§ Sir Teddy TaylorTo ask the Chancellor of the Exchequer which body is responsible for supervising and directing the activities of the European Investment Bank; what are the financial obligations of the participant nations; and if all the necessary contributions have been made by participant nations. [24501]
§ Mrs. LiddellThe body responsible for supervising and directing the work of the EIB is the Board of Governors, which consists of Ministers, usually Finance Ministers, designated by each of the Member States. They represent the Member States as shareholders of the Bank.
The EIB's capital stands at 62 billion ECU. The subscribed capital actually paid-in by Member States amounts to 7.5 per cent. of which the UK's share (along with France, Germany and Italy as the largest subscribers to the Bank's capital) is 17.7 per cent. Under the terms of the 1990 capital increase, the UK was required to pay about £77 million in twice yearly installments over five years. These payments count as public expenditure.
The EIB makes a surplus on its lending operations, which in the past it has automatically added to its reserves. In 1996 (the latest year for which figures are available), the Bank made an operating surplus of 1.1 billion ECU thus bringing the level of reserves to almost 12 billion ECU. By a decision of the Board of Governors at its annual meeting in June 1997, it was decided to use part of the 1996 surplus to finance the four remaining payments due from each Member State in respect of the 1990 capital increase. The transaction putting this decision into effect took place on 30 June 1997. The UK's contingent liability on its subscribed capital available for call in the event that it may be required by the Bank to meet its obligations remain at 10 billion ECU.