International Development Act 2002 Explanatory Notes

Section 6

25.This section sets out the kinds of financial assistance that may be provided under the Act. It allows the Secretary of State to provide a wider range of financial assistance than was possible under the 1980 Act.

26.The new ways in which the Secretary of State will be able to give financial assistance are by:

  • acquiring securities (such as share-holdings and convertible instruments) and taking up options; and

  • offering guarantees.

27.The consent of the Treasury must be obtained before the Secretary of State can give these kinds of financial assistance (see section 7 of the Act).

28.It is not envisaged that the Secretary of State will make extensive use of these forms of financial assistance in preference to the power to make grants or loans.

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