Following a campaign led by Crawley MP, Henry Smith, the International Development Secretary, Rt Hon Justine Greening, has announced that UK representatives at the World Bank have been instructed to vote against new proposals for financial support to the Republic of Argentina.

Henry commented:

“In December I called on the Government to take urgent action in plugging the leak of British taxpayers’ hard earned money to Argentina and to join tough global action against the country at a time when it’s defaulted on $100 billion worth in bonds – the largest failure to repay sovereign debt in global history.

“After a long running campaign I've led in Parliament, the British Government has this morning changed their policy to stop supporting World Bank loans to Argentina. UK taxpayer money was underwriting loans which Buenos Aires consistently reneged on re-paying.”

Although Great Britain does not give aid directly to Argentina, British taxpayers’ money is awarded to Argentina indirectly, via the World Bank Organisation, to help underwrite the Argentinean economy. 

In a recent Parliamentary Question to the Leader of the House, responsible for the House of Commons agenda, Henry called for a parliamentary debate concerning Great Britain’s stance on financial support for Argentina. 

Henry continued:

“Whilst the Argentine Government continues to advocate a boycott of British goods and an effective economic blockade of the Falkland Islands, I am pleased that our Government has agreed to join the United States, France and Germany, amongst others, in opposing further loans to underwrite the Argentinean economy with hard earned British taxpayers’ money.

“Indeed, I want to go further by questioning Argentina’s status in the G20 and have today written to the Speaker of the House of Commons requesting a Parliamentary debate on the basis that Buenos Aires has failed on all three of the World Bank’s primary objectives: restoring global growth; strengthening the international financial system; and reforming international financial institutions. With non-members, including Malaysia, Norway, Singapore and Switzerland, contributing far more to our global economic wellbeing, one has to question the benefit of Argentina’s presence in the G20.

“A tough global stance against Argentina’s behaviour is essential, not just to ensure a fair deal for British taxpayers, but also to prevent a precedent with calamitous consequences. Imagine for a moment the consequences were Italy, Spain or Greece to follow Argentina’s example in refusing to repay their sovereign debt... it is a warning I gave our Government last year and is now one I believe other G20 Member States need to carefully consider.”