HC Deb 25 November 1988 vol 142 c13W
Miss Lestor

To ask the Secretary of State for Foreign and Commonwealth Affairs what money has been allocated to the United Kingdom aid programme to cover the cost of the United Kingdom contribution to the International Monetary Fund enhanced structural adjustment facility.

Mr. Chris Patten

Her Majesty's Government have agreed to provide up to £327 million for the IMF enhanced structural adjustment facility (ESAF) during the period up to 2002. Under the 1987 public expenditure survey the aid programme was credited with the following additional amounts in respect of United Kingdom contributions to the subsidy account of the IMF ESAF:

  1. (i) 1988–89 £6.5 million (subsequently increased to £8.5 million by a claim on the Reserve of £2 million);
  2. (ii) 1989–90 £13 million;
  3. (iii) 1990–91 £20 million.

Under the latest public expenditure survey further additional provision has been made for £4 million (1989–90), £5.5 million (1990–91) and £13.5 million (1991–92). This fully covers the total estimated United Kingdom contributions to the subsidy account over the survey period.

Miss Lestor

To ask the Secretary of State for Foreign and Commonwealth Affairs what money has been allocated to the United Kingdom aid programme to cover the expected cost of Mr. Chancellor of the Exchequer's debt initiative.

Mr. Chris Patten

It is impossible accurately to predict the cost of the Toronto concessions. This will depend on factors such as which countries reach agreement with the IMF and seek rescheduling from the Paris Club, the date at which they come to the club, creditors' decisions on eligibility for the concessions and which debts are to be rescheduled. It is planned to finance the interest reduction by an aid grant to the country concerned which will be paid directly by the Overseas Development Administration to ECGD. I expect these sums to be paid in each financial year following the year in which the costs are incurred. The amount added to the aid programme to cover these costs is £2.5 million in 1990–91 and £14 million in 1991–92. These figures are expected to build up quickly.