§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer if he will make a statement on the measure announced in the G7 statement in respect of making countries borrowing from the IMF treat foreign and domestic debtors alike. [59442]
§ Ms Hewitt[holding answer 18 November 1998]: On 30 October 1998, IMF Executive Directors of the G7 issued a statement on the work programme for strengthening the architecture of the international monetary system. The G7 IMF Executive Directors' statement complemented the Declaration of G7 Finance Ministers and Central Bank Governors issued the same day. With the support of my right hon. Friend the Chancellor of the Exchequer, G7 IMF Executive Directors called for the policies on the use of IMF resources to include requirements that the borrower, in accordance with a schedule for action, adopt policies to provide a legal basis for non-discriminatory treatment in insolvency proceedings between domestic and foreign creditors and for debtors and other concerned persons.
§ Mr. TyrieTo ask the Chancellor of the Exchequer what steps the Government are taking to improve the transparency of IMF accounting practices. [56527]
§ Ms Hewitt[holding answer 26 October 1998]: The IMF's financial statements are prepared in accordance with generally accepted accounting principles and are certified as representing a true and fair view of the Fund's financial position by an external audit committee.
My right hon. Friend the Chancellor of the Exchequer has encouraged the IMF to continue looking for ways to improve the format, readability and clarity of their financial data.
The IMF Executive Board recently decided to publish on a monthly basis, information on the IMF's financial resources and liquidity position. The latest copy of the table and explanatory note have been placed in the House of Commons Library.
§ Mr. TyrieTo ask the Chancellor of the Exchequer what is Her Majesty's Government's policy on(a) a revaluation and (b) the sale of the IMF's gold reserves. [56524]
§ Ms HewittThe UK Government support, and have been pressing for, the sale of a proportion of the IMF gold reserves to provide financing for the HIPC initiative. The UK will continue to press for gold sales in the IMF Executive Board. Gold sales require the approval of the Executive Board by a majority of 85 per cent., and we are therefore working closely with other members at the IMF to secure Board approval. We would expect gold to be sold on the basis of market prices, in line with the provisions set out in the IMF Articles of Agreement.
The IMF can use its gold only by selling it. Under the Second Amendment to the IMF Articles of Agreement, it cannot use gold in loans, leases or as collateral in transactions and operations. Revaluation of gold in the IMF accounts would not therefore provide any additional resources for IMF lending or financing.
842W
§ Mr. TyrieTo ask the Chancellor of the Exchequer what estimate his Department has made of the interest forgone on that part of the UK's reserves that are notionally allocated to the IMF. [56523]
§ Ms HewittThe latest estimate, made last year, is that the cost of IMF membership to the UK averages £38 million per annum. This primarily reflects the interest forgone on reserves.