# Official Journal C 387/13 N

| | ISSN 1977-091X |
| --- | --- |
| Official Journal
  of the European Union | C 387 |
| | |
| English edition | Information and Notices | Volume 6313 November 2020 |

ISSN 1977-091X

Official Journal

of the European Union

C 387

English edition

Information and Notices

Volume 6313 November 2020

---

| Contents | page |
| --- | --- |
| | IV   Notices |
| | NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES |
| | European Commission |
| 2020/C 387/01 | Communication from the Commission to the European Parliament, the Council and the Court of Auditors – Annual accounts of the European Development Fund 2019 | 1 |
| 2020/C 387/02 | The ECA’s statement of assurance on the 8th, 9th, 10th and 11th EDFs to the European Parliament and the Council — Independent auditor’s report | 167 |

Contents

page

IV   Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

European Commission

2020/C 387/01

Communication from the Commission to the European Parliament, the Council and the Court of Auditors – Annual accounts of the European Development Fund 2019

1

2020/C 387/02

The ECA’s statement of assurance on the 8th, 9th, 10th and 11th EDFs to the European Parliament and the Council — Independent auditor’s report

167

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| EN | |
| --- | --- |

EN

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IV Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

European Commission

| 13.11.2020 | EN | Official Journal of the European Union | C 387/1 |
| --- | --- | --- | --- |

13.11.2020

EN

Official Journal of the European Union

C 387/1

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COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS

Annual accounts of the European Development Fund 2019

(2020/C 387/01)

CONTENTS

| CERTIFICATION OF THE ACCOUNTS | 2 |
| --- | --- |

| IMPLEMENTING AND ACCOUNTING FOR THE EDF RESOURCES | 3 |
| --- | --- |

| FUNDS MANAGED BY THE EUROPEAN COMMISSION | 6 |
| --- | --- |

| FINANCIAL STATEMENTS OF THE EDF | 8 |
| --- | --- |

| FINANCIAL STATEMENTS OF THE EU TRUST FUNDS CONSOLIDATED IN EDF | 44 |
| --- | --- |

| CONSOLIDATED FINANCIAL STATEMENTS OF THE EDF AND THE EU TRUST FUNDS | 58 |
| --- | --- |

| EDF REPORT ON FINANCIAL IMPLEMENTATION | 63 |
| --- | --- |

| ANNUAL REPORT ON IMPLEMENTATION — FUNDS MANAGED BY THE EUROPEAN INVESTMENT BANK | 95 |
| --- | --- |

CERTIFICATION OF THE ACCOUNTS

The annual accounts of the European Development Fund for the year 2019 have been prepared in accordance with Title X of the Financial Regulation of the 11th European Development Fund and with the accounting principles, rules and methods set out in the notes to the financial statements.

I acknowledge my responsibility for the preparation and presentation of the annual accounts of the European Development Fund in accordance with Article 18 of the Financial Regulation of the 11th European Development Fund.

I have obtained from the authorising officer and from the EIB, who guarantee its reliability, all the information necessary for the production of the accounts that show the European Development Fund’s assets and liabilities and the budgetary implementation.

I hereby certify that based on this information, and on such checks as I deemed necessary to sign off the accounts, I have a reasonable assurance that the accounts present a true and fair view of the financial position of the European Development Fund in all material aspects.

Rosa ALDEA BUSQUETS

Accounting Officer

16 June 2020

IMPLEMENTING AND ACCOUNTING FOR THE EDF RESOURCES

IMPLEMENTING AND ACCOUNTING FOR THE EDF RESOURCES

1.   BACKGROUND

BACKGROUND

The European Union (hereinafter referred to as the ‘EU’) has cooperative relations with a large number of developing countries. The main objective is to promote economic, social and environmental development, with the primary aim of reducing and eradicating poverty in the long term by providing beneficiary countries with development aid and technical assistance. To achieve this, the EU draws up, jointly with the partner countries, cooperation strategies and mobilises the financial resources to implement them. These EU resources allocated to development cooperation come from three sources:

| — | The EU budget, |
| --- | --- |

—

The EU budget,

| — | The European Development Fund, |
| --- | --- |

—

The European Development Fund,

| — | The European Investment Bank. |
| --- | --- |

—

The European Investment Bank.

The European Development Fund (hereinafter referred to as the ‘EDF’) is the main instrument for providing EU aid for development cooperation to the African, Caribbean and Pacific (hereinafter referred to as the ‘ACP’) States and Overseas Countries and Territories (hereinafter referred to as the ‘OCTs’).

The EDF is not funded by the EU budget. It is established by an Internal Agreement of the Representatives of the Member States, sitting within the Council, and managed by a specific committee. The European Commission (hereinafter referred to as the ‘Commission’) is responsible for the financial implementation of the operations carried out with EDF resources. The European Investment Bank (hereinafter referred to as the ‘EIB’) manages the Investment Facility.

During the period 2014-2020, the geographic aid granted to ACP States and OCTs will continue to be mainly funded by the EDF. Each EDF is usually concluded for a period of around five years and is governed by its own Financial Regulation, which requires the preparation of financial statements for each individual EDF. Accordingly, financial statements are prepared separately for each EDF in respect of the part that is managed by the Commission. These financial statements are also presented in an aggregated way so as to provide a global view of the financial situation of the resources for which the Commission is responsible.

The Internal Agreement establishing the 11th EDF was signed by the participating Member States, meeting within the Council, in June 2013 (1). It came into force on 1 March 2015.

1

In 2018, the Council adopted the Financial Regulation applicable to the 11th EDF (2). This repealed the previous regulation in force and is applicable to operations financed from previous EDFs without prejudice to existing legal commitments. This Regulation does not apply to the Investment Facility under previous EDFs.

2

Within the framework of the ACP-EU Partnership Agreement, the Investment Facility was established, managed by the EIB, and used to support private sector development in the ACP States by financing essentially — but not exclusively — private investments. The Facility is designed as a renewable fund, so that loan repayments can be reinvested in other operations, thus resulting in a self-renewing and financially independent facility. As the Investment Facility is not managed by the Commission, it is not consolidated in the first part of the annual accounts — the financial statements of the EDF and the related report on financial implementation. The financial statements of the Investment Facility are included as a separate part of the annual accounts (Part II) to provide a full picture of the development aid of the EDF.

2.   HOW IS THE EDF FUNDED?

HOW IS THE EDF FUNDED?

The European Council of 2 December 2013 adopted the multiannual financial framework for 2014-2020. In this context, it was decided that geographical cooperation with the ACP States would not be integrated into the EU budget (budgetised), but would continue to be funded through the existing intergovernmental EDF.

The EU budget is annual and according to the budgetary principle of annuality, expenditure and revenue are planned and authorised for one year. Unlike the EU Budget, the EDF is a fund operating based on multiannuality. Each EDF establishes an overall fund to implement development cooperation during a period of usually five years. As resources are allocated on a multiannual basis, the allocated funds may be used over the period of the EDF. The lack of budget annuality is highlighted in the budgetary reporting, where the budgetary implementation of the EDFs is measured against the total funds.

The EDF resources are ‘ad hoc’ contributions from the EU Member States. Approximately every five years, Member State representatives meet at intergovernmental level to decide on an overall amount that will be allocated to the fund and to oversee its implementation. The Commission then manages the fund in accordance with the Union policy on development cooperation. Since Member States have their own development and aid policies in parallel to the Union policy, the Member States must coordinate their policies with the EU to ensure they are complementary.

In addition to the abovementioned contributions, it is also possible for Member States to enter into co-financing arrangements or to make voluntary financial contributions to the EDF.

3.   YEAR-END REPORTING

YEAR-END REPORTING

3.1.   ANNUAL ACCOUNTS

ANNUAL ACCOUNTS

In accordance with Article 18(3) of the EDF Financial Regulation, the EDF financial statements are prepared based on accrual-based accounting rules that themselves are based on International Public Sector Accounting Standards (IPSAS). The accounting rules adopted by the Accounting Officer of the Commission are applied by all the institutions and bodies of the EU in order to establish a uniform set of rules for accounting, valuation and presentation of the accounts with a view to harmonising the process for drawing up the financial statements. These EU accounting rules are also applied to the EDF while taking into account the specific nature of its activities.

The preparation of the EDF annual accounts is entrusted to the Commission’s Accounting Officer who is the Accounting Officer of the EDF. She ensures that the annual accounts of the EDF present a true and fair view of the financial position of the EDF.

The annual accounts are presented as follows:

Part I: Funds managed by the Commission

| | (i) | Financial statements and explanatory notes of the EDF |
| --- | --- | --- |

(i)

Financial statements and explanatory notes of the EDF

| (ii) | Financial statements of the EU trust funds consolidated in the EDF |
| --- | --- |

(ii)

Financial statements of the EU trust funds consolidated in the EDF

| (iii) | Consolidated financial statements of EDF and the EU trust funds |
| --- | --- |

(iii)

Consolidated financial statements of EDF and the EU trust funds

| (iv) | Report on financial implementation of the EDF |
| --- | --- |

(iv)

Report on financial implementation of the EDF

Part II: Annual report on implementation — Funds managed by the EIB

| | (i) | Financial statements of the Investment Facility |
| --- | --- | --- |

(i)

Financial statements of the Investment Facility

The part ‘Financial statements of the European trust funds consolidated in the EDF’ includes financial statements of the two trust funds created under the EDF: The Bêkou EU Trust Fund (see section ‘Financial statements of the Bêkou EU Trust Fund’) and the EU Trust Fund for Africa (see section ‘Financial statements of EU Trust Fund for Africa’). The trust funds individual financial statements are prepared under the responsibility of the Commission’s Accounting Officer and are subject to external audit carried out by a private auditor. The trust funds’ figures included in these annual accounts are provisional.

The EDF annual accounts must be adopted by the Commission no later than 31 July of the year following the balance sheet date and presented to the European Parliament and to the Council for discharge.

4.   AUDIT AND DISCHARGE

AUDIT AND DISCHARGE

4.1.   AUDIT

AUDIT

The EDF annual accounts are audited by its external auditor, the European Court of Auditors (hereinafter referred to as the ‘ECA’), which draws up an annual report for the European Parliament and the Council.

4.2.   DISCHARGE

DISCHARGE

The final control of the financial implementation of the EDF resources for a given financial year is the discharge. Following the audit and finalisation of the annual accounts, it falls to the Council to recommend, and then to the European Parliament to decide, whether to grant discharge to the Commission for the financial implementation of the EDF resources for a given financial year. This decision is based on a review of the accounts and the annual report of the ECA (which includes an official statement of assurance) and replies of the Commission to questions and further information requests of the discharge authority.

FUNDS MANAGED BY THE EUROPEAN COMMISSION

FUNDS MANAGED BY THE EUROPEAN COMMISSION

CONTENTS

CONTENTS

| FINANCIAL STATEMENTS OF THE EDF | 8 |
| --- | --- |

| EDF BALANCE SHEET | 9 |
| --- | --- |

| EDF STATEMENT OF FINANCIAL PERFORMANCE | 10 |
| --- | --- |

| EDF CASHFLOW STATEMENT | 11 |
| --- | --- |

| EDF STATEMENT OF CHANGES IN NET ASSETS | 12 |
| --- | --- |

| BALANCE SHEET BY EDF | 13 |
| --- | --- |

| STATEMENT OF FINANCIAL PERFORMANCE BY EDF | 15 |
| --- | --- |

| STATEMENT OF CHANGES IN NET ASSETS BY EDF | 16 |
| --- | --- |

| NOTES TO THE FINANCIAL STATEMENTS OF THE EDF | 19 |
| --- | --- |

| FINANCIAL STATEMENTS OF THE EU TRUST FUNDS CONSOLIDATED IN EDF | 44 |
| --- | --- |

| FINANCIAL STATEMENTS OF THE BÊKOU EU TRUST FUND 2019 | 45 |
| --- | --- |

| FINANCIAL STATEMENTS OF THE EUTF AFRICA 2019 | 51 |
| --- | --- |

| CONSOLIDATED FINANCIAL STATEMENTS OF THE EDF AND THE EU TRUST FUNDS | 58 |
| --- | --- |

| CONSOLIDATED BALANCE SHEET | 59 |
| --- | --- |

| CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE | 60 |
| --- | --- |

| CONSOLIDATED CASH FLOW STATEMENT | 61 |
| --- | --- |

| CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS | 62 |
| --- | --- |

| EDF REPORT ON FINANCIAL IMPLEMENTATION | 63 |
| --- | --- |

FINANCIAL STATEMENTS OF THE EDF (3)

FINANCIAL STATEMENTS OF THE EDF

3

EDF BALANCE SHEET

EDF BALANCE SHEET

| EUR million |
| --- |
| | Note | 31.12.2019 | 31.12.2018 |
| NON-CURRENT ASSETS | | | |
| Financial assets | 2.1 | 36 | — |
| Pre-financing | 2.2 | 910 | 887 |
| Trust Fund contributions | 2.3 | 266 | 201 |
| | | 1 213 | 1 088 |
| CURRENT ASSETS | | | |
| Pre-financing | 2.2 | 1 288 | 1 448 |
| Exchange receivables and non-exchange recoverables | 2.4 | 123 | 138 |
| Cash and cash equivalents | 2.5 | 1 179 | 387 |
| | | 2 590 | 1 973 |
| TOTAL ASSETS | | 3 803 | 3 061 |
| NON-CURRENT LIABILITIES | | | |
| Financial liabilities | 2.6 | (19) | (18) |
| | | (19) | (18) |
| CURRENT LIABILITIES | | | |
| Payables | 2.7 | (516) | (241) |
| Accrued charges and deferred income | 2.8 | (1 319 ) | (1 281 ) |
| | | (1 835 ) | (1 523 ) |
| TOTAL LIABILITIES | | (1 854 ) | (1 540 ) |
| NET ASSETS | | 1 948 | 1 521 |
| FUNDS & RESERVES | | | |
| Fair value reserve | 2.9 | (2) | — |
| Called fund capital — active EDFs | 2.10 | 54 809 | 50 423 |
| Called fund capital from closed EDFs carried forward | 2.10 | 2 252 | 2 252 |
| Economic result carried forward from previous years | | (51 155 ) | (47 037 ) |
| Economic result of the year | | (3 956 ) | (4 118 ) |
| NET ASSETS | | 1 948 | 1 521 |

EUR million

Note

31.12.2019

31.12.2018

NON-CURRENT ASSETS

NON-CURRENT ASSETS

Financial assets

Financial assets

2.1

2.1

36

36

—

—

Pre-financing

Pre-financing

2.2

2.2

910

910

887

887

Trust Fund contributions

Trust Fund contributions

2.3

2.3

266

266

201

201

1 213

1 213

1 088

1 088

CURRENT ASSETS

CURRENT ASSETS

Pre-financing

Pre-financing

2.2

2.2

1 288

1 288

1 448

1 448

Exchange receivables and non-exchange recoverables

Exchange receivables and non-exchange recoverables

2.4

2.4

123

123

138

138

Cash and cash equivalents

Cash and cash equivalents

2.5

2.5

1 179

1 179

387

387

2 590

2 590

1 973

1 973

TOTAL ASSETS

TOTAL ASSETS

3 803

3 803

3 061

3 061

NON-CURRENT LIABILITIES

NON-CURRENT LIABILITIES

Financial liabilities

Financial liabilities

2.6

2.6

(19)

(19)

(18)

(18)

(19)

(19)

(18)

(18)

CURRENT LIABILITIES

CURRENT LIABILITIES

Payables

Payables

2.7

2.7

(516)

(516)

(241)

(241)

Accrued charges and deferred income

Accrued charges and deferred income

2.8

2.8

(1 319 )

(1 319 )

(1 281 )

(1 281 )

(1 835 )

(1 835 )

(1 523 )

(1 523 )

TOTAL LIABILITIES

TOTAL LIABILITIES

(1 854 )

(1 854 )

(1 540 )

(1 540 )

NET ASSETS

NET ASSETS

1 948

1 948

1 521

1 521

FUNDS & RESERVES

FUNDS & RESERVES

Fair value reserve

Fair value reserve

2.9

2.9

(2)

(2)

—

—

Called fund capital — active EDFs

Called fund capital — active EDFs

2.10

2.10

54 809

54 809

50 423

50 423

Called fund capital from closed EDFs carried forward

Called fund capital from closed EDFs carried forward

2.10

2.10

2 252

2 252

2 252

2 252

Economic result carried forward from previous years

Economic result carried forward from previous years

(51 155 )

(51 155 )

(47 037 )

(47 037 )

Economic result of the year

Economic result of the year

(3 956 )

(3 956 )

(4 118 )

(4 118 )

NET ASSETS

NET ASSETS

1 948

1 948

1 521

1 521

EDF STATEMENT OF FINANCIAL PERFORMANCE

EDF STATEMENT OF FINANCIAL PERFORMANCE

| EUR million |
| --- |
| | Note | 2019 | 2018 |
| REVENUE | | | |
| Revenue from non-exchange transactions | 3.1 | | |
| Recovery activities | | 28 | 4 |
| | | 28 | 4 |
| Revenue from exchange transactions | 3.2 | | |
| Financial revenue | | 7 | 10 |
| Other revenue | | 39 | 46 |
| | | 46 | 57 |
| Total Revenue | | 74 | 60 |
| EXPENSES | | | |
| Aid instruments | 3.3 | (3 755 ) | (4 054 ) |
| Co-financing expenses | 3.4 | (14) | 17 |
| Finance costs | 3.5 | (1) | 7 |
| Other expenses | 3.6 | (260) | (148) |
| Total Expenses | | (4 030 ) | (4 178 ) |
| ECONOMIC RESULT OF THE YEAR | | (3 956 ) | (4 118 ) |

EUR million

Note

2019

2018

REVENUE

REVENUE

Revenue from non-exchange transactions

Revenue from non-exchange transactions

3.1

3.1

Recovery activities

Recovery activities

28

28

4

4

28

28

4

4

Revenue from exchange transactions

Revenue from exchange transactions

3.2

3.2

Financial revenue

Financial revenue

7

7

10

10

Other revenue

Other revenue

39

39

46

46

46

46

57

57

Total Revenue

Total Revenue

74

74

60

60

EXPENSES

EXPENSES

Aid instruments

Aid instruments

3.3

3.3

(3 755 )

(3 755 )

(4 054 )

(4 054 )

Co-financing expenses

Co-financing expenses

3.4

3.4

(14)

(14)

17

17

Finance costs

Finance costs

3.5

3.5

(1)

(1)

7

7

Other expenses

Other expenses

3.6

3.6

(260)

(260)

(148)

(148)

Total Expenses

Total Expenses

(4 030 )

(4 030 )

(4 178 )

(4 178 )

ECONOMIC RESULT OF THE YEAR

ECONOMIC RESULT OF THE YEAR

(3 956 )

(3 956 )

(4 118 )

(4 118 )

EDF CASHFLOW STATEMENT

EDF CASHFLOW STATEMENT

| EUR million |
| --- |
| | Note | 2019 | 2018 |
| Economic result of the year | | (3 956 ) | (4 118 ) |
| Operating activities | | | |
| Capital increase — contributions (net) | | 4 385 | 4 250 |
| (Increase)/decrease in trust funds contributions | | (65) | (38) |
| (Increase)/decrease in pre-financing | | 136 | (235) |
| (Increase)/decrease in exchange receivables and non-exchange recoverables | | 15 | (46) |
| Increase/(decrease) in provisions | | — | (4) |
| Increase/(decrease) in financial liabilities | | 2 | 3 |
| Increase/(decrease) in payables | | 275 | (322) |
| Increase/(decrease) in accrued charges and deferred income | | 37 | 548 |
| Other non-cash movements | | (2) | — |
| Investing activities | | | |
| (Increase)/decrease in available for sale financial assets | | (36) | — |
| NET CASHFLOW | | 792 | 40 |
| Net increase/(decrease) in cash and cash equivalents | | 792 | 40 |
| Cash and cash equivalents at the beginning of the year | 2.5 | 387 | 347 |
| Cash and cash equivalents at year-end | 2.5 | 1 179 | 387 |

EUR million

Note

2019

2018

Economic result of the year

Economic result of the year

(3 956 )

(3 956 )

(4 118 )

(4 118 )

Operating activities

Operating activities

Capital increase — contributions (net)

Capital increase — contributions (net)

4 385

4 385

4 250

4 250

(Increase)/decrease in trust funds contributions

(Increase)/decrease in trust funds contributions

(65)

(65)

(38)

(38)

(Increase)/decrease in pre-financing

(Increase)/decrease in pre-financing

136

136

(235)

(235)

(Increase)/decrease in exchange receivables and non-exchange recoverables

(Increase)/decrease in exchange receivables and non-exchange recoverables

15

15

(46)

(46)

Increase/(decrease) in provisions

Increase/(decrease) in provisions

—

—

(4)

(4)

Increase/(decrease) in financial liabilities

Increase/(decrease) in financial liabilities

2

2

3

3

Increase/(decrease) in payables

Increase/(decrease) in payables

275

275

(322)

(322)

Increase/(decrease) in accrued charges and deferred income

Increase/(decrease) in accrued charges and deferred income

37

37

548

548

Other non-cash movements

Other non-cash movements

(2)

(2)

—

—

Investing activities

Investing activities

(Increase)/decrease in available for sale financial assets

(Increase)/decrease in available for sale financial assets

(36)

(36)

—

—

NET CASHFLOW

NET CASHFLOW

792

792

40

40

Net increase/(decrease) in cash and cash equivalents

Net increase/(decrease) in cash and cash equivalents

792

792

40

40

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the beginning of the year

2.5

2.5

387

387

347

347

Cash and cash equivalents at year-end

Cash and cash equivalents at year-end

2.5

2.5

1 179

1 179

387

387

EDF STATEMENT OF CHANGES IN NET ASSETS

EDF STATEMENT OF CHANGES IN NET ASSETS

| EUR million |
| --- |
| | Fund capital — active EDFs
  (A) | Uncalled funds — active EDFs
  (B) | Called fund capital — active EDFs
  (C) = (A)-(B) | Cumulative Reserves
  (D) | Called fund capital from closed EDFs carried forward
  (E) | Fair value reserve
  (F) | Total Net Assets
  (C)+(D)+(E)+(F) |
| BALANCE AS AT 31.12.2017 | 73 264 | 27 090 | 46 173 | (47 037 ) | 2 252 | — | 1 389 |
| Capital increase — contributions | — | (4 250 ) | 4 250 | — | — | | 4 250 |
| Economic result of the year | — | — | — | (4 118 ) | — | | (4 118 ) |
| BALANCE AS AT 31.12.2018 | 73 264 | 22 840 | 50 423 | (51 155 ) | 2 252 | — | 1 521 |
| Fair value movements | | | | | | (2) | (2) |
| Capital increase — contributions | — | (4 385 ) | 4 385 | — | — | | 4 385 |
| Economic result of the year | — | — | — | (3 956 ) | — | | (3 956 ) |
| BALANCE AS AT 31.12.2019 | 73 264 | 18 455 | 54 809 | (55 111 ) | 2 252 | (2) | 1 948 |

EUR million

Fund capital — active EDFs

(A)

Uncalled funds — active EDFs

(B)

Called fund capital — active EDFs

(C) = (A)-(B)

Cumulative Reserves

(D)

Called fund capital from closed EDFs carried forward

(E)

Fair value reserve

(F)

Total Net Assets

(C)+(D)+(E)+(F)

BALANCE AS AT 31.12.2017

BALANCE AS AT 31.12.2017

73 264

73 264

27 090

27 090

46 173

46 173

(47 037 )

(47 037 )

2 252

2 252

—

—

1 389

1 389

Capital increase — contributions

Capital increase — contributions

—

—

(4 250 )

(4 250 )

4 250

4 250

—

—

—

—

4 250

4 250

Economic result of the year

Economic result of the year

—

—

—

—

—

—

(4 118 )

(4 118 )

—

—

(4 118 )

(4 118 )

BALANCE AS AT 31.12.2018

BALANCE AS AT 31.12.2018

73 264

73 264

22 840

22 840

50 423

50 423

(51 155 )

(51 155 )

2 252

2 252

—

—

1 521

1 521

Fair value movements

Fair value movements

(2)

(2)

(2)

(2)

Capital increase — contributions

Capital increase — contributions

—

—

(4 385 )

(4 385 )

4 385

4 385

—

—

—

—

4 385

4 385

Economic result of the year

Economic result of the year

—

—

—

—

—

—

(3 956 )

(3 956 )

—

—

(3 956 )

(3 956 )

BALANCE AS AT 31.12.2019

BALANCE AS AT 31.12.2019

73 264

73 264

18 455

18 455

54 809

54 809

(55 111 )

(55 111 )

2 252

2 252

(2)

(2)

1 948

1 948

BALANCE SHEET BY EDF

BALANCE SHEET BY EDF

| EUR million |
| --- |
| | | 31.12.2019 | 31.12.2018 |
| | Note | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | Total | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | Total |
| NON-CURRENT ASSETS | | | | | | | | | | | |
| Financial assets | 2.1 | — | — | — | 36 | 36 | — | — | — | — | — |
| Pre-financing | 2.2 | — | 6 | 325 | 580 | 910 | — | 23 | 520 | 344 | 887 |
| Trust Fund contributions | 2.3 | — | — | — | 266 | 266 | — | — | — | 201 | 201 |
| | | — | 6 | 325 | 882 | 1 213 | — | 23 | 520 | 546 | 1 088 |
| CURRENT ASSETS | | | | | | | | | | | |
| Pre-financing | 2.2 | 0 | 26 | 441 | 821 | 1 288 | 0 | 19 | 445 | 984 | 1 448 |
| Exchange receivables and non-exchange recoverables | 2.4 | 183 | 121 | 2 201 | (2 382 ) | 123 | 183 | 176 | 2 457 | (2 679 ) | 138 |
| Inter-EDF accounts | | 182 | 53 | 2 160 | (2 395 ) | (0) | 183 | 111 | 2 421 | (2 715 ) | (0) |
| Cash and cash equivalents | 2.5 | — | — | — | 1 179 | 1 179 | — | — | — | 387 | 387 |
| | | 365 | 201 | 4 801 | (2 777 ) | 2 590 | 367 | 306 | 5 323 | (4 023 ) | 1 973 |
| TOTAL ASSETS | | 365 | 207 | 5 127 | (1 896 ) | 3 803 | 367 | 329 | 5 843 | (3 477 ) | 3 061 |
| NON-CURRENT LIABILITIES | | | | | | | | | | | |
| Financial liabilities | 2.6 | — | — | (1) | (18) | (19) | — | — | (1) | (16) | (18) |
| | | — | — | (1) | (18) | (19) | — | — | (1) | (16) | (18) |
| CURRENT LIABILITIES | | | | | | | | | | | |
| Payables | 2.7 | — | (5) | (108) | (404) | (516) | (0) | (6) | (125) | (111) | (241) |
| Accrued charges and deferred income | 2.8 | — | (96) | (240) | (983) | (1 319 ) | (0) | (83) | (358) | (840) | (1 281 ) |
| | | — | (101) | (348) | (1 386 ) | (1 835 ) | (0) | (89) | (482) | (951) | (1 522 ) |
| TOTAL LIABILITIES | | — | (101) | (349) | (1 405 ) | (1 854 ) | (0) | (89) | (484) | (967) | (1 540 ) |
| NET ASSETS | | 365 | 106 | 4 778 | (3 300 ) | 1 948 | 366 | 240 | 5 359 | (4 444 ) | 1 521 |
| Fair value reserves | 2.9 | — | — | — | (2) | (2) | — | — | — | — | — |
| Called fund capital — active EDFs | 2.10 | 12 164 | 10 758 | 20 960 | 10 927 | 54 809 | 12 164 | 10 773 | 20 960 | 6 527 | 50 423 |
| Called fund capital from closed EDFs carried forward | 2.10 | 627 | 1 625 | — | — | 2 252 | 627 | 1 625 | — | — | 2 252 |
| Called fund capital transfers between active EDFs | 2.10 | (2 510 ) | 2 109 | 265 | 136 | — | (2 509 ) | 2 137 | 55 | 317 | — |
| Economic result carried forward from previous years | | (10 098 ) | (14 406 ) | (18 077 ) | (8 573 ) | (51 155 ) | (10 098 ) | (14 352 ) | (17 078 ) | (5 508 ) | (47 037 ) |
| Economic result of the year | | (0) | (34) | (529) | (3 393 ) | (3 956 ) | 0 | (53) | (1 000 ) | (3 065 ) | (4 118 ) |
| NET ASSETS | | 183 | 53 | 2 618 | (905) | 1 948 | 184 | 129 | 2 938 | (1 729 ) | 1 521 |

EUR million

31.12.2019

31.12.2018

Note

Eighth EDF

Ninth EDF

10th EDF

11th EDF

Total

Eighth EDF

Ninth EDF

10th EDF

11th EDF

Total

NON-CURRENT ASSETS

NON-CURRENT ASSETS

Financial assets

Financial assets

2.1

2.1

—

—

—

—

—

—

36

36

36

36

—

—

—

—

—

—

—

—

—

—

Pre-financing

Pre-financing

2.2

2.2

—

—

6

6

325

325

580

580

910

910

—

—

23

23

520

520

344

344

887

887

Trust Fund contributions

Trust Fund contributions

2.3

2.3

—

—

—

—

—

—

266

266

266

266

—

—

—

—

—

—

201

201

201

201

—

—

6

6

325

325

882

882

1 213

1 213

—

—

23

23

520

520

546

546

1 088

1 088

CURRENT ASSETS

CURRENT ASSETS

Pre-financing

Pre-financing

2.2

2.2

0

0

26

26

441

441

821

821

1 288

1 288

0

0

19

19

445

445

984

984

1 448

1 448

Exchange receivables and non-exchange recoverables

Exchange receivables and non-exchange recoverables

2.4

2.4

183

183

121

121

2 201

2 201

(2 382 )

(2 382 )

123

123

183

183

176

176

2 457

2 457

(2 679 )

(2 679 )

138

138

Inter-EDF accounts

Inter-EDF accounts

182

182

53

53

2 160

2 160

(2 395 )

(2 395 )

(0)

(0)

183

183

111

111

2 421

2 421

(2 715 )

(2 715 )

(0)

(0)

Cash and cash equivalents

Cash and cash equivalents

2.5

2.5

—

—

—

—

—

—

1 179

1 179

1 179

1 179

—

—

—

—

—

—

387

387

387

387

365

365

201

201

4 801

4 801

(2 777 )

(2 777 )

2 590

2 590

367

367

306

306

5 323

5 323

(4 023 )

(4 023 )

1 973

1 973

TOTAL ASSETS

TOTAL ASSETS

365

365

207

207

5 127

5 127

(1 896 )

(1 896 )

3 803

3 803

367

367

329

329

5 843

5 843

(3 477 )

(3 477 )

3 061

3 061

NON-CURRENT LIABILITIES

NON-CURRENT LIABILITIES

Financial liabilities

Financial liabilities

2.6

2.6

—

—

—

—

(1)

(1)

(18)

(18)

(19)

(19)

—

—

—

—

(1)

(1)

(16)

(16)

(18)

(18)

—

—

—

—

(1)

(1)

(18)

(18)

(19)

(19)

—

—

—

—

(1)

(1)

(16)

(16)

(18)

(18)

CURRENT LIABILITIES

CURRENT LIABILITIES

Payables

Payables

2.7

2.7

—

—

(5)

(5)

(108)

(108)

(404)

(404)

(516)

(516)

(0)

(0)

(6)

(6)

(125)

(125)

(111)

(111)

(241)

(241)

Accrued charges and deferred income

Accrued charges and deferred income

2.8

2.8

—

—

(96)

(96)

(240)

(240)

(983)

(983)

(1 319 )

(1 319 )

(0)

(0)

(83)

(83)

(358)

(358)

(840)

(840)

(1 281 )

(1 281 )

—

—

(101)

(101)

(348)

(348)

(1 386 )

(1 386 )

(1 835 )

(1 835 )

(0)

(0)

(89)

(89)

(482)

(482)

(951)

(951)

(1 522 )

(1 522 )

TOTAL LIABILITIES

TOTAL LIABILITIES

—

—

(101)

(101)

(349)

(349)

(1 405 )

(1 405 )

(1 854 )

(1 854 )

(0)

(0)

(89)

(89)

(484)

(484)

(967)

(967)

(1 540 )

(1 540 )

NET ASSETS

NET ASSETS

365

365

106

106

4 778

4 778

(3 300 )

(3 300 )

1 948

1 948

366

366

240

240

5 359

5 359

(4 444 )

(4 444 )

1 521

1 521

Fair value reserves

Fair value reserves

2.9

2.9

—

—

—

—

—

—

(2)

(2)

(2)

(2)

—

—

—

—

—

—

—

—

—

—

Called fund capital — active EDFs

Called fund capital — active EDFs

2.10

2.10

12 164

12 164

10 758

10 758

20 960

20 960

10 927

10 927

54 809

54 809

12 164

12 164

10 773

10 773

20 960

20 960

6 527

6 527

50 423

50 423

Called fund capital from closed EDFs carried forward

Called fund capital from closed EDFs carried forward

2.10

2.10

627

627

1 625

1 625

—

—

—

—

2 252

2 252

627

627

1 625

1 625

—

—

—

—

2 252

2 252

Called fund capital transfers between active EDFs

Called fund capital transfers between active EDFs

2.10

2.10

(2 510 )

(2 510 )

2 109

2 109

265

265

136

136

—

—

(2 509 )

(2 509 )

2 137

2 137

55

55

317

317

—

—

Economic result carried forward from previous years

Economic result carried forward from previous years

(10 098 )

(10 098 )

(14 406 )

(14 406 )

(18 077 )

(18 077 )

(8 573 )

(8 573 )

(51 155 )

(51 155 )

(10 098 )

(10 098 )

(14 352 )

(14 352 )

(17 078 )

(17 078 )

(5 508 )

(5 508 )

(47 037 )

(47 037 )

Economic result of the year

Economic result of the year

(0)

(0)

(34)

(34)

(529)

(529)

(3 393 )

(3 393 )

(3 956 )

(3 956 )

0

0

(53)

(53)

(1 000 )

(1 000 )

(3 065 )

(3 065 )

(4 118 )

(4 118 )

NET ASSETS

NET ASSETS

183

183

53

53

2 618

2 618

(905)

(905)

1 948

1 948

184

184

129

129

2 938

2 938

(1 729 )

(1 729 )

1 521

1 521

STATEMENT OF FINANCIAL PERFORMANCE BY EDF

STATEMENT OF FINANCIAL PERFORMANCE BY EDF

| EUR million |
| --- |
| | | 2019 | 2018 |
| Note | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | Total | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | Total |
| REVENUE | | | | | | | | | | | |
| Revenue from non-exchange transactions | 3.1 | | | | | | | | | | |
| Recovery activities | | 0 | — | 18 | 10 | 28 | 0 | 3 | (3) | 4 | 4 |
| | | 0 | 0 | 18 | 10 | 28 | 0 | 3 | (3) | 4 | 4 |
| Revenue from exchange transactions | 3.2 | | | | | | | | | | |
| Financial revenue | | (0) | — | 3 | 4 | 7 | 0 | 2 | 8 | 1 | 10 |
| Other revenue | | 1 | 6 | 21 | 12 | 39 | 1 | 6 | 27 | 12 | 46 |
| | | 1 | 6 | 24 | 16 | 46 | 1 | 8 | 35 | 13 | 57 |
| Total revenue | | 1 | 6 | 42 | 26 | 74 | 1 | 11 | 32 | 17 | 60 |
| EXPENSES | | | | | | | | | | | |
| Aid instruments | 3.3 | (0) | (35) | (579) | (3 141 ) | (3 755 ) | 0 | (59) | (984) | (3 012 ) | (4 054 ) |
| Co-financing expenses | 3.4 | — | — | (9) | (5) | (14) | — | — | 18 | (1) | 17 |
| Finance costs | 3.5 | (0) | 2 | (2) | (1) | (1) | 0 | 1 | 5 | 1 | 7 |
| Other expenses | 3.6 | (1) | (8) | 20 | (272) | (260) | (1) | (7) | (71) | (70) | (148) |
| Total expenses | | (1) | (40) | (571) | (3 418 ) | (4 030 ) | (0) | (64) | (1 031 ) | (3 082 ) | (4 178 ) |
| ECONOMIC RESULT OF THE YEAR | | (0) | (34) | (529) | (3 393 ) | (3 956 ) | 0 | (53) | (1 000 ) | (3 065 ) | (4 118 ) |

EUR million

2019

2018

Note

Eighth EDF

Ninth EDF

10th EDF

11th EDF

Total

Eighth EDF

Ninth EDF

10th EDF

11th EDF

Total

REVENUE

REVENUE

Revenue from non-exchange transactions

Revenue from non-exchange transactions

3.1

3.1

Recovery activities

Recovery activities

0

0

—

—

18

18

10

10

28

28

0

0

3

3

(3)

(3)

4

4

4

4

0

0

0

0

18

18

10

10

28

28

0

0

3

3

(3)

(3)

4

4

4

4

Revenue from exchange transactions

Revenue from exchange transactions

3.2

3.2

Financial revenue

Financial revenue

(0)

(0)

—

—

3

3

4

4

7

7

0

0

2

2

8

8

1

1

10

10

Other revenue

Other revenue

1

1

6

6

21

21

12

12

39

39

1

1

6

6

27

27

12

12

46

46

1

1

6

6

24

24

16

16

46

46

1

1

8

8

35

35

13

13

57

57

Total revenue

Total revenue

1

1

6

6

42

42

26

26

74

74

1

1

11

11

32

32

17

17

60

60

EXPENSES

EXPENSES

Aid instruments

Aid instruments

3.3

3.3

(0)

(0)

(35)

(35)

(579)

(579)

(3 141 )

(3 141 )

(3 755 )

(3 755 )

0

0

(59)

(59)

(984)

(984)

(3 012 )

(3 012 )

(4 054 )

(4 054 )

Co-financing expenses

Co-financing expenses

3.4

3.4

—

—

—

—

(9)

(9)

(5)

(5)

(14)

(14)

—

—

—

—

18

18

(1)

(1)

17

17

Finance costs

Finance costs

3.5

3.5

(0)

(0)

2

2

(2)

(2)

(1)

(1)

(1)

(1)

0

0

1

1

5

5

1

1

7

7

Other expenses

Other expenses

3.6

3.6

(1)

(1)

(8)

(8)

20

20

(272)

(272)

(260)

(260)

(1)

(1)

(7)

(7)

(71)

(71)

(70)

(70)

(148)

(148)

Total expenses

Total expenses

(1)

(1)

(40)

(40)

(571)

(571)

(3 418 )

(3 418 )

(4 030 )

(4 030 )

(0)

(0)

(64)

(64)

(1 031 )

(1 031 )

(3 082 )

(3 082 )

(4 178 )

(4 178 )

ECONOMIC RESULT OF THE YEAR

ECONOMIC RESULT OF THE YEAR

(0)

(0)

(34)

(34)

(529)

(529)

(3 393 )

(3 393 )

(3 956 )

