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Britain 'may need international loan'

Paul Waugh, Deputy Political Editor
03.04.09

BRITAIN'S heavily indebted economy is in "big trouble" and may need an international loan, the former chief economist of the International Monetary Fund said.

Simon Johnson said that Britain could benefit from the fund's lines of credit to get it balancing its books again.

"The point is that's the time to turn your policies around - with all due respect to Gordon Brown and his ministers, they need some help right now. The UK economy is in big trouble," Mr Johnson told Channel 4 News.

He added that unlike the Seventies, when chancellor Denis Healey went to Washington for IMF help, countries no longer had to be "desperate" to take "pre-emptive lines of credit". Western European nations needed to ask for help before they got into trouble, he said.

Mr Johnson's remarks came after Mr Brown played down suggestions from ministers that there was no longer any "stigma" attached to seeking help from the IMF. Business Secretary Lord Mandelson said last night: "I don't think we are going to be first in the queue."

Reader views (29)

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Huh, I always thought the IMF existed to help 3rd world countries funnel money to their dictators.. my bad...

- Trunk, US

Numpty Labour do it yet again,they are so experienced at destroying the Country!

- Mark A, Warrington England

This is all so deja vu of the Labour party. The Labour Government elected after the second world war were forced to borrow £Bns from the US to prevent a total collapse of the UKs economy because of their tax and spend policies. Roll the clock forward to the 1970s, again a Labour Government is forced, by its tax and spend policies, to borrow £Bns from the IMF. The circle is now complete as it looks increasingly likely that Labours spend and tax policies are once again going to require the begging bowl to be held out for IMF funding. The only fools in all of this are those politically dumb votors who elected this spendthrift and dishonest Government in on 3 ocassions.

- Pete, South of England

I don't see how we can survive this lot for much longer.
All my life and every one else, was were brought up and being taught you cannot keep racking up debt because one day it has to be paid. Were we being taught wrong, should we have borrowed, and borrowed till we were unable to pay back, then borrowed again. The theory being the debt is so large it's no point in asking for the money back. Is that the proper way to do finance your life. Don't think so.

- Ebin Donk, angus scotland

Sign the Country up to the Eu Empire without the peoples consent.
Allow the EU to take away our means of producing our own food and goods by destroying farming, fishing, industry etc, whilst Britain pays some £1.5MILLION per HOUR to the EU.
Give money away to foreign countries left right and centre.
Give away our ability to make our own laws, ruin our NHS, POLICE, SCHOOLS.
And to make sure Britain is unable to escape the EU, put us into further debt.

IT IS TREASON !

- Bert, som

Yes Brown and Mandelson are softening up the Public prior to going to the IMF. Stand by for the self denial as to fault and the justification for a huge loan.
RIP Mr Brown

- Peter French, Orihuela Costa Spain

Mandelson states that 'We wont be the first in the queue!'. No, quite correct, we will be second elbowing out the others to make sure Broone gets something to spend on more bulldroppings!

Time to kick Capting Broone and his muppets overboard.

- Uncle Vanya, East Anglia Area UK

Nurse! Nurse!, Roger Rabbit has escaped from the zoo again and he's in a hole in the groumd in Surrey.

- Keith Price, Luton, England

Gordon Brown has one policy and only one: borrow and spend. He has beggared the nation and all Mandelson's spin will not disguise the horrible reckoning to come. Labour supporters may revel now in the supposed triumph of G20, but when the bills start arriving they will have to face the most savage cuts in living standards to pay for Brown's excesses. Heaven help our children, because New Labour and Brown will not.

- James Elliott, Eastbourne UK

If Brown were to go to the IMF they would demand for a big cut in government spending....not a bad idea

- Steve, christchurch

Nurse! Nurse!, Keith Price has escaped again and he's in Luton.

- Roger, Surrey

Keith Price - I love your deluded comments too.

I recall a previous post where you stated that you are a teacher. Given your most recent poorly spelled post berating the spelling of others, I can only pity your poor pupils, who will have no chance in life if they follow your example.
I expect you have brainwashed them in to believing that their school is not crumbling and academic standards are not falling, it’s just another lie from the Tories.

