IMF

Baroness Bray of Coln Excerpts

Monday 23rd April 2012 Commons Chamber

[Mr Osborne]

I find myself in agreement with the hon. Gentleman who speaks for the Scottish National party. One of the consequences of what has happened over the past year or two in the eurozone is that countries that want to join the eurozone now need to ante-up a huge sum of money into the bail-out fund. No doubt that is something he will be explaining to Scottish voters as we discuss whether Scotland should ditch the pound and join the euro.

[Angie Bray (Ealing Central and Acton) (Con)]

I support the Chancellor’s decision to make this additional loan to the IMF because of the important work that the IMF does in stabilising the economy across the world, not just in the EU. Can he reassure my constituents in Ealing and Acton that the loan will be repaid with interest?

[Mr Osborne]

Yes, I can. IMF loans are repaid and they always have been in the past. No country has lost money giving resources to the IMF and such loans are repaid with interest. Indeed, if I can find the quotation—[Interruption.] It is worth waiting for, because it is from the shadow Chancellor. When the shadow Chancellor was in the Treasury, he said that IMF lending to

“countries is invariably repaid with interest.”

That is what he said in 2003. I can give my hon. Friend the assurance that loans to the IMF are made to the most creditworthy institution in the world and are repaid.