Jeremy Lefroy – 2016 Parliamentary Question to the Department for International Development

The below Parliamentary question was asked by Jeremy Lefroy on 2016-07-18.

To ask the Secretary of State for International Development, whether the proposed creation of a contingent liability of £40 million in respect of callable capital of GuarantCo is treated as Official Development Assistance (a) when the contingent liability is created and (b) in the event that capital is called from the public purse under the contingent liability.

Rory Stewart

The creation of the contingent liability in respect of the callable capital for GuarantCo does not have immediate budgetary implications and is not treated as Official Development Assistance (ODA). If the capital is called it will be treated as ODA. This is in line with the internationally agreed rules on ODA.