HL Deb 08 June 1981 vol 421 cc112-3WA
Lord Brockway

asked Her Majesty's Government:

What conclusions were reached at the meeting of the interim committee of the International Monetary Fund at Gabon, particularly regarding its financial difficulties and the greater participation of OPEC countries, whether any conditions were laid down for such participation, whether the United Kingdom was represented, and, if so, what contribution was made to those decisions.

The Minister of State, Treasury (Lord Cockfield)

The interim committee (at which the United Kingdom was represented by the Chancellor of the Exchequer) noted the steps that the Fund had taken, or was in the process of taking, in order to be able to finance the enlarged access of member countries to its resources in current circumstances. It noted with satisfaction the steps taken since its last meeting in September 1980 including the completion of the Seventh Quota Review and the recent increase in Saudi Arabia's quota.

It welcomed the major contribution that the Saudi Arabian authorities had made under the borrowing agreement of 7th May, 1981 between the Saudi Arabian Monetary Agency and the Fund. The committee also welcomed the recent arrangements with the monetary authorities of 13 industrial countries (including the United Kingdom) that will enable the fund to obtain short-term financing either directly or through the Bank of International Settlements. It endorsed the efforts currently under way to obtain the Fund additional medium-term loans from several other member countries whose balance of payments is strong, as well as shorter-term financing from the monetary authorities of other members.

While recognising the need of the Fund to resort to borrowing in current circumstances, the committee reiterated its view that the Fund should continue to place reliance on subscriptions under members' quotas as the basic source of financing its operations. It was therefore pleased to note that preparatory work had begun on the Eighth Quota Review.

The United Kingdom Government support the conclusions reached by the interim committee on the financing of the enlarged access policy.