HC Deb 20 May 1986 vol 98 c174W
Mrs. Dunwoody

asked the Chancellor of the Exchequer if he will make it his policy to put forward proposals at the International Monetary Fund for a full study of the effects on children and the poor of the proposed International Monetary Fund adjustment programme before it is approved.

Mr. Ian Stewart

The provision of financial assistance by the IMF in support of agreed adjustment programmes is intended to enable countries with balance of payments difficulties to achieve the necessary adjustment over a longer time and at a lower social and economic cost than would otherwise be possible. Within this framework it is the responsibility of the debtor countries themselves to decide domestic priorities. In co-operation with the World Bank the IMF also seeks to encourage the countries concerned to implement economic reforms which will promote higher growth and employment in the longer term.

The IMF recognises the particular difficulties faced by the poorest countries in carrying out economic reforms and has recently agreed to set up a new structural adjustment facility totalling SDR 2.7 bn. This will provide loans at highly concessional rates to 60 of the poorest countries undertaking medium-term structural adjustment programmes.