Jump to content
House Price Crash Forum
Sign in to follow this  
exiges

Uk Raises Annual Payment To Imf By £9Bn

Recommended Posts

The UK is to increase its subscription to the International Monetary Fund by more than £9bn a year - almost doubling the amount it lends the organisation.

It currently provides £10.54bn a year, reflecting the size of the UK economy.

The increase follows the G20 group of economies agreeing to raise the IMF's overall lending capacity after debt crises in Greece, Ireland and Portugal.

Interest paid on loans from the UK means taxpayers will not lose out, a Treasury source told the BBC.

The scale of the increase emerged in a piece of secondary legislation from the government laid before Parliament on Tuesday.

'Very concerned'

Conservative MP Douglas Carswell said: "I'm appalled to see at a time of cutbacks at home, at a time when many constituents are worried about cuts in public services in the UK that we're doubling the amount of subscription that we pay to the IMF."

"I'm very concerned that the government tried to announce this, not by standing up in the Commons and telling us that it was spending the money in this way, not by having a debate to allow MPs to question the wisdom of doing this but by slipping it through when no-one was looking with a written statement.

"We're talking about an enormous sum of money. We're talking about the equivalent of 1.5p on income tax. I think a lot of people will be quite shocked to discover that we're increasing our subscription to the IMF in order to bail out the eurozone."

But a Treasury source told the BBC: "Any suggestion that the UK taxpayer faces additional costs is wrong.

"We are lending money from existing foreign exchange reserves to the IMF on which they pay interest to us. It has no impact on our borrowing whatsoever."

Share this post


Link to post
Share on other sites

The UK is to increase its subscription to the International Monetary Fund by more than £9bn a year - almost doubling the amount it lends the organisation.

It currently provides £10.54bn a year, reflecting the size of the UK economy.

The increase follows the G20 group of economies agreeing to raise the IMF's overall lending capacity after debt crises in Greece, Ireland and Portugal.

Interest paid on loans from the UK means taxpayers will not lose out, a Treasury source told the BBC.

The scale of the increase emerged in a piece of secondary legislation from the government laid before Parliament on Tuesday.

'Very concerned'

Conservative MP Douglas Carswell said: "I'm appalled to see at a time of cutbacks at home, at a time when many constituents are worried about cuts in public services in the UK that we're doubling the amount of subscription that we pay to the IMF."

"I'm very concerned that the government tried to announce this, not by standing up in the Commons and telling us that it was spending the money in this way, not by having a debate to allow MPs to question the wisdom of doing this but by slipping it through when no-one was looking with a written statement.

"We're talking about an enormous sum of money. We're talking about the equivalent of 1.5p on income tax. I think a lot of people will be quite shocked to discover that we're increasing our subscription to the IMF in order to bail out the eurozone."

But a Treasury source told the BBC: "Any suggestion that the UK taxpayer faces additional costs is wrong.

"We are lending money from existing foreign exchange reserves to the IMF on which they pay interest to us. It has no impact on our borrowing whatsoever."

I am sure RBS felt the same when they lent all that money to Marriott.

Share this post


Link to post
Share on other sites

"We are lending money from existing foreign exchange reserves to the IMF on which they pay interest to us. It has no impact on our borrowing whatsoever."

We have a deficit.

It's money we could use to pay down our deficit so we don't have to borrow.

Why don't we have an offset account?

Share this post


Link to post
Share on other sites

Just goes to show how much is resting on Greece et al not failing. If they do fail then it's a short ride to saying goodbye banks, goodbye savings, goodbye pension funds, goodbye economy, goodbye currency etc.

So quick, double the annual payment to the IMF so they can bail them out, even though we can't afford it.

Snake eating its own tail.

Share this post


Link to post
Share on other sites

The UK is to increase its subscription to the International Monetary Fund by more than £9bn a year - almost doubling the amount it lends the organisation.

It currently provides £10.54bn a year, reflecting the size of the UK economy.

A sensible precaution IMO.

If labour get back in at the next election then we'll need as many friends as possible at the IMF.

Share this post


Link to post
Share on other sites

Keep the good news coming, the sooner we burn through the money we do have (none) and the money we don't have (Merv's funny money) the sooner we reach the end game.

I'm ready; Gold, guns and a sock full of snooker balls, just to show I care...

Share this post


Link to post
Share on other sites

But a Treasury source told the BBC: "Any suggestion that the UK taxpayer faces additional costs is wrong.

"We are lending money from existing foreign exchange reserves to the IMF on which they pay interest to us. It has no impact on our borrowing whatsoever."

Uh, uh, what if they dont pay us back then? Or what if the currency we lend in becomes devalued by hyper-inflation?

I suggest to the Treasury source that the UK taxpayer is facing additional costs.

Share this post


Link to post
Share on other sites

Keep the good news coming, the sooner we burn through the money we do have (none) and the money we don't have (Merv's funny money) the sooner we reach the end game.

I'm ready; Gold, guns and a sock full of snooker balls, just to show I care...

im the DADDY round here mkayyy

Share this post


Link to post
Share on other sites

Feckin ell. I thought we paid a few hundred million to the UN and got membership of NATO, WMO, World bank, IMF, UNICEF etc etc

So thats £10bn to IMF

£11bn foreign aid

£15bn EU fee

£45bn in lost EU excise and import duties

I think i could fix the deficit in a few minutes.

Share this post


Link to post
Share on other sites

Keep the good news coming, the sooner we burn through the money we do have (none) and the money we don't have (Merv's funny money) the sooner we reach the end game.

I'm ready; Gold, guns and a sock full of snooker balls, just to show I care...

Yep, no reason to complain. Reason to celebrate if anything. Just an extra brick on the debt default accelerator! B)

Share this post


Link to post
Share on other sites

http://www.imf.org/external/np/exr/facts/sdr.htm

The SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. Holders of SDRs can obtain these currencies in exchange for their SDRs in two ways: first, through the arrangement of voluntary exchanges between members; and second, by the IMF designating members with strong external positions to purchase SDRs from members with weak external positions. In addition to its role as a supplementary reserve asset, the SDR, serves as theunit of account of the IMF and some other international organizations.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.