The European Bank for Reconstruction and Development (Subscription to Capital Stock) Order 1991

Statutory Instruments

1991 No. 1144

OVERSEAS DEVELOPMENT AND CO-OPERATION

The European Bank for Reconstruction and Development (Subscriptionto Capital Stock) Order 1991

Made

1st May 1991

Coming into force

1st May 1991

Whereas it is provided in section 4(1) of the Overseas Developmentand Co-operation Act 1980 (“the Act”) (1) that if the Government of the United Kingdom becomesbound by an international agreement for the establishment and operationof an international development bank which provides for the making bymembers of the bank of an initial subscription or other initialcontribution to the capital stock of the bank, the Secretary of Statemay with the approval of the Treasury by order made by statutoryinstrument make provision for payment out of monies provided byParliament of sums required by him for any of the purposes specified inthat subsection;

And whereas a draft of this Order has been laid before the House ofCommons in accordance with section 4(3) of the Act and has been approvedby a resolution of that House;

Now, therefore, the Secretary of State, in exercise of the powersconferred upon him by section 4 of the Act and with the approval of theTreasury, hereby makes the following Order:

1.—(1) This Order may be cited as the European Bank for Reconstruction andDevelopment (Subscription to Capital Stock) Order 1991 and shall comeinto force forthwith.

(2) In this Order—

• “the Agreement” means the Agreement establishing the European Bank forReconstruction and Development done at Paris on 29th May 1990(2);

• “the Bank” means the European Bank for Reconstruction and Developmentestablished by the Agreement;

• “ECU” means the European Currency Unit as defined in Council Regulation(EEC) No. 3180/78(3)or any Council regulation amending or replacing same;

• “the Government” means the Government of the United Kingdom.

2.  The Secretary of State may, on behalf of the Government out of moneyprovided by Parliament—

(a) make payment of an initial subscription to the authorised capitalstock of the Bank not exceeding in the aggregate ECU 851,750,000 inaccordance with the Agreement;

(b) make payment of sums required to redeem any non-interest-bearing andnon-negotiable notes or other obligations which may be issued or createdby him and accepted by the Bank in accordance with the Agreement.

3.  Any sums received by the Government from the Bank in pursuance ofthe Agreement as applied by the said arrangements shall be paid into theConsolidated Fund.

Douglas Hurd

One of Her Majesty’s Principal Secretaries of State

24th April 1991

We approve,

Thomas Sackville

Irvine Patnick

Two of the Lords Commissioners of Her Majesty’s Treasury

1st May 1991

Explanatory Note

(This note is not part of the Order)

The Overseas Development and Co-operation Act 1980, section 4(1),provides that if the Government of the United Kingdom becomes bound byan international agreement for the establishment and operation of aninternational development bank, the Secretary of State may, with theapproval of the Treasury, provide by order for the payment out of moneyprovided by Parliament of any sums required by him for any of thepurposes specified in that subsection.

This Order provides for the payment to the Bank of sums notexceeding ECU 851,750,000 as an initial subscription to the originalauthorised capital of the Bank, and for the redemption ofnon-interest-bearing and non-negotiable notes issued by the Secretary ofState in payment of that subscription. The Order further provides thatcertain sums which may be received by the Government of the UnitedKingdom from the Bank shall be paid into the Consolidated Fund.

(1)

1980 c. 63.

(2)

Cm 1116.

(3)

OJ No. L379, 30.12.1978, p.1. That regulation wasamended by Council Regulation (EEC) No. 2626/84 (OJ No. L247, 16.9.1984,p.1) and Council Regulation (EEC) No. 1971/89(OJ No. L189, 19.6.1989,p.1).