(3 956 )

0

0

(53)

(53)

(1 000 )

(1 000 )

(3 065 )

(3 065 )

(4 118 )

(4 118 )

STATEMENT OF CHANGES IN NET ASSETS BY EDF

STATEMENT OF CHANGES IN NET ASSETS BY EDF

| EUR million |
| --- |
| Eighth EDF | Fund capital — active EDFs
  (A) | Uncalled funds — active EDFs
  (B) | Called fund capital — active EDFs
  (C) = (A)-(B) | Cumulative Reserves
  (D) | Called fund capital from closed EDFs carried forward
  (E) | Called fund capital transfers between active EDFs
  (F) | Total Net Assets
  (C)+(D)+(E)+(F) |
| BALANCE AS AT 31.12.2017 | 12 164 | — | 12 164 | (10 098 ) | 627 | (2 503 ) | 190 |
| Transfers to/from the 10th EDF | | | — | | | (7) | (7) |
| BALANCE AS AT 31.12.2018 | 12 164 | — | 12 164 | (10 098 ) | 627 | (2 509 ) | 183 |
| Transfers to/from the 10th EDF | | | — | | | (1) | (1) |
| BALANCE AS AT 31.12.2019 | 12 164 | — | 12 164 | (10 098 ) | 627 | (2 510 ) | 183 |

EUR million

Eighth EDF

Fund capital — active EDFs

(A)

Uncalled funds — active EDFs

(B)

Called fund capital — active EDFs

(C) = (A)-(B)

Cumulative Reserves

(D)

Called fund capital from closed EDFs carried forward

(E)

Called fund capital transfers between active EDFs

(F)

Total Net Assets

(C)+(D)+(E)+(F)

BALANCE AS AT 31.12.2017

BALANCE AS AT 31.12.2017

12 164

12 164

—

—

12 164

12 164

(10 098 )

(10 098 )

627

627

(2 503 )

(2 503 )

190

190

Transfers to/from the 10th EDF

Transfers to/from the 10th EDF

—

—

(7)

(7)

(7)

(7)

BALANCE AS AT 31.12.2018

BALANCE AS AT 31.12.2018

12 164

12 164

—

—

12 164

12 164

(10 098 )

(10 098 )

627

627

(2 509 )

(2 509 )

183

183

Transfers to/from the 10th EDF

Transfers to/from the 10th EDF

—

—

(1)

(1)

(1)

(1)

BALANCE AS AT 31.12.2019

BALANCE AS AT 31.12.2019

12 164

12 164

—

—

12 164

12 164

(10 098 )

(10 098 )

627

627

(2 510 )

(2 510 )

183

183

| EUR million |
| --- |
| Ninth EDF | Fund capital — active EDFs
  (A) | Uncalled funds — active EDFs
  (B) | Called fund capital — active EDFs
  (C) = (A)-(B) | Cumulative Reserves
  (D) | Called fund capital from closed EDFs carried forward
  (E) | Called fund capital transfers between active EDFs
  (F) | Total Net Assets
  (C)+(D)+(E)+(F) |
| BALANCE AS AT 31.12.2017 | 10 773 | — | 10 773 | (14 352 ) | 1 625 | 2 177 | 222 |
| Transfers to/from the 10th EDF | | | — | | | (40) | (40) |
| Economic result of the year | | | — | (53) | | | (53) |
| BALANCE AS AT 31.12.2018 | 10 773 | — | 10 773 | (14 406 ) | 1 625 | 2 137 | 129 |
| Capital increase — contributions | | 15 | (15) | | | | (15) |
| Transfers to/from the 10th EDF | | | — | | | (27) | (27) |
| Economic result of the year | | | — | (34) | | — | (34) |
| BALANCE AS AT 31.12.2019 | 10 773 | 15 | 10 758 | (14 440 ) | 1 625 | 2 109 | 53 |

EUR million

Ninth EDF

Fund capital — active EDFs

(A)

Uncalled funds — active EDFs

(B)

Called fund capital — active EDFs

(C) = (A)-(B)

Cumulative Reserves

(D)

Called fund capital from closed EDFs carried forward

(E)

Called fund capital transfers between active EDFs

(F)

Total Net Assets

(C)+(D)+(E)+(F)

BALANCE AS AT 31.12.2017

BALANCE AS AT 31.12.2017

10 773

10 773

—

—

10 773

10 773

(14 352 )

(14 352 )

1 625

1 625

2 177

2 177

222

222

Transfers to/from the 10th EDF

Transfers to/from the 10th EDF

—

—

(40)

(40)

(40)

(40)

Economic result of the year

Economic result of the year

—

—

(53)

(53)

(53)

(53)

BALANCE AS AT 31.12.2018

BALANCE AS AT 31.12.2018

10 773

10 773

—

—

10 773

10 773

(14 406 )

(14 406 )

1 625

1 625

2 137

2 137

129

129

Capital increase — contributions

Capital increase — contributions

15

15

(15)

(15)

(15)

(15)

Transfers to/from the 10th EDF

Transfers to/from the 10th EDF

—

—

(27)

(27)

(27)

(27)

Economic result of the year

Economic result of the year

—

—

(34)

(34)

—

—

(34)

(34)

BALANCE AS AT 31.12.2019

BALANCE AS AT 31.12.2019

10 773

10 773

15

15

10 758

10 758

(14 440 )

(14 440 )

1 625

1 625

2 109

2 109

53

53

| EUR million |
| --- |
| 10th EDF | Fund capital — active EDFs
  (A) | Uncalled funds — active EDFs
  (B) | Called fund capital — active EDFs
  (C) = (A)-(B) | Cumulative Reserves
  (D) | Called fund capital from closed EDFs carried forward
  (E) | Called fund capital transfers between active EDFs
  (F) | Total Net Assets
  (C)+(D)+(E)+(F) |
| BALANCE AS AT 31.12.2017 | 20 960 | 0 | 20 960 | (17 078 ) | — | 120 | 4 003 |
| Transfers to/from the Eighth and Ninth EDF | | | — | | | 47 | 47 |
| Transfers to/from the 11th EDF | | | — | | | (112) | (112) |
| Economic result of the year | | | — | (1 000 ) | | | (1 000 ) |
| BALANCE AS AT 31.12.2018 | 20 960 | 0 | 20 960 | (18 077 ) | — | 55 | 2 938 |
| Transfers to/from the Eighth and Ninth EDF | | | — | | | 28 | 28 |
| Transfers to/from the 11th EDF | | | — | | | 181 | 181 |
| Economic result of the year | | | — | (529) | | — | (529) |
| BALANCE AS AT 31.12.2019 | 20 960 | — | 20 960 | (18 606 ) | — | 265 | 2 618 |

EUR million

10th EDF

Fund capital — active EDFs

(A)

Uncalled funds — active EDFs

(B)

Called fund capital — active EDFs

(C) = (A)-(B)

Cumulative Reserves

(D)

Called fund capital from closed EDFs carried forward

(E)

Called fund capital transfers between active EDFs

(F)

Total Net Assets

(C)+(D)+(E)+(F)

BALANCE AS AT 31.12.2017

BALANCE AS AT 31.12.2017

20 960

20 960

0

0

20 960

20 960

(17 078 )

(17 078 )

—

—

120

120

4 003

4 003

Transfers to/from the Eighth and Ninth EDF

Transfers to/from the Eighth and Ninth EDF

—

—

47

47

47

47

Transfers to/from the 11th EDF

Transfers to/from the 11th EDF

—

—

(112)

(112)

(112)

(112)

Economic result of the year

Economic result of the year

—

—

(1 000 )

(1 000 )

(1 000 )

(1 000 )

BALANCE AS AT 31.12.2018

BALANCE AS AT 31.12.2018

20 960

20 960

0

0

20 960

20 960

(18 077 )

(18 077 )

—

—

55

55

2 938

2 938

Transfers to/from the Eighth and Ninth EDF

Transfers to/from the Eighth and Ninth EDF

—

—

28

28

28

28

Transfers to/from the 11th EDF

Transfers to/from the 11th EDF

—

—

181

181

181

181

Economic result of the year

Economic result of the year

—

—

(529)

(529)

—

—

(529)

(529)

BALANCE AS AT 31.12.2019

BALANCE AS AT 31.12.2019

20 960

20 960

—

—

20 960

20 960

(18 606 )

(18 606 )

—

—

265

265

2 618

2 618

| EUR million |
| --- |
| 11th EDF | Fund capital — active EDFs
  (A) | Uncalled funds — active EDFs
  (B) | Called fund capital — active EDFs
  (C) = (A)-(B) | Cumulative Reserves
  (D) | Called fund capital from closed EDFs carried forward
  (E) | Called fund capital transfers between active EDFs
  (F) | Fair value reserve
  (G) | Total Net Assets
  (C)+(D)+(E)+(F)+(G) |
| BALANCE AS AT 31.12.2017 | 29 367 | 27 090 | 2 277 | (5 508 ) | — | 206 | — | (3 025 ) |
| Capital increase — contributions | | (4 250 ) | 4 250 | | | — | | 4 250 |
| Transfers to/from the Eighth, Ninth and 10th EDF | | | — | | — | 112 | | 112 |
| Economic result of the year | | | — | (3 065 ) | | — | | (3 065 ) |
| BALANCE AS AT 31.12.2018 | 29 367 | 22 840 | 6 527 | (8 573 ) | — | 317 | — | (1 729 ) |
| Fair value movements | | | | | | | (2) | (2) |
| Capital increase –contributions | | (4 400 ) | 4 400 | | | (181) | | 4 219 |
| Economic result of the year | | | — | (3 393 ) | | — | | (3 393 ) |
| BALANCE AS AT 31.12.2019 | 29 367 | 18 440 | 10 927 | (11 966 ) | — | 136 | (2) | (905) |

EUR million

11th EDF

Fund capital — active EDFs

(A)

Uncalled funds — active EDFs

(B)

Called fund capital — active EDFs

(C) = (A)-(B)

Cumulative Reserves

(D)

Called fund capital from closed EDFs carried forward

(E)

Called fund capital transfers between active EDFs

(F)

Fair value reserve

(G)

Total Net Assets

(C)+(D)+(E)+(F)+(G)

BALANCE AS AT 31.12.2017

BALANCE AS AT 31.12.2017

29 367

29 367

27 090

27 090

2 277

2 277

(5 508 )

(5 508 )

—

—

206

206

—

—

(3 025 )

(3 025 )

Capital increase — contributions

Capital increase — contributions

(4 250 )

(4 250 )

4 250

4 250

—

—

4 250

4 250

Transfers to/from the Eighth, Ninth and 10th EDF

Transfers to/from the Eighth, Ninth and 10th EDF

—

—

—

—

112

112

112

112

Economic result of the year

Economic result of the year

—

—

(3 065 )

(3 065 )

—

—

(3 065 )

(3 065 )

BALANCE AS AT 31.12.2018

BALANCE AS AT 31.12.2018

29 367

29 367

22 840

22 840

6 527

6 527

(8 573 )

(8 573 )

—

—

317

317

—

—

(1 729 )

(1 729 )

Fair value movements

Fair value movements

(2)

(2)

(2)

(2)

Capital increase –contributions

Capital increase –contributions

(4 400 )

(4 400 )

4 400

4 400

(181)

(181)

4 219

4 219

Economic result of the year

Economic result of the year

—

—

(3 393 )

(3 393 )

—

—

(3 393 )

(3 393 )

BALANCE AS AT 31.12.2019

BALANCE AS AT 31.12.2019

29 367

29 367

18 440

18 440

10 927

10 927

(11 966 )

(11 966 )

—

—

136

136

(2)

(2)

(905)

(905)

NOTES TO THE FINANCIAL STATEMENTS OF THE EDF (4)

NOTES TO THE FINANCIAL STATEMENTS OF THE EDF

4

1.   SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

1.1.   ACCOUNTING PRINCIPLES

ACCOUNTING PRINCIPLES

The objective of financial statements is to provide information about the financial position, performance and cashflows of an entity that is useful to a wide range of users.

The overall considerations (or accounting principles) to be followed when preparing the financial statements are laid down in EU Accounting Rule 1 ‘Financial Statements’ and are the same as those described in IPSAS 1: fair presentation, accrual basis, going concern, consistency of presentation, materiality, aggregation, offsetting and comparative information. The qualitative characteristics of financial reporting are relevance, faithful representation (reliability), understandability, timeliness, comparability and verifiability.

1.2.   BASIS OF PREPARATION

BASIS OF PREPARATION

1.2.1.   Reporting period

Reporting period

Financial statements are presented annually. The accounting year begins on 1 January and ends on 31 December.

1.2.2.   Currency and basis for conversion

Currency and basis for conversion

The annual accounts are presented in thousands of euros, the euro being the EU’s functional currency. Foreign currency transactions are translated into euros using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the re-translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of financial performance. Different conversion methods apply to property, plant and equipment and intangible assets, which retain their value in euros at the date when they were purchased.

Year-end balances of monetary assets and liabilities denominated in foreign currencies are translated into euros on the basis of the European Central Bank (ECB) exchange rates applying on 31 December.

Euro exchange rates

Euro exchange rates

| Currency | 31.12.2019 | 31.12.2018 | Currency | 31.12.2019 | 31.12.2018 |
| --- | --- | --- | --- | --- | --- |
| BGN | 1,9558 | 1,9558 | PLN | 4,2568 | 4,3014 |
| CZK | 25,4080 | 25,7240 | RON | 4,783 | 4,6635 |
| DKK | 7,4715 | 7,4673 | SEK | 10,4468 | 10,2548 |
| GBP | 0,8508 | 0,8945 | CHF | 1,0854 | 1,1269 |
| HRK | 7,4395 | 7,4125 | JPY | 121,9400 | 125,8500 |
| HUF | 330,5300 | 320,9800 | USD | 1,1234 | 1,145 |

Currency

31.12.2019

31.12.2018

Currency

31.12.2019

31.12.2018

BGN

BGN

1,9558

1,9558

1,9558

1,9558

PLN

PLN

4,2568

4,2568

4,3014

4,3014

CZK

CZK

25,4080

25,4080

25,7240

25,7240

RON

RON

4,783

4,783

4,6635

4,6635

DKK

DKK

7,4715

7,4715

7,4673

7,4673

SEK

SEK

10,4468

10,4468

10,2548

10,2548

GBP

GBP

0,8508

0,8508

0,8945

0,8945

CHF

CHF

1,0854

1,0854

1,1269

1,1269

HRK

HRK

7,4395

7,4395

7,4125

7,4125

JPY

JPY

121,9400

121,9400

125,8500

125,8500

HUF

HUF

330,5300

330,5300

320,9800

320,9800

USD

USD

1,1234

1,1234

1,145

1,145

1.2.3.   Use of estimates

Use of estimates

In accordance with IPSAS and generally accepted accounting principles, the financial statements necessarily include amounts based on estimates and assumptions by management based on the most reliable information available. Significant estimates include, but are not limited to: amounts for employee benefit liabilities, accrued and deferred revenue and charges, provisions, financial risk on accounts receivable, contingent assets and liabilities, and degree of impairment of assets. Actual results could differ from those estimates.

Reasonable estimates are an essential part of the preparation of financial statements and do not undermine their reliability. An estimate may need revision if changes occur in the circumstances on which the estimate was based or as a result of new information or more experience. By its nature, the revision of an estimate does not relate to prior periods and is not the correction of an error. The effect of a change in accounting estimate shall be recognised in the surplus or deficit in the periods in which it becomes known.

1.3.   BALANCE SHEET

BALANCE SHEET

1.3.1.   Intangible assets

Intangible assets

An intangible asset is an identifiable non-monetary asset without physical substance. An asset is identifiable if it is either separable (i.e. it is capable of being separated or divided from the entity, e.g. by being sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, identifiable asset or liability, regardless of whether the entity intends to do so), or arises from binding arrangements (including rights from contracts or other legal rights), regardless of whether those rights are transferable or separable from the entity or from other rights and obligations).

Acquired intangible assets are stated at historical cost less accumulated amortisation and impairment losses. Internally developed intangible assets are capitalised when the relevant criteria of the EU accounting rules are met and the expenses relate solely to the development phase of the asset. The capitalisable costs include all directly attributable costs necessary to create, produce, and prepare the asset to be capable of operating in the manner intended by management. Costs associated with research activities, non-capitalisable development costs and maintenance costs are recognised as expenses as incurred.

Intangible assets are amortised on a straight-line basis over their estimated useful lives (3 to 11 years). The estimated useful lives of intangible assets depend on their specific economic lifetime or legal lifetime determined by an agreement.

1.3.2.   Property, plant and equipment

Property, plant and equipment

All property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Cost includes expenditure that is directly attributable to the acquisition, construction or transfer of the asset. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits or service potential associated with the item will flow to the entity and its cost can be measured reliably. Repairs and maintenance costs are charged to the statement of financial performance during the financial period in which they are incurred. Land is not depreciated, as it is deemed to have an indefinite useful life. Assets under construction are not depreciated as these assets are not yet available for use. Depreciation on other assets is calculated using the straight-line method to allocate their cost less their residual values over their estimated useful lives, as follows:

| Type of asset | Straight line depreciation rate |
| --- | --- |
| Buildings | 4 % to 10 % |
| Plant and equipment | 10 % to 25 % |
| Furniture and vehicles | 10 % to 25 % |
| Computer hardware | 25 % to 33 % |
| Other | 10 % to 33 % |

Type of asset

Straight line depreciation rate

Buildings

Buildings

4 % to 10 %

4 % to 10 %

Plant and equipment

Plant and equipment

10 % to 25 %

10 % to 25 %

Furniture and vehicles

Furniture and vehicles

10 % to 25 %

10 % to 25 %

Computer hardware

Computer hardware

25 % to 33 %

25 % to 33 %

Other

Other

10 % to 33 %

10 % to 33 %

Gains or losses on disposals are determined by comparing proceeds less selling expenses with the carrying amount of the disposed asset and are included in the statement of financial performance.

Leases

Leases

A lease is an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time. Leases are classified as either finance leases or operating leases.

Finance leases are leases where substantially all the risks and rewards incidental to ownership are transferred to the lessee. When entering a finance lease as a lessee, the assets acquired under the finance lease are recognised as assets and the associated lease obligations as liabilities as from the commencement of the lease term. The assets and liabilities are recognised at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease. Over the period of the lease term, the assets held under finance leases are depreciated over the shorter of the asset’s useful life and the lease term. The minimum lease payments are apportioned between the finance charge (the interest element) and the reduction of the outstanding liability (the capital element). The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability, which is presented as current/non-current, as applicable. Contingent rents shall be charged as expenses in the period in which they are incurred.

An operating lease is a lease other than a finance lease, i.e. a lease where the lessor retains substantially all the risks and rewards incidental to ownership of an asset. When entering an operating lease as a lessee, the operating lease payments are recognised as an expense in the statement of financial performance on a straight-line basis over the lease term with neither a leased asset nor a leasing liability presented in the statement of financial position.

1.3.3.   Impairment of non-financial assets

Impairment of non-financial assets

Assets that have an indefinite useful life are not subject to amortisation/depreciation and are tested annually for impairment. Assets that are subject to amortisation/depreciation are tested for impairment whenever there is an indication at the reporting date that an asset may be impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable (service) amount. The recoverable (service) amount is the higher of an asset’s fair value less costs to sell and its value in use.

Intangible assets and property, plant and equipment residual values and useful lives are reviewed, and adjusted if appropriate, at least once per year. If the reasons for impairments recognised in previous years no longer apply, the impairment losses are reversed accordingly.

1.3.4.   Financial assets

Financial assets

Financial assets are classified in the following categories: ‘financial assets at fair value through surplus or deficit’, ‘loans and receivables’, ‘held-to-maturity investments’ and ‘available for sale financial assets’. The classification of the financial instruments is determined at initial recognition and re-evaluated at each balance sheet date.

(i)   Financial assets at fair value through surplus or deficit

Financial assets at fair value through surplus or deficit

A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by the entity. Derivatives are also presented in this category. Assets in this category are classified as current assets if they are expected to be realised within 12 months of the balance sheet date. During this financial year, the entity did not hold any investments in this category.

(ii)   Loans and receivables

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the entity provides money, goods or services directly to a debtor with no intention of trading the receivable. They are included in non-current assets, except for maturities within 12 months of the balance sheet date. Loans and receivables include term deposits with the original maturity above three months.

(iii)   Held-to-maturity investments

Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the entity has the positive intention and ability to hold to maturity. During this financial year, the entity did not hold any investments in this category.

(iv)   Available for sale financial assets

Available for sale financial assets

Available for sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. They are classified as either current or non-current assets, depending on the period of time the entity expects to hold them, which is usually the maturity date. During this financial year, the entity did not hold any investments in this category.

Initial recognition and measurement

Initial recognition and measurement

Purchases and sales of financial assets at fair value through surplus or deficit, held-to-maturity and available for sale are recognised on their trade date, i.e. the date on which the entity commits to purchase or sell the asset. Cash equivalents and loans are recognised when cash is deposited in a financial institution or advanced to borrowers. Financial instruments are initially recognised at fair value. For all financial assets not carried at fair value through surplus or deficit, transaction costs are added to the fair value at initial recognition.

Financial instruments are derecognised when the rights to receive cashflows from the investments have expired or the entity has transferred substantially all risks and rewards of ownership to another party.

Subsequent measurement

Subsequent measurement

Financial assets at fair value through surplus or deficit are subsequently carried at fair value, with gains and losses arising from changes in the fair value being included in the statement of financial performance in the period in which they arise.

Loans and receivables and held-to maturity investments are carried at amortised cost using the effective interest method.

Available for sale financial assets are subsequently carried at fair value. Gains and losses arising from changes in the fair value are recognised in the fair value reserve. Interest on available for sale financial assets, calculated using the effective interest method, is recognised in the statement of financial performance.

The entity assesses at each balance sheet date whether there is objective evidence that a financial asset is impaired and whether an impairment loss should be recorded in the statement of financial performance.

1.3.5.   Pre-financing amounts

Pre-financing amounts

Pre-financing is a payment intended to provide the beneficiary with a cash advance, i.e. a float. It may be split into a number of payments over a period defined in the particular contract, decision, agreement or basic legal act. The float or advance is either used for the purpose for which it was provided during the period defined in the agreement or it is repaid. If the beneficiary does not incur eligible expenditure, he has the obligation to return the pre-financing advance to the entity. Thus, as the entity retains control over the pre-financing and is entitled to a refund for the ineligible part, the amount is presented as an asset.

Pre-financing is initially recognised on the balance sheet when cash is transferred to the recipient. It is measured at the amount of the consideration given. In subsequent periods pre-financing is measured at the amount initially recognised on the balance sheet less eligible expenses (including estimated amounts where necessary) incurred during the period.

1.3.6.   Receivables and recoverables

Receivables and recoverables

The EU accounting rules require a separate presentation of exchange and non-exchange transactions. To distinguish between the two categories, the term ‘receivable’ is reserved for exchange transactions, whereas for non-exchange transactions, i.e. when the EU receives value from another entity without directly giving approximately equal value in exchange, the term ‘recoverables’ is used (e.g. recoverables from Member States related to own resources).

Receivables from exchange transactions meet the definition of financial instruments and are thus classified as loans and receivables and measured accordingly (see 1.3.4 above).

Recoverables from non-exchange transactions are carried at original amount (adjusted for interests and penalties) less write-down for impairment. A write-down for impairment is established when there is objective evidence that the entity will not be able to collect all amounts due according to the original terms of the recoverables. The amount of the write-down is the difference between the asset’s carrying amount and the recoverable amount. The amount of the write-down is recognised in the statement of financial performance.

1.3.7.   Cash and cash equivalents

Cash and cash equivalents

Cash and cash equivalents are financial instruments and include cash at hand, deposits held at call or at short notice with banks, and other short-term highly liquid investments with original maturities of three months or less.

1.3.8.   Provisions

Provisions

Provisions are recognised when the entity has a present legal or constructive obligation towards third parties as a result of past events, it is more likely than not that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Provisions are not recognised for future operating losses. The amount of the provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date. Where the provision involves a large number of items, the obligation is estimated by weighting all possible outcomes by their associated probabilities (‘expected value’ method).

Provisions for onerous contracts are measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract.

1.3.9.   Payables

Payables

Included under accounts payable are both amounts related to exchange transactions such as the purchase of goods and services and to non-exchange transactions, e.g. to cost claims from beneficiaries, grants or other EU funding, or pre-financing received (see note 1.4.1).

1.4.1

Where grants or other funding are provided to the beneficiaries, the cost claims are recorded as payables for the requested amount when the cost claim is received. Upon verification and acceptance of the eligible costs, the payables are valued at the accepted and eligible amount.

Payables arising from the purchase of goods and services are recognised at invoice reception for the original amount and corresponding expenses are entered in the accounts when the supplies or services are delivered and accepted by the entity.

1.3.10.   Accrued and deferred revenue and charges

Accrued and deferred revenue and charges

Transactions and events are recognised in the financial statements in the period to which they relate. At year-end, if an invoice is not yet issued but the service has been rendered, the supplies have been delivered by the entity or a contractual agreement exists (e.g. by reference to a contract), an accrued revenue will be recognised in the financial statements. In addition, at year-end, if an invoice is issued but the services have not yet been rendered or the goods supplied have not yet been delivered, the revenue will be deferred and recognised in the subsequent accounting period.

Expenses are also accounted for in the period to which they relate. At the end of the accounting period, accrued expenses are recognised based on an estimated amount of the transfer obligation of the period. The calculation of accrued expenses is done in accordance with detailed operational and practical guidelines issued by the Accounting Officer which aim at ensuring that the financial statements provide a faithful representation of the economic and other phenomena they purport to represent. By analogy, if a payment has been made in advance for services or goods that have not yet been received, the expense will be deferred and recognised in the subsequent accounting period.

1.4.   STATEMENT OF FINANCIAL PERFORMANCE

STATEMENT OF FINANCIAL PERFORMANCE

1.4.1.   Revenue

Revenue

Revenue comprises gross inflows of economic benefits or service potential received and receivable by the entity, which represents an increase in net assets, other than increases relating to contributions from owners.

Depending on the nature of the underlying transactions in the statement of financial performance it is distinguished between:

(i)   Revenue from non-exchange transactions

Revenue from non-exchange transactions

Revenue from non-exchange transactions are taxes and transfers because the transferor provides resources to the recipient entity without the recipient entity providing approximately equal value directly in exchange.

Transfers are inflows of future economic benefits or service potential from non-exchange transactions, other than taxes. The entity shall recognise an asset in respect of transfers when the entity controls the resources as a result of a past event (the transfer) and expects to receive future economic benefits or service potential from those resources, and when the fair value can be reliably measured. An inflow of resources from a non-exchange transaction recognised as an asset (i.e. cash) is also recognised as revenue, except to the extent that the entity has a present obligation in respect of that transfer (condition), which needs to be satisfied before the revenue can be recognised. Until the condition is met the revenue is deferred and recognised as a liability (pre-financing received).

(ii)   Revenue from exchange transactions

Revenue from exchange transactions

Revenue from the sale of goods and services is recognised when the significant risk and rewards of ownership of the goods are transferred to the purchaser. Revenue associated with a transaction involving the provision of services is recognised by reference to the stage of completion of the transaction at the reporting date.

1.4.2.   Expenses

Expenses

Expenses are decreases in economic benefits or service potential during the reporting period in the form of outflows or consumption of assets or incurrence of liabilities that result in decreases in net assets/equity. They include both the expenses from exchange transactions and expenses from non-exchange transactions.

Expenses from exchange transactions arising from the purchase of goods and services are recognised when the supplies are delivered and accepted by the entity. They are valued at the original invoice amount. Furthermore, at the balance sheet date expenses related to the service delivered during the period for which an invoice has not yet been received or accepted are recognised in the statement of financial performance.

Expenses from non-exchange transactions relate to transfers to beneficiaries and can be of three types: entitlements, transfers under agreement and discretionary grants, contributions and donations. Transfers are recognised as expenses in the period during which the events giving rise to the transfer occurred, as long as the nature of the transfer is allowed by regulation or an agreement has been signed authorising the transfer; any eligibility criteria have been met by the beneficiary; and a reasonable estimate of the amount can be made.

When a request for payment or cost claim is received and meets the recognition criteria, it is recognised as an expense for the eligible amount. At year-end, incurred eligible expenses due to the beneficiaries but not yet reported are estimated and recorded as accrued expense.

1.5.   CONTINGENT ASSETS AND LIABILITIES

CONTINGENT ASSETS AND LIABILITIES

1.5.1.   Contingent assets

Contingent assets

A contingent asset is a possible asset that arises from past events and of which the existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. A contingent asset is disclosed when an inflow of economic benefits or service potential is probable.

1.5.2.   Contingent liabilities

Contingent liabilities

A contingent liability is a possible obligation that arises from past events and of which the existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or a present obligation that arises from past events but is not recognised because it is not probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation or, in the rare circumstances where the amount of the obligation cannot be measured with sufficient reliability. A contingent liability is disclosed unless the possibility of an outflow of resources embodying economic benefits or service potential is remote.

1.6.   CO-FINANCING

CO-FINANCING

Co-financing contributions received fulfil the criteria of revenues from non-exchange transactions under conditions and they are presented as payables to Member States, non-Member States and others. The EDF is required to use the contributions to deliver services to third parties or is otherwise required to return the assets (the contributions received). The outstanding payables relating to co-financing agreements represent the co-financing contributions received less the expenses incurred related to the project. The effect on net assets is nil.

Expenses relating to co-financing projects are recognised as they are incurred. The corresponding amount of contributions is recognised as operating revenue and the effect on economic result of the year is nil.

2.   NOTES TO THE BALANCE SHEET

NOTES TO THE BALANCE SHEET

ASSETS

ASSETS

2.1.   FINANCIAL ASSETS

FINANCIAL ASSETS

The financial assets of the EDF amounted to EUR 36 million at 31 December 2019 (2018: nil). They comprise available for sale financial assets that are almost entirely investments in equity instruments.

2.2.   PRE-FINANCING

PRE-FINANCING

Many contracts provide for payments of advances before the commencement of works, delivery of supplies or the provision of services. Sometimes the payment schedules of contracts foresee payments based on progress reports. Pre-financing is normally paid in the currency of the country or territory where the project is executed.

The timing of use of pre-financing governs whether it is disclosed as a current or a non-current pre-financing. The use is defined by the project’s underlying agreement. Any use due within twelve months after the reporting date are disclosed as current pre-financing. As many of the EDF projects are long-term in nature, it is necessary that the related advances are available for more than one year. Thus some pre-financing amounts are shown as non-current assets.

| EUR million |
| --- |
| | Note | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2019 | 31.12.2018 |
| Non-current pre-financing | 2.2.1 | — | 6 | 325 | 580 | 910 | 887 |
| Current pre-financing | 2.2.2 | 0 | 26 | 441 | 821 | 1 288 | 1 448 |
| Total | | 0 | 32 | 766 | 1 401 | 2 199 | 2 335 |

EUR million

Note

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2019

31.12.2018

Non-current pre-financing

Non-current pre-financing

2.2.1

—

6

6

325

325

580

580

910

910

887

887

Current pre-financing

Current pre-financing

2.2.2

0

0

26

26

441

441

821

821

1 288

1 288

1 448

1 448

Total

Total

0

0

32

32

766

766

1 401

1 401

2 199

2 199

2 335

2 335

The decrease of the total pre-financing at 31 December 2019 is mainly explained by a decrease of pre-financing of the 10th EDF (2018: EUR 964 million). In line with the lifecycle of the EDF, many contracts related to the 10th EDF were completed and closed. The number of open contracts under this EDF dropped from approximately 2 600 in 2018 to circa 2 300 in 2019. Consequently, the level of pre-financing payments made to beneficiaries decreased while the clearing of pre-financing increased.

This decrease was partially compensated by an increase of pre-financing related to 11th EDF (2018: EUR 1 328 million). The 11th EDF started in 2015 and in 2019 was at cruising speed concerning the implementation of adopted actions. The number of open contracts increased from around 2 300 in 2018 to 3 400 in 2019, which translated into an increase of total open pre-financing of EUR 73 million.

2.2.1.   Non-current pre-financing

Non-current pre-financing

| EUR million |
| --- |
| | 31.12.2019 | 31.12.2018 |
| Direct Management | | |
| Implemented by: | | |
| | Commission |

EUR million

31.12.2019

31.12.2018

Direct Management

Direct Management

Implemented by:

Implemented by:

Commission

Commission

190

190

140

140

| | | EU executive agencies |
| --- | --- | --- |

EU executive agencies

EU executive agencies

6

6

—

| | | EU delegations |
| --- | --- | --- |

EU delegations

EU delegations

49

49

48

48

244

244

188

188

Indirect Management

Indirect Management

| | Implemented by: |
| --- | --- |

Implemented by:

Implemented by:

| | | EIB and EIF |
| --- | --- | --- |

EIB and EIF

EIB and EIF

313

313

367

367

| | | International organisations |
| --- | --- | --- |

International organisations

International organisations

291

291

280

280

| | | Private law bodies with a public service mission |
| --- | --- | --- |

Private law bodies with a public service mission

Private law bodies with a public service mission

22

22

6

6

| | | Public law bodies |
| --- | --- | --- |

Public law bodies

Public law bodies

22

22

24

24

| | | Third countries |
| --- | --- | --- |

Third countries

Third countries

17

17

21

21

| | | EU bodies and Public Private Partnership |
| --- | --- | --- |

EU bodies and Public Private Partnership

EU bodies and Public Private Partnership

1

1

—

665

665

698

698

Total

Total

910

910

887

887

2.2.2.   Current pre-financing

Current pre-financing

| EUR million |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2019 | 31.12.2018 |
| Pre-financing (gross) | 0 | 115 | 1 627 | 3 288 | 5 030 | 5 153 |
| Cleared via cut-off | — | (89) | (1 186 ) | (2 467 ) | (3 742 ) | (3 705 ) |
| Total | 0 | 26 | 441 | 821 | 1 288 | 1 448 |

EUR million

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2019

31.12.2018

Pre-financing (gross)

Pre-financing (gross)

0

0

115

115

1 627

1 627

3 288

3 288

5 030

5 030

5 153

5 153

Cleared via cut-off

Cleared via cut-off

—

(89)

(89)

(1 186 )

(1 186 )

(2 467 )

(2 467 )

(3 742 )

(3 742 )

(3 705 )

(3 705 )

Total

Total

0

0

26

26

441

441

821

821

1 288

1 288

1 448

1 448

2.2.3.   Guarantees received in respect of pre-financing

Guarantees received in respect of pre-financing

Guarantees are held to secure pre-financing and are released when the final claim under a project is paid. At 31 December 2019, the guarantees received by the EDF in respect of pre-financing decreased to EUR 46 million (2018: EUR 79 million).

The majority of pre-financing is paid under the indirect management mode. In this case, the beneficiary of the guarantee is not the EDF but the contracting authority. Even though the EDF is not the beneficiary, those guarantees secure its assets.

2.3.   TRUST FUND CONTRIBUTIONS

TRUST FUND CONTRIBUTIONS

This heading represents the amount paid as contributions to the EU Trust Fund for Africa and the Bêkou EU Trust Fund. The contributions are net of the costs incurred by the trust funds and attributable to the EDF.

The trust fund contributions are implemented by the EDF under the direct management mode.

| EUR million |
| --- |
| | Net contribution at 31.12.2018 | Contributions paid in 2019 | Allocation of TF’s net expenses 2019 | Net contribution at 31.12.2019 |
| Africa | 193 | 600 | (530) | 263 |
| Bêkou | 9 | — | (5) | 4 |
| Total | 201 | 600 | (535) | 266 |

EUR million

Net contribution at 31.12.2018

Contributions paid in 2019

Allocation of TF’s net expenses 2019

Net contribution at 31.12.2019

Africa

Africa

193

193

600

600

(530)

(530)

263

263

Bêkou

Bêkou

9

9

—

(5)

(5)

4

4

Total

Total

201

201

600

600

(535)

(535)

266

266

2.4.   EXCHANGE RECEIVABLES AND NON-EXCHANGE RECOVERABLES

EXCHANGE RECEIVABLES AND NON-EXCHANGE RECOVERABLES

| EUR million |
| --- |
| | Note | 31.12.2019 | 31.12.2018 |
| Recoverables from non-exchange transactions | 2.4.1 | 32 | 37 |
| Receivables from exchange transactions | 2.4.2 | 91 | 101 |
| Total | | 123 | 138 |

EUR million

Note

31.12.2019

31.12.2018

Recoverables from non-exchange transactions

Recoverables from non-exchange transactions

2.4.1

32

32

37

37

Receivables from exchange transactions

Receivables from exchange transactions

2.4.2

91

91

101

101

Total

Total

123

123

138

138

2.4.1.   Recoverables from non-exchange transactions

Recoverables from non-exchange transactions

| EUR million |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2019 | 31.12.2018 |
| Member States | — | 0 | — | 1 | 1 | 5 |
| Customers | 1 | 4 | 17 | 4 | 27 | 26 |
| Public bodies | — | 9 | 11 | 1 | 21 | 25 |
| Third states | 0 | 2 | 4 | 0 | 7 | 5 |
| Write-down | (2) | (13) | (12) | (1) | (27) | (27) |
| Inter-company accounts with EU institutions | — | — | — | 4 | 4 | 3 |
| Total | 0 | 3 | 20 | 9 | 32 | 37 |

EUR million

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2019

31.12.2018

Member States

Member States

—

0

0

—

1

1

1

1

5

5

Customers

Customers

1

1

4

4

17

17

4

4

27

27

26

26

Public bodies

Public bodies

—

9

9

11

11

1

1

21

21

25

25

Third states

Third states

0

0

2

2

4

4

0

0

7

7

5

5

Write-down

Write-down

(2)

(2)

(13)

(13)

(12)

(12)

(1)

(1)

(27)

(27)

(27)

(27)

Inter-company accounts with EU institutions

Inter-company accounts with EU institutions

—

—

—

4

4

4

4

3

3

Total

Total

0

0

3

3

20

20

9

9

32

32

37

37

2.4.2.   Receivables from exchange transactions

Receivables from exchange transactions

| EUR million |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2019 | 31.12.2018 |
| Accrued income | 1 | 65 | 21 | 0 | 88 | 81 |
| Receivable from EU | — | — | — | 4 | 4 | 20 |
| Inter-EDF accounts | 182 | 53 | 2 160 | (2 395 ) | (0) | (0) |
| Total | 183 | 119 | 2 181 | (2 391 ) | 91 | 101 |

EUR million

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2019

31.12.2018

Accrued income

Accrued income

1

1

65

65

21

21

0

0

88

88

81

81

Receivable from EU

Receivable from EU

—

—

—

4

4

4

4

20

20

Inter-EDF accounts

Inter-EDF accounts

182

182

53

53

2 160

2 160

(2 395 )

(2 395 )

(0)

(0)

(0)

(0)

Total

Total

183

183

119

119

2 181

2 181

(2 391 )

(2 391 )

91

91

101

101

Included under accrued income are amounts of accrued interest on pre-financing related to projects (EUR 65 million) and on pre-financing related to the EU-Africa Trust Fund (EUR 21 million).

