MPs back extra £9bn loans for IMF

By Ross Hawkins
Political correspondent

  • Published

MPs have backed a proposal to make extra loans worth around £9bn available to the International Monetary Fund.

The government wants to increase the total amount of British money the IMF can borrow from £10.7bn to £20.15bn.

MPs met in committee to consider a statutory instrument - a parliamentary measure that would authorise the Treasury to make the loans.

Several Conservative backbenchers spoke against, and Labour voted against the measure.

But the Treasury minister Mark Hoban said: "We can't have a seat at the top table if we don't increase our quota share."

The House of Commons will have the final say on whether or not to loan the extra money.

Only a quarter of the money made available to the IMF is loaned up front and the government says the IMF has never defaulted on a loan made by a contributing country.

But the Conservative Peter Bone said: "It is real money and there is a real prospect that we will not get it back."

Labour MP Graham Stringer said the money could be "spent on the care of the elderly and could be spent on many other priorities that all our constituents care about".

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