asked the Chancellor of the Exchequer what steps have been taken by the International Monetary Fund in the past six months to tighten conditionality lending to developing countries; and in particular what is the policy of Her Majesty's Government towards the terms to be offered to Costa Rica by the fund.

The International Monetary Fund last reviewed its conditionally guidelines in 1979 and there has been no formal change in the fund's emphasis on the need for conditionally in the six months since the last annual meetings. The interim committee in September 1981 stressed the need for strong and comprehensive adjustment policies in order to reduce the present unsustainable current account imbalances. Although many developing countries have made substantial adaptations, further progress is needed. In this context, it is noteworthy that where programmes have been most successful, the adjustment has been brought about in an orderly way through the early adoption of policy measures.It is not the practice of Her Majesty's Government to comment on negotiations between member States and the fund itself. The Government will, however, give careful consideration to any programme agreed with Costa Rica at such time as is is brought before the executive board.