The receivable from the EU is the amount that was transferred to the trust account owned by the European Commission.

For efficiency reasons, the single treasury covering all the EDFs is allocated to the 11th EDF; this leads to operations between the various EDFs, which are balanced out in the inter-EDF accounts between the various EDF balance sheets.

Inter-EDF accounts are presented only in the individual EDFs. The total of inter-EDF accounts is zero.

2.5.   CASH AND CASH EQUIVALENTS (5)

CASH AND CASH EQUIVALENTS

5

| EUR million |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2019 | 31.12.2018 |
| Special accounts | | | | | | |
| Central banks | — | — | — | 729 | 729 | 276 |
| | — | — | — | 729 | 729 | 276 |
| Current accounts | | | | | | |
| Commercial banks | — | — | — | 421 | 421 | 87 |
| Cash belonging to financial instruments | — | — | — | 30 | 30 | 24 |
| | — | — | — | 450 | 450 | 111 |
| Total | — | — | — | 1 179 | 1 179 | 387 |

EUR million

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2019

31.12.2018

Special accounts

Special accounts

Central banks

Central banks

—

—

—

729

729

729

729

276

276

—

—

—

729

729

729

729

276

276

Current accounts

Current accounts

Commercial banks

Commercial banks

—

—

—

421

421

421

421

87

87

Cash belonging to financial instruments

Cash belonging to financial instruments

—

—

—

30

30

30

30

24

24

—

—

—

450

450

450

450

111

111

Total

Total

—

—

—

1 179

1 179

1 179

1 179

387

387

The increase of amounts under this heading of EUR 792 million can be explained mainly by payment execution being lower than forecast. EDF payments totalled EUR 3 910 million on 31 December 2019, compared to the annual target of EUR 4 400 million. Two key reasons for this differential are the suspension of the signature of the contract on Global Partnership for Education with the World Bank and the postponement of Budget Support payments for Chad, Haiti, and Benin.

In addition, the increase under Commercial banks relates to EUR 264 million of the 2020 capital contribution received from the UK on the Natwest bank account at the end of December (see note 2.7.2.1) .

2.7.2.1

Similar previous years and in order to limit counterparty risk more cash is kept in accounts with central banks than in the commercial banks (see note 5.1).

5.1

LIABILITIES

LIABILITIES

2.6.   FINANCIAL LIABILITIES

FINANCIAL LIABILITIES

2.6.1.   Co-financing payables

Co-financing payables

Co-financing payables represent funds received by the EDF in respect to the co-financing agreements. The EDF is required to use these contributions to deliver agreed services to third parties and return the unused funds to the contributors. Timing of the use of the co-financing amounts determines whether it is disclosed as current or non-current.

At the year end a case-by-case assessment of all co-financing payables is performed and all amounts that are unlikely to be used in the following 12 months are considered non-current.

| EUR million |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2019 | 31.12.2018 |
| Non-current co-financing payables | — | — | 1 | 18 | 19 | 18 |
| Current co-financing payables | — | — | 38 | 31 | 69 | 68 |
| Total | — | — | 39 | 50 | 88 | 86 |

EUR million

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2019

31.12.2018

Non-current co-financing payables

Non-current co-financing payables

—

—

1

1

18

18

19

19

18

18

Current co-financing payables

Current co-financing payables

—

—

38

38

31

31

69

69

68

68

Total

Total

—

—

39

39

50

50

88

88

86

86

The increase of the total co-financing payables of EUR 2,6 million is a combined effect of new co-financing amounts received in 2019 (EUR 17 million) and expenses incurred in respect of co-financing projects (EUR 14,4 million). In line with the accounting rules on co-financing, the incurred amounts did not have any impact on the result of the year because they were recognised both in the co-financing expenses (note 3.4) and in the co-financing revenue (note 3.1.1).

3.4

3.1.1

2.7.   PAYABLES

PAYABLES

| EUR million |
| --- |
| | Note | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2019 | 31.12.2018 |
| Current payables | 2.7.1 | — | 5 | 72 | 106 | 182 | 173 |
| Sundry payables | 2.7.2 | — | (0) | 36 | 298 | 334 | 68 |
| Total | | — | 5 | 108 | 404 | 516 | 241 |

EUR million

Note

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2019

31.12.2018

Current payables

Current payables

2.7.1

—

5

5

72

72

106

106

182

182

173

173

Sundry payables

Sundry payables

2.7.2

—

(0)

(0)

36

36

298

298

334

334

68

68

Total

Total

—

5

5

108

108

404

404

516

516

241

241

2.7.1.   Current payables

Current payables

| EUR million |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2019 | 31.12.2018 |
| Suppliers | — | 4 | 67 | 27 | 97 | 102 |
| Member States | — | 0 | 0 | 2 | 2 | 1 |
| Third states | 0 | — | 4 | 74 | 78 | 37 |
| Public bodies | — | 2 | 70 | 20 | 92 | 43 |
| Other current payables | (0) | (1) | (70) | (17) | (88) | (10) |
| Total | — | 5 | 72 | 106 | 182 | 173 |

EUR million

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2019

31.12.2018

Suppliers

Suppliers

—

4

4

67

67

27

27

97

97

102

102

Member States

Member States

—

0

0

0

0

2

2

2

2

1

1

Third states

Third states

0

0

—

4

4

74

74

78

78

37

37

Public bodies

Public bodies

—

2

2

70

70

20

20

92

92

43

43

Other current payables

Other current payables

(0)

(0)

(1)

(1)

(70)

(70)

(17)

(17)

(88)

(88)

(10)

(10)

Total

Total

—

5

5

72

72

106

106

182

182

173

173

Payables include cost statements received by the EDF relating to its grant giving activity. They are recorded for the amount being claimed from the moment the payment request is received. The same procedure applies to invoices and credit notes received under procurement activities. The cost claims concerned have been taken into account for the year-end cut-off procedures. Following the cut-off entries, estimated eligible amounts have been recognised in the statement of financial performance. Non-eligible amounts have been shown as other current payables.

2.7.2.   Sundry payables

Sundry payables

| EUR million |
| --- |
| | Note | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2019 | 31.12.2018 |
| Co-financing payables | 2.6.1 | — | — | 38 | 31 | 69 | 68 |
| Deferred capital contributions | 2.7.2.1 | — | — | — | 264 | 264 | — |
| Other sundry payables | | — | — | (2) | 3 | 1 | 0 |
| Total | | — | — | 36 | 298 | 334 | 68 |

EUR million

Note

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2019

31.12.2018

Co-financing payables

Co-financing payables

2.6.1

—

—

38

38

31

31

69

69

68

68

Deferred capital contributions

Deferred capital contributions

2.7.2.1

—

—

—

264

264

264

264

—

Other sundry payables

Other sundry payables

—

—

(2)

(2)

3

3

1

1

0

0

Total

Total

—

—

36

36

298

298

334

334

68

68

2.7.2.1.   Deferred capital contributions

Deferred capital contributions

At 31 December 2019, the entire amount of EUR 264 million relates to 2020 contribution of the UK paid to the EDF at the end of December. At 31 December 2018, there were no capital contributions paid in advance.

2.8.   ACCRUED CHARGES AND DEFERRED INCOME

ACCRUED CHARGES AND DEFERRED INCOME

| EUR million |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2019 | 31.12.2018 |
| Accrued charges | — | 96 | 240 | 982 | 1 318 | 1 279 |
| Other accruals and deferrals | — | — | 0 | 1 | 1 | 3 |
| Total | — | 96 | 240 | 983 | 1 319 | 1 281 |

EUR million

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2019

31.12.2018

Accrued charges

Accrued charges

—

96

96

240

240

982

982

1 318

1 318

1 279

1 279

Other accruals and deferrals

Other accruals and deferrals

—

—

0

0

1

1

1

1

3

3

Total

Total

—

96

96

240

240

983

983

1 319

1 319

1 281

1 281

Accrued charges comprise estimated operating expenses for on-going or completed contracts without validated cost claims where the eligible expenses incurred by beneficiaries were estimated using the best available information. The portion of the estimated accrued charges, which relates to pre-financing paid, has been recorded as a reduction of the pre-financing amounts (see note 2.2 above).

2.2

The increase under this heading is a combined effect of an increase of accrued charges under the 11th EDF (2018: EUR 838 million) and a decrease of accrued charges under the 10th EDF (2018: EUR 358 million). This is in line with the lifecycle of the EDF and also related to the evolution of the number of open contracts under these EDFs: The 11th EDF was at the full cruising speed in 2019 and there were thus significantly more open contracts at 31 December 2019 for which the charges had to be estimated and accrued. Conversely, many contracts were completed and closed under the 10th EDF in 2019, which resulted into a decrease of open contracts and less accrued charges under this EDF.

NET ASSETS

NET ASSETS

2.9.   FAIR VALUE RESERVE

FAIR VALUE RESERVE

In accordance with the accounting rules, the adjustment to fair value of available for sale financial assets is accounted for through the fair value reserve.

| EUR million |
| --- |
| | 31.12.2019 | 31.12.2018 |
| Included in fair value reserve | (2) | — |
| Included in statement of financial performance | — | — |
| Total | (2) | — |

EUR million

31.12.2019

31.12.2018

Included in fair value reserve

Included in fair value reserve

(2)

(2)

—

Included in statement of financial performance

Included in statement of financial performance

—

—

Total

Total

(2)

(2)

—

2.10.   FUND CAPITAL

FUND CAPITAL

2.10.1.   Called fund capital — active EDFs

Called fund capital — active EDFs

| EUR million |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | Total |
| Fund capital | 12 164 | 10 773 | 20 960 | 29 367 | 73 264 |
| Uncalled fund capital | — | (0) | (0) | (22 840 ) | (22 840 ) |
| Called fund capital 31.12.2018 | 12 164 | 10 773 | 20 960 | 6 527 | 50 423 |
| Fund capital | 12 164 | 10 773 | 20 960 | 29 367 | 73 264 |
| Uncalled fund capital | — | (15) | (0) | (18 440 ) | (18 455 ) |
| Called fund capital 31.12.2019 | 12 164 | 10 758 | 20 960 | 10 927 | 54 809 |

EUR million

Eighth EDF

Ninth EDF

10th EDF

11th EDF

Total

Fund capital

Fund capital

12 164

12 164

10 773

10 773

20 960

20 960

29 367

29 367

73 264

73 264

Uncalled fund capital

Uncalled fund capital

—

(0)

(0)

(0)

(0)

(22 840 )

(22 840 )

(22 840 )

(22 840 )

Called fund capital 31.12.2018

Called fund capital 31.12.2018

12 164

12 164

10 773

10 773

20 960

20 960

6 527

6 527

50 423

50 423

Fund capital

Fund capital

12 164

12 164

10 773

10 773

20 960

20 960

29 367

29 367

73 264

73 264

Uncalled fund capital

Uncalled fund capital

—

(15)

(15)

(0)

(0)

(18 440 )

(18 440 )

(18 455 )

(18 455 )

Called fund capital 31.12.2019

Called fund capital 31.12.2019

12 164

12 164

10 758

10 758

20 960

20 960

10 927

10 927

54 809

54 809

The fund capital represents the total amount of contributions from Member States for the relevant EDF fund as laid down in each of the Internal Agreements. The uncalled funds represent amounts not yet called from Member States. The called fund capital represents the contributions, which have been called by the EDF and transferred to the treasury accounts by the Member States (see below 2.10.2.).

2.10.2.

2.10.2.   Called and uncalled fund capital by Member State

Called and uncalled fund capital by Member State

| EUR million |
| --- |
| Contributions 11th EDF | % | Uncalled capital 31.12.2018 | Capital called in 2019 | Uncalled capital 31.12.2019 |
| Austria | 2,40 | 548 | (105) | 442 |
| Belgium | 3,25 | 742 | (143) | 599 |
| Bulgaria | 0,22 | 50 | (10) | 40 |
| Croatia | 0,23 | 51 | (10) | 42 |
| Cyprus | 0,11 | 25 | (5) | 21 |
| Czechia | 0,80 | 182 | (35) | 147 |
| Denmark | 1,98 | 452 | (87) | 365 |
| Estonia | 0,09 | 20 | (4) | 16 |
| Finland | 1,51 | 345 | (66) | 278 |
| France | 17,81 | 4 068 | (784) | 3 285 |
| Germany | 20,58 | 4 700 | (906) | 3 795 |
| Greece | 1,51 | 344 | (66) | 278 |
| Hungary | 0,61 | 140 | (27) | 113 |
| Ireland | 0,94 | 215 | (41) | 173 |
| Italy | 12,53 | 2 862 | (551) | 2 311 |
| Latvia | 0,12 | 27 | (5) | 21 |
| Lithuania | 0,18 | 41 | (8) | 33 |
| Luxemburg | 0,26 | 58 | (11) | 47 |
| Malta | 0,04 | 9 | (2) | 7 |
| Netherlands | 4,78 | 1 091 | (210) | 881 |
| Poland | 2,01 | 458 | (88) | 370 |
| Portugal | 1,20 | 273 | (53) | 221 |
| Romania | 0,72 | 164 | (32) | 132 |
| Slovakia | 0,38 | 86 | (17) | 69 |
| Slovenia | 0,22 | 51 | (10) | 41 |
| Spain | 7,93 | 1 812 | (349) | 1 463 |
| Sweden | 2,94 | 671 | (129) | 542 |
| United Kingdom | 14,68 | 3 353 | (646) | 2 707 |
| Total | 100,00 | 22 840 | (4 400 ) | 18 440 |

EUR million

Contributions 11th EDF

%

Uncalled capital 31.12.2018

Capital called in 2019

Uncalled capital 31.12.2019

Austria

Austria

2,40

2,40

548

548

(105)

(105)

442

442

Belgium

Belgium

3,25

3,25

742

742

(143)

(143)

599

599

Bulgaria

Bulgaria

0,22

0,22

50

50

(10)

(10)

40

40

Croatia

Croatia

0,23

0,23

51

51

(10)

(10)

42

42

Cyprus

Cyprus

0,11

0,11

25

25

(5)

(5)

21

21

Czechia

Czechia

0,80

0,80

182

182

(35)

(35)

147

147

Denmark

Denmark

1,98

1,98

452

452

(87)

(87)

365

365

Estonia

Estonia

0,09

0,09

20

20

(4)

(4)

16

16

Finland

Finland

1,51

1,51

345

345

(66)

(66)

278

278

France

France

17,81

17,81

4 068

4 068

(784)

(784)

3 285

3 285

Germany

Germany

20,58

20,58

4 700

4 700

(906)

(906)

3 795

3 795

Greece

Greece

1,51

1,51

344

344

(66)

(66)

278

278

Hungary

Hungary

0,61

0,61

140

140

(27)

(27)

113

113

Ireland

Ireland

0,94

0,94

215

215

(41)

(41)

173

173

Italy

Italy

12,53

12,53

2 862

2 862

(551)

(551)

2 311

2 311

Latvia

Latvia

0,12

0,12

27

27

(5)

(5)

21

21

Lithuania

Lithuania

0,18

0,18

41

41

(8)

(8)

33

33

Luxemburg

Luxemburg

0,26

0,26

58

58

(11)

(11)

47

47

Malta

Malta

0,04

0,04

9

9

(2)

(2)

7

7

Netherlands

Netherlands

4,78

4,78

1 091

1 091

(210)

(210)

881

881

Poland

Poland

2,01

2,01

458

458

(88)

(88)

370

370

Portugal

Portugal

1,20

1,20

273

273

(53)

(53)

221

221

Romania

Romania

0,72

0,72

164

164

(32)

(32)

132

132

Slovakia

Slovakia

0,38

0,38

86

86

(17)

(17)

69

69

Slovenia

Slovenia

0,22

0,22

51

51

(10)

(10)

41

41

Spain

Spain

7,93

7,93

1 812

1 812

(349)

(349)

1 463

1 463

Sweden

Sweden

2,94

2,94

671

671

(129)

(129)

542

542

United Kingdom

United Kingdom

14,68

14,68

3 353

3 353

(646)

(646)

2 707

2 707

Total

Total

100,00

100,00

22 840

22 840

(4 400 )

(4 400 )

18 440

18 440

Since the capital of the Eighth, Ninth and 10th EDF has been called up and received in its entirety in previous years, in 2019, an amount of EUR 4 400 million has been called which relates entirely to the 11th EDF.

2.10.3.   Called fund capital from closed EDFs carried forward

Called fund capital from closed EDFs carried forward

| EUR million |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2019 | 31.12.2018 |
| Funds transferred from closed EDFs | 627 | 1 625 | — | — | 2 252 | 2 252 |

EUR million

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2019

31.12.2018

Funds transferred from closed EDFs

Funds transferred from closed EDFs

627

627

1 625

1 625

—

—

2 252

2 252

2 252

2 252

This heading includes the resources transferred from closed EDFs to the Eighth and Ninth EDFs.

2.10.4.   Called fund capital transfers between active EDFs

Called fund capital transfers between active EDFs

| EUR million |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | Total |
| Balance at 31.12.2017 | (2 503 ) | 2 177 | 120 | 206 | — |
| Transfer of decommitted amounts to the 10th EDF performance reserve from previous EDFs | (7) | (40) | 47 | — | 0 |
| Transfer of decommitted amounts to the 11th EDF performance reserve from previous EDFs | — | — | (112) | 112 | — |
| Balance at 31.12.2018 | (2 509 ) | 2 137 | 55 | 317 | — |
| Transfer of decommitted amounts to the 10th EDF performance reserve from previous EDFs | (1) | (27) | 28 | — | (0) |
| Transfer of decommitted amounts to the 11th EDF performance reserve from previous EDFs | — | — | 181 | (181) | — |
| Balance at 31.12.2019 | (2 510 ) | 2 109 | 265 | 136 | — |

EUR million

Eighth EDF

Ninth EDF

10th EDF

11th EDF

Total

Balance at 31.12.2017

Balance at 31.12.2017

(2 503 )

(2 503 )

2 177

2 177

120

120

206

206

—

Transfer of decommitted amounts to the 10th EDF performance reserve from previous EDFs

Transfer of decommitted amounts to the 10th EDF performance reserve from previous EDFs

(7)

(7)

(40)

(40)

47

47

—

0

0

Transfer of decommitted amounts to the 11th EDF performance reserve from previous EDFs

Transfer of decommitted amounts to the 11th EDF performance reserve from previous EDFs

—

—

(112)

(112)

112

112

—

Balance at 31.12.2018

Balance at 31.12.2018

(2 509 )

(2 509 )

2 137

2 137

55

55

317

317

—

Transfer of decommitted amounts to the 10th EDF performance reserve from previous EDFs

Transfer of decommitted amounts to the 10th EDF performance reserve from previous EDFs

(1)

(1)

(27)

(27)

28

28

—

(0)

(0)

Transfer of decommitted amounts to the 11th EDF performance reserve from previous EDFs

Transfer of decommitted amounts to the 11th EDF performance reserve from previous EDFs

—

—

181

181

(181)

(181)

—

Balance at 31.12.2019

Balance at 31.12.2019

(2 510 )

(2 510 )

2 109

2 109

265

265

136

136

—

This heading includes the resources transferred between the active EDFs.

Since the entry into force of the Cotonou Agreement, all the unspent funds in previous active EDFs are transferred to the most recently opened EDF after decommitment. The resources transferred from other EDFs increase the appropriations of the receiving fund and reduce the appropriations of the fund of origin. Funds transferred to the performance reserve of the 10th and 11th EDFs can be committed only under specific conditions set out in the Internal Agreements.

3.   NOTES TO THE STATEMENT OF FINANCIAL PERFORMANCE

NOTES TO THE STATEMENT OF FINANCIAL PERFORMANCE

REVENUE

REVENUE

| EUR million |
| --- |
| | Note | 2019 | 2018 |
| Revenue from non-exchange transactions | 3.1 | 28 | 4 |
| Revenue from exchange transactions | 3.2 | 46 | 57 |
| Total | | 74 | 60 |

EUR million

Note

2019

2018

Revenue from non-exchange transactions

Revenue from non-exchange transactions

3.1

28

28

4

4

Revenue from exchange transactions

Revenue from exchange transactions

3.2

46

46

57

57

Total

Total

74

74

60

60

3.1.   REVENUE FROM NON-EXCHANGE TRANSACTIONS

REVENUE FROM NON-EXCHANGE TRANSACTIONS

| EUR million |
| --- |
| | Note | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 2019 | 2018 |
| Recovery of expenses | | 0 | 0 | 9 | 4 | 13 | 21 |
| Recovery of STABEX funds | | — | — | 0 | — | 0 | 0 |
| Co-financing revenue | 3.1.1 | — | — | 9 | 5 | 14 | (17) |
| Total | | 0 | 0 | 18 | 10 | 28 | 4 |

EUR million

Note

Eighth EDF

Ninth EDF

10th EDF

11th EDF

2019

2018

Recovery of expenses

Recovery of expenses

0

0

0

0

9

9

4

4

13

13

21

21

Recovery of STABEX funds

Recovery of STABEX funds

—

—

0

0

—

0

0

0

0

Co-financing revenue

Co-financing revenue

3.1.1

—

—

9

9

5

5

14

14

(17)

(17)

Total

Total

0

0

0

0

18

18

10

10

28

28

4

4

Non-exchange revenue can be broken down by management mode as follows:

| EUR million |
| --- |
| | 2019 | 2018 |
| Direct Management | | |
| | Implemented by: |

EUR million

2019

2018

Direct Management

Direct Management

Implemented by:

Implemented by:

| | | Commission |
| --- | --- | --- |

Commission

Commission

1

1

1

1

| | | EU delegations |
| --- | --- | --- |

EU delegations

EU delegations

6

6

3

3

6

6

4

4

Indirect Management

Indirect Management

| | Implemented by: |
| --- | --- |

Implemented by:

Implemented by:

| | | Third countries |
| --- | --- | --- |

Third countries

Third countries

15

15

(13)

(13)

| | | International organisations |
| --- | --- | --- |

International organisations

International organisations

5

5

12

12

| | | Private law bodies with a public service mission |
| --- | --- | --- |

Private law bodies with a public service mission

Private law bodies with a public service mission

2

2

1

1

22

22

—

Total

Total

28

28

4

4

3.1.1.   Co-financing revenue

Co-financing revenue

The co-financing contributions received fulfil the criteria of revenues from non-exchange transactions under conditions and as such should not affect the statement of financial performance when received. The contributions remain under liabilities (see note 2.6.1) until the conditions attached to the donated funds are met, i.e. eligible expenses are incurred (see note 3.4). The corresponding amount is then recognised in the statement of financial performance as non-exchange revenue from co-financing. Consequently, the effect on the economic result of the year is zero.

2.6.1

3.4

3.2.   REVENUE FROM EXCHANGE TRANSACTIONS

REVENUE FROM EXCHANGE TRANSACTIONS

| EUR million |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 2019 | 2018 |
| Financial revenue | (0) | (0) | 3 | 4 | 7 | 10 |
| Other revenue | 1 | 6 | 21 | 12 | 39 | 46 |
| Total | 1 | 6 | 24 | 16 | 46 | 57 |

EUR million

Eighth EDF

Ninth EDF

10th EDF

11th EDF

2019

2018

Financial revenue

Financial revenue

(0)

(0)

(0)

(0)

3

3

4

4

7

7

10

10

Other revenue

Other revenue

1

1

6

6

21

21

12

12

39

39

46

46

Total

Total

1

1

6

6

24

24

16

16

46

46

57

57

Financial revenue comprises essentially accrued interest on overdue recovery orders (EUR 6,6 million) and interest on pre-financing. Other revenue relates in its entirety foreign exchange gains. The corresponding foreign exchange losses are recorded under other expenses (see note 3.6).

3.6

EXPENSES

EXPENSES

3.3.   AID INSTRUMENTS

AID INSTRUMENTS

| EUR million |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 2019 | 2018 |
| Programmable aid | 0 | (0) | 295 | 1 824 | 2 119 | 2 001 |
| Macro-economic support | — | 29 | — | — | 29 | 26 |
| Sectoral policy | — | 0 | — | — | 0 | 2 |
| Intra ACP projects | — | 2 | 272 | 678 | 951 | 827 |
| Emergency aid | — | 4 | 12 | 97 | 112 | 873 |
| Institutional support | — | — | 0 | 7 | 7 | 18 |
| Contributions to Trust Funds | — | — | — | 535 | 535 | 307 |
| Total | 0 | 35 | 579 | 3 141 | 3 755 | 4 054 |

EUR million

Eighth EDF

Ninth EDF

10th EDF

11th EDF

2019

2018

Programmable aid

Programmable aid

0

0

(0)

(0)

295

295

1 824

1 824

2 119

2 119

2 001

2 001

Macro-economic support

Macro-economic support

—

29

29

—

—

29

29

26

26

Sectoral policy

Sectoral policy

—

0

0

—

—

0

0

2

2

Intra ACP projects

Intra ACP projects

—

2

2

272

272

678

678

951

951

827

827

Emergency aid

Emergency aid

—

4

4

12

12

97

97

112

112

873

873

Institutional support

Institutional support

—

—

0

0

7

7

7

7

18

18

Contributions to Trust Funds

Contributions to Trust Funds

—

—

—

535

535

535

535

307

307

Total

Total

0

0

35

35

579

579

3 141

3 141

3 755

3 755

4 054

4 054

The EDF operational expenditure covers various aid instruments and takes different forms, depending on how the money is paid out and managed.

The decrease under this heading is a combined effect of an increase of expenses under the 11th EDF (2018: EUR 3 012 million) and a decrease of expenses under the 10th EDF (2018: EUR 984 million). This is in line with the lifecycle of the EDF and also related to the evolution of the number of open contracts under these EDFs: The 11th EDF was at the full cruising speed in 2019 and there were thus significantly more open contracts at 31 December 2019 under which expenses were incurred. Conversely, many contracts were completed and closed under the 10th EDF in 2019, which resulted into less expenses incurred under this EDF.

As noted namely under the 11th EDF the structure of the aid instruments expenses changed compared to 2018. Under this EDF the Emergency aid expensed significantly decreased (2018: EUR 811 million), while the expenses related to Programmable aid, Intra ACP project and Contributions to the Trust funds significantly increased (2018: EUR 1 468 million, resp. EUR 410 million, resp. EUR 307 million respectively).

3.4.   CO-FINANCING EXPENSES

CO-FINANCING EXPENSES

| EUR million |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 2019 | 2018 |
| Co-financing | — | — | 9 | 5 | 14 | (17) |

EUR million

Eighth EDF

Ninth EDF

10th EDF

11th EDF

2019

2018

Co-financing

Co-financing

—

—

9

9

5

5

14

14

(17)

(17)

Included under this heading are the expenses incurred on co-financing projects in 2019. It should be noted that the expenses incurred include estimated amounts related to the cut-off exercise (and consequently reversals of the estimated amounts related to last year).

Corresponding revenue has been recognised in the statement of financial performance (see note 3.1.1).

3.1.1

Aid instruments and co-financing expenses by management type

Aid instruments and co-financing expenses by management type

| EUR million |
| --- |
| | 2019 | 2018 |
| Direct Management | | |
| | Implemented by: |

EUR million

2019

2018

Direct Management

Direct Management

Implemented by:

Implemented by:

| | | Commission |
| --- | --- | --- |

Commission

Commission

86

86

122

122

| | | EU executive agencies |
| --- | --- | --- |

EU executive agencies

EU executive agencies

(13)

(13)

31

31

| | | Trust Funds |
| --- | --- | --- |

Trust Funds

Trust Funds

483

483

594

594

| | | EU delegations |
| --- | --- | --- |

EU delegations

EU delegations

1 141

1 141

1 003

1 003

1 697

1 697

1 750

1 750

Indirect Management

Indirect Management

| | Implemented by: |
| --- | --- |

Implemented by:

Implemented by:

| | | EIB and EIF |
| --- | --- | --- |

EIB and EIF

EIB and EIF

145

145

44

44

| | | International organisations |
| --- | --- | --- |

International organisations

International organisations

1 003

1 003

920

920

| | | Private law bodies with a public service mission |
| --- | --- | --- |

Private law bodies with a public service mission

Private law bodies with a public service mission

126

126

114

114

| | | Public law bodies |
| --- | --- | --- |

Public law bodies

Public law bodies

184

184

231

231

| | | Third countries |
| --- | --- | --- |

Third countries

Third countries

613

613

977

977

| | | EU bodies with Public Private Partnership |
| --- | --- | --- |

EU bodies with Public Private Partnership

EU bodies with Public Private Partnership

1

1

1

1

2 073

2 073

2 287

2 287

Total

Total

3 770

3 770

4 037

4 037

3.5.   FINANCE COSTS

FINANCE COSTS

| EUR million |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 2019 | 2018 |
| Write-down of receivables | 0 | (2) | 2 | 1 | 1 | (7) |

EUR million

Eighth EDF

Ninth EDF

10th EDF

11th EDF

2019

2018

Write-down of receivables

Write-down of receivables

0

0

(2)

(2)

2

2

1

1

1

1

(7)

(7)

Included under this heading are the estimated expenses on irrecoverable amounts.

3.6.   OTHER EXPENSES

OTHER EXPENSES

| EUR million |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 2019 | 2018 |
| Administrative and IT expenses | — | — | (41) | 262 | 220 | 112 |
| Provision for risks and charges | — | — | — | — | — | (4) |
| Realised losses on trade debtors | — | 2 | 1 | 1 | 3 | 1 |
| Exchange losses | 1 | 6 | 21 | 9 | 37 | 39 |
| Total | 1 | 8 | (20) | 272 | 260 | 148 |

EUR million

Eighth EDF

Ninth EDF

10th EDF

11th EDF

2019

2018

Administrative and IT expenses

Administrative and IT expenses

—

—

(41)

(41)

262

262

220

220

112

112

Provision for risks and charges

Provision for risks and charges

—

—

—

—

—

(4)

(4)

Realised losses on trade debtors

Realised losses on trade debtors

—

2

2

1

1

1

1

3

3

1

1

Exchange losses

Exchange losses

1

1

6

6

21

21

9

9

37

37

39

39

Total

Total

1

1

8

8

(20)

(20)

272

272

260

260

148

148

This heading includes mainly support expenditure, i.e. the administrative costs related to the programming and implementation of the EDFs. This includes expenses for preparation, follow-up, monitoring, and evaluation of projects as well as expenses for computer networks, technical assistance, etc.

4.   CONTINGENT ASSETS & LIABILITIES AND OTHER SIGNIFICANT DISCLOSURES

CONTINGENT ASSETS & LIABILITIES AND OTHER SIGNIFICANT DISCLOSURES

4.1.   CONTINGENT ASSETS

CONTINGENT ASSETS

| EUR million |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2019 | 31.12.2018 |
| Performance guarantees | — | 10 | 5 | 0 | 15 | 11 |
| Retention guarantees | — | 5 | 4 | — | 9 | 7 |
| Total | — | 15 | 8 | 0 | 24 | 17 |

EUR million

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2019

31.12.2018

Performance guarantees

Performance guarantees

—

10

10

5

5

0

0

15

15

11

11

Retention guarantees

Retention guarantees

—

5

5

4

4

—

9

9

7

7

Total

Total

—

15

15

8

8

0

0

24

24

17

17

Performance guarantees are requested to ensure that beneficiaries of EDF funding meet the obligations of their contracts with the EDF.

Retention guarantees concern only works contracts. Typically, 10 % of the interim payments to beneficiaries are withheld to ensure that the contractors fulfil their obligations. These withheld amounts are reflected as amounts payable. Subject to the approval of the contracting authority, the contractor may instead submit a retention guarantee which replaces the amounts withheld on interim payments. These received guarantees are disclosed as contingent assets.

For contracts managed under indirect management, the guarantees belong to a contracting authority other than the EDF and they are therefore not disclosed by the EDF.

4.2.   OTHER SIGNIFICANT DISCLOSURES

OTHER SIGNIFICANT DISCLOSURES

4.2.1.   Outstanding commitments not yet expensed

Outstanding commitments not yet expensed

The amount disclosed below is the budgetary RAL (‘Reste à Liquider’) less related amounts that have been included as expenses in the statement of financial performance. The budgetary RAL is an amount representing the commitments for which payments and/or de-commitments have not yet been made. This is the normal consequence of the existence of multiannual programmes.

| EUR million |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2019 | 31.12.2018 |
| Outstanding commitments not yet expensed | (0) | 42 | 576 | 7 946 | 8 564 | 9 071 |

EUR million

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2019

31.12.2018

Outstanding commitments not yet expensed

Outstanding commitments not yet expensed

(0)

(0)

42

42

576

576

7 946

7 946

8 564

8 564

9 071

9 071

At 31 December 2019 the budgetary RAL totalled EUR 10 270 million (2018: EUR 10 616 million).

5.   FINANCIAL RISK MANAGEMENT

FINANCIAL RISK MANAGEMENT

The following disclosures with regard to the financial risk management of the EDF relate to the treasury operations carried out by the Commission on behalf of the EDF in order to implement its resources.

5.1.   RISK MANAGEMENT POLICIES AND HEDGING ACTIVITIES

RISK MANAGEMENT POLICIES AND HEDGING ACTIVITIES

The rules and principles for the management of the treasury operations are laid down in the 11th EDF Financial Regulation and in the Internal Agreement.

As a result of the above regulation, the following main principles apply:

| (a) | The EDF contributions are paid by Member States in special accounts opened with the bank of issue of each Member State or the financial institution designated by it. The amounts of the contributions shall remain in those special accounts until the payments of EDF need to be made. |
| --- | --- |

(a)

The EDF contributions are paid by Member States in special accounts opened with the bank of issue of each Member State or the financial institution designated by it. The amounts of the contributions shall remain in those special accounts until the payments of EDF need to be made.

| (b) | EDF contributions are paid by Member States in EUR, while the EDF’s payments are denominated in EUR and in other currencies. |
| --- | --- |

(b)

EDF contributions are paid by Member States in EUR, while the EDF’s payments are denominated in EUR and in other currencies.

| (c) | Bank accounts opened by the Commission on behalf of the EDF may not be overdrawn. |
| --- | --- |

(c)

Bank accounts opened by the Commission on behalf of the EDF may not be overdrawn.

In addition to the special accounts, other bank accounts are opened by the Commission in the name of the EDF, with financial institutions (central banks and commercial banks), for the purpose of executing payments and receiving receipts other than the Member State contributions to the budget.

Treasury and payment operations are highly automated and rely on modern information systems. Specific procedures are applied to guarantee system security and to ensure segregation of duties in line with the Financial Regulation, the Commission’s internal control standards, and audit principles.

A written set of guidelines and procedures regulate the management of the treasury and payment operations with the objective of limiting operational and financial risk and ensuring an adequate level of control. They cover the different areas of operation, and compliance with the guidelines and procedures is checked regularly.

5.2.   CURRENCY RISK

CURRENCY RISK

Exposure of the EDF to currency risk at year end — net position

Exposure of the EDF to currency risk at year end — net position

| EUR million |
| --- |
| | 31.12.2019 | 31.12.2018 |
| | USD | GBP | DKK | SEK | EUR | Other | Total | USD | GBP | DKK | SEK | EUR | Other | Total |
| Financial assets | | | | | | | | | | | | | | |
| Receivables and recoverables | — | — | — | — | 115 | 8 | 123 | 63 | — | 0 | — | 67 | 8 | 138 |
| Cash and cash equivalents | 1 | — | — | — | 1 178 | — | 1 179 | 1 | 0 | — | — | 386 | — | 387 |
| | 1 | — | — | — | 1 293 | 8 | 1 302 | 64 | 0 | 0 | — | 453 | 8 | 525 |
| Financial liabilities | | | | | | | | | | | | | | |
| Non-current financial liabilities | — | — | — | — | (19) | — | (19) | — | — | — | — | (18) | — | (18) |
| Payables | (7) | — | — | — | (509) | — | (516) | (1) | — | — | — | (218) | (22) | (241) |
| | (7) | — | — | — | (528) | — | (535) | (1) | — | — | — | (236) | (22) | (259) |
| Total | (6) | — | — | — | 765 | 8 | 767 | 63 | 0 | 0 | — | 217 | (14) | 267 |

EUR million

31.12.2019

31.12.2018

USD

GBP

DKK

SEK

EUR

Other

Total

USD

GBP

DKK

SEK

EUR

Other

Total

Financial assets

Financial assets

Receivables and recoverables

Receivables and recoverables

—

—

—

—

115

115

8

8

123

123

63

63

—

0

0

—

67

67

8

8

138

138

Cash and cash equivalents

Cash and cash equivalents

1

1

—

—

—

1 178

1 178

—

1 179

1 179

1

1

0

0

—

—

386

386

—

387

387

1

1

—

—

—

1 293

1 293

8

8

1 302

1 302

64

64

0

0

0

0

—

453

453

8

8

525

525

Financial liabilities

Financial liabilities

Non-current financial liabilities

Non-current financial liabilities

—

—

—

—

(19)

(19)

—

(19)

(19)

—

—

—

—

(18)

(18)

—

(18)

(18)

Payables

Payables

(7)

(7)

—

—

—

(509)

(509)

—

(516)

(516)

(1)

(1)

—

—

—

(218)

(218)

(22)

(22)

(241)

(241)

(7)

(7)

—

—

—

(528)

(528)

—

(535)

(535)

(1)

(1)

—

—

—

(236)

(236)

(22)

(22)

(259)

(259)

Total

Total

(6)

(6)

—

—

—

765

765

8

8

767

767

63

63

0

0

0

0

—

217

217

(14)

(14)

267

267

All contributions are held in EUR, and other currencies are purchased only when they are needed for the execution of payments. As a result the EDF’s treasury operations are not exposed to currency risk.

5.3.   INTEREST RATE RISK

INTEREST RATE RISK

The EDF does not borrow money and consequently it is not exposed to interest rate risk.

Interest is accrued on balances it holds in its different banks accounts. The Commission, on behalf of the EDF, has therefore put in place measures to ensure that interest earned regularly reflects market interest rates as well as their possible fluctuation.

Contributions to the EDF budget are credited by each Member State to a special account opened with the financial institution designed by it. As the remuneration applied to some of these accounts may currently be negative, cash management procedures are in place to minimise balances kept on the accounts concerned. In addition, in accordance with Council Regulation (EU) 2016/888 (6), any negative remuneration on these accounts is borne by the relevant Member State.

6

Overnight balances held in commercial bank accounts are remunerated on a daily basis. The remuneration of balances on such accounts is based on variable market rates to which a contractual margin (positive or negative) is applied. For most of the accounts, the interest calculation is linked to a market reference rate and is adjusted to reflect any fluctuations of this rate. As a result, no risk is taken by the EDF that its balances could be remunerated at rates lower than market rates.

