§ Mr. Arnoldasked the Chancellor of the Exchequer how many extended arrangements are awaiting consideration by the executive board of the International Monetary Fund.
§ Mr. Bruce-GardyneThere are no extended arrangements currently awaiting consideration by the executive board.
§ Mr. Arnoldasked the Chancellor of the Exchequer what is the compensatory financing facility of the International Monetary Fund.
§ Mr. Bruce-GardyneThe compensatory financing facility—set up in 1963—is designed to extend the fund's 491W financial support to member countries encountering payments difficulties caused by temporary shortfalls in export proceeds. Members having a balance of payments need may draw on the fund under this facility to compensate for such shortfalls, if the fund is satisfied that the shortfall is temporary and is largely attributable to circumstances beyond the control of the member, and that the member will co-operate with the fund in an effort to solve its balance of payments difficulties. The export shortfall for the latest 12-month period preceding a drawing request is established against an estimate of the medium-term—five-year—trend of the member's exports, which is centred on the shortfall period and based on a judgmental forecast of export prospects for the two years succeeding the shortfall period. Members may draw up to 100 per cent. of quota. Requests for drawings beyong 50 per cent. of quota are met only if the fund is satisfied that the member has been co-operating in an effort to solve its balance of payments problems. Export shortfalls may include, at the option of the member, receipts from travel and workers' remittances.