The International Finance Corporation (General Capital Increase) Order 2020

Statutory Instruments

2020 No. 1442

International Development

The International Finance Corporation (General Capital Increase) Order 2020

Made

30th November 2020

Coming into force

1st December 2020

This Order is made in exercise of the powers conferred by section 11 of the International Development Act 2002(1) (“the Act”).

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 International Finance Corporation 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 Foreign, Commonwealth and Development Affairs(2) makes the following Order:

Citation and commencement

1.  This Order may be cited as the International Finance Corporation (General Capital Increase) Order 2020 and comes into force on the day after the day on which it is made.

Interpretation

2.  In this Order—

“the Agreement” means the Articles of Agreement establishing the International Finance Corporation dated 25th May 1955 and accepted by the Government of the United Kingdom on 3rd January 1956(3) as amended in accordance with Resolutions 21 and 56 adopted by the Board of Governors of the Corporation, particulars of which were laid before Parliament by Command of Her Majesty in January 1963 and December 1966(4);

“the Corporation” means the International Finance Corporation established by the Agreement;

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

Relevant Payments

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 Corporation of sums not exceeding in the aggregate the equivalent of 261,749,000 United States Dollars pursuant to arrangements made between the Government and the Corporation;

(b) make payment of sums required to maintain the value of the payment mentioned in paragraph (a) in accordance with any arrangements made between the Government and the Corporation; 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 Corporation pursuant to the arrangements mentioned in paragraph (a),

in accordance with section 11 of the International Development Act 2002.

James Duddridge

Parliamentary Under Secretary of State

Foreign, Commonwealth and Development Office

25th November 2020

We approve,

Maggie Throup

Michael Tomlinson

Two of the Lords Commissioners of Her Majesty’s Treasury

30th November 2020

EXPLANATORY NOTE

(This note is not part of the Order)

This Order approves the payment to the International Finance Corporation (“the Corporation”) of a subscription not exceeding in the aggregate the equivalent of 261,749,000 United States Dollars to the increased authorised capital stock of the Corporation in accordance with the Resolution of the Corporation. 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 that may be 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 the Resolution may be obtained by application to the Foreign, Commonwealth and Development Office, King Charles St, London SW1A 2AH.

(1)

2002 c. 1.

(2)

The draft version of this Order laid before and approved by the House of Commons referred to the Secretary of State for International Development. Following the merger of the Department for International Development and the Foreign and Commonwealth Office on 2 September 2020, the functions of the Secretary of State for International Development transferred to the Secretary of State for Foreign, Commonwealth and Development Affairs. See S.I. 2020/942.

(3)

Cmnd. 1377.

(4)

Cmnd. 1924 & Cmnd. 3155; this Command Paper is available from The Stationery Office Limited.