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12th July 2011
Coming into force in accordance with Article 1
This Order is made in exercise of the powers conferred by section 11 of the International Development Act 2002 (“the Act”)(1).
Section 11 of the Act provides that where the Government of the United Kingdom becomes bound to make a relevant payment to a multilateral development bank, the Secretary of State may make the relevant payment and other associated payments specified in section 11(3).
“Relevant payment” in relation to such a bank includes a further payment to the bank required to be made by its members under any arrangements beyond the initial subscription or other initial contribution to the capital stock of the bank.
The Inter-American Development Bank referred to in this Order comes within the definition, in section 11(2) of the Act, of a “multilateral development bank”.
In accordance with section 11(4) of the Act, this Order is made with the approval of the Treasury.
In accordance with section 11(5) of the Act, a draft of this Order has been laid before the House of Commons and approved by resolution of that House.
Accordingly, the Secretary of State for International Development makes the following Order:
1. This Order may be cited as the Inter-American Development Bank (Further Payments to Capital Stock) Order 2011 and comes into force on the day after the day on which it is made.
2. In this Order—
“the Agreement” means the agreement establishing the Inter-American Development Bank dated 8th April 1959, as ratified by the Government on 9th July 1976(2);
“the Bank” means the Inter-American Development Bank established by the Agreement;
“the Government” means the Government of the United Kingdom; and
“the Resolution” means a resolution adopted by the Board of Governors of the Bank that is materially identical to the proposed resolution titled “Increase of US $70 Billion in the Authorised Ordinary Capital Stock and Subscriptions Thereto”, annexed to the Bank’s Report on the Ninth General Capital Increase in the resources of the Inter-American Development Bank.
3. The Secretary of State may, on behalf of the Government—
(a)make payment of a further subscription to the increased authorised capital stock of the Bank of sums not exceeding in the aggregate the equivalent of 16,370,078 United States Dollars pursuant to arrangements made between the Government and the Bank in accordance with the terms of the Resolutions;
(b)make payment of sums required to maintain the value of the payment mentioned in paragraph (a) in accordance with the Agreement and any arrangements made between the Government and the Bank; and
(c)make payment of sums required to redeem any non-interest-bearing and non-negotiable notes or other obligations which may be issued or created by the Secretary of State and accepted by the Bank pursuant to the arrangements mentioned in paragraph (a),
in accordance with section 11 of the International Development Act 2002.
Secretary of State
Department for International Development
12th July 2011
Two of the Lords Commissioners of Her Majesty’s Treasury
12th July 2011
(This note is not part of the Order)
This Order approves the payment to the Inter-American Development Bank (“the Bank”) of a subscription not exceeding in the aggregate the equivalent of 16,370,078 United States Dollars to the increased authorised capital stock of the Bank. Resolution AG 7/10 adopted by the Board of Governors of the Bank on 21st July 2010 recommended that the authorised capital stock be increased and that the members of the Bank should take action to enable it to adopt the proposed resolution titled “Increase of US $70 Billion in the Authorised Ordinary Capital Stock and Subscriptions Thereto”. That proposed resolution is annexed to the Bank’s Report on the Ninth General Capital Increase in the resources of the Inter-American Development Bank. The payment approved by this Order will be made pursuant to arrangements set out in a resolution adopted by the Board of Governors of the Bank that is materially identical to that proposed resolution.
The Order further provides that the Secretary of State may make payments to maintain the value of the subscription to the increased authorised capital stock. It also provides that the Secretary of State may make payments to redeem any non-interest-bearing and non-negotiable notes issued by the Secretary of State in payment of this subscription.
An impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.
The provisions of Resolution AG 7/10 and the Bank’s Report on the Ninth General Capital Increase mentioned in this Order may be obtained by application to the Department for International Development, 1 Palace Street, London SW1E 5HE.
Cmnd 7792; this Command Paper is available from The Stationery Office Limited.
Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.
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