5.4.   CREDIT RISK (COUNTERPARTY RISK)

CREDIT RISK (COUNTERPARTY RISK)

Financial assets that are neither past due nor impaired

Financial assets that are neither past due nor impaired

| EUR million |
| --- |
| | Total | Neither past due nor impaired | Past due but not impaired |
| < 1 year | 1-5 years | > 5 years |
| Exchange receivables and non-exchange recoverables | 123 | 100 | 16 | 7 | — |
| Total at 31.12.2019 | 123 | 100 | 16 | 7 | — |
| Exchange receivables and non-exchange recoverables | 138 | 121 | 12 | 5 | — |
| Total at 31.12.2018 | 138 | 121 | 12 | 5 | — |

EUR million

Total

Neither past due nor impaired

Past due but not impaired

< 1 year

1-5 years

> 5 years

Exchange receivables and non-exchange recoverables

Exchange receivables and non-exchange recoverables

123

123

100

100

16

16

7

7

—

Total at 31.12.2019

Total at 31.12.2019

123

123

100

100

16

16

7

7

—

Exchange receivables and non-exchange recoverables

Exchange receivables and non-exchange recoverables

138

138

121

121

12

12

5

5

—

Total at 31.12.2018

Total at 31.12.2018

138

138

121

121

12

12

5

5

—

Financial assets by risk category

Financial assets by risk category

| EUR million |
| --- |
| | 31.12.2019 | 31.12.2018 |
| Receivables | Cash | Total | Receivables | Cash | Total |
| Counterparties with external credit rating | | | | | | |
| Prime and high grade | 7 | 958 | 965 | 5 | 303 | 308 |
| Upper medium grade | — | 220 | 220 | — | 80 | 80 |
| Lower medium grade | — | 1 | 1 | — | 4 | 4 |
| Non- investment grade | — | 0 | 0 | — | 0 | 0 |
| | 7 | 1 179 | 1 186 | 5 | 387 | 391 |
| Counterparties without external credit rating | | | | | | |
| Group 1 (debtors without defaults in the past) | 116 | 0 | 116 | 133 | 0 | 134 |
| Group 2 (debtors with defaults in the past) | — | — | — | — | — | — |
| Total | 116 | 0 | 116 | 133 | 0 | 134 |
| Total | 123 | 1 179 | 1 302 | 138 | 387 | 525 |

EUR million

31.12.2019

31.12.2018

Receivables

Cash

Total

Receivables

Cash

Total

Counterparties with external credit rating

Counterparties with external credit rating

Prime and high grade

Prime and high grade

7

7

958

958

965

965

5

5

303

303

308

308

Upper medium grade

Upper medium grade

—

220

220

220

220

—

80

80

80

80

Lower medium grade

Lower medium grade

—

1

1

1

1

—

4

4

4

4

Non- investment grade

Non- investment grade

—

0

0

0

0

—

0

0

0

0

7

7

1 179

1 179

1 186

1 186

5

5

387

387

391

391

Counterparties without external credit rating

Counterparties without external credit rating

Group 1 (debtors without defaults in the past)

Group 1 (debtors without defaults in the past)

116

116

0

0

116

116

133

133

0

0

134

134

Group 2 (debtors with defaults in the past)

Group 2 (debtors with defaults in the past)

—

—

—

—

—

—

Total

Total

116

116

0

0

116

116

133

133

0

0

134

134

Total

Total

123

123

1 179

1 179

1 302

1 302

138

138

387

387

525

525

Funds in the categories non-investment grade and lower medium grade relate mainly to Member State contributions to the EDF paid to the special accounts opened by Member States in accordance with Article 20(3) of the EDF FR. According to this regulation, the amount of such contributions must remain in those special accounts until the payments need to be made.

non-investment grade

lower medium grade

Most of the EDF's treasury resources are kept, in accordance with the EDF FR, in the special accounts opened by Member States for the payment of their contributions. The majority of such accounts are held with Member States’ treasuries or national central banks. These institutions carry the lowest counterparty risk for the EDF (exposure is with its Member States).

For the part of the EDF’s treasury resources kept with commercial banks in order to cover the execution of payments, replenishment of these accounts is executed on a just-in-time basis and is automatically managed by the Commission treasury's cash management system. Minimum cash levels, proportional to the average amount of daily payments made from it, are kept on each account. Therefore the amounts kept overnight on these accounts remain constantly at low levels which ensure the EDF's risk exposure is limited.

In addition, specific guidelines are applied for the selection of commercial banks in order to minimise counterparty risk to which the EDF is exposed.

All commercial banks are selected by calls for tender. The minimum short-term credit rating required for admission to the tendering procedures is Moody’s P-1 or equivalent (S&P A-1 or Fitch F1). A lower level may be accepted in specific and duly justified circumstances.

5.5.   LIQUIDITY RISK

LIQUIDITY RISK

Maturity analysis of financial liabilities by remaining contractual maturity

Maturity analysis of financial liabilities by remaining contractual maturity

| EUR million |
| --- |
| | < 1 year | 1-5 years | > 5 years | Total |
| Financial liabilities | 516 | 2 | 17 | 535 |
| Total at 31.12.2019 | 516 | 6 | 22 | 516 |
| Financial liabilities | 241 | 7 | 11 | 259 |
| Total at 31.12.2018 | 241 | 7 | 11 | 259 |

EUR million

< 1 year

1-5 years

> 5 years

Total

Financial liabilities

Financial liabilities

516

516

2

2

17

17

535

535

Total at 31.12.2019

Total at 31.12.2019

516

516

6

6

22

22

516

516

Financial liabilities

Financial liabilities

241

241

7

7

11

11

259

259

Total at 31.12.2018

Total at 31.12.2018

241

241

7

7

11

11

259

259

Budget principles applied to the EDF ensure that overall cash resources for the budgetary period are always sufficient for the execution of payments. Indeed the total Member States’ contributions equal the overall amount of payment appropriations for the relevant budgetary period.

Member States contributions to EDF, however, are paid in three instalments per year, while payments are subject to seasonality.

In order to ensure that treasury resources are always sufficient to cover the payments to be executed in any given month, information on the treasury situation is regularly exchanged between the Commission's treasury and the relevant spending departments.

In addition to the above, in the context of the EDF’s treasury operations, automated cash management tools ensure that sufficient liquidity is available on each of the EDF's bank accounts, on a daily basis.

6.   RELATED PARTY DISCLOSURES

RELATED PARTY DISCLOSURES

The related parties of the EDF are the Bêkou- and Africa EU Trust Funds and the European Commission. Transactions between these entities take place as part of the normal operations of the EDF and as this is the case, no specific disclosure requirements are necessary for these transactions in accordance with the EU accounting rules.

The EDF has no separate management since it is managed by the Commission. The entitlements of the key management of the EU, including the Commission, have been disclosed in the consolidated annual accounts of the European Union under heading 7.2 ‘Key management entitlements’.

7.   EVENTS AFTER THE BALANCE SHEET DATE

EVENTS AFTER THE BALANCE SHEET DATE

At the date of transmission of these provisional accounts, apart from the matter highlighted below, no material issues had come to the attention of or were reported to the Accounting Officer of the EDF that would require separate disclosure under this section. The annual accounts and related notes were prepared using the most recently available information and this is reflected in the information presented above.

Departure of United Kingdom from the European Union

Departure of United Kingdom from the European Union

On 1 February 2020, the United Kingdom ceased to be a Member State of the European Union. Following the conclusion of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community (the ‘Withdrawal Agreement’) between the two parties, the United Kingdom committed to pay all its obligations under the current MFF and previous financial perspectives as if it were still a Member State.

The Withdrawal Agreement states that the United Kingdom shall remain party to the EDF until the closure of the 11th EDF and all previous unclosed EDFs, and shall in this respect assume the same obligations as the Member States under the Internal Agreement by which it was set up, as well as the obligations resulting from previous EDFs until their closure. It may participate, as observer, without voting rights, in the EDF Committee.

The Withdrawal Agreement also states that, where the amounts from projects under the 10th EDF or from previous EDFs have not been committed or have been decommitted on the date of entry into force of this agreement, the United Kingdom's share of those amounts shall not be reused. The same applies to the United Kingdom share of funds not committed or decommitted amounts under 11th EDF after 31 December 2020.

At the time of the transmission of these provisional accounts, and based on the Withdrawal Agreement concluded and already in operation, there is no financial impact to be reported in the 2019 EDF annual accounts.

Coronavirus disease 2019 (COVID-19)

Coronavirus disease 2019 (COVID-19)

During the first quarter of 2020, the coronavirus outbreak has had huge global impacts, including on the financial markets where significant falls in all major indices have occurred. This has led to increased volatility in the value of financial instruments recorded at fair value, including those on the EDF’s balance sheet. As a non-adjusting event, the outbreak of the coronavirus does not require any adjustments to the figures reported. For subsequent reporting periods, COVID-19 will likely affect the recognition and measurement of some assets and liabilities in the financial statements. Based on the information available at the time of transmission of these provisional accounts, the financial effects of the coronavirus outbreak cannot be reliably estimated.

8.   RECONCILIATION OF ECONOMIC RESULT AND BUDGET RESULT

RECONCILIATION OF ECONOMIC RESULT AND BUDGET RESULT

The economic result of the year is calculated based on accrual accounting principles. The budget result is however based on cash accounting rules. As the economic result and the budget result both cover the same underlying operational transactions, it is a useful control to ensure that they are reconciliable. The table below shows this reconciliation, highlighting the key reconciling amounts, split between revenue and expenditure items. The notes to the table provide additional information on the nature of the key reconciling items.

| EUR million |
| --- |
| | 2019 | 2018 |
| ECONOMIC RESULT OF THE YEAR | (3 956 ) | (4 118 ) |
| Revenue | | |
| Entitlements not affecting the budget result | — | (1) |
| Entitlements established in current year but not yet collected | (16) | (11) |
| Entitlements established in previous years and collected in current year | 23 | 11 |
| Net effect of pre-financing | 53 | 36 |
| Accrued revenue (net) | (67) | (39) |
| Other | (3) | (1) |
| Expenses | | |
| Expenses of the current year not yet paid | 107 | 115 |
| Expenses of previous years paid in the current year | (672) | (366) |
| Net effect of pre-financing | (44) | (179) |
| Accrued expenses (net) | 719 | 484 |
| BUDGET RESULT OF THE YEAR | (3 856 ) | (4 069 ) |

EUR million

2019

2018

ECONOMIC RESULT OF THE YEAR

ECONOMIC RESULT OF THE YEAR

(3 956 )

(3 956 )

(4 118 )

(4 118 )

Revenue

Revenue

Entitlements not affecting the budget result

Entitlements not affecting the budget result

—

(1)

(1)

Entitlements established in current year but not yet collected

Entitlements established in current year but not yet collected

(16)

(16)

(11)

(11)

Entitlements established in previous years and collected in current year

Entitlements established in previous years and collected in current year

23

23

11

11

Net effect of pre-financing

Net effect of pre-financing

53

53

36

36

Accrued revenue (net)

Accrued revenue (net)

(67)

(67)

(39)

(39)

Other

Other

(3)

(3)

(1)

(1)

Expenses

Expenses

Expenses of the current year not yet paid

Expenses of the current year not yet paid

107

107

115

115

Expenses of previous years paid in the current year

Expenses of previous years paid in the current year

(672)

(672)

(366)

(366)

Net effect of pre-financing

Net effect of pre-financing

(44)

(44)

(179)

(179)

Accrued expenses (net)

Accrued expenses (net)

719

719

484

484

BUDGET RESULT OF THE YEAR

BUDGET RESULT OF THE YEAR

(3 856 )

(3 856 )

(4 069 )

(4 069 )

8.1.   RECONCILING ITEMS — REVENUE

RECONCILING ITEMS — REVENUE

The budgetary revenue of a financial year corresponds to the revenue collected from entitlements established in the course of the year and amounts collected from entitlements established in previous years.

The entitlements not affecting the budget result are recorded in the economic result but from a budgetary perspective cannot be considered as revenues as the cashed amount is transferred to reserves and cannot be recommitted without a Council decision.

entitlements not affecting the budget result

The entitlements established in the current year but not yet collected are to be deducted from the economic result for reconciliation purposes, as they do not form part of budgetary revenue. On the contrary, the entitlements established in previous years and collected in the current year must be added to the economic result for reconciliation purposes.

entitlements established in the current year but not yet collected

entitlements established in previous years and collected in the current

The net effect of pre-financing line refers to clearing of pre-financing with amounts recovered from the beneficiaries. These cash receipts represent budgetary revenue but have no impact on the economic result and must be thus added for reconciliation purposes.

net effect of pre-financing

The net accrued revenue mainly consists of accruals made for year-end cut-off purposes. Only the net effect, i.e. the accrued revenue of the current year less the reversal of accrued revenue of the previous year, is taken into consideration.

net accrued revenue

8.2.   RECONCILING ITEMS — EXPENDITURE

RECONCILING ITEMS — EXPENDITURE

Expenses of the current year not yet paid are to be added for reconciliation purposes as they are included in the economic result but do not form part of budgetary expenditure. On the contrary, the expenses of previous years paid in the current year must be deducted from the economic result for reconciliation purposes as they are part of the current year's budgetary expenditure but have either no effect on the economic result or they decrease the expenses in case of corrections.

Expenses of the current year not yet paid

expenses of previous years paid in the current year

The cash receipts from payment cancellations do not affect the economic result whereas they affect the budget result.

payment cancellations

The net effect of pre-financing is the combination of the new pre-financing amounts paid in the current year (recognised as budgetary expenditure of the year) and the clearing of pre-financing paid in the current year or previous years through the acceptance of eligible costs. The latter represents an expense in accrual terms but not in the budgetary accounts since the payment of the initial pre-financing had already been considered as a budgetary expenditure at the time of its payment.

net effect of pre-financing

The net accrued expenses mainly consist of accruals made for year-end cut-off purposes, i.e. eligible expenses incurred by beneficiaries of EDF funds but not yet reported to the EDF. Only the net effect, i.e. the accrued expenses of the current year less the reversal of accrued expenses of the previous year, is taken into consideration.

net accrued expenses

FINANCIAL STATEMENTS OF THE EU TRUST FUNDS CONSOLIDATED IN EDF

FINANCIAL STATEMENTS OF THE EU TRUST FUNDS CONSOLIDATED IN EDF

FINANCIAL STATEMENTS OF THE BÊKOU EU TRUST FUND 2019 (7)

FINANCIAL STATEMENTS OF THE BÊKOU EU TRUST FUND 2019

7

BACKGROUND INFORMATION ON THE BÊKOU EU TRUST FUND

BACKGROUND INFORMATION ON THE BÊKOU EU TRUST FUND

General background on Union Trust Funds

General background on Union Trust Funds

In accordance with Articles 234 and 235 of the Financial Regulation applicable to the general budget of the Union (EU FR) (8) and Article 35 of the Financial Regulation applicable to the 11th European Development Fund (EDF FR) (9), the European Commission may establish Union trust funds for external actions (‘EU trust funds’). The Union trust funds are constituted under an agreement concluded with other donors for emergency and post-emergency actions necessary to react to a crisis, or for thematic actions.

8

9

Union trust funds are established by the European Commission by a decision after consultation or approval of the European Parliament and the Council. This decision includes the constitutive agreement with other donors.

Union trust funds are only established and implemented subject to the following conditions:

| — | There is added value of the Union intervention: the objectives of Union trust funds, in particular by reason of their scale or potential effects, may be better achieved at Union level than at national level and the use of the existing financing instruments would not be sufficient to achieve policy objectives of the Union, |
| --- | --- |

—

There is added value of the Union intervention: the objectives of Union trust funds, in particular by reason of their scale or potential effects, may be better achieved at Union level than at national level and the use of the existing financing instruments would not be sufficient to achieve policy objectives of the Union,

| — | Union trust funds bring clear political visibility for the Union and managerial advantages as well as better control by the Union of risks and disbursements of the Union and other donors’ contributions, |
| --- | --- |

—

Union trust funds bring clear political visibility for the Union and managerial advantages as well as better control by the Union of risks and disbursements of the Union and other donors’ contributions,

| — | Union trust funds do not duplicate other existing funding channels or similar instruments without providing any additionality, |
| --- | --- |

—

Union trust funds do not duplicate other existing funding channels or similar instruments without providing any additionality,

| — | The objectives of Union trust funds are aligned with the objectives of the Union instrument or budgetary item from which they are funded. |
| --- | --- |

—

The objectives of Union trust funds are aligned with the objectives of the Union instrument or budgetary item from which they are funded.

A board, chaired by the Commission, is established for each Union trust fund to ensure a fair representation of the donors and to decide upon the use of the funds. The board includes a representative of each non-contributing Member State as an observer. The rules for the composition of the board and its internal rules are laid down in the constitutive agreement of the Union trust fund.

Union trust funds are established for a limited duration as determined in their constitutive agreement. That duration may be extended upon request of the board of the Union trust fund and upon presentation by the Commission of a report justifying the extension. The European Parliament and/or the Council may request the Commission to discontinue the appropriations for the trust fund or revise the constitutive act with a view to liquidate it.

The Accounting Officer of the Commission serves as the Accounting Officer of the Union trust funds. The Accounting Officer is responsible for laying down accounting procedures and chart of accounts common to all Union trust funds. The Commission’s Internal Auditor, OLAF and the Court of Auditors exercise the same powers over Union trust funds as they do in respect of other actions carried out by the Commission. The Union trust funds are also subject to an independent external audit every year.

Current EU Trust Funds

Current EU Trust Funds

To date, the Commission has set up four EUTFs:

| — | The EUTF BÊKOU, whose objective is to support all aspects of the Central African Republic’s exit from crisis and its reconstruction efforts. Established on 15 July 2014, |
| --- | --- |

—

The EUTF BÊKOU, whose objective is to support all aspects of the Central African Republic’s exit from crisis and its reconstruction efforts. Established on 15 July 2014,

EUTF BÊKOU

| — | The EUTF MADAD, a European Union Regional Trust Fund in response to the Syrian crisis. Established on 15 December 2014, |
| --- | --- |

—

The EUTF MADAD, a European Union Regional Trust Fund in response to the Syrian crisis. Established on 15 December 2014,

EUTF MADAD

| — | The EUTF AFRICA, a European Union Emergency Trust Fund for stability and addressing root causes of irregular migration and displaced persons in Africa. Established on 12 November 2015, |
| --- | --- |

—

The EUTF AFRICA, a European Union Emergency Trust Fund for stability and addressing root causes of irregular migration and displaced persons in Africa. Established on 12 November 2015,

EUTF AFRICA

| — | The EUTF COLOMBIA, to support the implementation of the peace agreement in the early recovery and stabilisation post-conflict. Established on 12 December 2016. |
| --- | --- |

—

The EUTF COLOMBIA, to support the implementation of the peace agreement in the early recovery and stabilisation post-conflict. Established on 12 December 2016.

EUTF COLOMBIA

The Bêkou EU Trust Fund

The Bêkou EU Trust Fund

The first multi-donor EU Trust Fund called Bêkou, which means ‘hope’ in Sango, was established on 15 July 2014, by the Commission (represented by DGs DEVCO and ECHO, and the EEAS) and three EU Member States (Germany, France and the Netherlands), with the aim of promoting the stabilisation and reconstruction of the Central African Republic (CAR). It has been established for a maximum duration of 60 months. In May 2019 the EU approved an extension of the EUTF Bêkou until December 2020, thus bringing its total duration to 78 months.

The Trust Fund Board and the Operational Committee of the Bêkou EU Trust Fund are composed of representatives of the donors, of the Commission and observers.The Board adopts and reviews the strategy of the EUTF. The Board meets at least once a year.

The Operational Committee examines, approves and supervises the implementation of the actions financed by the Fund. The Committee also approves the annual accounts and the annual reports on the activities financed by the trust fund.

Annual accounts of the Bêkou EU Trust Fund

Annual accounts of the Bêkou EU Trust Fund

According to Article 8 of the Agreement establishing the European Union Trust Fund for the Central African Republic, the ‘Bêkou EU Trust Fund’ and Article 11.2.1 of the Constitutive agreement, the annual accounts comprise two parts: (1) the annual financial report which is the responsibility of the EUTF manager; and (2) the annual financial statements prepared by the Commission's Accounting Officer, who is, based on the same article, also the Accounting Officer of the trust fund.

According to Article 8 of the Constitutive agreement, the financial statements shall be prepared in accordance with the accounting rules adopted by the Commission's Accounting Officer (EU Accounting Rules, EAR) that are based on the International Public Sector Accounting Standards (IPSAS).

The annual accounts are subject to independent external audit and the final annual accounts are submitted by the EUTF manager and the Accounting Officer to the Operational Committee for approval (Article 8.3.4(c)).

The annual accounts of the EUTF Bêkou are consolidated in the annual accounts of the European Developement Fund.

Highlights of the year

Highlights of the year

Since its creation in July 2014, the EUTF Bêkou has adopted 19 programmes and has reached more than 2,5 million beneficiaries. The programmes are to assist the Central African Republic (CAR) and its population in the aftermath of the 2013 crisis. More specifically, the EUTF Bêkou aims to ensure access to basic services (mainly health, water and sanitation), support economic recovery and job creation, and promote social cohesion and reconciliation.

Despite the presence of a democratically elected government and the signature of a peace agreement in February 2019, the security situation in the CAR remains volatile. It is in this complex and fragile context that the EUTF Bêkou deploys its comparative advantages of flexibility and adaptability to changing circumstances. Additionally, the EUTF Bêkou remains the only instrument building resilience for both the population and the State, in a true LRRD (linking relief, rehabilitation and development) approach.

In May 2019, given the current situation in CAR, the EU approved an extension of the EUTF Bêkou until December 2020, thus bringing its total duration from 60 months to 78 months. The official procedure, which included a consultation of the European Parliament and the Council, was launched in 2018 after the official request of the EUTF Board.

Operational highlights of the year 2019 include:

| — | In May, in the wake of the signature of the Peace Agreement, the EUTF Bêkou adopted a new multi-sectoral action to support the socio-economic recovery in the South-East, an area previously inaccessible. This action aims to renew the social contract between the State and the population, by supporting economic recovery, restoring basic health and water and sanitation services, promoting dialogue and social cohesion, and strengthening local authorities and the redeployment of the State. Budget allocated: EUR 18 million. |
| --- | --- |

—

In May, in the wake of the signature of the Peace Agreement, the EUTF Bêkou adopted a new multi-sectoral action to support the socio-economic recovery in the South-East, an area previously inaccessible. This action aims to renew the social contract between the State and the population, by supporting economic recovery, restoring basic health and water and sanitation services, promoting dialogue and social cohesion, and strengthening local authorities and the redeployment of the State. Budget allocated: EUR 18 million.

| — | In October, the EUTF Bêkou adopted a Programme supporting the promotion of entrepreneurship in urban and rural areas for a total amount of EUR 15 million. A new Technical and Communication Assistance Facility was also adopted. Moreover, the EUTF Bêkou increased the budget of three on-going actions in the sectors of health (additional EUR 21,76 million), gender empowerment (additional EUR 0,5 million), and socio-economic rehabilitation (additional EUR 0,78 million). |
| --- | --- |

—

In October, the EUTF Bêkou adopted a Programme supporting the promotion of entrepreneurship in urban and rural areas for a total amount of EUR 15 million. A new Technical and Communication Assistance Facility was also adopted. Moreover, the EUTF Bêkou increased the budget of three on-going actions in the sectors of health (additional EUR 21,76 million), gender empowerment (additional EUR 0,5 million), and socio-economic rehabilitation (additional EUR 0,78 million).

| — | Following the extension of the EUTF Bêkou, the Operational Strategy 2019 — 2020 was adopted at the November Board. It identifies three broad sectors of intervention that remain pertinent for the EUTF: (i) social sectors (mainly health and water and sanitation); (ii) actions in favour of economic resilience and recovery; and (iii) a reinforced support to the redeployment of the State and to reconciliation efforts. |
| --- | --- |

—

Following the extension of the EUTF Bêkou, the Operational Strategy 2019 — 2020 was adopted at the November Board. It identifies three broad sectors of intervention that remain pertinent for the EUTF: (i) social sectors (mainly health and water and sanitation); (ii) actions in favour of economic resilience and recovery; and (iii) a reinforced support to the redeployment of the State and to reconciliation efforts.

| — | The EUTF Bêkou projects were marked by the volatile security context (localised conflicts in Bangui and the hinterland followed by periods of relative stability), but also by the reinforced coordination among government, partners and humanitarian actors. |
| --- | --- |

—

The EUTF Bêkou projects were marked by the volatile security context (localised conflicts in Bangui and the hinterland followed by periods of relative stability), but also by the reinforced coordination among government, partners and humanitarian actors.

On the financial side, at the end of 2019 pledges by EUTF contributors amounted to nearly EUR 296 million. This is an increase of EUR 53 million compared to 2018. EUR 31 million out of these EUR 295 million are still to be certified.

In terms of contracts, the EUTF Bêkou signed 11 new contracts in 2019 for a total amount of more than EUR 28 million. They contribute to the implementation of its programmes in the sectors of health, rural resilience and job creation, opening-up of regions and socio-economic recovery.

Last but not least, nearly EUR 32 million was paid in 2019 on top of payments made during previous years; total disbursements have reached nearly EUR 151 million since the creation of the EUTF Bêkou.

In the financial statements, the impact of the abovementioned activities are most visible when looking at:

| — | Pre-financing: a decrease of kEUR 11 405 due to the expensing of amounts open at end 2018 during 2019 and less advances being paid out, |
| --- | --- |

—

Pre-financing: a decrease of kEUR 11 405 due to the expensing of amounts open at end 2018 during 2019 and less advances being paid out,

| — | Cash and cash equivalents: an increase of kEUR 3 506 (see cashflow statement) is mainly caused by the decreased payments of pre-financing; |
| --- | --- |

—

Cash and cash equivalents: an increase of kEUR 3 506 (see cashflow statement) is mainly caused by the decreased payments of pre-financing;

BALANCE SHEET

BALANCE SHEET

| EUR '000 |
| --- |
| | Note | 31.12.2019 | 31.12.2018 |
| NON-CURRENT ASSETS | | | |
| Pre-financing | | 3 273 | 3 443 |
| | | 3 273 | 3 443 |
| CURRENT ASSETS | | | |
| Pre-financing | | 18 312 | 29 546 |
| Exchange receivables and non-exchange recoverables | | 1 853 | 1 138 |
| Cash and cash equivalents | | 17 432 | 13 926 |
| | | 37 597 | 44 611 |
| TOTAL ASSETS | | 40 870 | 48 054 |
| NON-CURRENT LIABILITIES | | | |
| Financial liabilities | | (29 727 ) | (42 737 ) |
| | | (29 727 ) | (42 737 ) |
| CURRENT LIABILITIES | | | |
| Payables | | (10) | (918) |
| Accrued charges and deferred income | | (11 133 ) | (4 399 ) |
| | | (11 143 ) | (5 317 ) |
| TOTAL LIABILITIES | | (40 870 ) | (48 054 ) |
| NET ASSETS | | — | — |
| FUNDS & RESERVES | | | |
| Contribution from Members | | — | — |
| Accumulated surplus | | — | — |
| Economic result of the year | | — | — |
| NET ASSETS | | — | — |

EUR '000

Note

31.12.2019

31.12.2018

NON-CURRENT ASSETS

NON-CURRENT ASSETS

Pre-financing

Pre-financing

3 273

3 273

3 443

3 443

3 273

3 273

3 443

3 443

CURRENT ASSETS

CURRENT ASSETS

Pre-financing

Pre-financing

18 312

18 312

29 546

29 546

Exchange receivables and non-exchange recoverables

Exchange receivables and non-exchange recoverables

1 853

1 853

1 138

1 138

Cash and cash equivalents

Cash and cash equivalents

17 432

17 432

13 926

13 926

37 597

37 597

44 611

44 611

TOTAL ASSETS

TOTAL ASSETS

40 870

40 870

48 054

48 054

NON-CURRENT LIABILITIES

NON-CURRENT LIABILITIES

Financial liabilities

Financial liabilities

(29 727 )

(29 727 )

(42 737 )

(42 737 )

(29 727 )

(29 727 )

(42 737 )

(42 737 )

CURRENT LIABILITIES

CURRENT LIABILITIES

Payables

Payables

(10)

(10)

(918)

(918)

Accrued charges and deferred income

Accrued charges and deferred income

(11 133 )

(11 133 )

(4 399 )

(4 399 )

(11 143 )

(11 143 )

(5 317 )

(5 317 )

TOTAL LIABILITIES

TOTAL LIABILITIES

(40 870 )

(40 870 )

(48 054 )

(48 054 )

NET ASSETS

NET ASSETS

—

—

FUNDS & RESERVES

FUNDS & RESERVES

Contribution from Members

Contribution from Members

—

—

Accumulated surplus

Accumulated surplus

—

—

Economic result of the year

Economic result of the year

—

—

NET ASSETS

NET ASSETS

—

—

STATEMENT OF FINANCIAL PERFORMANCE

STATEMENT OF FINANCIAL PERFORMANCE

| EUR '000 |
| --- |
| | Note | 2019 | 2018 |
| REVENUE | | | |
| Revenue from non-exchange transactions | | | |
| Revenue from donations | | 48 343 | 33 682 |
| Recovery of expenses | | 68 | — |
| | | 48 410 | 33 682 |
| Revenue from exchange transactions | | | |
| Financial revenue | | (2) | 1 |
| | | (2) | 1 |
| Total revenue | | 48 408 | 33 683 |
| EXPENSES | | | |
| Operating expenses | | (47 620 ) | (32 825 ) |
| Other expenses | | (789) | (858) |
| Total expenses | | (48 408 ) | (33 683 ) |
| ECONOMIC RESULT OF THE YEAR | | — | — |

EUR '000

Note

2019

2018

REVENUE

REVENUE

Revenue from non-exchange transactions

Revenue from non-exchange transactions

Revenue from donations

Revenue from donations

48 343

48 343

33 682

33 682

Recovery of expenses

Recovery of expenses

68

68

—

—

48 410

48 410

33 682

33 682

Revenue from exchange transactions

Revenue from exchange transactions

Financial revenue

Financial revenue

(2)

(2)

1

1

(2)

(2)

1

1

Total revenue

Total revenue

48 408

48 408

33 683

33 683

EXPENSES

EXPENSES

Operating expenses

Operating expenses

(47 620 )

(47 620 )

(32 825 )

(32 825 )

Other expenses

Other expenses

(789)

(789)

(858)

(858)

Total expenses

Total expenses

(48 408 )

(48 408 )

(33 683 )

(33 683 )

ECONOMIC RESULT OF THE YEAR

ECONOMIC RESULT OF THE YEAR

—

—

—

—

CASHFLOW STATEMENT

CASHFLOW STATEMENT

| EUR '000 |
| --- |
| | 2019 | 2018 |
| (Increase)/decrease in pre-financing | 11 405 | (24 839 ) |
| (Increase)/decrease in exchange receivables and non-exchange recoverables | (715) | (261) |
| Increase/(decrease) in financial liabilities | (13 010 ) | (1 982 ) |
| Increase/(decrease) in payables | (908) | 202 |
| Increase/(decrease) in accrued charges & deferred revenue | 6 734 | 863 |
| NET CASHFLOW | 3 506 | (26 017 ) |
| Net increase/(decrease) in cash and cash equivalents | 3 506 | (26 017 ) |
| Cash and cash equivalents at the beginning of the year | 13 926 | 39 943 |
| Cash and cash equivalents at year-end | 17 432 | 13 926 |

EUR '000

2019

2018

(Increase)/decrease in pre-financing

(Increase)/decrease in pre-financing

11 405

11 405

(24 839 )

(24 839 )

(Increase)/decrease in exchange receivables and non-exchange recoverables

(Increase)/decrease in exchange receivables and non-exchange recoverables

(715)

(715)

(261)

(261)

Increase/(decrease) in financial liabilities

Increase/(decrease) in financial liabilities

(13 010 )

(13 010 )

(1 982 )

(1 982 )

Increase/(decrease) in payables

Increase/(decrease) in payables

(908)

(908)

202

202

Increase/(decrease) in accrued charges & deferred revenue

Increase/(decrease) in accrued charges & deferred revenue

6 734

6 734

863

863

NET CASHFLOW

NET CASHFLOW

3 506

3 506

(26 017 )

(26 017 )

Net increase/(decrease) in cash and cash equivalents

Net increase/(decrease) in cash and cash equivalents

3 506

3 506

(26 017 )

(26 017 )

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the beginning of the year

13 926

13 926

39 943

39 943

Cash and cash equivalents at year-end

Cash and cash equivalents at year-end

17 432

17 432

13 926

13 926

FINANCIAL STATEMENTS OF THE EUTF AFRICA 2019 (10)

FINANCIAL STATEMENTS OF THE EUTF AFRICA 2019

10

BACKGROUND INFORMATION ON THE EUTF AFRICA

BACKGROUND INFORMATION ON THE EUTF AFRICA

General background on EU Trust Funds

General background on EU Trust Funds

In accordance with Articles 234 and 235 of the Financial Regulation applicable to the general budget of the Union (EU FR) (11) and Article 35 of the Financial Regulation applicable to the 11th European Development Fund (EDF FR) (12), the European Commission may establish Union trust funds for external actions (‘Union trust funds’). The Union trust funds are constituted under an agreement concluded with other donors for emergency and post-emergency actions necessary to react to a crisis, or for thematic actions.

11

12

Union trust funds are established by the European Commission by a decision after consultation on approval of the European Parliament and the Council. This decision includes the constitutive agreement with other donors.

Union trust funds are only established and implemented subject to the following conditions:

| — | There is added value of the Union intervention: the objectives of Union trust funds, in particular by reason of their scale or potential effects, may be better achieved at Union level than at national level and the use of the existing financing instruments would not be sufficient to achieve policy objectives of the Union, |
| --- | --- |

—

There is added value of the Union intervention: the objectives of Union trust funds, in particular by reason of their scale or potential effects, may be better achieved at Union level than at national level and the use of the existing financing instruments would not be sufficient to achieve policy objectives of the Union,

| — | Union trust funds bring clear political visibility for the Union and managerial advantages as well as better control by the Union of risks and disbursements of the Union and other donors’ contributions, |
| --- | --- |

—

Union trust funds bring clear political visibility for the Union and managerial advantages as well as better control by the Union of risks and disbursements of the Union and other donors’ contributions,

| — | Union trust funds do not duplicate other existing funding channels or similar instruments without providing any additionality, |
| --- | --- |

—

Union trust funds do not duplicate other existing funding channels or similar instruments without providing any additionality,

| — | The objectives of Union trust funds are aligned with the objectives of the Union instrument or budgetary item from which they are funded. |
| --- | --- |

—

The objectives of Union trust funds are aligned with the objectives of the Union instrument or budgetary item from which they are funded.

A board chaired by the Commission is established for each Union trust fund to ensure a fair representation of the donors and to decide upon the use of the funds. The board includes a representative of each non-contributing Member State as an observer. The rules for the composition of the board and its internal rules are laid down in the constitutive agreement of the Union trust fund.

Union trust funds are established for a limited duration as determined in their constitutive agreement. That duration may be extended upon request of the board of the Union trust fund and upon presentation by the Commission of a report justifying the extension. The European Parliament and/or the Council may request the Commission to discontinue the appropriations for the Trust Fund or revise the constitutive act with a view to liquidate it.

The Accounting Officer of the Commission serves as the Accounting Officer of the Union trust funds. The Accounting Officer is responsible for laying down accounting procedures and chart of accounts common to all Union trust funds. The Commission’s Internal Auditor, OLAF and the Court of Auditors exercise the same powers over Union trust funds as they do in respect of other actions carried out by the Commission. The Union trust funds are also subject to an independent external audit every year.

Current EU Trust Funds

Current EU Trust Funds

To date, the Commission has set up four EUTFs:

| — | The EUTF BÊKOU, whose objective is to support all aspects of the Central African Republic's exit from crisis and its reconstruction efforts. Established on 15 July 2014, |
| --- | --- |

—

The EUTF BÊKOU, whose objective is to support all aspects of the Central African Republic's exit from crisis and its reconstruction efforts. Established on 15 July 2014,

EUTF BÊKOU

| — | The EUTF MADAD, a European Union Regional Trust Fund in response to the Syrian crisis. Established on 15 December 2014, |
| --- | --- |

—

The EUTF MADAD, a European Union Regional Trust Fund in response to the Syrian crisis. Established on 15 December 2014,

EUTF MADAD

| — | The EUTF AFRICA; a European Union Emergency Trust Fund for stability and addressing root causes of irregular migration and displaced persons in Africa. Established on 12 November 2015, |
| --- | --- |

—

The EUTF AFRICA; a European Union Emergency Trust Fund for stability and addressing root causes of irregular migration and displaced persons in Africa. Established on 12 November 2015,

EUTF AFRICA

| — | The EUTF COLOMBIA; to support the implementation of the peace agreement in the early recovery and stabilisation post-conflict. Established on 12 December 2016. |
| --- | --- |

—

The EUTF COLOMBIA; to support the implementation of the peace agreement in the early recovery and stabilisation post-conflict. Established on 12 December 2016.

EUTF COLOMBIA

The EUTF Africa

The EUTF Africa

European Union Emergency Trust Fund for stability and addressing root causes of irregular migration and displaced persons in Africa (‘EUTF Africa’) was launched on 12 November 2015 during the Valletta Summit on Migration. The main objectives of this trust fund are to support all aspects of stability and contribute to better migration management as well as addressing the root causes of destabilisation, forced displacement and irregular migration, in particular by promoting resilience, economic and equal opportunities, security and development and addressing human rights abuses.

The trust fund operates in three main geographic areas, namely the Sahel region and Lake Chad area, the Horn of Africa and the North of Africa. The neighbouring countries of the eligible countries may benefit, on a case-by-case basis, from the trust fund’s projects. The trust fund is established for a limited period, until 31 December 2020, in order to provide a short and medium-term response to the challenges of the regions. The trust fund is managed from Brussels.

The Trust Fund Board and the Operational Committee of the EUTF Africa are composed of representatives of the donors and of the Commission, as well as representatives of non-contributing EU Member States, authorities of eligible countries' and regional organisations as observers.

The Board establishes and reviews the strategy of the EUTF. The Board shall meet at least once a year.

The Operational Committee examines, approves and supervises the implementation of the actions financed by the Fund. The Committee also approves the annual accounts and the annual reports on the activities financed by the Trust Fund.

Annual accounts of the EUTF Africa

Annual accounts of the EUTF Africa

According to Article 7 of ‘The agreement establishing the European Union emergency trust fund for stability and addressing root causes of irregular migration and displaced persons in Africa and its internal rules’ (‘Constitutive agreement’) the annual accounts comprise two parts: (1) the annual financial report which is the responsibility of the EUTF manager; and (2) the annual financial statements prepared by the EC Accounting Officer, who is, based on the same article, also the Accounting Officer of the trust fund.

According to Article 8 of the Constitutive agreement, the financial statements shall be prepared in accordance with the accounting rules adopted by the Commission’s Accounting Officer (EU Accounting Rules, EAR) that are based on International Public Sector Accounting Standards (IPSAS).

The annual accounts are subject to independent external audit and the final annual accounts are submitted by the EUTF manager and the Accounting Officer to the Operational Committee for approval (Article 8.3.4(c)).

