HC Deb 12 July 2002 vol 388 cc1225-6W
Dr. Tonge

To ask the Secretary of State for International Development, pursuant to her answer to the hon. Member for Meriden (Mrs. Spelman) of 8 July 2002,Official Report, column 613W, on World Bank loans, how much the UK Government contributed to the 12th Replenishment of the International Development Association IDA-12; and how much it contributed to IDA-13. [69515]

Clare Short

The British Government contributed £511 m to the 12th Replenishment of the International Development Association (IDA-12), equating to a 7.3 per cent. share. This made the UK the joint fourth largest donor to IDA.

The UK's contribution to the 13th Replenishment of IDA (IDA-13) has not yet been finalised. An announcement will be made shortly.

Dr. Tonge

To ask the Secretary of State for International Development, pursuant to her answer to the hon. Member for Meriden (Mrs. Spelman) of 8 July 2002,Official Report, column 613W, on World Bank loans, what provisions are in place to ensure that the level of overall IDA resources does not decrease in future as a result of the conversion of some loans to grants; and if she will make a statement. [69514]

Clare Short

Around 40 per cent of the International Development Association's (IDA's) resources currently come from re-flows from previous loans being repaid. During negotiations for the 13th Replenishment of the International Development Association (IDA-13), the British Government argued consistently that if some loans were to be converted to grants under IDA-13, IDA donors should ensure that a scheme was agreed to compensate IDA for the resulting future loss in re-flows. Such a scheme would require donors to start putting aside a small amount of resources now and during future replenishments.

Very regrettably, IDA donors have not yet managed to agree such a scheme, despite strong UK pressure to do so. Donors have, however, accepted the principle that extra resources do need to be put aside in advance of future shortfalls. They have agreed to make a final decision on what sort of scheme should be used during the Mid-Term Review of IDA-13, which is scheduled to begin in around six months' time. The British Government will continue to press hard to ensure a satisfactory outcome which will protect IDA's long-term financial sustainability.

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