Commercial Borrowing Mirage

Michael McWilliam

Chapter 11 in The Development Business, 2001, pp 119-128 from Palgrave Macmillan

Abstract: Abstract The election of a Conservative government in May 1979, led by Mrs Thatcher, wrong-footed both ODA and CDC. Whereas Labour policy had been for an expanding aid programme, the new government’s determination to restrain the growth of public expenditure resulted in an immediate cut.1 In June a reduction of £50 million for the current year’s budget was announced. Already, ODA was in trouble with the Treasury for overspending its 1978–79 budget. To mitigate the situation, it had made a plea to CDC to refrain from drawing £15 million of its loan allocation (out of £34 million) in March, against an understanding that it would be restored in the following financial year. CDC acceded reluctantly, and then the change of government took place. This resulted in ODA’s separate ministry status being abolished and, instead, it was made a department of the Foreign and Commonwealth Office.

Keywords: Foreign Currency; Loan Portfolio; Cash Balance; British Industry; Actual Disbursement (search for similar items in EconPapers)
Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-50427-1_11

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DOI: 10.1057/9780230504271_11

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