§ Mr. Spearingasked the Minister of Overseas Development if he will make a statement on further British aid to the Asian Development Bank for lending on concessional terms to its developing member countries.
§ Mr. PrenticeThe British Government intend to contribute towards the replenishment of the Asian Development Fund, which was established by the bank in June 1974. Concessional loans from this fund are made to the poorest and least developed of the bank's developing member countries. Existing funds will shortly be fully committed.
The bank has by Resolution invited contributions to a replenishment target of $830 million, to be paid in three equal annual instalments. The first stage of the replenishment will come into operation only when instruments of contribution representing at least US$475 million have been deposited with the bank.
The total proposed British contribution is £18,905,778, made in sterling, of which £6,301,926 is to be provided in the first stage. It is proposesd that the contribution shall be in the form of non-interest-bearing, non-negotiable notes encashable by the bank as required for the operations and to meet the liabilities of the fund. Estimates provision will be sought in due course as required to cover encashment of these notes.