Highlights of the year

Highlights of the year

In 2019, the EU Emergency Trust Fund for Africa (EUTF) further demonstrated itself to be a swift and effective implementation tool. It facilitated policy dialogue with African partner countries, applied innovative approaches, and produced tangible results across the three regions of the EUTF (Sahel and Lake Chad, Horn of Africa and North of Africa) by pooling funding and expertise from a wide range of stakeholders.

The EUTF further consolidated its achievements in partnership with EU Member States development agencies, UN organisations, NGOs and partner countries, with the approval of an additional 36 programmes and 16 ‘top-ups’ across the three regions by the operational committees for a total of EUR 851 million (13). This brings the total number of approved programmes to 223, for a total budget of EUR 4,4 billion. New contracts worth EUR 951 million were signed in 2019 with implementing partners, bringing the total amount of signed contracts to EUR 3,4 billion. By the end of 2019, payments had reached approximately EUR 2 billion.

13

In 2019, the EUTF continued addressing the twin goals of fostering stability and handling the root causes of forced displacement and irregular migration in the Sahel and Lake Chad, Horn of Africa and North of Africa regions. The EUTF continued to pursue a balanced approach in addressing the challenges of irregular migration, focusing on areas of mutual interest for the EU and Africa. These include the fight against smuggling of migrants and trafficking of human beings, and the support to voluntary return to, and sustainable reintegration of migrants in, their country of origin.

During the past year, the EUTF benefitted from additional financial pledges of EUR 486,6 million, including EUR 101 million from EU Member States and other donors. As a result, the overall resources pledged to the EUTF as of 31 December 2019 amounted to almost EUR 4,7 billion, of which EUR 590 million were pledged by EU Member States and other donors (Norway and Switzerland).

The EUTF has continued working in solid partnership with a wide range of implementing partners (agencies from Member States, UN and international organisations, local and international NGOs) along the same lines as in 2018.

The EUTF has also started to implement the recommendations formulated by the European Court of Auditors in its special report published at the end of 2018. In particular, the Commission has enhanced the transparency and evidence-driven approach of the EUTF, notably by adopting a risk assessment framework and revising the operational frameworks of the three regions initially adopted in 2016.

Throughout the year, the monitoring and learning system reports on the Sahel and Lake Chad and the Horn of Africa continued to show the tangible results achieved by the EUTF in different areas of work. The North of Africa region set up its monitoring and learning framework to steer EUTF actions in the region and ensure accountability. Its first report, published in September 2019, is now available on the EUTF website together with the monitoring and learning system reports of the other two regions.

During the year, the mid-term evaluation of the EUTF progressed well. The evaluation team selected around 50 programmes for review, and visited four countries across the three regions (Senegal, Niger, Ethiopia and Morocco), while relying on national consultants to visit and gather information on projects in Somalia and Libya. The final report of the mid-term evaluation is expected in April 2020.

Accountability and transparency have been improved through increased communication, all this in a context of continued fragility. This has been done by regularly updating the EUTF website, publishing posts on social media and by organising communication events such as two photography exhibitions.

The Sahel and Lake Chad region continued to face humanitarian, development, environmental and security challenges, and in particular a deteriorated situation in Mali and Burkina Faso. Against this background, the EUTF has approved new programmes totalling EUR 302,1 million, contributing to the stabilisation efforts in the region, which will reinforce the humanitarian-development-peace nexus. More than 70 % of approved funding will contribute to strengthening resilience and improving governance and security in the region. More than 20 % will further contribute to the EUTF-IOM Initiative and the Evacuation Transit Mechanism (ETM), which will support the most vulnerable migrants and refugees up to the end of 2020. The remaining part of the funding will contribute to boosting green employment and enterprise.

Despite positive political developments such as the rapprochement between Ethiopia and Eritrea, and the formation of a Transitional Civil Government in Sudan, the Horn of Africa region is still faced with several challenges (political, environmental, economic, etc.). Living conditions remain dire, and durable solutions for refugee and displaced people remain a high priority. To address such challenges, the EUTF has approved new programmes for a total of EUR 324,4 million, which will provide further support to the most vulnerable populations, including refugees and internally displaced people. These programmes will foster political and economic stability and improve migration management. In particular, the EUTF has approved five new programmes providing further support to the implementation of the Global Compact on Refugees in the region.

The North of Africa region was faced with challenges requiring a comprehensive EU response to save lives, protect the most vulnerable, support host communities and provide opportunities for safe mobility. As a result, in 2019 the EUTF approved new actions including ‘top-ups’ for a total of EUR 224,8 million. Four of these programmes will provide further support to Libya to:

| (i) | Strengthen protection activities; |
| --- | --- |

(i)

Strengthen protection activities;

| (ii) | Further improve social infrastructure; |
| --- | --- |

(ii)

Further improve social infrastructure;

| (iii) | Build on community stabilisation activities; |
| --- | --- |

(iii)

Build on community stabilisation activities;

| (iv) | Enhance the resilience of local populations and migrants; |
| --- | --- |

(iv)

Enhance the resilience of local populations and migrants;

| (v) | Support the voluntary humanitarian return of stranded migrants. A substantial budget support programme will support Morocco in managing its borders and combating the smuggling of migrants. |
| --- | --- |

(v)

Support the voluntary humanitarian return of stranded migrants. A substantial budget support programme will support Morocco in managing its borders and combating the smuggling of migrants.

Moreover, four regional programmes will help strengthen the resilience of people in need, support rights of refugees and asylum seekers, promote investments by the diaspora in countries of origin and further promote labour mobility to advance legal migration. A top-up of the Technical Cooperation Facility was also approved.

In the balance sheet, the increase in activities of the trust fund, namely the signature of 188 new contracts, is most visible when looking at pre-financing, which increased by kEUR 157 912 due to advances paid out on these new contracts. In the statement of financial performance the new activities had the highest impact on the operating expenses, that increased by kEUR 201 322. At the same time there has been a substantial growth in revenue from donations (increase of kEUR 206 775 compared to 2018) to support the increase in expenses.

BALANCE SHEET

BALANCE SHEET

| EUR '000 |
| --- |
| | Note | 31.12.2019 | 31.12.2018 |
| NON-CURRENT ASSETS | | | |
| Pre-financing | | 48 539 | 34 144 |
| | | 48 539 | 34 144 |
| CURRENT ASSETS | | | |
| Pre-financing | | 418 569 | 273 214 |
| Exchange receivables and non-exchange recoverables | | 18 471 | 16 656 |
| Cash and cash equivalents | | 26 915 | 146 864 |
| | | 463 955 | 436 734 |
| TOTAL ASSETS | | 512 495 | 470 878 |
| NON-CURRENT LIABILITIES | | | |
| Financial liabilities | | (384 411 ) | (369 999 ) |
| | | (384 411 ) | (369 999 ) |
| CURRENT LIABILITIES | | | |
| Payables | | (25 969 ) | (12 733 ) |
| Accrued charges and deferred income | | (102 114 ) | (88 146 ) |
| | | (128 083 ) | (100 879 ) |
| TOTAL LIABILITIES | | (512 495 ) | (470 878 ) |
| NET ASSETS | | — | — |
| FUNDS & RESERVES | | | |
| Contribution from Members | | — | — |
| Accumulated surplus | | — | — |
| Economic result of the year | | — | — |
| NET ASSETS | | — | — |

EUR '000

Note

31.12.2019

31.12.2018

NON-CURRENT ASSETS

NON-CURRENT ASSETS

Pre-financing

Pre-financing

48 539

48 539

34 144

34 144

48 539

48 539

34 144

34 144

CURRENT ASSETS

CURRENT ASSETS

Pre-financing

Pre-financing

418 569

418 569

273 214

273 214

Exchange receivables and non-exchange recoverables

Exchange receivables and non-exchange recoverables

18 471

18 471

16 656

16 656

Cash and cash equivalents

Cash and cash equivalents

26 915

26 915

146 864

146 864

463 955

463 955

436 734

436 734

TOTAL ASSETS

TOTAL ASSETS

512 495

512 495

470 878

470 878

NON-CURRENT LIABILITIES

NON-CURRENT LIABILITIES

Financial liabilities

Financial liabilities

(384 411 )

(384 411 )

(369 999 )

(369 999 )

(384 411 )

(384 411 )

(369 999 )

(369 999 )

CURRENT LIABILITIES

CURRENT LIABILITIES

Payables

Payables

(25 969 )

(25 969 )

(12 733 )

(12 733 )

Accrued charges and deferred income

Accrued charges and deferred income

(102 114 )

(102 114 )

(88 146 )

(88 146 )

(128 083 )

(128 083 )

(100 879 )

(100 879 )

TOTAL LIABILITIES

TOTAL LIABILITIES

(512 495 )

(512 495 )

(470 878 )

(470 878 )

NET ASSETS

NET ASSETS

—

—

FUNDS & RESERVES

FUNDS & RESERVES

Contribution from Members

Contribution from Members

—

—

Accumulated surplus

Accumulated surplus

—

—

Economic result of the year

Economic result of the year

—

—

NET ASSETS

NET ASSETS

—

—

STATEMENT OF FINANCIAL PERFORMANCE

STATEMENT OF FINANCIAL PERFORMANCE

| EUR '000 |
| --- |
| | Note | 2019 | 2018 |
| REVENUE | | | |
| Revenue from non-exchange transactions | | | |
| Recovery of expenses | | 467 | — |
| Revenue from donations | | 774 090 | 576 802 |
| | | 774 557 | 576 802 |
| Revenue from exchange transactions | | | |
| Financial revenue | | (7) | 2 |
| Other exchange revenue | | 1 855 | 5 |
| | | 1 848 | 6 |
| Total revenue | | 776 405 | 576 808 |
| EXPENSES | | | |
| Operating expenses | | (755 904 ) | (561 761 ) |
| Finance costs | | (9) | — |
| Other expenses | | (20 492 ) | (15 047 ) |
| Total expenses | | (776 405 ) | (576 808 ) |
| ECONOMIC RESULT OF THE YEAR | | — | — |

EUR '000

Note

2019

2018

REVENUE

REVENUE

Revenue from non-exchange transactions

Revenue from non-exchange transactions

Recovery of expenses

Recovery of expenses

467

467

—

Revenue from donations

Revenue from donations

774 090

774 090

576 802

576 802

774 557

774 557

576 802

576 802

Revenue from exchange transactions

Revenue from exchange transactions

Financial revenue

Financial revenue

(7)

(7)

2

2

Other exchange revenue

Other exchange revenue

1 855

1 855

5

5

1 848

1 848

6

6

Total revenue

Total revenue

776 405

776 405

576 808

576 808

EXPENSES

EXPENSES

Operating expenses

Operating expenses

(755 904 )

(755 904 )

(561 761 )

(561 761 )

Finance costs

Finance costs

(9)

(9)

—

Other expenses

Other expenses

(20 492 )

(20 492 )

(15 047 )

(15 047 )

Total expenses

Total expenses

(776 405 )

(776 405 )

(576 808 )

(576 808 )

ECONOMIC RESULT OF THE YEAR

ECONOMIC RESULT OF THE YEAR

—

—

—

—

CASHFLOW STATEMENT

CASHFLOW STATEMENT

| EUR '000 |
| --- |
| | 2019 | 2018 |
| Economic result of the year | — | — |
| Operating activities | | |
| (Increase)/decrease in pre-financing | (159 750 ) | (57 110 ) |
| (Increase)/decrease in exchange receivables and non-exchange recoverables | (1 815 ) | (13 636 ) |
| Increase/(decrease) in financial liabilities | 14 412 | (26 713 ) |
| Increase/(decrease) in payables | 13 236 | 12 207 |
| Increase/(decrease) in accrued charges & deferred revenue | 13 968 | 69 546 |
| NET CASHFLOW | (119 949 ) | (15 706 ) |
| Net increase/(decrease) in cash and cash equivalents | (119 949 ) | (15 706 ) |
| Cash and cash equivalents at the beginning of the year | 146 864 | 162 571 |
| Cash and cash equivalents at year-end | 26 915 | 146 864 |

EUR '000

2019

2018

Economic result of the year

Economic result of the year

—

—

Operating activities

Operating activities

(Increase)/decrease in pre-financing

(Increase)/decrease in pre-financing

(159 750 )

(159 750 )

(57 110 )

(57 110 )

(Increase)/decrease in exchange receivables and non-exchange recoverables

(Increase)/decrease in exchange receivables and non-exchange recoverables

(1 815 )

(1 815 )

(13 636 )

(13 636 )

Increase/(decrease) in financial liabilities

Increase/(decrease) in financial liabilities

14 412

14 412

(26 713 )

(26 713 )

Increase/(decrease) in payables

Increase/(decrease) in payables

13 236

13 236

12 207

12 207

Increase/(decrease) in accrued charges & deferred revenue

Increase/(decrease) in accrued charges & deferred revenue

13 968

13 968

69 546

69 546

NET CASHFLOW

NET CASHFLOW

(119 949 )

(119 949 )

(15 706 )

(15 706 )

Net increase/(decrease) in cash and cash equivalents

Net increase/(decrease) in cash and cash equivalents

(119 949 )

(119 949 )

(15 706 )

(15 706 )

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the beginning of the year

146 864

146 864

162 571

162 571

Cash and cash equivalents at year-end

Cash and cash equivalents at year-end

26 915

26 915

146 864

146 864

CONSOLIDATED FINANCIAL STATEMENTS OF THE EDF AND THE EU TRUST FUNDS (14)

CONSOLIDATED FINANCIAL STATEMENTS OF THE EDF AND THE EU TRUST FUNDS

14

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET

| EUR million |
| --- |
| | 31.12.2019 | 31.12.2018 |
| NON-CURRENT ASSETS | | |
| Financial assets | 36 | — |
| Pre-financing | 962 | 924 |
| | 998 | 924 |
| CURRENT ASSETS | | |
| Pre-financing | 1 725 | 1 751 |
| Exchange receivables and non-exchange recoverables | 143 | 156 |
| Cash and cash equivalents | 1 223 | 548 |
| | 3 092 | 2 455 |
| TOTAL ASSETS | 4 090 | 3 379 |
| NON-CURRENT LIABILITIES | | |
| Financial liabilities | (167) | (229) |
| | (167) | (229) |
| CURRENT LIABILITIES | | |
| Payables | (542) | (255) |
| Accrued charges and deferred income | (1 432 ) | (1 374 ) |
| | (1 974 ) | (1 629 ) |
| TOTAL LIABILITIES | (2 141 ) | (1 857 ) |
| NET ASSETS | 1 948 | 1 521 |
| FUNDS & RESERVES | | |
| Fair value reserve | (2) | — |
| Called fund capital — active EDFs | 54 809 | 50 423 |
| Called fund capital from closed EDFs carried forward | 2 252 | 2 252 |
| Economic result carried forward from previous years | (51 155 ) | (47 037 ) |
| Economic result of the year | (3 956 ) | (4 118 ) |
| NET ASSETS | 1 948 | 1 521 |

EUR million

31.12.2019

31.12.2018

NON-CURRENT ASSETS

NON-CURRENT ASSETS

Financial assets

Financial assets

36

36

—

—

Pre-financing

Pre-financing

962

962

924

924

998

998

924

924

CURRENT ASSETS

CURRENT ASSETS

Pre-financing

Pre-financing

1 725

1 725

1 751

1 751

Exchange receivables and non-exchange recoverables

Exchange receivables and non-exchange recoverables

143

143

156

156

Cash and cash equivalents

Cash and cash equivalents

1 223

1 223

548

548

3 092

3 092

2 455

2 455

TOTAL ASSETS

TOTAL ASSETS

4 090

4 090

3 379

3 379

NON-CURRENT LIABILITIES

NON-CURRENT LIABILITIES

Financial liabilities

Financial liabilities

(167)

(167)

(229)

(229)

(167)

(167)

(229)

(229)

CURRENT LIABILITIES

CURRENT LIABILITIES

Payables

Payables

(542)

(542)

(255)

(255)

Accrued charges and deferred income

Accrued charges and deferred income

(1 432 )

(1 432 )

(1 374 )

(1 374 )

(1 974 )

(1 974 )

(1 629 )

(1 629 )

TOTAL LIABILITIES

TOTAL LIABILITIES

(2 141 )

(2 141 )

(1 857 )

(1 857 )

NET ASSETS

NET ASSETS

1 948

1 948

1 521

1 521

FUNDS & RESERVES

FUNDS & RESERVES

Fair value reserve

Fair value reserve

(2)

(2)

—

—

Called fund capital — active EDFs

Called fund capital — active EDFs

54 809

54 809

50 423

50 423

Called fund capital from closed EDFs carried forward

Called fund capital from closed EDFs carried forward

2 252

2 252

2 252

2 252

Economic result carried forward from previous years

Economic result carried forward from previous years

(51 155 )

(51 155 )

(47 037 )

(47 037 )

Economic result of the year

Economic result of the year

(3 956 )

(3 956 )

(4 118 )

(4 118 )

NET ASSETS

NET ASSETS

1 948

1 948

1 521

1 521

CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE

CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE

| EUR million |
| --- |
| | 2019 | 2018 |
| REVENUE | | |
| Revenue from non-exchange transactions | | |
| Recovery activities | 28 | 4 |
| Revenue from trust funds donations | 287 | 303 |
| | 316 | 307 |
| Revenue from exchange transactions | | |
| Financial revenue | 7 | 10 |
| Other revenue | 41 | 46 |
| | 48 | 57 |
| Total Revenue | 364 | 364 |
| EXPENSES | | |
| Aid instruments | (3 220 ) | (3 747 ) |
| Expenses implemented by trust funds | (804) | (595) |
| Co-financing expenses | (14) | 17 |
| Finance costs | (1) | 7 |
| Other expenses | (282) | (164) |
| Total Expenses | (4 320 ) | (4 482 ) |
| ECONOMIC RESULT OF THE YEAR | (3 956 ) | (4 118 ) |

EUR million

2019

2018

REVENUE

REVENUE

Revenue from non-exchange transactions

Revenue from non-exchange transactions

Recovery activities

Recovery activities

28

28

4

4

Revenue from trust funds donations

Revenue from trust funds donations

287

287

303

303

316

316

307

307

Revenue from exchange transactions

Revenue from exchange transactions

Financial revenue

Financial revenue

7

7

10

10

Other revenue

Other revenue

41

41

46

46

48

48

57

57

Total Revenue

Total Revenue

364

364

364

364

EXPENSES

EXPENSES

Aid instruments

Aid instruments

(3 220 )

(3 220 )

(3 747 )

(3 747 )

Expenses implemented by trust funds

Expenses implemented by trust funds

(804)

(804)

(595)

(595)

Co-financing expenses

Co-financing expenses

(14)

(14)

17

17

Finance costs

Finance costs

(1)

(1)

7

7

Other expenses

Other expenses

(282)

(282)

(164)

(164)

Total Expenses

Total Expenses

(4 320 )

(4 320 )

(4 482 )

(4 482 )

ECONOMIC RESULT OF THE YEAR

ECONOMIC RESULT OF THE YEAR

(3 956 )

(3 956 )

(4 118 )

(4 118 )

CONSOLIDATED CASH FLOW STATEMENT

CONSOLIDATED CASH FLOW STATEMENT

| EUR million |
| --- |
| | 2019 | 2018 |
| Economic result of the year | (3 956 ) | (4 118 ) |
| Operating activities | | |
| Capital increase — contributions | 4 385 | 4 250 |
| (Increase)/decrease in pre-financing | (12) | (317) |
| (Increase)/decrease in exchange receivables and non-exchange recoverables | 13 | (60) |
| Increase/(decrease) in provisions | — | (4) |
| Increase/(decrease) in financial liabilities | (62) | (63) |
| Increase/(decrease) in payables | 288 | (309) |
| Increase/(decrease) in accrued charges and deferred income | 58 | 618 |
| Other non-cash movements | (2) | — |
| Investing activities | | |
| (Increase)/decrease in available for sale financial assets | (36) | — |
| NET CASHFLOW | 676 | (2) |
| Net increase/(decrease) in cash and cash equivalents | 676 | (2) |
| Cash and cash equivalents at the beginning of the year | 548 | 550 |
| Cash and cash equivalents at year-end | 1 223 | 548 |

EUR million

2019

2018

Economic result of the year

Economic result of the year

(3 956 )

(3 956 )

(4 118 )

(4 118 )

Operating activities

Operating activities

Capital increase — contributions

Capital increase — contributions

4 385

4 385

4 250

4 250

(Increase)/decrease in pre-financing

(Increase)/decrease in pre-financing

(12)

(12)

(317)

(317)

(Increase)/decrease in exchange receivables and non-exchange recoverables

(Increase)/decrease in exchange receivables and non-exchange recoverables

13

13

(60)

(60)

Increase/(decrease) in provisions

Increase/(decrease) in provisions

—

—

(4)

(4)

Increase/(decrease) in financial liabilities

Increase/(decrease) in financial liabilities

(62)

(62)

(63)

(63)

Increase/(decrease) in payables

Increase/(decrease) in payables

288

288

(309)

(309)

Increase/(decrease) in accrued charges and deferred income

Increase/(decrease) in accrued charges and deferred income

58

58

618

618

Other non-cash movements

Other non-cash movements

(2)

(2)

—

—

Investing activities

Investing activities

(Increase)/decrease in available for sale financial assets

(Increase)/decrease in available for sale financial assets

(36)

(36)

—

—

NET CASHFLOW

NET CASHFLOW

676

676

(2)

(2)

Net increase/(decrease) in cash and cash equivalents

Net increase/(decrease) in cash and cash equivalents

676

676

(2)

(2)

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the beginning of the year

548

548

550

550

Cash and cash equivalents at year-end

Cash and cash equivalents at year-end

1 223

1 223

548

548

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

| EUR million |
| --- |
| | Fund capital — active EDFs
  (A) | Uncalled funds — active EDFs
  (B) | Called fund capital — active EDFs
  (C) = (A)-(B) | Cumulative Reserves
  (D) | Called fund capital from closed EDFs carried forward
  (E) | Fair value reserve
  (F) | Total Net Assets
  (C)+(D)+(E)+(F) |
| BALANCE AS AT 31.12.2017 | 73 264 | 27 090 | 46 173 | (47 037 ) | 2 252 | — | 1 389 |
| Capital increase — contributions | | (4 250 ) | 4 250 | — | — | | 4 250 |
| Economic result of the year | — | — | — | (4 118 ) | — | | (4 118 ) |
| BALANCE AS AT 31.12.2018 | 73 264 | 22 840 | 50 423 | (51 155 ) | 2 252 | — | 1 521 |
| Fair value movements | | | | | | (2) | (2) |
| Capital increase — contributions | | (4 385 ) | 4 385 | | | | 4 385 |
| Economic result of the year | | | — | (3 956 ) | | | (3 956 ) |
| BALANCE AS AT 31.12.2019 | 73 264 | 18 455 | 54 809 | (55 111 ) | 2 252 | (2) | 1 948 |

EUR million

Fund capital — active EDFs

(A)

Uncalled funds — active EDFs

(B)

Called fund capital — active EDFs

(C) = (A)-(B)

Cumulative Reserves

(D)

Called fund capital from closed EDFs carried forward

(E)

Fair value reserve

(F)

Total Net Assets

(C)+(D)+(E)+(F)

BALANCE AS AT 31.12.2017

BALANCE AS AT 31.12.2017

73 264

73 264

27 090

27 090

46 173

46 173

(47 037 )

(47 037 )

2 252

2 252

—

—

1 389

1 389

Capital increase — contributions

Capital increase — contributions

(4 250 )

(4 250 )

4 250

4 250

—

—

4 250

4 250

Economic result of the year

Economic result of the year

—

—

—

—

—

—

(4 118 )

(4 118 )

—

—

(4 118 )

(4 118 )

BALANCE AS AT 31.12.2018

BALANCE AS AT 31.12.2018

73 264

73 264

22 840

22 840

50 423

50 423

(51 155 )

(51 155 )

2 252

2 252

—

—

1 521

1 521

Fair value movements

Fair value movements

(2)

(2)

(2)

(2)

Capital increase — contributions

Capital increase — contributions

(4 385 )

(4 385 )

4 385

4 385

4 385

4 385

Economic result of the year

Economic result of the year

—

—

(3 956 )

(3 956 )

(3 956 )

(3 956 )

BALANCE AS AT 31.12.2019

BALANCE AS AT 31.12.2019

73 264

73 264

18 455

18 455

54 809

54 809

(55 111 )

(55 111 )

2 252

2 252

(2)

(2)

1 948

1 948

EDF REPORT ON FINANCIAL IMPLEMENTATION

EDF REPORT ON FINANCIAL IMPLEMENTATION

INTRODUCTORY NOTE

INTRODUCTORY NOTE

1.   Previous EDFs

Previous EDFs

As the 6th EDF was closed in 2006 and the 7th EDF was closed in 2008, the annual accounts no longer contain implementation tables for these EDFs. However, implementation of the transferred balances can be found in the 9th EDF.

As in past years, to ensure transparency in the presentation of the accounts for 2019, the tables set out separately for the 8th EDF the part used for Lomé Convention programming and the part used for programming under the Cotonou Agreement.

In accordance with Article 1(2)(b) of the Internal Agreement of the 9th EDF, balances and decommitments of previous EDFs have been transferred to the 9th EDF, and, during the life of the 9th EDF, have been committed as 9th EDF funds.

In 2019, the Commission successfully finalised a special exercise for the closure of the remaining projects under the 8th EDF. A final report on the financial implementation of the 8th EDF is available with these 2019 annual accounts. The Commission aims to continue these efforts by closing the 9th EDF at the end of 2020.

2.   11th EDF

11th EDF

The ACP-EC Partnership Agreement signed on 23 June 2000 in Cotonou by the Member States of the European Community and the States of Africa, the Caribbean and the Pacific (ACP States) entered into force on 1 April 2003. The Cotonou Agreement was amended twice, firstly by the agreement signed in Luxembourg on 25 June 2005, secondly by the agreement signed in Ouagadougou on 22 June 2010.

The Council Decision 2001/822/EC of 27 November 2001 on the association of the Overseas Countries and Territories (OCT) with the European Community (‘Overseas Association Decision’) (1) entered into force on 2 December 2001. This Decision was amended on 19 March 2007 (Decision 2007/249/EC) (2).

1

2

The Internal Agreement on the financing of Community aid under the multiannual financial framework 2014-2020 in accordance with the revised Cotonou Agreement, adopted by the Representatives of the Governments of the Member States of the European Community on August 2013, entered into force on March 2015.

Under the Cotonou Agreement, the third period (2014-2020) of Community aid to the ACP States and OCTs is funded by the 11th EDF for an amount of EUR 30 506 million, of which:

| — | EUR 29 089 million is allocated to the ACP countries in accordance with Article 1.2(a) and Article 2(d) of the Internal Agreement, of which EUR 27 955 million is managed by the European Commission, |
| --- | --- |

—

EUR 29 089 million is allocated to the ACP countries in accordance with Article 1.2(a) and Article 2(d) of the Internal Agreement, of which EUR 27 955 million is managed by the European Commission,

| — | EUR 364,5 million is allocated to the OCTs in accordance with Article 1.2(a) and Article 3.1 of the Internal Agreement, of which 359,5 million is managed by the European Commission, |
| --- | --- |

—

EUR 364,5 million is allocated to the OCTs in accordance with Article 1.2(a) and Article 3.1 of the Internal Agreement, of which 359,5 million is managed by the European Commission,

| — | EUR 1 052,5 million is for the Commission to finance the costs arising from the programming and implementation of 11th EDF resources, in accordance with Article 1.2(a) of the Internal Agreement. |
| --- | --- |

—

EUR 1 052,5 million is for the Commission to finance the costs arising from the programming and implementation of 11th EDF resources, in accordance with Article 1.2(a) of the Internal Agreement.

Remaining funds on non-mobilisable performance reserves at 31.12.2019

Remaining funds on non-mobilisable performance reserves at 31.12.2019

The amounts decommitted from projects under the 9th and previous EDFs are transferred to the performance reserve of the 10th EDF, with the exception of Stabex funds.

The decommitted funds from projects under the 10th EDF are transferred to the performance reserve of the 11th EDF.

th

During 2019, all decommitted funds from previous EDFs were transferred to the respective reserves.

In accordance with Article 1.4 of the 11th EDF Internal Agreement and the Council Decision (EU) 2019/640 (3), an amount of decommitted funds from the 10th EDF has been allocated for the purpose of replenishing the African Peace Facility for the period 2019-2020 up to a maximum of EUR 445 860 000 of which EUR 14 860 000 is allocated for support of expenditure.

3

| EUR millions |
| --- |
| Total available on non-mobilisable performance reserves at 31.12.2019 | |
| non-mobilisable reserve from decommitted funds under the 8th and 9th EDF | 197,3 |
| non-mobilisable reserve from decommitted funds under the 10th EDF | 142,6 |
| Total available on non-mobilisable performance reserves at 31.12.2019 | 339,9 |

EUR millions

Total available on non-mobilisable performance reserves at 31.12.2019

non-mobilisable reserve from decommitted funds under the 8th and 9th EDF

197,3

non-mobilisable reserve from decommitted funds under the 10th EDF

142,6

Total available on non-mobilisable performance reserves at 31.12.2019

Total available on non-mobilisable performance reserves at 31.12.2019

339,9

339,9

Regarding EDF Co-financing under the 10th and 11th EDF, transfer agreements for co-financings from Member States were signed, and commitment appropriations were opened for a total amount of EUR 275,2 million. Payment appropriations were opened for the cashed amounts totalling EUR 258,4 million.

The situation of co-financing appropriations at 31.12.2019 is shown in the table below:

| EUR millions |
| --- |
| | Commitments appropriations | Payment appropriations |
| Co-financing — A Envelope | 230,8 | 214,4 |
| Co-financing — Intra ACP | 36,2 | 36,2 |
| Co-financing — Administrative expenses | 8,3 | 7,8 |
| | 275,2 | 258,4 |

EUR millions

Commitments appropriations

Payment appropriations

Co-financing — A Envelope

230,8

214,4

Co-financing — Intra ACP

36,2

36,2

Co-financing — Administrative expenses

8,3

7,8

275,2

275,2

258,4

258,4

The following tables, concerning the amounts decided, contracted and paid, show net figures.

net figures

The tables presenting the situation by instrument are annexed.

Table 1.1

Table 1.1

8th EDF

8th EDF

EVOLUTION OF APPROPRIATIONS: 31 December 2019

EVOLUTION OF APPROPRIATIONS: 31 December 2019

ANALYSIS OF CREDITS PER INSTRUMENT

ANALYSIS OF CREDITS PER INSTRUMENT

| EUR million |
| --- |
| | INSTRUMENT | INITIAL APPROPRIATION | INCREASES/DECREASES IN CUMULATIVE RESOURCES AT 31 DECEMBER 2018 | INCREASE OR DECREASE IN RESOURCES IN 2019 | Notes | CURRENT LEVEL APPROPRIATION |
| | Lomé | | | | | |
| Regular MS Contributions | — | 47 | | | 47 |
| ACP | Structural adjustment | — | 18 | | | 18 |
| Total indicative programmes | — | 29 | | | 29 |
| | SUBTOTAL ACP | — | 47 | | | 47 |
| | Lomé | | | | | |
| Regular MS Contributions | 12 967 | (3 332 ) | (1) | (15) | 9 635 |
| ACP | Aid for refugees | 120 | (20) | | | 100 |
| Emergency aid (Lomé) | 140 | (4) | | | 136 |
| Heavily indebted poor countries (Lomé) | — | 1 060 | | | 1 060 |
| Interest-rate subsidies | 370 | (301) | | | 69 |
| Risk capital | 1 000 | 12 | | | 1 012 |
| Stabex | 1 800 | (1 077 ) | | | 723 |
| Structural adjustment | 1 400 | 79 | — | | 1 479 |
| Sysmin | 575 | (474) | | | 101 |
| Total indicative programmes | 7 562 | (2 640 ) | (1) | | 4 921 |
| Utilisation of interest income | — | 35 | | | 35 |
| Cotonou | | | | | |
| Regular MS Contributions | — | 650 | | | 650 |
| A Envelope — National Allocations | — | 417 | | | 417 |
| B Envelope — National Allocations | — | 233 | | | 233 |
| Interests and other receipts | — | — | | | — |
| | SUBTOTAL ACP | 12 967 | (2 681 ) | (1) | (15) | 10 285 |
| | Lomé | | | | | |
| Regular MS Contributions | — | 46 | | | 46 |
| OCT | Interest-rate subsidies | — | 1 | | | 1 |
| Risk capital | — | 6 | | | 6 |
| Stabex | — | 1 | | | 1 |
| Sysmin | — | 2 | | | 2 |
| Total indicative programmes | — | 35 | | | 35 |
| | SUBTOTAL OCT | — | 46 | | | 46 |
| | TOTAL 8th EDF | 12 967 | (2 588 ) | (1) | (15) | 10 378 |

EUR million

INSTRUMENT

INITIAL APPROPRIATION

INCREASES/DECREASES IN CUMULATIVE RESOURCES AT 31 DECEMBER 2018

INCREASE OR DECREASE IN RESOURCES IN 2019

Notes

CURRENT LEVEL APPROPRIATION

Lomé

Lomé

Regular MS Contributions

Regular MS Contributions

—

47

47

47

47

ACP

Structural adjustment

—

18

18

Total indicative programmes

—

29

29

SUBTOTAL ACP

SUBTOTAL ACP

—

47

47

47

47

Lomé

Lomé

Regular MS Contributions

Regular MS Contributions

12 967

12 967

(3 332 )

(3 332 )

(1)

(1)

(15)

15

9 635

9 635

ACP

Aid for refugees

120

(20)

100

Emergency aid (Lomé)

140

(4)

136

Heavily indebted poor countries (Lomé)

—

1 060

1 060

Interest-rate subsidies

370

(301)

69

Risk capital

1 000

12

1 012

Stabex

1 800

(1 077 )

723

Structural adjustment

1 400

79

—

1 479

Sysmin

575

(474)

101

Total indicative programmes

7 562

(2 640 )

(1)

4 921

Utilisation of interest income

—

35

35

Cotonou

Cotonou

Regular MS Contributions

Regular MS Contributions

—

650

650

650

650

A Envelope — National Allocations

—

417

417

B Envelope — National Allocations

—

233

233

Interests and other receipts

—

—

—

SUBTOTAL ACP

SUBTOTAL ACP

12 967

12 967

(2 681 )

(2 681 )

(1)

(1)

(15)

15

10 285

10 285

Lomé

Lomé

Regular MS Contributions

Regular MS Contributions

—

46

46

46

46

OCT

Interest-rate subsidies

—

1

1

Risk capital

—

6

6

Stabex

—

1

1

Sysmin

—

2

2

Total indicative programmes

—

35

35

SUBTOTAL OCT

SUBTOTAL OCT

—

46

46

46

46

TOTAL 8th EDF

TOTAL 8th EDF

12 967

12 967

(2 588 )

(2 588 )

(1)

(1)

(15)

15

10 378

10 378

Table 1.2

Table 1.2

9th EDF

9th EDF

EVOLUTION OF APPROPRIATIONS: 31 December 2019

EVOLUTION OF APPROPRIATIONS: 31 December 2019

ANALYSIS OF CREDITS PER INSTRUMENT

ANALYSIS OF CREDITS PER INSTRUMENT

| EUR million |
| --- |
| | INSTRUMENT | INITIAL APPROPRIATION | INCREASES/DECREASES IN CUMULATIVE RESOURCES AT 31 DECEMBER 2018 | INCREASE OR DECREASE IN RESOURCES IN 2019 | Notes | CURRENT LEVEL APPROPRIATION |
| | Lomé | | | | | |
| Regular MS Contributions | — | — | | | — |
| ACP | Transfers from 7th EDF — Lomé | — | — | | | — |
| Cotonou | | | | | |
| Regular MS Contributions | — | 50 | | | 50 |
| A Envelope — National Allocations | — | 44 | | | 44 |
| B Envelope — National Allocations | — | 6 | | | 6 |
| | SUBTOTAL ACP | — | 50 | | | 50 |
| | Lomé | | | | | |
| Regular MS Contributions | — | 667 | — | (16) | 667 |
| ACP | Transfers from 6th EDF — Lomé | — | 20 | | | 20 |
| Transfers from 7th EDF — Lomé | — | 647 | — | (16) | 647 |
| Cotonou | | | | | |
| Regular MS Contributions | 8 919 | 5 464 | (41) | (16) | 14 342 |
| A Envelope — National Allocations | 5 318 | 3 246 | (10) | (16) | 8 554 |
| B Envelope — National Allocations | 2 108 | (905) | — | (16) | 1 203 |
| CDE, CTA and Parliamentary Assembly | 164 | (10) | | | 154 |
| Implementation costs | 125 | 52 | (1) | (16) | 177 |
| Interests and other receipts | — | 63 | | | 63 |
| Other Intra-ACP allocations | 300 | 2 289 | (5) | (16) | 2 584 |
| Peace facility | — | 353 | | | 353 |
| Regional allocations | 904 | (145) | (11) | (16) | 749 |
| Special allocation R.D. Congo | — | 105 | | | 105 |
| Special allocation South Sudan | — | 267 | | (18) | 267 |
| Special allocation Sudan | — | 110 | | (17) | 110 |
| Voluntary contribution Peace facility | — | 39 | (15) | (19) | 24 |
| | SUBTOTAL ACP | 8 919 | 6 131 | (42) | (16)
   (19) | 15 009 |
| | Lomé | | | | | |
| Regular MS Contributions | — | 3 | | | 3 |
| OCT | Transfers from 6th EDF — Lomé | — | — | | | — |
| Transfers from 7th EDF — Lomé | — | 3 | | | 3 |
| Cotonou | | | | | |
| Regular MS Contributions | — | 287 | (1) | (16) | 286 |
| A Envelope — National Allocations | — | 237 | — | (16) | 236 |
| B Envelope — National Allocations | — | 4 | | | 4 |
| Regional allocations | — | 45 | — | (16) | 45 |
| Studies / Technical assistance OCT | — | 1 | | | 1 |
| | SUBTOTAL OCT | — | 290 | (1) | (16) | 289 |
| | TOTAL 9th EDF | 8 919 | 6 471 | (42) | (16)
   (19) | 15 348 |

EUR million

INSTRUMENT

INITIAL APPROPRIATION

INCREASES/DECREASES IN CUMULATIVE RESOURCES AT 31 DECEMBER 2018

INCREASE OR DECREASE IN RESOURCES IN 2019

Notes

CURRENT LEVEL APPROPRIATION

Lomé

Lomé

Regular MS Contributions

Regular MS Contributions

—

—

—

ACP

Transfers from 7th EDF — Lomé

—

—

—

Cotonou

Cotonou

Regular MS Contributions

Regular MS Contributions

—

50

50

50

50

A Envelope — National Allocations

—

44

44

B Envelope — National Allocations

—

6

6

SUBTOTAL ACP

SUBTOTAL ACP

—

50

50

50

50

Lomé

Lomé

Regular MS Contributions

Regular MS Contributions

—

667

667

—

(16)

