§ Sir Alastair GoodladTo ask the Secretary of State for International Development what representations she has made in connection with a possible increase in the capital of the African Development Bank; and if she will make a statement. [41749]
§ Clare ShortNegotiations on a fifth general capital increase for the African Development Bank have been in progress since February 1997 and were virtually concluded at a meeting on 23–24 March in Abidjan. The increase is not required for lending purposes but to strengthen the Bank's financial base. For non-regional shareholders, such as the UK, the capital increase will provide greater influence in the Bank through an increase in the non-regional shareholding from 33 1/3 per cent. to 40 per cent., and changes to the voting rules. Governors will be invited to adopt a draft Resolution on the capital increase at the Bank's Annual Meeting on 27–29 May. The capital increase will then come into effect in 1999.