§ Mr. TimmsTo ask the Chancellor of the Exchequer if he will make a statement on the negotiations between the IMF and Korea. [19463]
§ Mr. Gordon BrownI am pleased the Managing Director of the IMF has reported today agreement with the Korean authorities to a strong programme, which he will recommend to the Board of the IMF. If the programme is agreed, the UK is prepared with some of our European and other G7 partners to consider, if needed, supplementary finance in support of the programme. The UK would consider an amount up to the equivalent of $1.25 billion. Any loan would depend on a financing need and would only be made with agreement by the IMF. Were such a loan to be made it would be advanced by the Bank of England to the Central Bank of Korea. The Treasury would provide to the Bank of England an indemnity under the International Monetary Arrangements Act 1983.