§ Mr. Watsonasked the Secretary of State for Foreign and Commonwealth Affairs what decisions have been taken by governors of the Inter American Development Bank to provide for its continued operations over the next four years; and what the United Kingdom's contribution towards this will be.
§ Mr. RaisonThe board of governors of the bank have agreed to replenish its resources and to take accompanying steps which will allow its convertible lending to grow by nearly 14 per cent. a year from 1982 to the end of 1986. The bank's capital will be increased by about $15 billion, allowing a total planned lending programme in all currencies of just over $14 billion. New convertible contributions to the concessional fund for special operations will amount to just over $700 million, and the fund's lending will be further concentrated upon the poorest countries of Latin America and the Caribbean. These countries will also benefit from a new intermediate financing facility, provided by transfers from the reserves and reflows to the FSO. This facility will subsidise interest upon some £800 million of ordinary bank lending. The bank will give priority in its lending to agriculture and rural development, urban improvement, and energy, and will aim to ensure that 50 per cent. of its lending programme is oriented directly to benefiting low-income groups, primarily through projects which stress the creation of productive employment.
Subject to parliamentary approval, for which a draft order will be laid before the House in due course, the United Kingdom will subscribe to its full allocation of 11,876 new shares with a value calculated by the bank at $143,265,324, of which 4½ per cent. will be paid-in: and 232W will contribute $24,314,000 to the FSO divided, like that of other non-regional bank members, into a basic contribution of $10,595,000, related to its relative share in the bank's capital stock, and a supplemental contribution of $13,719,000, representing our part of a collective supplementary effort by the non-regional members.