies of economic management pursued by each of the CIS republics will be able to influence the success of a rouble stabilisation fund for Russia.
§ Mr. NelsonA rouble stabilisation fund could be successful only once effective agreements had been reached on the management of monetary policy across the rouble area. Before a rouble stabilisation fund is put in place the 559W IMF will need to satisfy itself that appropriately tight monetary policies are being followed in Russia and all other states which use the rouble.
§ Mr. Campbell-SavoursTo ask the Chancellor of the Exchequer if moneys being allocated for a rouble stabilisation fund, if drawn on, will be subject to repayment by any of those countries that comprise the Commonwealth of Independent States.
§ Mr. NelsonG10 Finance Ministers, meeting in Washington on 27 April, agreed that a rouble stabilisation fund could be financed by the IMF which would provide Russia with enhanced access to its resources, which in turn would be replenished through lending to the IMF by participating countries under the general arrangements to borrow—GAB. Such a stabilisation fund would be put in place only if Russia agreed a programme with the IMF. National contributions to the IMF under the GAB would be matched by the acquisition of claims on the IMF. All funds made available by the IMF to Russia, either through an IMF standby arrangement or a rouble stabilisation fund, would be fully repaid in accordance with criteria established by the IMF.