§ Mr. Coaker
To ask the Secretary of State for International Development what steps have been taken to lift the procurement restrictions placed on the International Development Association Interim Trust Fund following the US Administration's clearance of their arrears to the tenth replenishment of the IDA. 366W
§ Clare Short
Under the arrangements agreed by the International Development Association (IDA) Deputies in February 1997, it was agreed that the use of uncommitted resources of SDR700 million ($1 billion) under the Interim Trust Fund would be determined following consideration of decisions by the United States authorities on the payment of the amount needed to clear the United States' arrears to the IDA tenth replenishment, and the first tranche of its pledge to the IDA eleventh replenishment.
The United States Foreign Appropriations Act, which became law on 26 November 1997, provides $1,034.5 million for IDA to clear IDA-10 arrears and for the first tranche of IDA-11 contributions. IDA Executive Directors therefore approved, on 23 December 1997, a recommendation from the World Bank's President to amend the Resolution establishing the Interim Trust Fund to lift the procurement restrictions against SDR700 million ($1 billion) of uncommitted ITF funds. Any credits funded from the SDR700 million will now be open to procurement from countries with the IDA contributors (including the US) and eligible borrowers.