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UK will not support World Bank loans to Argentina; British public opinion against such aid

Monday, November 17th 2014 - 06:06 UTC
Full article 88 comments
PM Cameron is being urged by MPs to prevent any more money being sent to Argentina before a final decision on the latest loan is made next month PM Cameron is being urged by MPs to prevent any more money being sent to Argentina before a final decision on the latest loan is made next month
“Last year, under pressure from UK, the World Bank effectively froze lending to Argentina due to its refusal to pay creditors and its aggressive foreign policy”. “Last year, under pressure from UK, the World Bank effectively froze lending to Argentina due to its refusal to pay creditors and its aggressive foreign policy”.

The United Kingdom contributions mostly through World Bank loans and aid to Argentina have again been questioned in Britain with demands on Prime Minister David Cameron to block British taxpayers cash going to the country which has 'precarious finances' and a long standing demand over the Falkland Islands sovereignty.

 According to a piece published in the Sunday Express the UK has handed Argentina some £225million out of the foreign aid budget over the past 20 years. The money is basically the UK share of loans given to Argentina by the World Bank through its aid subsidiaries.

Now allegedly PM Cameron is being urged to prevent any more money being sent to Argentina before a final decision on the latest loan is made next month. The funding is overseen by the UK's Department for International Development and is included in Britain's commitment to spend 0.7% of GDP on foreign aid.

Accordingly a spokesperson for DfID said that no British money was used to directly finance loans to the Argentine government and the UK position was “to vote against all new proposals for such support”.

Britain also contributes £7million to a £50million EU aid program to Argentina.

“This is despite the fact that it is a relatively wealthy country, a member of the G20 group of leading economies” says the article adding that MPs called on PM Cameron to press for an end to the controversial payments during talks at the G2' summit in Australia.

Tory backbencher Peter Bone said: “It is wrong to give any aid to Argentina. I do not want our money going somewhere that could be used to support Argentina’s military.

”People do not expect to give overseas aid to Argentina whether it is disguised through the World Bank, the EU or not. Anything Mr Cameron can do to stop it from happening will be hugely backed by the British public.”

A poll by campaign group the Tax- Payers’ Alliance shows British and European voters want their governments to withhold the loans.

Some 85% of taxpayers said they did not want their money invested in Argentina because of its precarious finances. They also want Argentina to be booted out of the G20 for defaulting on its debts. Last year, under pressure from the UK, the World Bank effectively froze lending to Argentina due to its refusal to pay creditors and its aggressive foreign policy.

However, the Bank’s board has endorsed a new strategy for £1.9billion in loans. A final decision is to be made next month. Britain is the fifth largest shareholder in the World Bank, which has lent Argentina £10billion.

According to the Sunday Express a spokesperson for UK's Department for International Development said no British taxpayers’ money was used to directly finance loans to the Argentine government and the UK position was to vote against all new proposals for such support.

International Development Secretary Justine Greening said: “I toughened up our policy in precisely that way several months ago. We do, therefore, take that stance and have been lobbying others. Unlike the Opposition, we do not want to see aid going to countries that do not need it or will misspend it.”

Top Comments

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  • big jim

    if they use that money to buy the Griffin fighter aircraft (30% British components) wont the money come back to Britain then
    (Just Joking)

    Nov 17th, 2014 - 06:26 am 0
  • Troy Tempest

    “International Development Secretary Justine Greening said: “I toughened up our policy in precisely that way several months ago. We do, therefore, take that stance and have been lobbying others. Unlike the Opposition, we do not want to see aid going to countries that do not need it or will misspend it.” ”

    Good for you, Justine Greening, good for you, David Cameron!!!

    Argentina is ungrateful and contemptible.

    Nov 17th, 2014 - 07:10 am 0
  • Anglotino

    Watch Argentina's government whinge and whine about this.

    Nov 17th, 2014 - 08:32 am 0
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