The Caribbean Development Bank (Subscription to Shares of the Capital Stock) Order 1970

EXPLANATORY NOTE

The Overseas Aid Act 1968 section 2(1) provides that if the Government of the United Kingdom becomes bound by an international agreement for the establishment and operation of a regional development bank which provides for the making by members of the bank of an initial subscription to the capital stock of the Bank, the Minister of Overseas Development may, with the approval of the Treasury, provide by Order for the payment out of monies provided by Parliament of any sums required for the purposes specified in that subsection.

The Government of the United Kingdom has become bound by an international Agreement, dated 18th October 1969, establishing the Caribbean Development Bank the purpose of which is to contribute to the harmonious economic growth and development of the member countries in the Caribbean and to promote economic co-operation and integration among them, having special and urgent regard to the needs of the less-developed members of the region.

This Order provides for the payment of a sum equivalent to ten million United States dollars (that is to say £4,166,667 sterling) as the initial subscription from the United Kingdom to the shares of the capital stock of the Caribbean Development Bank (half the shares will be paid up and half will be callable, the subscription of the paid-up shares being made over a period of six years in accordance with paragraphs 1 and 5 of Article 7 of the Agreement), for the payment of any sum which may be required to maintain the par or foreign exchange value of such subscription and for the redemption of non-interest-bearing and non-negotiable notes issued by the Minister in place of any amount due, in United Kingdom currency, by the Government of the United Kingdom by way of initial subscription to the Bank. This Order further provides that any sum which may be received by the Government of the United Kingdom in pursuance of that Agreement shall be paid into the Consolidated Fund.