§ Q136. Dr. Godman
To ask the Prime Minister what is the Government's policy towards the European Community decision to provide a loan of 1 billion ecu to Hungary to help overcome structural adjustment problems; and whether any conditions have been imposed in terms of democratisation of political institutions in that country.
§ The Prime Minister
In the communiqué issued at our meeting in Strasbourg on 8 and 9 December, I and fellow EC Heads of Government referred to Hungary's need for an adjustment loan of $1 billion. EC Governments are now negotiating its terms and conditions. The United Kingdom would welcome additional contributions by non-Community countries. The loan will be conditional on a firm IMF programme of economic reform and adjustment. A central principle of all our assistance to eastern Europe is the encouragement of democracy and economic reform.