UK Politics

MPs back £9bn extra in IMF loans

A committee of MPs has backed a proposal to make extra loans worth around £9bn available to the International Monetary Fund (IMF).

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

The House of Commons will have the final say, with a vote expected next week.

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.

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

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

The move was also opposed by Labour MP Graham Stringer, who told MPs: "If it real money that could be spent on the care of the elderly and could be spent on many other priorities that all our constituents care about."

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

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