New ISA to help child vaccination
Updated on 04 March 2009
A new ISA is being launched which will enable savers to help vaccinate children in some of the world's poorest countries, it has been announced.
The Government said in the Pre-Budget Report that it was extending the investments which could be taken out through an ISA to include securities issued by Multilateral Development Organisations.
The International Finance Facility for Immunisation (IFFIm) is planning to take advantage of the rule change to raise funds to vaccinate children in more than 70 developing countries.
The money people invest in the ISA will be used to support the group's vaccination programme now, with money that has been pledged to the group from international governments used to repay people's initial investments along with a fixed return in five years' time.
Every £1,000 invested in one of the ISAs will help immunise more than 130 children against five life-threatening diseases.
The Vaccine Investment ISA is being offered through HSBC and will be available for a limited period between March 2 and April 24.
It aims to provide a fixed return of 16.2 % over five years and one month, as well as returning the original sum people have invested, although consumers who want to withdraw their money ahead of the product maturing are likely to get back less than they put in.
IFFIm, which has a triple A rating and is backed by the World Bank, aims to raise £50 million for a vaccination programme being carried out by the GAVI Alliance.
The UK has committed £1.38 billion to the group between 2006 and 2026, with France, Italy, Spain, Sweden and South Africa also promising money.
International Development Secretary Douglas Alexander said: "The economic downturn could push millions of people into extreme poverty and cause the deaths of up to 2.8 million children. Innovative initiatives like this are vital if we are to prevent this financial crisis from becoming a human crisis."
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