African Development Bank (Hansard, 13 May 1981)

§ Mr. Neil Marten

The president of the African Development Bank has informed me that the amended agreement establishing the bank, enabling non-regional countries to become members, entered into force on 16 February 1981. The president has now invited the United Kingdom to accede to the agreement in accordance with the general rules governing non-regional membership. I have informed him that the United Kingdom intends, subject to the approval of Parliament, to accede to the agreement. A copy of the agreement, as amended, will be laid before the House as soon as possible.

Her Majesty's Government propose to subscribe to 10,832 shares, each of 10,000 bank units of account. This represents 6.19 per cent. of the new non-regional stock, which constitutes one-third of the increased capital stock of the bank. The cost of subscription to the shares will be £63,451,367. One-quarter of this sum, £15,862,842, will be paid-in and the rest callable. It is proposed to make payment in five equal annual instalments by the deposit of non-interest bearing, non-negotiable promissory notes. This capital subscription will be subject to the prior approval of the House of Commons under section 4 of the Overseas Development and Co-operation Act 1980. A draft statutory instrument to authorise the payment will be laid before the House in due course. A draft Order in 280W Council will also be laid before Parliament to provide for the necessary privileges and immunities to be conferred upon the bank with effect from our accession.

The House will be aware that the United Kingdom has been a member since 1973 of the African development fund, which is an institution based on equal partnership between non-regional donor countries and the bank, set up to provide loans on concessional terms to its African member States for their economic and social development, and for the promotion of co-operation and increased international trade, particularly among such members.