HL Deb 09 February 1998 vol 585 cc133-4WA
Lord Lucas

asked Her Majesty's Government:

Whether they will press for someone with strong private sector commercial banking experience to be appointed as the next president of the European Bank for Reconstruction and Development. [HL438]

Lord Whitty

We are actively seeking to have appointed a new president who is best qualified for the post. Experience of private sector banking is one of a number of factors which will be considered.

Lord Lucas

asked Her Majesty's Government:

Whether they are satisfied with the level of provisions that have been made against the value of the European Bank for Reconstruction and Development's loan portfolio. [HL439]

Lord Whitty

Yes. The level of provisions has increased proportionate to the Bank's portfolio in each year since its inception. The European Bank for Reconstruction and Development's (EBRD) total reserves policy, as approved by its board of directors, is intended to ensure that adequate level of provisions and reserves are maintained relative to the potential losses in the Bank's portfolio of loans, equity investments and guarantees. The provisioning policy and the adequacy of reserves and provisions are reviewed annually by the board in light of projections regarding portfolio developments and comments from external auditors.

Lord Lucas

asked Her Majesty's Government:

Whether they believe that the provisions of the European Convention on Human Rights apply to the European Bank for Reconstruction and Development, and are enforceable against it; and, if not, whether this should be changed. [HL440]

Lord Whitty

The provisions of the European Convention on Human Rights are binding upon states party to it and not upon international organisations such as the European Bank for Reconstruction and Development. There is no proposal to change this.

Lord Lucas

asked Her Majesty's Government:

Whether they consider that the management of the European Bank for Reconstruction and Development is sufficiently diverse in both its national origins and in its independence from individual member governments. [HL441]

Lord Whitty

Yes. The European Bank for Reconstruction and Development (EBRD) staff currently represents 51 nationalities. The bank is firmly committed to the principle of recruitment on merit and not nationality. Article 32(3) of the agreement establishing the bank requires each shareholder to respect the international character of EBRD operations and to refrain from any attempts to influence bank staff in the discharge of their duties.