§ Mr. Martyn JonesTo ask the Chancellor of the Exchequer if he will make a statement on the recent meeting of the International Monetary and Financial Committee of the IMF in Washington DC. [52623]
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§ Ruth KellyThe International Monetary and Financial Committee met in Washington DC on 20 April 2002. The Committee had a broad agenda, covering the global economy, the IMF's policy agenda and progress in combating money laundering and the financing of terrorism. Based on the Committee's discussions, management will determine the forward work programme and priorities for the International Monetary Fund over the next six months.
In their discussion of the global economy the Committee welcomed the international community's decisive policy actions, especially following the tragic events of 11 September 2001, to maintain financial stability, restore the momentum of world economic growth, and reinvigorate the fight against poverty. The Committee also urged the Argentine authorities to co-operate with the IMF to reach agreement on a sustainable economic programme.
Going forward the Committee will continue to work together for sustained, broad based growth, creating opportunities for productive employment, reducing vulnerabilities, opening up economies for trade, providing resources for durable poverty reduction, and sustaining global action to combat money laundering and the financing of terrorism.
The Committee also made recommendations for strengthening the IMF's surveillance, including in financial sectors, and crisis prevention and for enhancing the existing framework for crisis resolution, including consideration of innovative proposals to improve the process of sovereign debt restructuring.
The Committee fully endorsed the Monterrey consensus and encouraged the IMF to work closely with the World bank, regional development banks, the United Nations and bilateral donors in monitoring progress towards achieving the Millennium Development Goals. The Committee welcomed the outcomes of the recent reviews of the Poverty Reduction and Growth Facility and of the Poverty Reduction Strategy Paper process and were encouraged by progress in implementation of the heavily indebted poor countries (HIPC) initiative. However, they noted that debt sustainability remains an issue for a number of HIPC countries and called on the IMF and the World bank to review the situation.
Copies of the IMFC's final communiqué are available in the Library of the House and on the IMF website at www.imf.org.