Bills Digest no. 2 1976
Asian Development Bank (Special Funds Contributions) Amendment
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
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Development Bank (Special Funds Contributions) Amendment Bill
Date introduced: 21 October
House: House of
Portfolio: Foreign Affairs
Short Digest of Bill
The purpose of the Bill is to
authorise an agreement with the Asian Development Bank to transfer
moneys previously contributed by Australia under the Asian
Development Bank (Special Funds Contributions) Act 1970 (and
repayments and interest on the loans made with the money) from the
Bank s Multi-Purpose Special Fund to its Asian Development
The Asian Development Fund will
replace the Multi-Purpose Special Fund (MPSF) as the main vehicle
for the ADB s concessional lending to developing Asian countries.
Contributions to the MPSF were on a voluntary ad hoc basis and were
frequently tied, whereas contributions to the ADF are on an
organised uniform basis and must not be tied to procurement of
goods and services from the donor country.
Australia supported the establishment
of the ADF in 1973 and has contributed to it. Our contributions to
the MPSF were tied to procurement from Australia but in August
1976, the Australian Government decided to untie the outstanding
balance of our MPSF contribution in order to facilitate its
transfer to the ADF.
Australia s contribution to the MPSF
was in the form of promissory notes lodged at the Reserve Bank
encashable on demand.
All outstanding notes have been fully
encashed recently indicating that the money is being used by the
ADB. The Bill authorises a transfer to the ADF so that the
administration and repayments of the loans granted from Australia s
contribution will be under the simplified arrangements of the ADF
rather than the MPSF.
Finance Industries Trade and Development
25 October 1976
Bills Digest Service
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