>>510469892The 1976 IMF Loan Amount: $3.9 billion, the largest ever loan requested from the IMF at the time.
Reason for the Loan:
To restore market confidence in the pound and stabilize the economy by shoring up foreign currency reserves.
Conditions Imposed by the IMF:
1. Public Spending Cuts: The UK had to cut government spending, especially on social services and public sector wages.
2. Control of Money Supply: The government was required to tighten monetary policy to control inflation.
3. Balanced Budget Target: A medium-term plan for achieving a more balanced budget had to be laid out.
4. Monitoring and Supervision: The IMF required regular updates and had some say in UK budget decisions during the period.
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