HISTORIC PRESS RELEASE : UK Backs Korea IMF Programme [December 1997]

The press release issued by the Treasury on 3 December 1997.

The UK Government fully supports the programme of economic and financial reform announced today by Korea in agreement with the International Monetary Fund (IMF), Chancellor Gordon Brown said today.

The Chancellor said :

“The UK Government fully supports the IMF programme which has been agreed by  Korea. This programme will involve approximately $21 billion of IMF finance, along with financing from the World Bank and the Asian Development Bank.

“In addition, the UK, together with a number of other countries, has agreed to consider the provision of further financial support for Korea.  This will be made available only  if unanticipated circumstances create the need to supplement resources provided by the International Financial Institutions, while Korea remains in compliance with the IMF arrangements. The UK is willing to consider a contribution of up to $1.25 billion.

“Agreement with the IMF on Korea’s programme of reform marks an important step in restoring confidence in Asia, and in helping safeguard the stability of the world financial system.

“As a major IMF shareholder, the UK believes that acting with the support of the IMF is the right way for the Korean authorities to have handled their financial situation. And as a major World Bank shareholder we support its crucial role in restructuring the
financial sector of the Korean economy.

“As an open economy, the UK benefits from substantial trade and investment flows with Asia and the rest of the world. Global financial stability is crucial if we are to deliver sustained economic prosperity and job creation at home.

“We have a strong national interest in working with our international partners and the IMF to help Korea reform its economy and overcome its present financial difficulties. I welcome today’s announcement.”