16

667

667

ACP

Transfers from 6th EDF — Lomé

—

20

20

Transfers from 7th EDF — Lomé

—

647

—

(16)

16

647

Cotonou

Cotonou

Regular MS Contributions

Regular MS Contributions

8 919

8 919

5 464

5 464

(41)

(41)

(16)

16

14 342

14 342

A Envelope — National Allocations

5 318

3 246

(10)

(16)

16

8 554

B Envelope — National Allocations

2 108

(905)

—

(16)

16

1 203

CDE, CTA and Parliamentary Assembly

164

(10)

154

Implementation costs

125

52

(1)

(16)

16

177

Interests and other receipts

—

63

63

Other Intra-ACP allocations

300

2 289

(5)

(16)

16

2 584

Peace facility

—

353

353

Regional allocations

904

(145)

(11)

(16)

16

749

Special allocation R.D. Congo

—

105

105

Special allocation South Sudan

—

267

(18)

18

267

Special allocation Sudan

—

110

(17)

17

110

Voluntary contribution Peace facility

—

39

(15)

(19)

19

24

SUBTOTAL ACP

SUBTOTAL ACP

8 919

8 919

6 131

6 131

(42)

(42)

(16)
   (19)

16

19

15 009

15 009

Lomé

Lomé

Regular MS Contributions

Regular MS Contributions

—

3

3

3

3

OCT

Transfers from 6th EDF — Lomé

—

—

—

Transfers from 7th EDF — Lomé

—

3

3

Cotonou

Cotonou

Regular MS Contributions

Regular MS Contributions

—

287

287

(1)

(1)

(16)

16

286

286

A Envelope — National Allocations

—

237

—

(16)

16

236

B Envelope — National Allocations

—

4

4

Regional allocations

—

45

—

(16)

16

45

Studies / Technical assistance OCT

—

1

1

SUBTOTAL OCT

SUBTOTAL OCT

—

290

290

(1)

(1)

(16)

16

289

289

TOTAL 9th EDF

TOTAL 9th EDF

8 919

8 919

6 471

6 471

(42)

(42)

(16)
   (19)

16

19

15 348

15 348

Table 1.3

Table 1.3

10th EDF

10th EDF

EVOLUTION OF APPROPRIATIONS: 31 December 2019

EVOLUTION OF APPROPRIATIONS: 31 December 2019

ANALYSIS OF CREDITS PER INSTRUMENT

ANALYSIS OF CREDITS PER INSTRUMENT

| EUR million |
| --- |
| | INSTRUMENT | INITIAL APPROPRIATION | INCREASES/DECREASES IN CUMULATIVE RESOURCES AT 31 DECEMBER 2018 | INCREASE OR DECREASE IN RESOURCES IN 2019 | Notes | CURRENT LEVEL APPROPRIATION |
| | Regular MS Contributions | — | 66 | (1) | (21) | 65 |
| ACP | A Envelope — National Allocations | — | 57 | (1) | (21) | 56 |
| B Envelope — National Allocations | — | 9 | | | 9 |
| National allocations Reserve A Envelope STABEX | — | — | | | — |
| | SUBTOTAL ACP | — | 66 | (1) | (21) | 65 |
| | Regular MS Contributions | 20 896 | (19) | 213 | (21)
   (23) | 20 891 |
| ACP | A Envelope — National Allocations | — | 12 865 | (169) | (21) | 12 696 |
| A Envelope reserve | 13 500 | (13 500 ) | | | — |
| B Envelope — National Allocations | — | 1 991 | (9) | (21) | 1 983 |
| B Envelope reserve | 1 800 | (1 800 ) | | | — |
| Implementation costs | 430 | 15 | 15 | (23) | 460 |
| Institutional and support expenditure | — | 230 | (5) | (21) | 226 |
| Interests and other receipts | — | 85 | (14) | (21) | 71 |
| Intra-ACP Reserve | 2 700 | (2 700 ) | | | — |
| National allocations Reserve A Envelope STABEX | — | — | — | (21) | — |
| NIP/RIP reserve | 683 | (683) | | | — |
| Non-mobilisable reserve | — | 131 | 40 | (20) | 171 |
| Other Intra-ACP allocations | — | 1 868 | (13) | (21) | 1 855 |
| Peace facility | — | 1 119 | 408 | (23) | 1 527 |
| Regional allocations | — | 1 942 | (40) | (21) | 1 902 |
| Regional allocations reserve | 1 783 | (1 783 ) | | | — |
| Co-financing | — | 204 | (2) | (22) | 203 |
| A Envelope — National Allocations | — | 187 | (2) | (22) | 185 |
| Implementation costs | — | 5 | — | (22) | 5 |
| Other Intra-ACP allocations | — | 12 | | | 12 |
| Peace facility | — | 1 | | | 1 |
| | SUBTOTAL ACP | 20 896 | 186 | 211 | (21)
   (23) | 21 093 |
| | Regular MS Contributions | — | 275 | (4) | (21) | 271 |
| OCT | A Envelope — National Allocations | — | 190 | (4) | (21) | 187 |
| A Envelope reserve | — | — | | | — |
| B Envelope — National Allocations | — | 15 | — | (21) | 15 |
| B Envelope reserve | — | — | | | — |
| National allocations Reserve A Envelope STABEX | — | — | | | — |
| Non-mobilisable reserve | — | 25 | 1 | (20) | 26 |
| Regional allocations | — | 40 | (1) | (21) | 39 |
| Regional allocations reserve | — | — | | | — |
| Studies / Technical assistance OCT | — | 5 | — | (21) | 5 |
| | SUBTOTAL OCT | — | 275 | (4) | (21) | 271 |
| | TOTAL 10th EDF | 20 896 | 527 | 206 | (21)
   (23) | 21 430 |

EUR million

INSTRUMENT

INITIAL APPROPRIATION

INCREASES/DECREASES IN CUMULATIVE RESOURCES AT 31 DECEMBER 2018

INCREASE OR DECREASE IN RESOURCES IN 2019

Notes

CURRENT LEVEL APPROPRIATION

Regular MS Contributions

Regular MS Contributions

—

66

66

(1)

(1)

(21)

21

65

65

ACP

A Envelope — National Allocations

—

57

(1)

(21)

21

56

B Envelope — National Allocations

—

9

9

National allocations Reserve A Envelope STABEX

—

—

—

SUBTOTAL ACP

SUBTOTAL ACP

—

66

66

(1)

(1)

(21)

21

65

65

Regular MS Contributions

Regular MS Contributions

20 896

20 896

(19)

(19)

213

213

(21)
   (23)

21

23

20 891

20 891

ACP

A Envelope — National Allocations

—

12 865

(169)

(21)

21

12 696

A Envelope reserve

13 500

(13 500 )

—

B Envelope — National Allocations

—

1 991

(9)

(21)

21

1 983

B Envelope reserve

1 800

(1 800 )

—

Implementation costs

430

15

15

(23)

23

460

Institutional and support expenditure

—

230

(5)

(21)

21

226

Interests and other receipts

—

85

(14)

(21)

21

71

Intra-ACP Reserve

2 700

(2 700 )

—

National allocations Reserve A Envelope STABEX

—

—

—

(21)

21

—

NIP/RIP reserve

683

(683)

—

Non-mobilisable reserve

—

131

40

(20)

20

171

Other Intra-ACP allocations

—

1 868

(13)

(21)

21

1 855

Peace facility

—

1 119

408

(23)

23

1 527

Regional allocations

—

1 942

(40)

(21)

21

1 902

Regional allocations reserve

1 783

(1 783 )

—

Co-financing

Co-financing

—

204

204

(2)

(2)

(22)

22

203

203

A Envelope — National Allocations

—

187

(2)

(22)

22

185

Implementation costs

—

5

—

(22)

22

5

Other Intra-ACP allocations

—

12

12

Peace facility

—

1

1

SUBTOTAL ACP

SUBTOTAL ACP

20 896

20 896

186

186

211

211

(21)
   (23)

21

23

21 093

21 093

Regular MS Contributions

Regular MS Contributions

—

275

275

(4)

(4)

(21)

21

271

271

OCT

A Envelope — National Allocations

—

190

(4)

(21)

21

187

A Envelope reserve

—

—

—

B Envelope — National Allocations

—

15

—

(21)

21

15

B Envelope reserve

—

—

—

National allocations Reserve A Envelope STABEX

—

—

—

Non-mobilisable reserve

—

25

1

(20)

20

26

Regional allocations

—

40

(1)

(21)

21

39

Regional allocations reserve

—

—

—

Studies / Technical assistance OCT

—

5

—

(21)

21

5

SUBTOTAL OCT

SUBTOTAL OCT

—

275

275

(4)

(4)

(21)

21

271

271

TOTAL 10th EDF

TOTAL 10th EDF

20 896

20 896

527

527

206

206

(21)
   (23)

21

23

21 430

21 430

Table 1.4

Table 1.4

11th EDF

11th EDF

EVOLUTION OF APPROPRIATIONS: 31 December 2019

EVOLUTION OF APPROPRIATIONS: 31 December 2019

ANALYSIS OF CREDITS PER INSTRUMENT

ANALYSIS OF CREDITS PER INSTRUMENT

| EUR million |
| --- |
| | INSTRUMENT | INITIAL APPROPRIATION | INCREASES/DECREASES IN CUMULATIVE RESOURCES AT 31 DECEMBER 2018 | INCREASE OR DECREASE IN RESOURCES IN 2019 | Notes | CURRENT LEVEL APPROPRIATION |
| | Regular MS Contributions | — | 82 | | | 82 |
| ACP | A Envelope — National Allocations | — | 65 | | | 65 |
| B Envelope — National Allocations | — | 17 | | | 17 |
| National allocations Reserve A Envelope STABEX | — | — | | | — |
| | SUBTOTAL ACP | — | 82 | | | 82 |
| | Regular MS Contributions | 29 008 | 253 | (179) | | 29 081 |
| ACP | A Envelope — National Allocations | — | 15 354 | 213 | | 15 567 |
| B Envelope — National Allocations | — | 700 | 139 | | 838 |
| B Envelope reserve | — | — | | | — |
| Implementation costs | 1 053 | — | | | 1 053 |
| Institutional and support expenditure | — | 246 | (49) | | 197 |
| Interests and other receipts | — | 16 | 2 | | 18 |
| Intra-ACP Reserve | 3 590 | (3 521 ) | (42) | | 27 |
| National allocations Reserve A Envelope STABEX | — | — | | | — |
| NIP/RIP reserve | 24 365 | (23 095 ) | (731) | | 540 |
| Non-mobilisable reserve | — | 311 | (181) | (24) | 130 |
| Other Intra-ACP allocations | — | 2 700 | 91 | | 2 791 |
| Peace facility | — | 1 000 | | | 1 000 |
| Regional allocations | — | 6 541 | 379 | | 6 920 |
| Co-financing | — | 38 | 35 | (25) | 73 |
| A Envelope — National Allocations | — | 23 | 19 | (25) | 42 |
| Implementation costs | — | 2 | 1 | (25) | 3 |
| Peace facility | — | 11 | 13 | (25) | 24 |
| Regional allocations | — | 2 | 2 | (25) | 4 |
| EC Internal SLA | — | 1 | | | 1 |
| A Envelope — National Allocations | — | 1 | | | 1 |
| | SUBTOTAL ACP | 29 008 | 291 | | | 29 155 |
| | Regular MS Contributions | — | 350 | 5 | | 355 |
| OCT | A Envelope — National Allocations | — | 196 | | | 196 |
| B Envelope — National Allocations | — | 8 | | | 8 |
| NIP/RIP reserve | — | 49 | (18) | | 32 |
| Non-mobilisable reserve | — | 7 | 5 | (24) | 12 |
| Regional allocations | — | 81 | 18 | | 99 |
| Studies / Technical assistance OCT | — | 9 | | | 9 |
| Co-financing | — | — | | | — |
| A Envelope — National Allocations | — | — | | | — |
| EC Internal SLA | — | — | | | — |
| A Envelope — National Allocations | — | — | | | — |
| | SUBTOTAL OCT | — | 350 | | | 355 |
| | Regular MS Contributions | — | 17 | | | 17 |
| | A Envelope — National Allocations | — | 10 | | | 10 |
| B Envelope — National Allocations | — | 7 | | | 7 |
| | SUBTOTAL | — | 17 | | | 17 |
| | TOTAL 11th EDF | 29 008 | 740 | (139) | | 29 608 |

EUR million

INSTRUMENT

INITIAL APPROPRIATION

INCREASES/DECREASES IN CUMULATIVE RESOURCES AT 31 DECEMBER 2018

INCREASE OR DECREASE IN RESOURCES IN 2019

Notes

CURRENT LEVEL APPROPRIATION

Regular MS Contributions

Regular MS Contributions

—

82

82

82

82

ACP

A Envelope — National Allocations

—

65

65

B Envelope — National Allocations

—

17

17

National allocations Reserve A Envelope STABEX

—

—

—

SUBTOTAL ACP

SUBTOTAL ACP

—

82

82

82

82

Regular MS Contributions

Regular MS Contributions

29 008

29 008

253

253

(179)

(179)

29 081

29 081

ACP

A Envelope — National Allocations

—

15 354

213

15 567

B Envelope — National Allocations

—

700

139

838

B Envelope reserve

—

—

—

Implementation costs

1 053

—

1 053

Institutional and support expenditure

—

246

(49)

197

Interests and other receipts

—

16

2

18

Intra-ACP Reserve

3 590

(3 521 )

(42)

27

National allocations Reserve A Envelope STABEX

—

—

—

NIP/RIP reserve

24 365

(23 095 )

(731)

540

Non-mobilisable reserve

—

311

(181)

(24)

24

130

Other Intra-ACP allocations

—

2 700

91

2 791

Peace facility

—

1 000

1 000

Regional allocations

—

6 541

379

6 920

Co-financing

Co-financing

—

38

38

35

35

(25)

25

73

73

A Envelope — National Allocations

—

23

19

(25)

25

42

Implementation costs

—

2

1

(25)

25

3

Peace facility

—

11

13

(25)

25

24

Regional allocations

—

2

2

(25)

25

4

EC Internal SLA

EC Internal SLA

—

1

1

1

1

A Envelope — National Allocations

—

1

1

SUBTOTAL ACP

SUBTOTAL ACP

29 008

29 008

291

291

29 155

29 155

Regular MS Contributions

Regular MS Contributions

—

350

350

5

5

355

355

OCT

A Envelope — National Allocations

—

196

196

B Envelope — National Allocations

—

8

8

NIP/RIP reserve

—

49

(18)

32

Non-mobilisable reserve

—

7

5

(24)

24

12

Regional allocations

—

81

18

99

Studies / Technical assistance OCT

—

9

9

Co-financing

Co-financing

—

—

—

A Envelope — National Allocations

—

—

—

EC Internal SLA

EC Internal SLA

—

—

—

A Envelope — National Allocations

—

—

—

SUBTOTAL OCT

SUBTOTAL OCT

—

350

350

355

355

Regular MS Contributions

Regular MS Contributions

—

17

17

17

17

A Envelope — National Allocations

—

10

10

B Envelope — National Allocations

—

7

7

SUBTOTAL

SUBTOTAL

—

17

17

17

17

TOTAL 11th EDF

TOTAL 11th EDF

29 008

740

(139)

29 608

Table 2.1

Table 2.1

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2019

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2019

PROGRESS REPORT

PROGRESS REPORT

| EUR million |
| --- |
| | ALLOCATION | EDF |
| | 8 | 9 | 10 | 11 | TOTAL |
| Lomé | Sundry Income | 35 | | | | 35 |
| Total indicative programmes | 4 985 | | | | 4 985 |
| Total Non-Programmable Aid | 4 707 | | | | 4 707 |
| Transfers from other funds | | 670 | | | 670 |
| SUBTOTAL: REGULAR MS CONTRIBUTIONS | 9 728 | 670 | | | 10 398 |
| Cotonou | A Envelope — National Allocations | 417 | 8 835 | 12 939 | 15 838 | 38 029 |
| B Envelope — National Allocations | 233 | 1 213 | 2 006 | 870 | 4 322 |
| Bridging facility | | | | — | — |
| CDE, CTA and Parliamentary Assembly | | 154 | | | 154 |
| Country reserve | | | — | — | — |
| Implementation Costs and Interests Revenues | — | 240 | 535 | 1 079 | 1 855 |
| Intra-ACP allocations | | 2 937 | 3 608 | 3 988 | 10 534 |
| Intra-ACP Reserve | | | — | 27 | 27 |
| National allocations Reserve A Envelope STABEX | | | — | — | — |
| NIP/RIP reserve | | | — | 571 | 571 |
| Non-mobilisable reserve | | | 197 | 142 | 340 |
| Regional allocations | | 793 | 1 941 | 7 018 | 9 752 |
| Regional allocations reserve | | | — | | — |
| Special allocation R.D. Congo | | 105 | | | 105 |
| Special allocation South Sudan | | 267 | | | 267 |
| Special allocation Sudan | | 110 | | | 110 |
| Voluntary contribution Peace facility | | 24 | | | 24 |
| SUBTOTAL: REGULAR MS CONTRIBUTIONS | 650 | 14 678 | 21 227 | 29 535 | 66 089 |
| A Envelope — National Allocations | | | | 1 | 1 |
| SUBTOTAL: EC INTERNAL SLA | | | | 1 | 1 |
| A Envelope — National Allocations | | | 185 | 42 | 227 |
| Implementation Costs and Interests Revenues | | | 5 | 3 | 8 |
| Intra-ACP allocations | | | 12 | 24 | 36 |
| Regional allocations | | | | 4 | 4 |
| SUBTOTAL: CO-FINANCING | | | 203 | 73 | 275 |
| | TOTAL | 10 378 | 15 348 | 21 430 | 29 608 | 76 764 |

EUR million

ALLOCATION

EDF

8

9

10

11

TOTAL

Lomé

Lomé

Sundry Income

35

35

Total indicative programmes

4 985

4 985

Total Non-Programmable Aid

4 707

4 707

Transfers from other funds

670

670

SUBTOTAL: REGULAR MS CONTRIBUTIONS

SUBTOTAL: REGULAR MS CONTRIBUTIONS

9 728

670

10 398

Cotonou

Cotonou

A Envelope — National Allocations

417

8 835

12 939

15 838

38 029

B Envelope — National Allocations

233

1 213

2 006

870

4 322

Bridging facility

—

—

CDE, CTA and Parliamentary Assembly

154

154

Country reserve

—

—

—

Implementation Costs and Interests Revenues

—

240

535

1 079

1 855

Intra-ACP allocations

2 937

3 608

3 988

10 534

Intra-ACP Reserve

—

27

27

National allocations Reserve A Envelope STABEX

—

—

—

NIP/RIP reserve

—

571

571

Non-mobilisable reserve

197

142

340

Regional allocations

793

1 941

7 018

9 752

Regional allocations reserve

—

—

Special allocation R.D. Congo

105

105

Special allocation South Sudan

267

267

Special allocation Sudan

110

110

Voluntary contribution Peace facility

24

24

SUBTOTAL: REGULAR MS CONTRIBUTIONS

SUBTOTAL: REGULAR MS CONTRIBUTIONS

650

14 678

21 227

29 535

66 089

A Envelope — National Allocations

1

1

SUBTOTAL: EC INTERNAL SLA

SUBTOTAL: EC INTERNAL SLA

1

1

A Envelope — National Allocations

185

42

227

Implementation Costs and Interests Revenues

5

3

8

Intra-ACP allocations

12

24

36

Regional allocations

4

4

SUBTOTAL: CO-FINANCING

SUBTOTAL: CO-FINANCING

203

73

275

TOTAL

TOTAL

10 378

15 348

21 430

29 608

76 764

| | EDF | Aggregate Total | Cummulative Figures | Annual Figures |
| --- | --- | --- | --- | --- |
| At 31.12.2019 | RAL | % of allocation | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
| Decisions | | | | | | | | | | | | | | | | |
| | 8 | 10 375 | 1 | 100 % | 10 786 | (42) | (45) | (60) | (64) | (98) | (63) | (12) | (13) | (9) | (4) | (2) |
| | 9 | 15 335 | 134 | 100 % | 16 633 | (54) | (116) | (9) | (297) | (72) | (381) | (170) | (104) | (38) | (33) | (22) |
| | 10 | 21 088 | 1 803 | 98 % | 4 766 | 3 501 | 2 349 | 3 118 | 3 524 | 4 131 | (95) | (156) | (80) | (5) | (147) | 183 |
| | 11 | 26 511 | 13 959 | 90 % | | | | | | | 1 160 | 5 372 | 6 688 | 5 807 | 4 332 | 3 153 |
| Total | | 73 309 | 15 896 | | 32 185 | 3 405 | 2 187 | 3 049 | 3 163 | 3 961 | 621 | 5 034 | 6 491 | 5 754 | 4 147 | 3 311 |
| Assigned Funds | | | | | | | | | | | | | | | | |
| | 8 | 10 374 | — | 100 % | 10 541 | (42) | 8 | (13) | (46) | (11) | (37) | (16) | (6) | (3) | — | (1) |
| | 9 | 15 302 | 100 | 100 % | 14 209 | 997 | 476 | 9 | (187) | (96) | (1) | (52) | (46) | (20) | 16 | (4) |
| | 10 | 20 310 | 1 025 | 95 % | 130 | 3 184 | 2 820 | 2 514 | 3 460 | 3 457 | 2 687 | 783 | 541 | 550 | 236 | (51) |
| | 11 | 21 697 | 9 144 | 73 % | | | | | | | 731 | 3 293 | 3 745 | 5 684 | 4 687 | 3 557 |
| Total | | 67 683 | 10 269 | | 24 881 | 4 140 | 3 304 | 2 509 | 3 226 | 3 350 | 3 380 | 4 008 | 4 234 | 6 211 | 4 940 | 3 501 |
| Payments | | | | | | | | | | | | | | | | |
| | 8 | 10 374 | | 100 % | 9 930 | 152 | 158 | 90 | 15 | 18 | 16 | (3) | — | (1) | — | — |
| | 9 | 15 201 | | 99 % | 10 011 | 1 806 | 1 304 | 906 | 539 | 231 | 145 | 43 | 68 | 111 | 23 | 14 |
| | 10 | 19 285 | | 90 % | 90 | 1 111 | 1 772 | 1 879 | 2 655 | 2 718 | 2 760 | 2 024 | 1 466 | 1 277 | 1 076 | 456 |
| | 11 | 12 553 | | 42 % | | | | | | | 595 | 1 024 | 1 816 | 2 770 | 2 970 | 3 377 |
| Total | | 57 414 | | | 20 031 | 3 069 | 3 233 | 2 874 | 3 209 | 2 967 | 3 516 | 3 088 | 3 350 | 4 158 | 4 069 | 3 847 |

EDF

Aggregate Total

Cummulative Figures

Annual Figures

At 31.12.2019

RAL

% of allocation

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Decisions

Decisions

8

10 375

1

100 %

10 786

(42)

(45)

(60)

(64)

(98)

(63)

(12)

(13)

(9)

(4)

(2)

9

15 335

134

100 %

16 633

(54)

(116)

(9)

(297)

(72)

(381)

(170)

(104)

(38)

(33)

(22)

10

21 088

1 803

98 %

4 766

3 501

2 349

3 118

3 524

4 131

(95)

(156)

(80)

(5)

(147)

183

11

26 511

13 959

90 %

1 160

5 372

6 688

5 807

4 332

3 153

Total

Total

73 309

73 309

15 896

15 896

32 185

32 185

3 405

3 405

2 187

2 187

3 049

3 049

3 163

3 163

3 961

3 961

621

621

5 034

5 034

6 491

6 491

5 754

5 754

4 147

4 147

3 311

3 311

Assigned Funds

Assigned Funds

8

10 374

—

100 %

10 541

(42)

8

(13)

(46)

(11)

(37)

(16)

(6)

(3)

—

(1)

9

15 302

100

100 %

14 209

997

476

9

(187)

(96)

(1)

(52)

(46)

(20)

16

(4)

10

20 310

1 025

95 %

130

3 184

2 820

2 514

3 460

3 457

2 687

783

541

550

236

(51)

11

21 697

9 144

73 %

731

3 293

3 745

5 684

4 687

3 557

Total

Total

67 683

67 683

10 269

10 269

24 881

24 881

4 140

4 140

3 304

3 304

2 509

2 509

3 226

3 226

3 350

3 350

3 380

3 380

4 008

4 008

4 234

4 234

6 211

6 211

4 940

4 940

3 501

3 501

Payments

Payments

8

10 374

100 %

9 930

152

158

90

15

18

16

(3)

—

(1)

—

—

9

15 201

99 %

10 011

1 806

1 304

906

539

231

145

43

68

111

23

14

10

19 285

90 %

90

1 111

1 772

1 879

2 655

2 718

2 760

2 024

1 466

1 277

1 076

456

11

12 553

42 %

595

1 024

1 816

2 770

2 970

3 377

Total

Total

57 414

57 414

20 031

20 031

3 069

3 069

3 233

3 233

2 874

2 874

3 209

3 209

2 967

2 967

3 516

3 516

3 088

3 088

3 350

3 350

4 158

4 158

4 069

4 069

3 847

3 847

Table 2.2

Table 2.2

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2019

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2019

CLASS OF AID

CLASS OF AID

| EUR million |
| --- |
| | EDF |
| 8 | % | 9 | % | 10 | % | 11 | % | TOTAL | % |
| | (4) | (4) | (4) | (4) | (4) |
| Lomé | Sundry Income | | | | | | | | | | |
| Appropriations | 35 | | | | | | | | 35 | |
| Decisions | 35 | 100 % | | | | | | | 35 | 100 % |
| Assigned funds | 35 | 100 % | | | | | | | 35 | 100 % |
| Payments | 35 | 100 % | | | | | | | 35 | 100 % |
| Total indicative programmes | | | | | | | | | | |
| Appropriations | 4 985 | | | | | | | | 4 985 | |
| Decisions | 4 985 | 100 % | | | | | | | 4 985 | 100 % |
| Assigned funds | 4 985 | 100 % | | | | | | | 4 985 | 100 % |
| Payments | 4 985 | 100 % | | | | | | | 4 985 | 100 % |
| Total Non-Programmable Aid | | | | | | | | | | |
| Appropriations | 4 707 | | | | | | | | 4 707 | |
| Decisions | 4 706 | 100 % | | | | | | | 4 706 | 100 % |
| Assigned funds | 4 706 | 100 % | | | | | | | 4 706 | 100 % |
| Payments | 4 706 | 100 % | | | | | | | 4 706 | 100 % |
| Transfers from other funds | | | | | | | | | | |
| Appropriations | | | 670 | | | | | | 670 | |
| Decisions | | | 670 | 100 % | | | | | 670 | 100 % |
| Assigned funds | | | 670 | 100 % | | | | | 670 | 100 % |
| Payments | | | 670 | 100 % | | | | | 670 | 100 % |
| Regular MS Contributions | | | | | | | | | | |
| | |
| Cotonou | A Envelope — National Allocations | | | | | | | | | | |
| Appropriations | 417 | | 8 835 | | 12 939 | | 15 838 | | 38 029 | |
| Decisions | 417 | 100 % | 8 834 | 100 % | 12 837 | 99 % | 14 456 | 91 % | 36 545 | 96 % |
| Assigned funds | 417 | 100 % | 8 822 | 100 % | 12 621 | 98 % | 11 325 | 72 % | 33 186 | 87 % |
| Payments | 417 | 100 % | 8 800 | 100 % | 12 011 | 93 % | 6 248 | 39 % | 27 477 | 72 % |
| B Envelope — National Allocations | | | | | | | | | | |
| Appropriations | 233 | | 1 213 | | 2 006 | | 870 | | 4 322 | |
| Decisions | 231 | 99 % | 1 213 | 100 % | 2 005 | 100 % | 853 | 98 % | 4 301 | 100 % |
| Assigned funds | 231 | 99 % | 1 209 | 100 % | 1 984 | 99 % | 734 | 84 % | 4 158 | 96 % |
| Payments | 231 | 99 % | 1 203 | 99 % | 1 964 | 98 % | 644 | 74 % | 4 042 | 94 % |
| Cotonou | Bridging facility | | | | | | | | | | |
| Appropriations | | | | | | | — | | — | |
| Decisions | | | | | | | | | | |
| Assigned funds | | | | | | | | | | |
| Payments | | | | | | | | | | |
| CDE, CTA and Parliamentary Assembly | | | | | | | | | | |
| Appropriations | | | 154 | | | | | | 154 | |
| Decisions | | | 154 | 100 % | | | | | 154 | 100 % |
| Assigned funds | | | 154 | 100 % | | | | | 154 | 100 % |
| Payments | | | 154 | 100 % | | | | | 154 | 100 % |
| Implementation Costs and Interests Revenues | | | | | | | | | | |
| Appropriations | — | | 240 | | 535 | | 1 079 | | 1 855 | |
| Decisions | | | 240 | 100 % | 514 | 96 % | 871 | 81 % | 1 625 | 88 % |
| Assigned funds | | | 240 | 100 % | 512 | 96 % | 836 | 77 % | 1 588 | 86 % |
| Payments | | | 240 | 100 % | 512 | 96 % | 779 | 72 % | 1 531 | 83 % |
| Intra-ACP allocations | | | | | | | | | | |
| Appropriations | | | 2 937 | | 3 608 | | 3 988 | | 10 534 | |
| Decisions | | | 2 931 | 100 % | 3 600 | 100 % | 3 524 | 88 % | 10 054 | 95 % |
| Assigned funds | | | 2 924 | 100 % | 3 139 | 87 % | 3 020 | 76 % | 9 083 | 86 % |
| Payments | | | 2 920 | 99 % | 2 973 | 82 % | 2 256 | 57 % | 8 149 | 77 % |
| Regional allocations | | | | | | | | | | |
| Appropriations | | | 793 | | 1 941 | | 7 018 | | 9 752 | |
| Decisions | | | 792 | 100 % | 1 935 | 100 % | 6 748 | 96 % | 9 475 | 97 % |
| Assigned funds | | | 786 | 99 % | 1 863 | 96 % | 5 724 | 82 % | 8 373 | 86 % |
| Payments | | | 777 | 98 % | 1 658 | 85 % | 2 604 | 37 % | 5 040 | 52 % |
| Special allocation R.D. Congo | | | | | | | | | | |
| Appropriations | | | 105 | | | | | | 105 | |
| Decisions | | | 105 | 100 % | | | | | 105 | 100 % |
| Assigned funds | | | 105 | 100 % | | | | | 105 | 100 % |
| Payments | | | 105 | 100 % | | | | | 105 | 100 % |
| Special allocation South Sudan | | | | | | | | | | |
| Appropriations | | | 267 | | | | | | 267 | |
| Decisions | | | 266 | 100 % | | | | | 266 | 100 % |
| Assigned funds | | | 263 | 99 % | | | | | 263 | 99 % |
| Payments | | | 208 | 78 % | | | | | 208 | 78 % |
| Cotonou | Special allocation Sudan | | | | | | | | | | |
| Appropriations | | | 110 | | | | | | 110 | |
| Decisions | | | 107 | 97 % | | | | | 107 | 97 % |
| Assigned funds | | | 105 | 95 % | | | | | 105 | 95 % |
| Payments | | | 101 | 91 % | | | | | 101 | 91 % |
| Voluntary contribution Peace facility | | | | | | | | | | |
| Appropriations | | | 24 | | | | | | 24 | |
| Decisions | | | 24 | 100 % | | | | | 24 | 100 % |
| Assigned funds | | | 24 | 100 % | | | | | 24 | 100 % |
| Payments | | | 24 | 100 % | | | | | 24 | 100 % |
| Regular MS Contributions | | | | | | | | | | |
| A Envelope — National Allocations | | | | | | | | | | |
| Appropriations | | | | | 185 | | 42 | | 227 | |
| Decisions | | | | | 181 | 98 % | 31 | 75 % | 212 | 94 % |
| Assigned funds | | | | | 177 | 96 % | 31 | 75 % | 208 | 92 % |
| Payments | | | | | 152 | 82 % | 2 | 5 % | 154 | 68 % |
| Implementation Costs and Interests Revenues | | | | | | | | | | |
| Appropriations | | | | | 5 | | 3 | | 8 | |
| Decisions | | | | | 5 | 100 % | 3 | 86 % | 8 | 95 % |
| Assigned funds | | | | | 3 | 65 % | 1 | 24 % | 4 | 49 % |
| Payments | | | | | 3 | 51 % | — | 1 % | 3 | 31 % |
| Intra-ACP allocations | | | | | | | | | | |
| Appropriations | | | | | 12 | | 24 | | 36 | |
| Decisions | | | | | 11 | 92 % | 23 | 95 % | 34 | 94 % |
| Assigned funds | | | | | 11 | 91 % | 22 | 93 % | 33 | 92 % |
| Payments | | | | | 11 | 91 % | 17 | 73 % | 29 | 79 % |
| Regional allocations | | | | | | | | | | |
| Appropriations | | | | | | | 4 | | 4 | |
| Decisions | | | | | | | 2 | 50 % | 2 | 50 % |
| Assigned funds | | | | | | | 2 | 50 % | 2 | 50 % |
| Payments | | | | | | | 2 | 50 % | 2 | 50 % |
| Co-financing | | | | | | | | | | |
| Cotonou | A Envelope — National Allocations | | | | | | | | | | |
| Appropriations | | | | | | | 1 | | 1 | |
| Decisions | | | | | | | 1 | 71 % | 1 | 71 % |
| Assigned funds | | | | | | | 1 | 52 % | 1 | 52 % |
| Payments | | | | | | | 1 | 52 % | 1 | 52 % |
| EC Internal SLA | | | | | | | | | | |
| | |
| | Appropriations | 8 | % | 9 | % | 10 | % | 11 | % | TOTAL | % |
| | (4) | (4) | (4) | (4) | (4) |
| Cotonou | Country reserve | | | | | — | | — | | — | |
| Intra-ACP Reserve | | | | | — | | 27 | | 27 | |
| National allocations Reserve A Envelope STABEX | | | | | — | | — | | — | |
| NIP/RIP reserve | | | | | — | | 571 | | 571 | |
| Regional allocations reserve | | | | | — | | | | — | |
| Mobilisable reserves | | | | | | | | | | |
| Non-mobilisable reserve | | | | | 197 | | 142 | | 340 | |
| Non-mobilisable reserve | | | | | | | | | | |
| | | 8 | % | 9 | % | 10 | % | 11 | % | TOTAL | % |
| | (4) | (4) | (4) | (4) | (4) |
| | Appropriations | 10 378 | | 15 348 | | 21 630 | | 29 608 | | 76 964 | |
| Decisions | 10 375 | 100 % | 15 335 | 100 % | 21 088 | 97 % | 26 511 | 90 % | 73 309 | 95 % |
| Assigned funds | 10 374 | 100 % | 15 302 | 100 % | 20 310 | 94 % | 21 697 | 73 % | 67 683 | 88 % |
| Payments | 10 374 | 100 % | 15 201 | 99 % | 19 285 | 89 % | 12 553 | 42 % | 57 414 | 75 % |
| TOTAL: ALL ALLOCATIONS | | | | | | | | | | |

EUR million

EDF

8

%

9

%

10

%

11

%

TOTAL

%

(4)

4

(4)

4

(4)

4

(4)

4

(4)

4

Lomé

Lomé

Sundry Income

Sundry Income

Appropriations

35

35

Decisions

35

100 %

35

100 %

Assigned funds

35

100 %

35

100 %

Payments

35

100 %

35

100 %

Total indicative programmes

Total indicative programmes

Appropriations

4 985

4 985

Decisions

4 985

100 %

4 985

100 %

Assigned funds

4 985

100 %

4 985

100 %

Payments

4 985

100 %

4 985

100 %

Total Non-Programmable Aid

Total Non-Programmable Aid

Appropriations

4 707

4 707

Decisions

4 706

100 %

4 706

100 %

Assigned funds

4 706

100 %

4 706

100 %

Payments

4 706

100 %

4 706

100 %

Transfers from other funds

Transfers from other funds

Appropriations

670

670

Decisions

670

100 %

670

100 %

Assigned funds

670

100 %

670

100 %

Payments

670

100 %

670

100 %

Regular MS Contributions

Regular MS Contributions

Cotonou

Cotonou

A Envelope — National Allocations

A Envelope — National Allocations

Appropriations

417

8 835

12 939

15 838

38 029

Decisions

417

100 %

8 834

100 %

12 837

99 %

14 456

91 %

36 545

96 %

Assigned funds

417

100 %

8 822

100 %

12 621

98 %

11 325

72 %

33 186

87 %

Payments

417

100 %

8 800

100 %

12 011

93 %

6 248

39 %

27 477

72 %

B Envelope — National Allocations

B Envelope — National Allocations

Appropriations

233

1 213

2 006

870

4 322

Decisions

231

99 %

1 213

100 %

2 005

100 %

853

98 %

4 301

100 %

Assigned funds

231

99 %

1 209

100 %

1 984

99 %

734

84 %

4 158

96 %

Payments

231

99 %

1 203

99 %

1 964

98 %

644

74 %

4 042

94 %

Cotonou

Cotonou

Bridging facility

Bridging facility

Appropriations

—

—

Decisions

Assigned funds

Payments

CDE, CTA and Parliamentary Assembly

CDE, CTA and Parliamentary Assembly

Appropriations

154

154

Decisions

154

100 %

154

100 %

Assigned funds

154

100 %

154

100 %

Payments

154

100 %

154

100 %

Implementation Costs and Interests Revenues

Implementation Costs and Interests Revenues

Appropriations

—

240

535

1 079

1 855

Decisions

240

100 %

514

96 %

871

81 %

1 625

88 %

Assigned funds

240

100 %

512

96 %

836

77 %

1 588

86 %

Payments

240

100 %

512

96 %

779

72 %

1 531

83 %

Intra-ACP allocations

Intra-ACP allocations

Appropriations

2 937

3 608

3 988

10 534

Decisions

2 931

100 %

3 600

100 %

3 524

88 %

10 054

95 %

Assigned funds

2 924

100 %

3 139

87 %

3 020

76 %

9 083

86 %

Payments

2 920

99 %

2 973

82 %

2 256

57 %

8 149

77 %

Regional allocations

Regional allocations

Appropriations

793

1 941

7 018

9 752

Decisions

792

100 %

1 935

100 %

6 748

96 %

9 475

97 %

Assigned funds

786

99 %

1 863

96 %

5 724

82 %

8 373

86 %

Payments

777

98 %

1 658

85 %

2 604

37 %

5 040

52 %

Special allocation R.D. Congo

Special allocation R.D. Congo

Appropriations

105

105

Decisions

105

100 %

105

100 %

Assigned funds

105

100 %

105

100 %

Payments

105

100 %

105

100 %

Special allocation South Sudan

Special allocation South Sudan

Appropriations

267

267

Decisions

266

100 %

266

100 %

Assigned funds

263

99 %

263

99 %

Payments

208

78 %

208

78 %

Cotonou

Cotonou

Special allocation Sudan

Special allocation Sudan

Appropriations

110

110

Decisions

107

97 %

107

97 %

Assigned funds

105

95 %

105

95 %

Payments

101

91 %

101

91 %

Voluntary contribution Peace facility

Voluntary contribution Peace facility

Appropriations

24

24

Decisions

24

100 %

24

100 %

Assigned funds

24

100 %

24

100 %

Payments

24

100 %

24

100 %

Regular MS Contributions

Regular MS Contributions

A Envelope — National Allocations

A Envelope — National Allocations

Appropriations

185

42

227

Decisions

181

98 %

31

75 %

212

94 %

Assigned funds

177

96 %

31

75 %

208

92 %

Payments

152

82 %

2

5 %

154

68 %

Implementation Costs and Interests Revenues

Implementation Costs and Interests Revenues

Appropriations

5

3

8

Decisions

5

100 %

3

86 %

8

95 %

Assigned funds

3

65 %

1

24 %

4

49 %

Payments

3

51 %

—

1 %

3

31 %

Intra-ACP allocations

Intra-ACP allocations

Appropriations

12

24

36

Decisions

11

92 %

23

95 %

34

94 %

Assigned funds

11

91 %

22

93 %

33

92 %

Payments

11

91 %

17

73 %

29

79 %

Regional allocations

Regional allocations

Appropriations

4

4

Decisions

2

50 %

2

50 %

Assigned funds

2

50 %

2

50 %

Payments

2

50 %

2

50 %

Co-financing

Co-financing

Cotonou

Cotonou

A Envelope — National Allocations

A Envelope — National Allocations

Appropriations

1

1

Decisions

1

71 %

1

71 %

Assigned funds

1

52 %

1

52 %

Payments

1

52 %

1

52 %

EC Internal SLA

EC Internal SLA

Appropriations

8

%

9

%

10

%

11

%

TOTAL

%

(4)

