Regulation 11 Insertion of regulations 8A to 8C (preliminary provisions)I1

After regulation 8 (service by post or electronic communication) insert—

“How to calculate country-specific multiplier

8A.

(1)

The country-specific multiplier for a country is the multiplier specified in the table in relation to its band.

(2)

The band for a country is the band specified in the table in relation to its price level index value.

Price level index value (x)	Band	Multiplier
x<0.3	A	0.2
0.3≤ x<0.5	B	0.4
0.5≤ x<0.7	C	0.6
0.7≤ x<0.9	D	0.8
0.9≤ x<1.1	E	1.0
1.1≤ x<1.3	F	1.2
x≥1.3	G	1.4

(3)

The price level index value for a country is the quotient of—

(a)

the price level value for the country in the most recent year available, and

(b)

the price level value for the United Kingdom in the same year.

Example
0.736687 is the country’s price level value and 1.058064 is the United Kingdom’s price level value. 0.736687 divided by 1.058064 is 0.696259…‬ (unrounded). The price level index value for the country is 0.696259…, which is Band C. The country-specific multiplier for a country in Band C is 0.6.

(4)

If the price level value for a country is not published, the Authority may determine the price level value for that country by reference to a comparable country.

(5)

In this regulation, “price level value” means the value published by the World Bank in its “Price level ratio of PPP conversion factor (GDP) to market exchange rate” world development indicator^f1.

How to calculate repayment threshold variable

8B.

The repayment threshold variable is, in relation to a repayment threshold year, the sum of—

(a)

one, and

(b)

the percentage increase, expressed as a decimal, in the retail price index between the two Marches immediately before the commencement of the previous repayment threshold year^f2.

Example
2.4% is the percentage increase in the retail price index. 2.4% expressed as a decimal is 0.024. The sum of 1 and 0.024 is 1.024. The repayment threshold variable is 1.024.

Status of examples

8C.

(1)

An example used in these Regulations—

(a)

is only illustrative of the provision to which it relates, and

(b)

does not limit the provision.

(2)

If an example and the provision to which it relates are inconsistent, the provision prevails.”.