- Dave Davies, Basingstoke, Hants

All thanks to buffoon Brown - who was in charge of the UK economy for 10 consecutive years - the UK is now bankrupt and it will take at least 20 years for the appalling national debt to be reduced.

The IMF does not have a bottomless pit of gold bars - Brown sold the UK's gold reserves for a mere pittance - and I am sick to death of the reams of spin spouting from 10 Downing Street. The real problem is - MP's stopped representing the interests of the electorate years ago - MILLIONS of pensioners and children in the UK are starving to death. MP's have lined their pockets very well, thank you.

Joe Public will remember this lousy Labour government for the next 50 years, at least.

- Reuben Camara, Morecambe/Lancaster

keith price makes me laugh. What an utterly deluded individual he is. I would not be surprised if he isn't actually just some little puppy dog that works in the lower levels of the so called government...

- Joanna, london

For Keith from Luton:
http://www.youtube.com/watch?v=94lW6Y4tBXs

- Peter Johns, Nice, France

Am I missing something here...All the G20 summit has done is to ensure that there are sufficient funds to lend to countries incapable of paying it back and thanks to Brown that includes the UK.
No wonder Brown is happy with the result, he can carry on his own one style of fiannce, writing blank cheques from an already overdrawn account.
Ignorance is certainly bliss.

- Dereck, London, England

Keith in Luton: Everytime Labour gets into power they ruin this country with their slapdash economic policies and spending habits and each time its the Tories that get it back on track again, only for Labour to get voted in the next time and mess it all up again. Take a look back over the years. You either weren't born then or haven't got a memory!

- Sue, Orpington, Kent

Nurse! Keith's out of bed of bed again.

- Undercover Elephant, London, UK

Of course, we wouldn't be so broke if Gordon-self proclaimed financial genius-ha ha-had sold a third of UK gold reserves at a rock bottom price...what next?

- Jon Kent, Hertford. UK

Keith Price, Luton. You are right. Gordo has the bulk to carry the biggest begging bowl to IMF!

- Gary Smith, LONDON

Nobby - your comments are as apt and as shapeless as your name. Cameron could never have engineered the tremendous and widely acclaimed G20 agreement on world economic recovery that Gordon Brown has achieved, and you know it

- Keith Price, Luton, England

Here we go - first they cut you, then they sell you the infected bandage.
Watch for the 'loan' coming from the Saudis.
This is part of the New World Order's agenda to introduce Sharia compliant banking, as part of the islamification of the country.

- Lickyalips, Richmond, Surrey.

Keith in Luton - keep taking the medication and don't forget to report back to the care home by teatime.

- Nobby Clark, Perth, Scotland

This totally destroys Gordon McDooms claim that we are the best placed economy to last out this financial collapse
Government spins seems to be winning again.....!
BUT if we do have to be bailed out,even the BBC may have to show this

- Grumpy As Hell, wimbledon

Brown has recked the British Economy through lack of knowledge "
....amd you have wrecked your comment through lack of spelling knowledgr. The man also said it was unlikely Britain would require a loan, but why not claim it anyway.
So many people ARE JUST JEALOUS OF gORDON bROWN'S EXPERIENCE AND NEGOTIATING SKILL

- Keith Price, Luton, England

Rubbish,will a hike in taxes the working class can pay for it,and if there is no bread,let then eat cake.

- David, london

Brown has recked the British Economy through lack of knowledge and instinct - Running around like a sixth former playing history is embarassing. Of course we're bankrupt and of course we need to be bailed out again by the IMF - That's what happens when you you have sanctamonious, busy body, benefit favouring, self indulgent labour politicians running the economy ( or more like running the economy into the ground) - General Elcection please - Let the electorate decide!

- David Grey, London

Now that Gordon knows there's big IMF money available for the asking, he will be first in line. 'Mr Spend, Spend, Spend' will already be thinking of ways for spending it, particularly with an election round the corner. Are there any loans available for those who use up all of their IMF credit line? The Conservatives will need the answer to that by the time they finally take over.

- Phil Jones, London UK

You mean that Gordon Brown has just engineered a new source of borrowing? What wonderful news!

- Ken, Bexleyheath


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