4

(4)

4

(4)

4

(4)

4

(4)

4

Cotonou

Cotonou

Country reserve

—

—

—

—

—

—

Intra-ACP Reserve

—

—

27

27

27

27

National allocations Reserve A Envelope STABEX

—

—

—

—

—

—

NIP/RIP reserve

—

—

571

571

571

571

Regional allocations reserve

—

—

—

—

Mobilisable reserves

Mobilisable reserves

Non-mobilisable reserve

197

197

142

142

340

340

Non-mobilisable reserve

Non-mobilisable reserve

8

%

9

%

10

%

11

%

TOTAL

%

(4)

4

(4)

4

(4)

4

(4)

4

(4)

4

Appropriations

10 378

15 348

21 630

29 608

76 964

Decisions

10 375

100 %

15 335

100 %

21 088

97 %

26 511

90 %

73 309

95 %

Assigned funds

10 374

100 %

15 302

100 %

20 310

94 %

21 697

73 %

67 683

88 %

Payments

10 374

100 %

15 201

99 %

19 285

89 %

12 553

42 %

57 414

75 %

TOTAL: ALL ALLOCATIONS

TOTAL: ALL ALLOCATIONS

Table 2.3

Table 2.3

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2019

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2019

CLASS OF AID

CLASS OF AID

ACP + PTOM — 8 th EDF

ACP + PTOM — 8 th EDF

| EUR million |
| --- |
| | | CREDITS | DECISIONS | ASSIGNED FUNDS | PAYMENTS |
| AGGREG. | ANNUAL | % | AGGREG. | ANNUAL | % | AGGREG. | ANNUAL | % |
| (1) | (2) | | (2):(1) | (3) | | (3):(2) | (4) | | (4):(3) |
| Lomé | ACP


  Regular MS Contributions | | | | | | | | | | |
| Total indicative programmes | 29 | 29 | | 100 % | 29 | | 100 % | 29 | | 100 % |
| SUBTOTAL: TOTAL INDICATIVE PROGRAMMES | 29 | 29 | | 100 % | 29 | | 100 % | 29 | | 100 % |
| Structural adjustment | 18 | 18 | | 100 % | 18 | | 100 % | 18 | | 100 % |
| SUBTOTAL: TOTAL NON-PROGRAMMABLE AID | 18 | 18 | | 100 % | 18 | | 100 % | 18 | | 100 % |
| TOTAL ACP | 47 | 47 | | 100 % | 47 | | 100 % | 47 | | 100 % |
| Lomé | ACP


  Regular MS Contributions | | | | | | | | | | |
| Utilisation of interest income | 35 | 35 | | 100 % | 35 | | 100 % | 35 | | 100 % |
| SUBTOTAL: SUNDRY INCOME | 35 | 35 | | 100 % | 35 | | 100 % | 35 | | 100 % |
| Total indicative programmes | 4 921 | 4 921 | — | 100 % | 4 921 | — | 100 % | 4 921 | — | 100 % |
| SUBTOTAL: TOTAL INDICATIVE PROGRAMMES | 4 921 | 4 921 | — | 100 % | 4 921 | — | 100 % | 4 921 | — | 100 % |
| Aid for refugees | 100 | 100 | | 100 % | 100 | | 100 % | 100 | | 100 % |
| Emergency aid (Lomé) | 136 | 136 | | 100 % | 136 | | 100 % | 136 | | 100 % |
| Heavily indebted poor countries (Lomé) | 1 060 | 1 060 | | 100 % | 1 060 | | 100 % | 1 060 | | 100 % |
| Interest-rate subsidies | 69 | 69 | — | 100 % | 68 | | 100 % | 68 | | 100 % |
| Risk capital | 1 012 | 1 012 | | 100 % | 1 012 | | 100 % | 1 012 | | 100 % |
| Stabex | 723 | 722 | — | 100 % | 722 | | 100 % | 722 | | 100 % |
| Structural adjustment | 1 479 | 1 479 | | 100 % | 1 479 | | 100 % | 1 479 | | 100 % |
| Sysmin | 101 | 101 | | 100 % | 101 | | 100 % | 101 | | 100 % |
| SUBTOTAL: TOTAL NON-PROGRAMMABLE AID | 4 679 | 4 678 | — | 100 % | 4 677 | | 100 % | 4 677 | | 100 % |
| Cotonou | ACP


  Regular MS Contributions | | | | | | | | | | |
| A Envelope — National Allocations | 417 | 417 | — | 100 % | 417 | — | 100 % | 417 | | 100 % |
| SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 417 | 417 | — | 100 % | 417 | — | 100 % | 417 | | 100 % |
| B Envelope — National Allocations | 233 | | | | | | | | | |
| Compensation export earnings | | 231 | (2) | | 231 | — | 100 % | 231 | | 100 % |
| SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS | 233 | 231 | (2) | 99 % | 231 | — | 100 % | 231 | | 100 % |
| Interests and other receipts | — | | | | | | | | | |
| SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | — | | | | | | | | | |
| | TOTAL ACP (A) | 10 285 | 10 282 | (2) | 100 % | 10 282 | (1) | 100 % | 10 282 | — | 100 % |
| Lomé | OCT


  Regular MS Contributions | | | | | | | | | | |
| Total indicative programmes | 35 | 35 | | 100 % | 35 | | 100 % | 35 | | 100 % |
| SUBTOTAL: TOTAL INDICATIVE PROGRAMMES | 35 | 35 | | 100 % | 35 | | 100 % | 35 | | 100 % |
| Interest-rate subsidies | 1 | 1 | | 100 % | 1 | | 100 % | 1 | | 100 % |
| Risk capital | 6 | 6 | | 100 % | 6 | | 100 % | 6 | | 100 % |
| Stabex | 1 | 1 | | 100 % | 1 | | 100 % | 1 | | 100 % |
| Sysmin | 2 | 2 | | 100 % | 2 | | 100 % | 2 | | 100 % |
| SUBTOTAL: TOTAL NON-PROGRAMMABLE AID | 10 | 10 | | 100 % | 10 | | 100 % | 10 | | 100 % |
| | TOTAL OCT | 46 | 46 | | 100 % | 46 | | 100 % | 46 | | 100 % |
| | TOTAL: ACP+OCT (A+B) | 10 378 | 10 375 | (2) | 100 % | 10 374 | (1) | 100 % | 10 374 | — | 100 % |

EUR million

CREDITS

DECISIONS

ASSIGNED FUNDS

PAYMENTS

AGGREG.

ANNUAL

%

AGGREG.

ANNUAL

%

AGGREG.

ANNUAL

%

(1)

(2)

(2):(1)

(3)

(3):(2)

(4)

(4):(3)

Lomé

Lomé

ACP

ACP

Regular MS Contributions

Regular MS Contributions

Total indicative programmes

29

29

100 %

29

100 %

29

100 %

SUBTOTAL: TOTAL INDICATIVE PROGRAMMES

SUBTOTAL: TOTAL INDICATIVE PROGRAMMES

29

29

29

29

100 %

100 %

29

29

100 %

100 %

29

29

100 %

100 %

Structural adjustment

18

18

100 %

18

100 %

18

100 %

SUBTOTAL: TOTAL NON-PROGRAMMABLE AID

SUBTOTAL: TOTAL NON-PROGRAMMABLE AID

18

18

18

18

100 %

100 %

18

18

100 %

100 %

18

18

100 %

100 %

TOTAL ACP

TOTAL ACP

47

47

47

47

100 %

100 %

47

47

100 %

100 %

47

47

100 %

100 %

Lomé

Lomé

ACP

ACP

Regular MS Contributions

Regular MS Contributions

Utilisation of interest income

35

35

100 %

35

100 %

35

100 %

SUBTOTAL: SUNDRY INCOME

SUBTOTAL: SUNDRY INCOME

35

35

35

35

100 %

100 %

35

35

100 %

100 %

35

35

100 %

100 %

Total indicative programmes

4 921

4 921

—

100 %

4 921

—

100 %

4 921

—

100 %

SUBTOTAL: TOTAL INDICATIVE PROGRAMMES

SUBTOTAL: TOTAL INDICATIVE PROGRAMMES

4 921

4 921

4 921

4 921

—

—

100 %

100 %

4 921

4 921

—

—

100 %

100 %

4 921

4 921

—

—

100 %

100 %

Aid for refugees

100

100

100 %

100

100 %

100

100 %

Emergency aid (Lomé)

136

136

100 %

136

100 %

136

100 %

Heavily indebted poor countries (Lomé)

1 060

1 060

100 %

1 060

100 %

1 060

100 %

Interest-rate subsidies

69

69

—

100 %

68

100 %

68

100 %

Risk capital

1 012

1 012

100 %

1 012

100 %

1 012

100 %

Stabex

723

722

—

100 %

722

100 %

722

100 %

Structural adjustment

1 479

1 479

100 %

1 479

100 %

1 479

100 %

Sysmin

101

101

100 %

101

100 %

101

100 %

SUBTOTAL: TOTAL NON-PROGRAMMABLE AID

SUBTOTAL: TOTAL NON-PROGRAMMABLE AID

4 679

4 679

4 678

4 678

—

—

100 %

100 %

4 677

4 677

100 %

100 %

4 677

4 677

100 %

100 %

Cotonou

Cotonou

ACP

ACP

Regular MS Contributions

Regular MS Contributions

A Envelope — National Allocations

417

417

—

100 %

417

—

100 %

417

100 %

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

417

417

417

417

—

100 %

100 %

417

417

—

100 %

100 %

417

417

100 %

100 %

B Envelope — National Allocations

233

Compensation export earnings

231

(2)

231

—

100 %

231

100 %

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

233

233

231

231

(2)

(2)

99 %

99 %

231

231

—

—

100 %

100 %

231

231

100 %

100 %

Interests and other receipts

—

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

—

—

TOTAL ACP (A)

TOTAL ACP (A)

10 285

10 285

10 282

10 282

(2)

(2)

100 %

100 %

10 282

10 282

(1)

(1)

100 %

100 %

10 282

10 282

—

—

100 %

100 %

Lomé

Lomé

OCT

OCT

Regular MS Contributions

Regular MS Contributions

Total indicative programmes

35

35

100 %

35

100 %

35

100 %

SUBTOTAL: TOTAL INDICATIVE PROGRAMMES

SUBTOTAL: TOTAL INDICATIVE PROGRAMMES

35

35

35

35

100 %

100 %

35

35

100 %

100 %

35

35

100 %

100 %

Interest-rate subsidies

1

1

100 %

1

100 %

1

100 %

Risk capital

6

6

100 %

6

100 %

6

100 %

Stabex

1

1

100 %

1

100 %

1

100 %

Sysmin

2

2

100 %

2

100 %

2

100 %

SUBTOTAL: TOTAL NON-PROGRAMMABLE AID

SUBTOTAL: TOTAL NON-PROGRAMMABLE AID

10

10

10

10

100 %

100 %

10

10

100 %

100 %

10

10

100 %

100 %

TOTAL OCT

TOTAL OCT

46

46

46

46

100 %

100 %

46

46

100 %

100 %

46

46

100 %

100 %

TOTAL: ACP+OCT (A+B)

TOTAL: ACP+OCT (A+B)

10 378

10 378

10 375

10 375

(2)

(2)

100 %

100 %

10 374

10 374

(1)

(1)

100 %

100 %

10 374

10 374

—

—

100 %

100 %

Table 2.4

Table 2.4

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2019

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2019

CLASS OF AID

CLASS OF AID

ACP + PTOM — 9 th EDF

ACP + PTOM — 9 th EDF

| EUR million |
| --- |
| | | CREDITS | DECISIONS | ASSIGNED FUNDS | PAYMENTS |
| AGGREG. | ANNUAL | % | AGGREG. | ANNUAL | % | AGGREG. | ANNUAL | % |
| (1) | (2) | | (2):(1) | (3) | | (3):(2) | (4) | | (4):(3) |
| Lomé | ACP | | | | | | | | | | |
| Regular MS Contributions | | | | | | | | | | |
| Transfers from 7th EDF — Lomé | — | — | | 100 % | — | | 100 % | — | | 100 % |
| SUBTOTAL: TRANSFERS FROM OTHER FUNDS | — | — | | 100 % | — | | 100 % | — | | 100 % |
| Cotonou | ACP | | | | | | | | | | |
| Regular MS Contributions | | | | | | | | | | |
| A Envelope — National Allocations | 44 | 44 | | 100 % | 44 | | 100 % | 44 | | 100 % |
| SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 44 | 44 | | 100 % | 44 | | 100 % | 44 | | 100 % |
| B Envelope — National Allocations | 6 | | | | | | | | | |
| Emergency aid | | 6 | | | 6 | | 100 % | 6 | | 100 % |
| SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS | 6 | 6 | | 100 % | 6 | | 100 % | 6 | | 100 % |
| TOTAL: ACP | 50 | 50 | | 100 % | 50 | | 100 % | 50 | | 100 % |
| Lomé | ACP | | | | | | | | | | |
| Regular MS Contributions | | | | | | | | | | |
| Transfers from 6th EDF — Lomé | 20 | 20 | | 100 % | 20 | | 100 % | 20 | | 100 % |
| Transfers from 7th EDF — Lomé | 647 | 647 | — | 100 % | 646 | (1) | 100 % | 646 | — | 100 % |
| SUBTOTAL: TRANSFERS FROM OTHER FUNDS | 667 | 667 | — | 100 % | 667 | (1) | 100 % | 667 | — | 100 % |
| Cotonou | ACP | | | | | | | | | | |
| Regular MS Contributions | | | | | | | | | | |
| A Envelope — National Allocations | 8 554 | 8 553 | (3) | 100 % | 8 543 | (3) | 100 % | 8 521 | 1 | 100 % |
| SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 8 554 | 8 553 | (3) | 100 % | 8 543 | (3) | 100 % | 8 521 | 1 | 100 % |
| B Envelope — National Allocations | 1 203 | | | | | | | | | |
| Compensation export earnings | | 148 | | | 148 | | 100 % | 148 | | 100 % |
| Emergency aid | | 1 044 | — | | 1 040 | — | 100 % | 1 034 | — | 99 % |
| Heavily indebted poor countries | | 11 | | | 11 | | 100 % | 11 | | 100 % |
| SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS | 1 203 | 1 203 | — | 100 % | 1 199 | — | 100 % | 1 193 | — | 100 % |
| CDE, CTA and Parliamentary Assembly | 154 | 154 | | 100 % | 154 | | 100 % | 154 | | 100 % |
| SUBTOTAL: CDE, CTA AND PARLIAMENTARY ASSEMBLY | 154 | 154 | | 100 % | 154 | | 100 % | 154 | | 100 % |
| Cotonou | Implementation costs | 177 | 177 | | 100 % | 177 | | 100 % | 177 | | 100 % |
| Interests and other receipts | 63 | 63 | | 100 % | 63 | | 100 % | 63 | | 100 % |
| SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | 239 | 239 | | 100 % | 239 | | 100 % | 239 | | 100 % |
| Other Intra-ACP allocations | 2 584 | 2 578 | (9) | 100 % | 2 571 | (7) | 100 % | 2 567 | (1) | 100 % |
| Peace facility | 353 | 353 | | 100 % | 353 | | 100 % | 353 | | 100 % |
| SUBTOTAL: INTRA-ACP ALLOCATIONS | 2 937 | 2 931 | (9) | 100 % | 2 924 | (7) | 100 % | 2 920 | (1) | 100 % |
| Regional allocations | 749 | 748 | (8) | 100 % | 741 | (4) | 99 % | 732 | 4 | 99 % |
| SUBTOTAL: REGIONAL ALLOCATIONS | 749 | 748 | (8) | 100 % | 741 | (4) | 99 % | 732 | 4 | 99 % |
| Special allocation R.D. Congo | 105 | 105 | | 100 % | 105 | | 100 % | 105 | | 100 % |
| SUBTOTAL: SPECIAL ALLOCATION R.D. CONGO | 105 | 105 | | 100 % | 105 | | 100 % | 105 | | 100 % |
| Special allocation South Sudan | 267 | 266 | (1) | 100 % | 263 | 10 | 99 % | 208 | 8 | 79 % |
| SUBTOTAL: SPECIAL ALLOCATION SOUTH SUDAN | 267 | 266 | (1) | 100 % | 263 | 10 | 99 % | 208 | 8 | 79 % |
| Special allocation Sudan | 110 | 107 | — | 97 % | 105 | (1) | 98 % | 101 | 3 | 96 % |
| SUBTOTAL: SPECIAL ALLOCATION SUDAN | 110 | 107 | — | 97 % | 105 | (1) | 98 % | 101 | 3 | 96 % |
| Voluntary contribution Peace facility | 24 | 24 | | 100 % | 24 | | 100 % | 24 | | 100 % |
| SUBTOTAL: VOLUNTARY CONTRIBUTION PEACE FACILITY | 24 | 24 | | 100 % | 24 | | 100 % | 24 | | 100 % |
| | TOTAL: ACP (A) | 15 009 | 14 996 | (21) | 100 % | 14 964 | (4) | 100 % | 14 864 | 14 | 99 % |
| Lomé | OCT | | | | | | | | | | |
| Regular MS Contributions | | | | | | | | | | |
| Transfers from 6th EDF — Lomé | — | — | | 100 % | — | | 100 % | — | | 100 % |
| Transfers from 7th EDF — Lomé | 3 | 3 | | 100 % | 3 | | 100 % | 3 | | 100 % |
| SUBTOTAL: TRANSFERS FROM OTHER FUNDS | 3 | 3 | | 100 % | 3 | | 100 % | 3 | | 100 % |
| Cotonou | OCT | | | | | | | | | | |
| Regular MS Contributions | | | | | | | | | | |
| A Envelope — National Allocations | 236 | 236 | — | 100 % | 235 | — | 99 % | 235 | — | 100 % |
| SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 236 | 236 | — | 100 % | 235 | — | 99 % | 235 | — | 100 % |
| B Envelope — National Allocations | 4 | | | | | | | | | |
| Emergency aid | | 4 | | | 4 | | 100 % | 4 | | 100 % |
| SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS | 4 | 4 | | 100 % | 4 | | 100 % | 4 | | 100 % |
| Studies / Technical assistance OCT | 1 | 1 | | 100 % | 1 | | 100 % | 1 | | 100 % |
| SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | 1 | 1 | | 100 % | 1 | | 100 % | 1 | | 100 % |
| Regional allocations | 45 | 45 | — | 100 % | 45 | | 100 % | 45 | | 100 % |
| SUBTOTAL: REGIONAL ALLOCATIONS | 45 | 45 | — | 100 % | 45 | | 100 % | 45 | | 100 % |
| | TOTAL: OCT | 289 | 289 | (1) | 100 % | 288 | — | 99 % | 288 | — | 100 % |
| | TOTAL: ACP+OCT (A+B) | 15 348 | 15 335 | (22) | 100 % | 15 302 | (4) | 100 % | 15 201 | 14 | 99 % |

EUR million

CREDITS

DECISIONS

ASSIGNED FUNDS

PAYMENTS

AGGREG.

ANNUAL

%

AGGREG.

ANNUAL

%

AGGREG.

ANNUAL

%

(1)

(2)

(2):(1)

(3)

(3):(2)

(4)

(4):(3)

Lomé

Lomé

ACP

ACP

Regular MS Contributions

Regular MS Contributions

Transfers from 7th EDF — Lomé

—

—

100 %

—

100 %

—

100 %

SUBTOTAL: TRANSFERS FROM OTHER FUNDS

SUBTOTAL: TRANSFERS FROM OTHER FUNDS

—

—

—

—

100 %

100 %

—

—

100 %

100 %

—

—

100 %

100 %

Cotonou

Cotonou

ACP

ACP

Regular MS Contributions

Regular MS Contributions

A Envelope — National Allocations

44

44

100 %

44

100 %

44

100 %

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

44

44

44

44

100 %

100 %

44

44

100 %

100 %

44

44

100 %

100 %

B Envelope — National Allocations

6

Emergency aid

6

6

100 %

6

100 %

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

6

6

6

6

100 %

100 %

6

6

100 %

100 %

6

6

100 %

100 %

TOTAL: ACP

TOTAL: ACP

50

50

50

50

100 %

100 %

50

50

100 %

100 %

50

50

100 %

100 %

Lomé

Lomé

ACP

ACP

Regular MS Contributions

Regular MS Contributions

Transfers from 6th EDF — Lomé

20

20

100 %

20

100 %

20

100 %

Transfers from 7th EDF — Lomé

647

647

—

100 %

646

(1)

100 %

646

—

100 %

SUBTOTAL: TRANSFERS FROM OTHER FUNDS

SUBTOTAL: TRANSFERS FROM OTHER FUNDS

667

667

667

667

—

—

100 %

100 %

667

667

(1)

(1)

100 %

100 %

667

667

—

—

100 %

100 %

Cotonou

Cotonou

ACP

ACP

Regular MS Contributions

Regular MS Contributions

A Envelope — National Allocations

8 554

8 553

(3)

100 %

8 543

(3)

100 %

8 521

1

100 %

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

8 554

8 554

8 553

8 553

(3)

(3)

100 %

100 %

8 543

8 543

(3)

(3)

100 %

100 %

8 521

8 521

1

1

100 %

100 %

B Envelope — National Allocations

1 203

Compensation export earnings

148

148

100 %

148

100 %

Emergency aid

1 044

—

1 040

—

100 %

1 034

—

99 %

Heavily indebted poor countries

11

11

100 %

11

100 %

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

1 203

1 203

1 203

1 203

—

—

100 %

100 %

1 199

1 199

—

—

100 %

100 %

1 193

1 193

—

—

100 %

100 %

CDE, CTA and Parliamentary Assembly

154

154

100 %

154

100 %

154

100 %

SUBTOTAL: CDE, CTA AND PARLIAMENTARY ASSEMBLY

SUBTOTAL: CDE, CTA AND PARLIAMENTARY ASSEMBLY

154

154

154

154

100 %

100 %

154

154

100 %

100 %

154

154

100 %

100 %

Cotonou

Cotonou

Implementation costs

177

177

100 %

177

100 %

177

100 %

Interests and other receipts

63

63

100 %

63

100 %

63

100 %

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

239

239

239

239

100 %

100 %

239

239

100 %

100 %

239

239

100 %

100 %

Other Intra-ACP allocations

2 584

2 578

(9)

100 %

2 571

(7)

100 %

2 567

(1)

100 %

Peace facility

353

353

100 %

353

100 %

353

100 %

SUBTOTAL: INTRA-ACP ALLOCATIONS

SUBTOTAL: INTRA-ACP ALLOCATIONS

2 937

2 937

2 931

2 931

(9)

(9)

100 %

100 %

2 924

2 924

(7)

(7)

100 %

100 %

2 920

2 920

(1)

(1)

100 %

100 %

Regional allocations

749

748

(8)

100 %

741

(4)

99 %

732

4

99 %

SUBTOTAL: REGIONAL ALLOCATIONS

SUBTOTAL: REGIONAL ALLOCATIONS

749

749

748

748

(8)

(8)

100 %

100 %

741

741

(4)

(4)

99 %

99 %

732

732

4

4

99 %

99 %

Special allocation R.D. Congo

105

105

100 %

105

100 %

105

100 %

SUBTOTAL: SPECIAL ALLOCATION R.D. CONGO

SUBTOTAL: SPECIAL ALLOCATION R.D. CONGO

105

105

105

105

100 %

100 %

105

105

100 %

100 %

105

105

100 %

100 %

Special allocation South Sudan

267

266

(1)

100 %

263

10

99 %

208

8

79 %

SUBTOTAL: SPECIAL ALLOCATION SOUTH SUDAN

SUBTOTAL: SPECIAL ALLOCATION SOUTH SUDAN

267

267

266

266

(1)

(1)

100 %

100 %

263

263

10

10

99 %

99 %

208

208

8

8

79 %

79 %

Special allocation Sudan

110

107

—

97 %

105

(1)

98 %

101

3

96 %

SUBTOTAL: SPECIAL ALLOCATION SUDAN

SUBTOTAL: SPECIAL ALLOCATION SUDAN

110

110

107

107

—

—

97 %

97 %

105

105

(1)

(1)

98 %

98 %

101

101

3

3

96 %

96 %

Voluntary contribution Peace facility

24

24

100 %

24

100 %

24

100 %

SUBTOTAL: VOLUNTARY CONTRIBUTION PEACE FACILITY

SUBTOTAL: VOLUNTARY CONTRIBUTION PEACE FACILITY

24

24

24

24

100 %

100 %

24

24

100 %

100 %

24

24

100 %

100 %

TOTAL: ACP (A)

TOTAL: ACP (A)

15 009

15 009

14 996

14 996

(21)

(21)

100 %

100 %

14 964

14 964

(4)

(4)

100 %

100 %

14 864

14 864

14

14

99 %

99 %

Lomé

Lomé

OCT

OCT

Regular MS Contributions

Regular MS Contributions

Transfers from 6th EDF — Lomé

—

—

100 %

—

100 %

—

100 %

Transfers from 7th EDF — Lomé

3

3

100 %

3

100 %

3

100 %

SUBTOTAL: TRANSFERS FROM OTHER FUNDS

SUBTOTAL: TRANSFERS FROM OTHER FUNDS

3

3

3

3

100 %

100 %

3

3

100 %

100 %

3

3

100 %

100 %

Cotonou

Cotonou

OCT

OCT

Regular MS Contributions

Regular MS Contributions

A Envelope — National Allocations

236

236

—

100 %

235

—

99 %

235

—

100 %

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

236

236

236

236

—

—

100 %

100 %

235

235

—

—

99 %

99 %

235

235

—

—

100 %

100 %

B Envelope — National Allocations

4

Emergency aid

4

4

100 %

4

100 %

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

4

4

4

4

100 %

100 %

4

4

100 %

100 %

4

4

100 %

100 %

Studies / Technical assistance OCT

1

1

100 %

1

100 %

1

100 %

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

1

1

1

1

100 %

100 %

1

1

100 %

100 %

1

1

100 %

100 %

Regional allocations

45

45

—

100 %

45

100 %

45

100 %

SUBTOTAL: REGIONAL ALLOCATIONS

SUBTOTAL: REGIONAL ALLOCATIONS

45

45

45

45

—

—

100 %

100 %

45

45

100 %

100 %

45

45

100 %

100 %

TOTAL: OCT

TOTAL: OCT

289

289

289

289

(1)

(1)

100 %

100 %

288

288

—

—

99 %

99 %

288

288

—

—

100 %

100 %

TOTAL: ACP+OCT (A+B)

TOTAL: ACP+OCT (A+B)

15 348

15 348

15 335

15 335

(22)

(22)

100 %

100 %

15 302

15 302

(4)

(4)

100 %

100 %

15 201

15 201

14

14

99 %

99 %

Table 2.5

Table 2.5

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2019

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2019

CLASS OF AID

CLASS OF AID

ACP + PTOM — 10 th EDF

ACP + PTOM — 10 th EDF

| EUR million |
| --- |
| | | CREDITS | DECISIONS | ASSIGNED FUNDS | PAYMENTS |
| AGGREG. | ANNUAL | % | AGGREG. | ANNUAL | % | AGGREG. | ANNUAL | % |
| (1) | (2) | | (2):(1) | (3) | | (3):(2) | (4) | | (4):(3) |
| ACP | Regular MS Contributions | | | | | | | | | | |
| Allocations | | | | | | | | | | |
| A Envelope — National Allocations | 56 | 56 | (1) | 100 % | 56 | — | 99 % | 56 | — | 100 % |
| SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 56 | 56 | (1) | 100 % | 56 | — | 99 % | 56 | — | 100 % |
| B Envelope — National Allocations | 9 | | | | | | | | | |
| Other chocs with budgetary impact | | 9 | | | 9 | | 100 % | 9 | | 100 % |
| SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS | 9 | 9 | | 100 % | 9 | | 100 % | 9 | | 100 % |
| Mobilisable reserves | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| National allocations Reserve A Envelope STABEX | — | | | | | | | | | |
| SUBTOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX | — | | | | | | | | | |
| ACP | Regular MS Contributions | | | | | | | | | | |
| Allocations | | | | | | | | | | |
| A Envelope — National Allocations | 12 696 | 12 594 | (168) | 99 % | 12 384 | (42) | 98 % | 11 798 | 286 | 95 % |
| SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 12 696 | 12 594 | (168) | 99 % | 12 384 | (42) | 98 % | 11 798 | 286 | 95 % |
| ACP | B Envelope — National Allocations | 1 983 | | | | | | | | | |
| Compensation export earnings | | 202 | (1) | | 197 | (4) | 97 % | 191 | — | 97 % |
| Emergency aid | | 835 | (4) | | 829 | (2) | 99 % | 821 | 8 | 99 % |
| Heavily indebted poor countries | | 49 | — | | 49 | | 100 % | 49 | | 100 % |
| Other chocs with budgetary impact | | 895 | — | | 887 | — | 99 % | 880 | 3 | 99 % |
| SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS | 1 983 | 1 981 | (5) | 100 % | 1 961 | (6) | 99 % | 1 941 | 11 | 99 % |
| Implementation costs | 460 | 440 | 4 | 96 % | 440 | 4 | 100 % | 440 | 5 | 100 % |
| Interests and other receipts | 71 | 68 | — | 96 % | 67 | — | 98 % | 67 | — | 100 % |
| SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | 530 | 509 | 4 | 96 % | 507 | 4 | 100 % | 507 | 5 | 100 % |
| Institutional and support expenditure | 226 | 226 | (3) | 100 % | 226 | (3) | 100 % | 209 | — | 93 % |
| Other Intra-ACP allocations | 1 855 | 1 848 | (17) | 100 % | 1 826 | 2 | 99 % | 1 726 | 43 | 95 % |
| Peace facility | 1 527 | 1 527 | 408 | 100 % | 1 087 | (12) | 71 % | 1 038 | 15 | 95 % |
| SUBTOTAL: INTRA-ACP ALLOCATIONS | 3 608 | 3 600 | 388 | 100 % | 3 139 | (13) | 87 % | 2 973 | 58 | 95 % |
| Regional allocations | 1 902 | 1 896 | (30) | 100 % | 1 827 | 8 | 96 % | 1 625 | 70 | 89 % |
| SUBTOTAL: REGIONAL ALLOCATIONS | 1 902 | 1 896 | (30) | 100 % | 1 827 | 8 | 96 % | 1 625 | 70 | 89 % |
| Co-financing | | | | | | | | | | |
| Allocations | | | | | | | | | | |
| A Envelope — National Allocations | 185 | 181 | (2) | 98 % | 177 | (1) | 98 % | 152 | 9 | 86 % |
| SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 185 | 181 | (2) | 98 % | 177 | (1) | 98 % | 152 | 9 | 86 % |
| Implementation costs | 5 | 5 | — | 100 % | 3 | — | 65 % | 3 | 1 | 78 % |
| SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | 5 | 5 | — | 100 % | 3 | — | 65 % | 3 | 1 | 78 % |
| ACP | Other Intra-ACP allocations | 12 | 11 | — | 92 % | 10 | — | 99 % | 10 | — | 100 % |
| Peace facility | 1 | 1 | — | 99 % | 1 | | 100 % | 1 | | 100 % |
| SUBTOTAL: INTRA-ACP ALLOCATIONS | 12 | 11 | — | 92 % | 11 | — | 99 % | 11 | — | 100 % |
| Mobilisable reserves | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| A Envelope reserve | — | | | | | | | | | |
| B Envelope reserve | — | | | | | | | | | |
| SUBTOTAL: COUNTRY RESERVE | — | | | | | | | | | |
| Intra-ACP Reserve | — | | | | | | | | | |
| SUBTOTAL: INTRA-ACP RESERVE | — | | | | | | | | | |
| National allocations Reserve A Envelope STABEX | — | | | | | | | | | |
| SUBTOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX | — | | | | | | | | | |
| NIP/RIP reserve | — | | | | | | | | | |
| SUBTOTAL: NIP/RIP RESERVE | — | | | | | | | | | |
| Regional allocations reserve | — | | | | | | | | | |
| SUBTOTAL: REGIONAL ALLOCATIONS RESERVE | — | | | | | | | | | |
| Non-mobilisable reserve | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| Non-mobilisable reserve | 171 | | | | | | | | | |
| SUBTOTAL: NON-MOBILISABLE RESERVE | 171 | | | | | | | | | |
| OCT | Regular MS Contributions | | | | | | | | | | |
| Allocations | | | | | | | | | | |
| A Envelope — National Allocations | 187 | 187 | (2) | 100 % | 182 | — | 97 % | 157 | 13 | 87 % |
| SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 187 | 187 | (2) | 100 % | 182 | — | 97 % | 157 | 13 | 87 % |
| B Envelope — National Allocations | 15 | | | | | | | | | |
| Emergency aid | | 9 | — | | 8 | — | 99 % | 8 | 1 | 99 % |
| Other chocs with budgetary impact | | 6 | | | 6 | | 100 % | 6 | | 100 % |
| SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS | 15 | 15 | — | 100 % | 14 | — | 99 % | 14 | 1 | 99 % |
| Studies / Technical assistance OCT | 5 | 5 | — | 100 % | 5 | | 100 % | 5 | | 100 % |
| SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | 5 | 5 | — | 100 % | 5 | | 100 % | 5 | | 100 % |
| Regional allocations | 39 | 39 | — | 100 % | 36 | (1) | 93 % | 34 | 2 | 94 % |
| SUBTOTAL: REGIONAL ALLOCATIONS | 39 | 39 | — | 100 % | 36 | (1) | 93 % | 34 | 2 | 94 % |
| OCT | Mobilisable reserves | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| A Envelope reserve | — | | | | | | | | | |
| B Envelope reserve | — | | | | | | | | | |
| SUBTOTAL: COUNTRY RESERVE | — | | | | | | | | | |
| National allocations Reserve A Envelope STABEX | — | | | | | | | | | |
| SUBTOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX | — | | | | | | | | | |
| Regional allocations reserve | — | | | | | | | | | |
| SUBTOTAL: REGIONAL ALLOCATIONS RESERVE | — | | | | | | | | | |
| Non-mobilisable reserve | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| Non-mobilisable reserve | 26 | | | | | | | | | |
| SUBTOTAL: NON-MOBILISABLE RESERVE | 26 | | | | | | | | | |
| | TOTAL: ACP+OCT (INCL. RESERVES) (A+B) | 21 430 | 21 088 | 183 | 97 % | 20 310 | (51) | 96 % | 19 285 | 456 | 95 % |

EUR million

CREDITS

DECISIONS

ASSIGNED FUNDS

PAYMENTS

AGGREG.

ANNUAL

%

AGGREG.

ANNUAL

%

AGGREG.

