HC Deb 26 July 1976 vol 916 cc20-1W
Mr. Radice

asked the Minister for Overseas Development whether the United Kingdom is supporting proposals for a special increase in the capital of the International Bank of Reconstruction and Development (IBRD) and an increase in the capital of the International Finance Corporation (IFC) in the World Bank Group.

Mr. Prentice

In May 1976 the executive directors of the IBRD recommended to the board of governors draft resolutions providing for an increase in the capital of the IBRD. The amounts to be contributed by individual members of the IBRD to this increase are based on the special element in the recent general review of International Monetary Fund quotas; an element not extending to the United Kingdom. The United Kingdom will not, therefore, have to take up a share in the increase.

Also in May, the board of directors of the IFC recommended to the board of governors a draft resolution providing for an increase in the capital of the IFC. Under the resolution member countries will be permitted to subscribe to new shares to an approximate total value of $480 million. Provision is made for a maximum United Kingdom subscription towards this capital increase of $23.5 million. No decision has yet been taken about what part if any of this amount the United Kingdom will actually subscribe. Legislation will be brought forward in due course enabling the United Kingdom by affirmative resolution of the House, to make a contribution to this increase.

We welcome these capital increases, which will enable the World Bank Group to expand its lending operations to the benefit of the developing countries, and the United Kingdom governor of the IBRD and the IFC will be casting his vote in favour of the resolution.