digplanet beta 1: Athena
Share digplanet:

Agriculture

Applied sciences

Arts

Belief

Business

Chronology

Culture

Education

Environment

Geography

Health

History

Humanities

Language

Law

Life

Mathematics

Nature

People

Politics

Science

Society

Technology

[1] A counterpart fund is a technique for turning foreign aid into reserves of domestic currency. They were used by the UNRRA, and the Marshall Plan in the rebuilding of Western Europe after the Second World War, and today remain a common technique for delivering developmental assistance.

One method of setting up a counterpart fund is to have businesses in the country receiving aid that want to import a commodity place an order with their government and pays for the import in their local currency. The government then uses some of their foreign assistance, still in the foreign currency, to pay for the goods. This makes importing far easier as the unstable currencies in developing nations are often of little international value. Agreements are also usually signed so that these imports can only come from the nation that gave the aid, benefiting the donor's export industry. Another method is for goods to be donated to a developing nation's government and for them to then sell the goods to the population, and use the proceeds to set up a fund.

The recipient government is also then left with the original payment in its domestic currency. These payments are amalgamated into a fund that is used to further fund development. This can take the form of investments in infrastructure or industry, paying down the debt or deficit, or stabilizing the currency. The investment of these funds can take the form of loans rather than grants, creating a permanent pool of investment capital. For instance, Germany's Marshall Plan counterpart funds were used to set up such an investment fund, and it is still in operation today.

References[edit]

  1. ^ Greg Behrman, The Marshal Plan, Aurum Press Ltd., 2008, pp. 178,179,232.

Original courtesy of Wikipedia: http://en.wikipedia.org/wiki/Counterpart_fund — Please support Wikipedia.
This page uses Creative Commons Licensed content from Wikipedia. A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia.
3509 videos foundNext > 

Govt Okays Fertilizer Blending

The Ministry of Agriculture has confirmed that private companies are allowed to blend their products using government procured fertilizer. Agriculture Secret...

$5,580,000,000 Bill Keeps Marshall Aid Flowing AKA Aid Flowing To Western Europe (1949)

Washington, USA and Le Havre, France. S.C.U. President Truman signing the Marshall Aid Bill. S.C.U. W. Averell Harriman and Paul Hoffman, E.C.A. administrato...

Washing pump in monitoring well

Project name: Capacity strengthening for groundwater planning and investigation in urban areas (short name: "Improvement of groundwater protection in Vietnam...

Pag ibig Fund and Provident Benefits

For More Info: http://www.pagibigfund.gov.ph/ Pag-IBIG Fund guarantees the refund of member's total accumulated savings (TAV), which consists of the member's...

Iranian FM Zarif & his Iraqi counterpart Zebari giving press conference (Part 1)

Iran's foreign minister says the Iranian nation will not give in to any pressure over Tehran's nuclear energy program. "Unfortunately, the measures the US ad...

President Zuma met his counterpart - Vladimir Putin in Moscow

South African agriculture could benefit from Russia's decision to ban products from the US and EU. Russia made the decision after the West imposed sanctions ...

Iranian FM Zarif & his Iraqi counterpart Zebari giving press conference (Part 2)

Iran's foreign minister says the Iranian nation will not give in to any pressure over Tehran's nuclear energy program. "Unfortunately, the measures the US ad...

Iranian FM Zarif & his Iraqi counterpart Zebari giving press conference (Part 3)

Iran's foreign minister says the Iranian nation will not give in to any pressure over Tehran's nuclear energy program. "Unfortunately, the measures the US ad...

Pangasinan awarded as best LGU in the implementation of Credit Surety Fund

Lingayen- - - Pangasinan is again cited as the most outstanding local government unit (LGU) in the promotion of small and medium enterprises through the Cred...

Understanding The Fund: Harris Associates US Equity Fund

We speak with Michael J. Mangan -- Partner and Portfolio Manager for Institutional Portfolios, Harris Associates L.P to find out more about the fund's strate...

3509 videos foundNext > 

35 news items

 
The Guardian
Sun, 07 Sep 2014 17:56:15 -0700

... deplore N500 million from its 2013 Subsidy Reinvestment and Empowerment program (SURE-P) funds as counterpart fund to assess the funds from BOA, while the N500 million loan from the BOA would be used as counterpart fund to assess that of the BOI.
 
Visayan Daily Star
Tue, 30 Sep 2014 20:11:15 -0700

... financing of the projects. She said they are finalizing the list of the qualified clusters and refining reports for the Department of Budget. An assessment during the final stage will determine the capability of the cluster to put up the ...
 
Philippine Information Agency
Wed, 01 Oct 2014 23:00:00 -0700

... were bankrolled by the Payapa at Masaganang Pamayanan (Pamana) under the Office of the Presidential Adviser on Peace Process (OPAPP) channeled through the Department of Agriculture (DA),and a counterpart fund from the provincial government.
 
The Guardian
Wed, 24 Sep 2014 15:52:30 -0700

"What he did was anywhere there was such money that counterpart fund was not paid, he paid and was able to access the money. Through that, the N20 billion translated into N50 billion. That was how Kano came on board." He emphasised that that is the ...

spyghana.com

spyghana.com
Wed, 24 Sep 2014 14:17:28 -0700

Governor Aliyu promised to pay the outstanding counterpart fund before the end of this year. Earlier the new sector commander of the FRSC in the state Mr Ogochukwu Ugboma had pleaded with the governor to assist the organization with vehicles to enable ...
 
Sun.Star
Mon, 29 Sep 2014 08:00:00 -0700

LUBAO -- Department of Interior and Local Government (DILG) Central Luzon Director Florida Dijan, together with DILG Pampanga Provincial Director Myrvi Fabia, awarded the P2,891,360 check to Lubao Local Poverty Reduction Action Team (LPRAT) ...
 
AllAfrica.com
Sat, 06 Sep 2014 20:22:30 -0700

Chinyere Okunna, commended President Jonathan for his commitment towards addressing the problem of erosion in the South-east, stressing that "Anambra State immediately had to pay its counterpart fund of N500 million in an effort to see the project move ...
 
AllAfrica.com
Mon, 08 Sep 2014 20:11:15 -0700

... government had done a lot to mobilise states towards attaining the goals of Education For All (EFA), however many states have refused to access their funds at the Universal Basic Education (UBE) because of their unwillingness to part with ...
Loading

Oops, we seem to be having trouble contacting Twitter

Support Wikipedia

A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia. Please add your support for Wikipedia!