Memorandum submitted by the Department
for International Development
THE FUTURE OF THE COMMONWEALTH DEVELOPMENT
CORPORATION (Eighth Report 1997-98), and THE PROVISIONS OF THE
CDC BILL (Second Report 1998-99)
Following the passing of the Commonwealth Development
Corporation Act in July 1999, CDC was transformed from a public
corporation into a plc, registered under the name CDC Group plc,
on 8 December 1999. At this point, the governing framework took
effect, incorporating the Investment Policy and the Statement
of Business Principles. At the time of transformation CDC was
issued with nominal share capital in order to allow company registration.
For the time being it remains wholly Government owned, all the
shares are being held by the Secretary of State for International
Development (less a single share held by the Treasury Solicitor).
We are currently restructuring CDC's balance sheet.
As a first stage in restructuring CDC's finances in preparation
for becoming a Public Private Partnership, £160m of sovereign
public sector debt has been removed from CDC's balance sheet.
The net benefits flowing from these assets, which represented
a portfolio of sovereign and parastatal loans, are being transferred
to the Department for International Development.