Alan Duncan (Minister of State, International Development; Rutland and Melton, Conservative)
During the year ended 31 March 2011 DFID's Annual Report and Accounts wrote off no bad debts, however there was approximately £23 million written off the value of the Department's loan book. These were in relation to bilateral and multilateral loans given by the Department, which were in default and/or which met the criteria for debt cancellation. The £23 million loan write off is in relation to loans between the UK Government and Antigua of £1.7 million, which became eligible for relief when Antigua qualified for relief under the Commonwealth Debt Initiative. In addition funding had been provided to the European Investment Bank to fund loans given by them to both individuals and corporations within developing countries. In the year under review this portfolio required to be written down by £20.6 million, based on loans eligible for relief under the Heavily Indebted Poor Countries Initiative launched by the International Monetary Fund and the World Bank. A further write down of £0.7 million was required to a US dollar denominated loan issued by DFID to the International Finance Corporation for its Global Trade Liquidity Programme, to reflect the movement of exchange rates and interest from the date of issue to the date of return.
The Annual Report and Accounts for the year ended 31 March 2012 are still in draft. These will be finalised in early July, at which point they will be published on the DFID external website.