§ Mr. Campbell-Savoursasked the Prime Minister what were the conditions imposed by the International Monetary Fund on its loans to Argentina in respect of public sector and external borrowing by that country.
§ The Prime MinisterThe Argentine authorities are to reduce the borrowing requirements of the non-financial public sector from over 14 per cent. of GDP in 1982 to 8 per cent. of GDP in 1983 and to 5 per cent. of GDP during244W the first quarter of 1984. Information on the external borrowing limit remains confidential to the IMF, but the programme is projected on the basis that the balance of payments deficit on current account will decline from 4.5 per cent. of GDP in 1982 to about 1.5 per cent. of GDP in 1983 and will be further reduced in 1984. External payments arrears are to be eliminated by June 1983.
§ Mr. Campbell-Savoursasked the Prime Minister what are the total debt arrears that remain to be paid by Argentina by June 1983.
§ The Prime MinisterWe estimate that the total external debt arrears outstanding at the end of December 1982 were between $2 billion and $2.5 billion.
§ Mr. Campbell-Savoursasked the Prime Minister what information about domestic, social and politial objectives, economic priorities and measures to deal with problems of the balance of payments was given to the International Monetary Fund by Argentina; and what judgment of these was made by the fund in accordance with paragraph 4 of page 20 of selected decisions of the International Monetary Fund.
§ The Prime MinisterDetails of the negotiations between the IMF and member states are confidential to the IMF. So, too, are the deliberations of the fund's executive board upon them. The fund is required to pay due regard to, not to pass judgment on, the domestic, social and political objectives of members who seek to draw on its resources.
§ Mr. Campbell-Savoursasked the Prime Minister, pursuant to her answer of 31 January, Official Report, c. 8–9, what assessment she makes of Argentina's ability to purchase arms in the context of the constraints imposed by the International Monetary Fund.
§ The Prime MinisterThe IMF ceilings on public sector and external borrowing should help to constrain Argentina's ability to purchase arms. If Argentina were to divert the scarce resources available to it towards military expenditure, it would have great difficulty in achieving the economic stabilisation upon which the IMF programme is based. Failure to achieve this could put at risk Argentina's eligibility for future IMF drawings.