§ Lord Kennetasked Her Majesty's Government:
Whether "speculators", however defined, will benefit from the International Monetary Fund's financial rescue operations in South East Asia; whether the governments in question will be 5WA responsible for repayments to the IMF; and whether a debt crisis is anticipated in South East Asia. [HL42]
§ Lord McIntosh of HaringeyWe are confident that, provided there is full implementation of the adjustment programmes which a number of Asian countries have agreed with the IMF, Asia will recover from its current financial difficulties. These programmes consist of measures to increase transparency, stability and sound economic policies. This is all the more important given today's world of open capital markets in which countries are quickly penalised if they pursue inappropriate economic policies. The aim of the programmes is not, however, to prevent natural market movements; investors will continue to face potential losses and gains in these markets. It is the borrowing country's responsibility to ensure that the Fund receives repayments in accordance with the terms of the agreement.