ANNUAL

%

(1)

(2)

(2):(1)

(3)

(3):(2)

(4)

(4):(3)

ACP

ACP

Regular MS Contributions

Regular MS Contributions

Allocations

Allocations

A Envelope — National Allocations

56

56

(1)

100 %

56

—

99 %

56

—

100 %

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

56

56

56

56

(1)

(1)

100 %

100 %

56

56

—

99 %

99 %

56

56

—

100 %

100 %

B Envelope — National Allocations

9

Other chocs with budgetary impact

9

9

100 %

9

100 %

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

9

9

9

9

100 %

100 %

9

9

100 %

100 %

9

9

100 %

100 %

Mobilisable reserves

Mobilisable reserves

Reserves

Reserves

National allocations Reserve A Envelope STABEX

—

SUBTOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX

SUBTOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX

—

ACP

ACP

Regular MS Contributions

Regular MS Contributions

Allocations

Allocations

A Envelope — National Allocations

12 696

12 594

(168)

99 %

12 384

(42)

98 %

11 798

286

95 %

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

12 696

12 696

12 594

12 594

(168)

(168)

99 %

99 %

12 384

12 384

(42)

(42)

98 %

98 %

11 798

11 798

286

286

95 %

95 %

ACP

ACP

B Envelope — National Allocations

1 983

Compensation export earnings

202

(1)

197

(4)

97 %

191

—

97 %

Emergency aid

835

(4)

829

(2)

99 %

821

8

99 %

Heavily indebted poor countries

49

—

49

100 %

49

100 %

Other chocs with budgetary impact

895

—

887

—

99 %

880

3

99 %

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

1 983

1 983

1 981

1 981

(5)

(5)

100 %

100 %

1 961

1 961

(6)

(6)

99 %

99 %

1 941

1 941

11

11

99 %

99 %

Implementation costs

460

440

4

96 %

440

4

100 %

440

5

100 %

Interests and other receipts

71

68

—

96 %

67

—

98 %

67

—

100 %

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

530

530

509

509

4

4

96 %

96 %

507

507

4

4

100 %

100 %

507

507

5

5

100 %

100 %

Institutional and support expenditure

226

226

(3)

100 %

226

(3)

100 %

209

—

93 %

Other Intra-ACP allocations

1 855

1 848

(17)

100 %

1 826

2

99 %

1 726

43

95 %

Peace facility

1 527

1 527

408

100 %

1 087

(12)

71 %

1 038

15

95 %

SUBTOTAL: INTRA-ACP ALLOCATIONS

SUBTOTAL: INTRA-ACP ALLOCATIONS

3 608

3 608

3 600

3 600

388

388

100 %

100 %

3 139

3 139

(13)

(13)

87 %

87 %

2 973

2 973

58

58

95 %

95 %

Regional allocations

1 902

1 896

(30)

100 %

1 827

8

96 %

1 625

70

89 %

SUBTOTAL: REGIONAL ALLOCATIONS

SUBTOTAL: REGIONAL ALLOCATIONS

1 902

1 902

1 896

1 896

(30)

(30)

100 %

100 %

1 827

1 827

8

8

96 %

96 %

1 625

1 625

70

70

89 %

89 %

Co-financing

Co-financing

Allocations

Allocations

A Envelope — National Allocations

185

181

(2)

98 %

177

(1)

98 %

152

9

86 %

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

185

185

181

181

(2)

(2)

98 %

98 %

177

177

(1)

(1)

98 %

98 %

152

152

9

9

86 %

86 %

Implementation costs

5

5

—

100 %

3

—

65 %

3

1

78 %

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

5

5

5

5

—

100 %

100 %

3

3

—

65 %

65 %

3

3

1

1

78 %

78 %

ACP

ACP

Other Intra-ACP allocations

12

11

—

92 %

10

—

99 %

10

—

100 %

Peace facility

1

1

—

99 %

1

100 %

1

100 %

SUBTOTAL: INTRA-ACP ALLOCATIONS

SUBTOTAL: INTRA-ACP ALLOCATIONS

12

12

11

11

—

92 %

92 %

11

11

—

99 %

99 %

11

11

—

100 %

100 %

Mobilisable reserves

Mobilisable reserves

Reserves

Reserves

A Envelope reserve

—

B Envelope reserve

—

SUBTOTAL: COUNTRY RESERVE

SUBTOTAL: COUNTRY RESERVE

—

Intra-ACP Reserve

—

SUBTOTAL: INTRA-ACP RESERVE

SUBTOTAL: INTRA-ACP RESERVE

—

National allocations Reserve A Envelope STABEX

—

SUBTOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX

SUBTOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX

—

NIP/RIP reserve

—

SUBTOTAL: NIP/RIP RESERVE

SUBTOTAL: NIP/RIP RESERVE

—

Regional allocations reserve

—

SUBTOTAL: REGIONAL ALLOCATIONS RESERVE

SUBTOTAL: REGIONAL ALLOCATIONS RESERVE

—

Non-mobilisable reserve

Non-mobilisable reserve

Reserves

Reserves

Non-mobilisable reserve

171

SUBTOTAL: NON-MOBILISABLE RESERVE

SUBTOTAL: NON-MOBILISABLE RESERVE

171

171

OCT

OCT

Regular MS Contributions

Regular MS Contributions

Allocations

Allocations

A Envelope — National Allocations

187

187

(2)

100 %

182

—

97 %

157

13

87 %

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

187

187

187

187

(2)

(2)

100 %

100 %

182

182

—

97 %

97 %

157

157

13

13

87 %

87 %

B Envelope — National Allocations

15

Emergency aid

9

—

8

—

99 %

8

1

99 %

Other chocs with budgetary impact

6

6

100 %

6

100 %

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

15

15

15

15

—

100 %

100 %

14

14

—

99 %

99 %

14

14

1

1

99 %

99 %

Studies / Technical assistance OCT

5

5

—

100 %

5

100 %

5

100 %

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

5

5

5

5

—

100 %

100 %

5

5

100 %

100 %

5

5

100 %

100 %

Regional allocations

39

39

—

100 %

36

(1)

93 %

34

2

94 %

SUBTOTAL: REGIONAL ALLOCATIONS

SUBTOTAL: REGIONAL ALLOCATIONS

39

39

39

39

—

100 %

100 %

36

36

(1)

(1)

93 %

93 %

34

34

2

2

94 %

94 %

OCT

OCT

Mobilisable reserves

Mobilisable reserves

Reserves

Reserves

A Envelope reserve

—

B Envelope reserve

—

SUBTOTAL: COUNTRY RESERVE

SUBTOTAL: COUNTRY RESERVE

—

National allocations Reserve A Envelope STABEX

—

SUBTOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX

SUBTOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX

—

Regional allocations reserve

—

SUBTOTAL: REGIONAL ALLOCATIONS RESERVE

SUBTOTAL: REGIONAL ALLOCATIONS RESERVE

—

Non-mobilisable reserve

Non-mobilisable reserve

Reserves

Reserves

Non-mobilisable reserve

26

SUBTOTAL: NON-MOBILISABLE RESERVE

SUBTOTAL: NON-MOBILISABLE RESERVE

26

26

TOTAL: ACP+OCT (INCL. RESERVES) (A+B)

TOTAL: ACP+OCT (INCL. RESERVES) (A+B)

21 430

21 430

21 088

21 088

183

183

97 %

97 %

20 310

20 310

(51)

(51)

96 %

96 %

19 285

19 285

456

456

95 %

95 %

Table 2.6

Table 2.6

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2019

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2019

CLASS OF AID

CLASS OF AID

ACP + PTOM — 11 th EDF

ACP + PTOM — 11 th EDF

| EUR million |
| --- |
| | | CREDITS | DECISIONS | ASSIGNED FUNDS | PAYMENTS |
| AGGREG. | ANNUAL | % | AGGREG. | ANNUAL | % | AGGREG. | ANNUAL | % |
| (1) | (2) | | (2):(1) | (3) | | (3):(2) | (4) | | (4):(3) |
| ACP | Regular MS Contributions | | | | | | | | | | |
| Allocations | | | | | | | | | | |
| A Envelope — National Allocations | 65 | 65 | — | 100 % | 64 | 5 | 98 % | 45 | 18 | 70 % |
| SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 65 | 65 | — | 100 % | 64 | 5 | 98 % | 45 | 18 | 70 % |
| B Envelope — National Allocations | 17 | | | | | | | | | |
| Emergency aid | | 17 | | | 17 | | 100 % | 17 | | 100 % |
| SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS | 17 | 17 | | 100 % | 17 | | 100 % | 17 | | 100 % |
| Mobilisable reserves | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| National allocations Reserve A Envelope STABEX | — | | | | | | | | | |
| SUBTOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX | — | | | | | | | | | |
| ACP | Regular MS Contributions | | | | | | | | | | |
| Allocations | | | | | | | | | | |
| A Envelope — National Allocations | 15 567 | 14 186 | 1 617 | 91 % | 11 063 | 1 920 | 78 % | 6 077 | 1 637 | 55 % |
| SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 15 567 | 14 186 | 1 617 | 91 % | 11 063 | 1 920 | 78 % | 6 077 | 1 637 | 55 % |
| ACP | B Envelope — National Allocations | 838 | | | | | | | | | |
| Emergency aid | | 712 | 137 | | 600 | 29 | 84 % | 511 | 35 | 85 % |
| Other chocs with budgetary impact | | 109 | — | | 109 | — | 100 % | 109 | — | 100 % |
| SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS | 838 | 821 | 137 | 98 % | 709 | 29 | 86 % | 620 | 35 | 87 % |
| Bridging facility | — | | | | | | | | | |
| SUBTOTAL: BRIDGING FACILITY | — | | | | | | | | | |
| Implementation costs | 1 053 | 855 | 155 | 81 % | 824 | 177 | 96 % | 769 | 166 | 93 % |
| Interests and other receipts | 18 | 9 | — | 51 % | 8 | 1 | 85 % | 7 | — | 85 % |
| SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | 1 071 | 864 | 154 | 81 % | 832 | 178 | 96 % | 775 | 166 | 93 % |
| Institutional and support expenditure | 197 | 127 | (6) | 64 % | 103 | 5 | 81 % | 95 | 10 | 93 % |
| Other Intra-ACP allocations | 2 791 | 2 397 | 281 | 86 % | 1 938 | 591 | 81 % | 1 279 | 380 | 66 % |
| Peace facility | 1 000 | 1 000 | — | 100 % | 980 | 34 | 98 % | 881 | 22 | 90 % |
| SUBTOTAL: INTRA-ACP ALLOCATIONS | 3 988 | 3 524 | 275 | 88 % | 3 020 | 630 | 86 % | 2 256 | 413 | 75 % |
| Regional allocations | 6 920 | 6 649 | 846 | 96 % | 5 644 | 704 | 85 % | 2 591 | 1 038 | 46 % |
| SUBTOTAL: REGIONAL ALLOCATIONS | 6 920 | 6 649 | 846 | 96 % | 5 644 | 704 | 85 % | 2 591 | 1 038 | 46 % |
| Co-financing | | | | | | | | | | |
| Allocations | | | | | | | | | | |
| A Envelope — National Allocations | 42 | 31 | 11 | 75 % | 31 | 11 | 100 % | 2 | 1 | 6 % |
| SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 42 | 31 | 11 | 75 % | 31 | 11 | 100 % | 2 | 1 | 6 % |
| Implementation costs | 3 | 3 | 1 | 86 % | 1 | 1 | 28 % | — | — | 3 % |
| SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | 3 | 3 | 1 | 86 % | 1 | 1 | 28 % | — | — | 3 % |
| ACP | Peace facility | 24 | 23 | 21 | 95 % | 22 | 20 | 98 % | 17 | 16 | 78 % |
| SUBTOTAL: INTRA-ACP ALLOCATIONS | 24 | 23 | 21 | 95 % | 22 | 20 | 98 % | 17 | 16 | 78 % |
| Regional allocations | 4 | 2 | | 50 % | 2 | — | 100 % | 2 | 2 | 100 % |
| SUBTOTAL: REGIONAL ALLOCATIONS | 4 | 2 | | 50 % | 2 | — | 100 % | 2 | 2 | 100 % |
| Mobilisable reserves | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| B Envelope reserve | — | | | | | | | | | |
| SUBTOTAL: COUNTRY RESERVE | — | | | | | | | | | |
| Intra-ACP Reserve | 27 | | | | | | | | | |
| SUBTOTAL: INTRA-ACP RESERVE | 27 | | | | | | | | | |
| National allocations Reserve A Envelope STABEX | — | | | | | | | | | |
| SUBTOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX | — | | | | | | | | | |
| NIP/RIP reserve | 540 | | | | | | | | | |
| SUBTOTAL: NIP/RIP RESERVE | 540 | | | | | | | | | |
| Non-mobilisable reserve | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| Non-mobilisable reserve | 130 | | | | | | | | | |
| SUBTOTAL: NON-MOBILISABLE RESERVE | 130 | | | | | | | | | |
| EC Internal SLA | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| A Envelope — National Allocations | 1 | 1 | — | 71 % | 1 | — | 73 % | 1 | | 100 % |
| SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 1 | 1 | — | 71 % | 1 | — | 73 % | 1 | | 100 % |
| OCT | Regular MS Contributions | | | | | | | | | | |
| Allocations | | | | | | | | | | |
| A Envelope — National Allocations | 196 | 196 | 13 | 100 % | 192 | 13 | 98 % | 120 | 44 | 63 % |
| SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 196 | 196 | 13 | 100 % | 192 | 13 | 98 % | 120 | 44 | 63 % |
| B Envelope — National Allocations | 8 | | | | | | | | | |
| Emergency aid | | 5 | 2 | | 5 | 2 | 99 % | 4 | 2 | 78 % |
| Other chocs with budgetary impact | | 3 | | | 3 | | 100 % | 3 | | 100 % |
| SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS | 8 | 8 | 2 | 100 % | 8 | 2 | 99 % | 7 | 2 | 87 % |
| Bridging facility | — | | | | | | | | | |
| SUBTOTAL: BRIDGING FACILITY | — | | | | | | | | | |
| Studies / Technical assistance OCT | 9 | 7 | 2 | 84 % | 5 | — | 65 % | 4 | 1 | 87 % |
| SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | 9 | 7 | 2 | 84 % | 5 | — | 65 % | 4 | 1 | 87 % |
| Regional allocations | 99 | 99 | 62 | 100 % | 80 | 43 | 81 % | 13 | 5 | 16 % |
| SUBTOTAL: REGIONAL ALLOCATIONS | 99 | 99 | 62 | 100 % | 80 | 43 | 81 % | 13 | 5 | 16 % |
| Co-financing | | | | | | | | | | |
| Allocations | | | | | | | | | | |
| A Envelope — National Allocations | — | | | | | | | | | |
| SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | — | | | | | | | | | |
| OCT | Mobilisable reserves | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| NIP/RIP reserve | 32 | | | | | | | | | |
| SUBTOTAL: NIP/RIP RESERVE | 32 | | | | | | | | | |
| Non-mobilisable reserve | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| Non-mobilisable reserve | 12 | | | | | | | | | |
| SUBTOTAL: NON-MOBILISABLE RESERVE | 12 | | | | | | | | | |
| EC Internal SLA | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| A Envelope — National Allocations | — | | | | | | | | | |
| SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | — | | | | | | | | | |
| Regular MS Contributions | | | | | | | | | | |
| Allocations | | | | | | | | | | |
| A Envelope — National Allocations | 10 | 10 | 4 | 100 % | 6 | — | 59 % | 6 | — | 99 % |
| SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 10 | 10 | 4 | 100 % | 6 | — | 59 % | 6 | — | 99 % |
| B Envelope — National Allocations | 7 | | | | | | | | | |
| Emergency aid | | 7 | 7 | | | | | | | |
| SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS | 7 | 7 | 7 | 100 % | | | | | | |
| | TOTAL: ACP+OCT (INCL. RESERVES) (A+B) | 29 608 | 26 511 | 3 153 | 90 % | 21 697 | 3 557 | 82 % | 12 553 | 3 377 | 58 % |

EUR million

CREDITS

DECISIONS

ASSIGNED FUNDS

PAYMENTS

AGGREG.

ANNUAL

%

AGGREG.

ANNUAL

%

AGGREG.

ANNUAL

%

(1)

(2)

(2):(1)

(3)

(3):(2)

(4)

(4):(3)

ACP

ACP

Regular MS Contributions

Regular MS Contributions

Allocations

Allocations

A Envelope — National Allocations

65

65

—

100 %

64

5

98 %

45

18

70 %

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

65

65

65

65

—

100 %

100 %

64

64

5

5

98 %

98 %

45

45

18

18

70 %

70 %

B Envelope — National Allocations

17

Emergency aid

17

17

100 %

17

100 %

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

17

17

17

17

100 %

100 %

17

17

100 %

100 %

17

17

100 %

100 %

Mobilisable reserves

Mobilisable reserves

Reserves

Reserves

National allocations Reserve A Envelope STABEX

—

SUBTOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX

SUBTOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX

—

ACP

ACP

Regular MS Contributions

Regular MS Contributions

Allocations

Allocations

A Envelope — National Allocations

15 567

14 186

1 617

91 %

11 063

1 920

78 %

6 077

1 637

55 %

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

15 567

15 567

14 186

14 186

1 617

1 617

91 %

91 %

11 063

11 063

1 920

1 920

78 %

78 %

6 077

6 077

1 637

1 637

55 %

55 %

ACP

ACP

B Envelope — National Allocations

838

Emergency aid

712

137

600

29

84 %

511

35

85 %

Other chocs with budgetary impact

109

—

109

—

100 %

109

—

100 %

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

838

838

821

821

137

137

98 %

98 %

709

709

29

29

86 %

86 %

620

620

35

35

87 %

87 %

Bridging facility

—

SUBTOTAL: BRIDGING FACILITY

SUBTOTAL: BRIDGING FACILITY

—

Implementation costs

1 053

855

155

81 %

824

177

96 %

769

166

93 %

Interests and other receipts

18

9

—

51 %

8

1

85 %

7

—

85 %

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

1 071

1 071

864

864

154

154

81 %

81 %

832

832

178

178

96 %

96 %

775

775

166

166

93 %

93 %

Institutional and support expenditure

197

127

(6)

64 %

103

5

81 %

95

10

93 %

Other Intra-ACP allocations

2 791

2 397

281

86 %

1 938

591

81 %

1 279

380

66 %

Peace facility

1 000

1 000

—

100 %

980

34

98 %

881

22

90 %

SUBTOTAL: INTRA-ACP ALLOCATIONS

SUBTOTAL: INTRA-ACP ALLOCATIONS

3 988

3 988

3 524

3 524

275

275

88 %

88 %

3 020

3 020

630

630

86 %

86 %

2 256

2 256

413

413

75 %

75 %

Regional allocations

6 920

6 649

846

96 %

5 644

704

85 %

2 591

1 038

46 %

SUBTOTAL: REGIONAL ALLOCATIONS

SUBTOTAL: REGIONAL ALLOCATIONS

6 920

6 920

6 649

6 649

846

846

96 %

96 %

5 644

5 644

704

704

85 %

85 %

2 591

2 591

1 038

1 038

46 %

46 %

Co-financing

Co-financing

Allocations

Allocations

A Envelope — National Allocations

42

31

11

75 %

31

11

100 %

2

1

6 %

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

42

42

31

31

11

11

75 %

75 %

31

31

11

11

100 %

100 %

2

2

1

1

6 %

6 %

Implementation costs

3

3

1

86 %

1

1

28 %

—

—

3 %

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

3

3

3

3

1

1

86 %

86 %

1

1

1

1

28 %

28 %

—

—

3 %

3 %

ACP

ACP

Peace facility

24

23

21

95 %

22

20

98 %

17

16

78 %

SUBTOTAL: INTRA-ACP ALLOCATIONS

SUBTOTAL: INTRA-ACP ALLOCATIONS

24

24

23

23

21

21

95 %

95 %

22

22

20

20

98 %

98 %

17

17

16

16

78 %

78 %

Regional allocations

4

2

50 %

2

—

100 %

2

2

100 %

SUBTOTAL: REGIONAL ALLOCATIONS

SUBTOTAL: REGIONAL ALLOCATIONS

4

4

2

2

50 %

50 %

2

2

—

100 %

100 %

2

2

2

2

100 %

100 %

Mobilisable reserves

Mobilisable reserves

Reserves

Reserves

B Envelope reserve

—

SUBTOTAL: COUNTRY RESERVE

SUBTOTAL: COUNTRY RESERVE

—

Intra-ACP Reserve

27

SUBTOTAL: INTRA-ACP RESERVE

SUBTOTAL: INTRA-ACP RESERVE

27

27

National allocations Reserve A Envelope STABEX

—

SUBTOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX

SUBTOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX

—

NIP/RIP reserve

540

SUBTOTAL: NIP/RIP RESERVE

SUBTOTAL: NIP/RIP RESERVE

540

540

Non-mobilisable reserve

Non-mobilisable reserve

Reserves

Reserves

Non-mobilisable reserve

130

SUBTOTAL: NON-MOBILISABLE RESERVE

SUBTOTAL: NON-MOBILISABLE RESERVE

130

130

EC Internal SLA

EC Internal SLA

Reserves

Reserves

A Envelope — National Allocations

1

1

—

71 %

1

—

73 %

1

100 %

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

1

1

1

1

—

71 %

71 %

1

1

—

73 %

73 %

1

1

100 %

100 %

OCT

OCT

Regular MS Contributions

Regular MS Contributions

Allocations

Allocations

A Envelope — National Allocations

196

196

13

100 %

192

13

98 %

120

44

63 %

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

196

196

196

196

13

13

100 %

100 %

192

192

13

13

98 %

98 %

120

120

44

44

63 %

63 %

B Envelope — National Allocations

8

Emergency aid

5

2

5

2

99 %

4

2

78 %

Other chocs with budgetary impact

3

3

100 %

3

100 %

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

8

8

8

8

2

2

100 %

100 %

8

8

2

2

99 %

99 %

7

7

2

2

87 %

87 %

Bridging facility

—

SUBTOTAL: BRIDGING FACILITY

SUBTOTAL: BRIDGING FACILITY

—

Studies / Technical assistance OCT

9

7

2

84 %

5

—

65 %

4

1

87 %

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUBTOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

9

9

7

7

2

2

84 %

84 %

5

5

—

65 %

65 %

4

4

1

1

87 %

87 %

Regional allocations

99

99

62

100 %

80

43

81 %

13

5

16 %

SUBTOTAL: REGIONAL ALLOCATIONS

SUBTOTAL: REGIONAL ALLOCATIONS

99

99

99

99

62

62

100 %

100 %

80

80

43

43

81 %

81 %

13

13

5

5

16 %

16 %

Co-financing

Co-financing

Allocations

Allocations

A Envelope — National Allocations

—

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

—

OCT

OCT

Mobilisable reserves

Mobilisable reserves

Reserves

Reserves

NIP/RIP reserve

32

SUBTOTAL: NIP/RIP RESERVE

SUBTOTAL: NIP/RIP RESERVE

32

32

Non-mobilisable reserve

Non-mobilisable reserve

Reserves

Reserves

Non-mobilisable reserve

12

SUBTOTAL: NON-MOBILISABLE RESERVE

SUBTOTAL: NON-MOBILISABLE RESERVE

12

12

EC Internal SLA

EC Internal SLA

Reserves

Reserves

A Envelope — National Allocations

—

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

—

Regular MS Contributions

Regular MS Contributions

Allocations

Allocations

A Envelope — National Allocations

10

10

4

100 %

6

—

59 %

6

—

99 %

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

10

10

10

10

4

4

100 %

100 %

6

6

—

59 %

59 %

6

6

—

99 %

99 %

B Envelope — National Allocations

7

Emergency aid

7

7

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

SUBTOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

7

7

7

7

7

7

100 %

100 %

TOTAL: ACP+OCT (INCL. RESERVES) (A+B)

TOTAL: ACP+OCT (INCL. RESERVES) (A+B)

29 608

29 608

26 511

26 511

3 153

3 153

90 %

90 %

21 697

21 697

3 557

3 557

82 %

82 %

12 553

12 553

3 377

3 377

58 %

58 %

ANNUAL REPORT ON IMPLEMENTATION — FUNDS MANAGED BY THE EUROPEAN INVESTMENT BANK

ANNUAL REPORT ON IMPLEMENTATION — FUNDS MANAGED BY THE EUROPEAN INVESTMENT BANK

| EUROPEAN INVESTMENT BANK | CA/531/20


  12 March 2020 |
| --- | --- |
| | Document 20/108 |
| BOARD OF DIRECTORS |
| INVESTMENT FACILITY


  FINANCIAL STATEMENTS


  AS AT 31 DECEMBER 2019 |
| a) | Statement of financial position |

EUROPEAN INVESTMENT BANK

EUROPEAN INVESTMENT BANK

CA/531/20

CA/531/20

12 March 2020

Document 20/108

Document 20/108

BOARD OF DIRECTORS

BOARD OF DIRECTORS

INVESTMENT FACILITY

INVESTMENT FACILITY

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

AS AT 31 DECEMBER 2019

AS AT 31 DECEMBER 2019

a)

Statement of financial position

| b) | Statement of profit or loss and other comprehensive income |
| --- | --- |

b)

Statement of profit or loss and other comprehensive income

| c) | Statement of changes in contributors′ resources |
| --- | --- |

c)

Statement of changes in contributors′ resources

| d) | Statement of cash flows |
| --- | --- |

d)

Statement of cash flows

| e) | Notes to the financial statements |
| --- | --- |

e)

Notes to the financial statements

STATEMENT OF FINANCIAL POSITION

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2019

AS AT 31 DECEMBER 2019

| in EUR’000 |
| --- |
| | Notes | 31.12.2019 | 31.12.2018 |
| ASSETS | | | |
| Cash and cash equivalents | 5 | 837 777 | 573 708 |
| Amounts receivable from contributors | 9/17 | 86 330 | 100 000 |
| Treasury financial assets | 10 | 330 587 | 335 140 |
| Derivative financial instruments | 6 | 14 184 | 9 873 |
| Loans and advances | 7 | 1 518 675 | 1 540 991 |
| Shares and other variable yield securities | 8 | 619 928 | 567 292 |
| Other assets | 11 | — | 171 |
| Total assets | | 3 407 481 | 3 127 175 |
| LIABILITIES AND CONTRIBUTORS’ RESOURCES | | | |
| LIABILITIES | | | |
| Derivative financial instruments | 6 | 191 | 8 493 |
| Deferred income | 12 | 32 566 | 33 764 |
| Provisions for guarantees issued | 13 | 628 | 793 |
| Provisions for loan commitments | 14 | 37 269 | 23 822 |
| Amount owed to third parties | 15 | 147 438 | 143 813 |
| Other liabilities | 16 | 2 353 | 2 493 |
| Total liabilities | | 220 445 | 213 178 |
| CONTRIBUTORS’ RESOURCES | | | |
| Facility Member States Contribution called | 17 | 2 967 000 | 2 697 000 |
| Retained earnings | | 220 036 | 216 997 |
| Total contributors’ resources | | 3 187 036 | 2 913 997 |
| Total liabilities and contributors’ resources | | 3 407 481 | 3 127 175 |

in EUR’000

Notes

31.12.2019

31.12.2018

ASSETS

ASSETS

Cash and cash equivalents

5

837 777

573 708

Amounts receivable from contributors

9/17

86 330

100 000

Treasury financial assets

10

330 587

335 140

Derivative financial instruments

6

14 184

9 873

Loans and advances

7

1 518 675

1 540 991

Shares and other variable yield securities

8

619 928

567 292

Other assets

11

—

171

Total assets

Total assets

3 407 481

3 407 481

3 127 175

3 127 175

LIABILITIES AND CONTRIBUTORS’ RESOURCES

LIABILITIES AND CONTRIBUTORS’ RESOURCES

LIABILITIES

LIABILITIES

Derivative financial instruments

6

191

8 493

Deferred income

12

32 566

33 764

Provisions for guarantees issued

13

628

793

Provisions for loan commitments

14

37 269

23 822

Amount owed to third parties

15

147 438

143 813

Other liabilities

16

2 353

2 493

Total liabilities

Total liabilities

220 445

220 445

213 178

213 178

CONTRIBUTORS’ RESOURCES

CONTRIBUTORS’ RESOURCES

Facility Member States Contribution called

17

2 967 000

2 697 000

Retained earnings

220 036

216 997

Total contributors’ resources

Total contributors’ resources

3 187 036

3 187 036

2 913 997

2 913 997

Total liabilities and contributors’ resources

Total liabilities and contributors’ resources

3 407 481

3 407 481

3 127 175

3 127 175

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2019

FOR THE YEAR ENDED 31 DECEMBER 2019

| in EUR’000 |
| --- |
| | Notes | From 1.1.2019 | From 1.1.2018 |
| to 31.12.2019 | to 31.12.2018 |
| Interest and similar income (5) | 19 | 93 923 | 96 730 |
| Interest and similar expenses | 19 | -2 948 | -2 539 |
| Net interest and similar income | | 90 975 | 94 191 |
| Fee and commission income | 20 | 4 438 | 284 |
| Fee and commission expenses | 20 | - 721 | - 106 |
| Net fee and commission income | | 3 717 | 178 |
| Fair value change of derivative financial instruments | | 12 611 | -9 987 |
| Net result on shares and other variable yield securities | 21 | 9 904 | -10 179 |
| Net result on loans and advances measured at FVTPL | 7 | -8 331 | - 702 |
| Net result on sale of loans | 7 | 2 064 | — |
| Net foreign exchange result | | -61 998 | -32 436 |
| Net result on financial operations | | -45 750 | -53 304 |
| Change in impairment on loans and advances, net of reversals | 7 | 17 243 | -22 771 |
| Change in provisions for guarantees, net of reversals | 13 | 107 | - 485 |
| Change in provisions for loan commitments, net of reversals | 14 | -13 244 | -19 612 |
| General administrative expenses | 22 | -50 009 | -47 799 |
| Profit / (Loss) for the year | | 3 039 | -49 602 |
| Other comprehensive income | | — | — |
| Total comprehensive income profit / (loss) for the year | | 3 039 | -49 602 |

in EUR’000

Notes

From 1.1.2019

From 1.1.2018

to 31.12.2019

to 31.12.2018

Interest and similar income (5)

5

19

93 923

96 730

Interest and similar expenses

19

-2 948

-2 539

Net interest and similar income

Net interest and similar income

90 975

90 975

94 191

94 191

Fee and commission income

20

4 438

284

Fee and commission expenses

20

- 721

- 106

Net fee and commission income

Net fee and commission income

3 717

3 717

178

178

Fair value change of derivative financial instruments

12 611

-9 987

Net result on shares and other variable yield securities

21

9 904

-10 179

Net result on loans and advances measured at FVTPL

7

-8 331

- 702

Net result on sale of loans

7

2 064

—

Net foreign exchange result

-61 998

-32 436

Net result on financial operations

Net result on financial operations

-45 750

-45 750

-53 304

-53 304

Change in impairment on loans and advances, net of reversals

7

17 243

-22 771

Change in provisions for guarantees, net of reversals

13

107

- 485

Change in provisions for loan commitments, net of reversals

14

-13 244

-19 612

General administrative expenses

22

-50 009

-47 799

Profit / (Loss) for the year

Profit / (Loss) for the year

3 039

3 039

-49 602

-49 602

Other comprehensive income

Other comprehensive income

—

—

Total comprehensive income profit / (loss) for the year

Total comprehensive income profit / (loss) for the year

3 039

3 039

-49 602

-49 602

STATEMENT OF CHANGES IN CONTRIBUTORS’ RESOURCES

STATEMENT OF CHANGES IN CONTRIBUTORS’ RESOURCES

FOR THE YEAR ENDED 31 DECEMBER 2019

FOR THE YEAR ENDED 31 DECEMBER 2019

| in EUR’000 |
| --- |
| | Notes | Contribution called | Retained earnings | Total |
| At 1 January 2019 | | 2 697 000 | 216 997 | 2 913 997 |
| Member States contribution called during the year | 17 | 270 000 | — | 270 000 |
| Profit for the year 2019 | | — | 3 039 | 3 039 |
| Changes in contributors’ resources | | 270 000 | 3 039 | 273 039 |
| At 31 December 2019 | | 2 967 000 | 220 036 | 3 187 036 |
| At 1 January 2018 | | 2 517 000 | 266 599 | 2 783 599 |
| Member States contribution called during the year | | 180 000 | — | 180 000 |
| Loss for the year 2018 | | — | -49 602 | -49 602 |
| Changes in contributors’ resources | | 180 000 | -49 602 | 130 398 |
| At 31 December 2018 | | 2 697 000 | 216 997 | 2 913 997 |

in EUR’000

Notes

Contribution called

Retained earnings

Total

At 1 January 2019

At 1 January 2019

2 697 000

2 697 000

216 997

216 997

2 913 997

2 913 997

Member States contribution called during the year

17

270 000

—

270 000

Profit for the year 2019

—

3 039

3 039

Changes in contributors’ resources

Changes in contributors’ resources

270 000

270 000

3 039

3 039

273 039

273 039

At 31 December 2019

At 31 December 2019

2 967 000

2 967 000

220 036

220 036

3 187 036

3 187 036

At 1 January 2018

At 1 January 2018

2 517 000

2 517 000

266 599

266 599

2 783 599

2 783 599

Member States contribution called during the year

180 000

—

180 000

Loss for the year 2018

—

-49 602

-49 602

Changes in contributors’ resources

Changes in contributors’ resources

180 000

180 000

-49 602

-49 602

130 398

130 398

At 31 December 2018

At 31 December 2018

2 697 000

2 697 000

216 997

216 997

2 913 997

2 913 997

STATEMENT OF CASH FLOWS

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2019

FOR THE YEAR ENDED 31 DECEMBER 2019

| in EUR’000 |
| --- |
| | Notes | From 1.1.2019 to 31.12.2019 | From 1.1.2018 to 31.12.2018 |
| OPERATING ACTIVITIES | | | |
| Profit / (Loss) for the financial year | | 3 039 | -49 602 |
| Adjustments made for | | | |
| Net result in fair value on shares and other variable yield securities | 8 | -8 629 | 20 665 |
| Change in impairment on loans and advances, net of reversals | 7 | -17 243 | 22 771 |
| Net result on loans and advances at FVTPL | | 8 331 | 702 |
| Change in accrued interest and amortised cost on loans and advances | 7 | -5 087 | -1 833 |
| Net change in provisions for guarantees issued, net of reversals | 13 | - 107 | 309 |
| Net change in provisions for loan commitments, net of reversals | | 13 447 | 19 666 |
| Fair value changes on derivatives | | -12 611 | 9 987 |
| Change in accrued interest and amortised cost on treasury financial assets | 10 | 331 | -1 645 |
| Change in deferred income | | -1 198 | 7 962 |
| Effect of exchange rate changes on loans | 7 | -17 752 | -44 927 |
| Effect of exchange rate changes on shares and other variable yield securities | 8 | -6 812 | -17 300 |
| Effect of exchange rate changes on cash held | | 2 369 | 2 561 |
| Loss on operating activities before changes in operating assets and liabilities | | -41 922 | -30 684 |
| Loan disbursements | 7 | - 311 185 | - 259 214 |
| Repayments of loans | 7 | 355 078 | 354 855 |
| Sale of loans | | 2 194 | — |
| Change in accrued interest on cash and cash equivalents | 5 | - 93 | - 178 |
| (Increase) in treasury financial assets | 10 | -2 948 021 | -2 219 062 |
| Maturities of treasury financial assets | 10 | 2 952 905 | 2 026 659 |
| (Increase) in shares and other variable yield securities | 8 | - 106 943 | -95 434 |
| Net proceeds from shares and other variable yield securities | | 71 024 | 32 802 |
| (Decrease) in other assets | | - 171 | -4 214 |
| Increase in other liabilities | | 140 | 31 |
| Increase in amounts payable to the European Investment Bank | | 2 187 | 2 168 |
| Net cash flows used in operating activities | | -24 807 | - 192 271 |
| FINANCING ACTIVITIES | | | |
| Contribution received from Member States | | 284 820 | 230 000 |
| Amounts received from Member States with regard to interest subsidies and technical assistance | | 30 000 | 20 000 |
| Amounts paid on behalf of Member States with regard to interest subsidies and technical assistance | | -28 220 | -35 641 |
| Net cash flows from financing activities | | 286 600 | 214 359 |
| Net increase in cash and cash equivalents | | 261 793 | 22 088 |
| Summary statement of cash flows: | | | |
| Cash and cash equivalents at the beginning of financial year | | 573 818 | 549 169 |
| Net cash from: | | | |
| Operating activities | | -24 937 | - 192 271 |
| Financing activities | | 286 730 | 214 359 |
| Effects of exchange rate changes on cash and cash equivalents | | 2 369 | 2 561 |
| Cash and cash equivalents at the end of financial year | | 837 980 | 573 818 |
| Cash and cash equivalents are composed of: | | | |
| Cash in hand | 5 | 72 166 | 51 936 |
| Term deposits (excluding accrued interest) | 5 | 622 991 | 521 882 |
| Commercial papers | 5 | 142 823 | — |
| | | 837 980 | 573 818 |

in EUR’000

Notes

From 1.1.2019 to 31.12.2019

From 1.1.2018 to 31.12.2018

OPERATING ACTIVITIES

OPERATING ACTIVITIES

Profit / (Loss) for the financial year

3 039

-49 602

Adjustments made for

Net result in fair value on shares and other variable yield securities

8

-8 629

20 665

Change in impairment on loans and advances, net of reversals

7

-17 243

22 771

Net result on loans and advances at FVTPL

8 331

702

Change in accrued interest and amortised cost on loans and advances

7

-5 087

-1 833

Net change in provisions for guarantees issued, net of reversals

13

- 107

309

Net change in provisions for loan commitments, net of reversals

13 447

19 666

Fair value changes on derivatives

-12 611

9 987

Change in accrued interest and amortised cost on treasury financial assets

10

331

-1 645

Change in deferred income

-1 198

7 962

Effect of exchange rate changes on loans

7

-17 752

-44 927

Effect of exchange rate changes on shares and other variable yield securities

8

-6 812

-17 300

Effect of exchange rate changes on cash held

2 369

2 561

Loss on operating activities before changes in operating assets and liabilities

Loss on operating activities before changes in operating assets and liabilities

-41 922

-41 922

-30 684

-30 684

Loan disbursements

7

- 311 185

- 259 214

Repayments of loans

7

355 078

354 855

Sale of loans

2 194

—

Change in accrued interest on cash and cash equivalents

5

- 93

- 178

(Increase) in treasury financial assets

10

-2 948 021

-2 219 062

Maturities of treasury financial assets

10

2 952 905

2 026 659

(Increase) in shares and other variable yield securities

8

- 106 943

-95 434

Net proceeds from shares and other variable yield securities

71 024

32 802

(Decrease) in other assets

- 171

-4 214

Increase in other liabilities

140

31

Increase in amounts payable to the European Investment Bank

2 187

2 168

Net cash flows used in operating activities

Net cash flows used in operating activities

-24 807

-24 807

- 192 271

- 192 271

FINANCING ACTIVITIES

FINANCING ACTIVITIES

Contribution received from Member States

284 820

230 000

Amounts received from Member States with regard to interest subsidies and technical assistance

30 000

20 000

Amounts paid on behalf of Member States with regard to interest subsidies and technical assistance

-28 220

-35 641

Net cash flows from financing activities

Net cash flows from financing activities

286 600

286 600

214 359

214 359

Net increase in cash and cash equivalents

Net increase in cash and cash equivalents

261 793

261 793

22 088

22 088

Summary statement of cash flows:

Summary statement of cash flows:

Cash and cash equivalents at the beginning of financial year

Cash and cash equivalents at the beginning of financial year

573 818

573 818

549 169

549 169

Net cash from:

Operating activities

-24 937

- 192 271

Financing activities

286 730

214 359

Effects of exchange rate changes on cash and cash equivalents

2 369

2 561

Cash and cash equivalents at the end of financial year

Cash and cash equivalents at the end of financial year

837 980

837 980

573 818

573 818

Cash and cash equivalents are composed of:

Cash and cash equivalents are composed of:

Cash in hand

5

72 166

51 936

Term deposits (excluding accrued interest)

5

622 991

521 882

Commercial papers

5

142 823

—

837 980

837 980

573 818

573 818

Notes to the financial statements as at 31 December 2019

Notes to the financial statements as at 31 December 2019

1.   General information

General information

The Investment Facility (‘the Facility’ or ‘IF’) has been established within the framework of the Cotonou Agreement (the ‘Agreement’) on co-operation and development assistance negotiated between the African, Caribbean and Pacific Group of States (the ‘ACP States’) and the European Union and its Member States on 23 June 2000, revised on 25 June 2005 and 22 June 2010.

The Facility is not a separate legal entity and the European Investment Bank (‘EIB’ or ‘the Bank’) manages the contributions on behalf of the Member States (‘Donors’) in accordance with the terms of the Agreement and acts as an administrator of the Facility.

Financing under the Agreement is provided from EU Member States’ budgets. EU Member States contribute with the amounts allocated to finance the IF and grants for the financing of the interest subsidies as provided for under the multi-annual financial frameworks (First Financial Protocol covering the period 2000 — 2007 and referred to as the 9th European Development Fund (EDF), Second Financial Protocol covering the period 2008 — 2013 and referred to as the 10th EDF and the Third Financial Protocol covering the period 2014 — 2020 referred to as the 11th EDF). The EIB is entrusted with the management of:

| — | the Facility, a EUR 3 685,5 million risk-bearing revolving fund geared to fostering private sector investment in ACP States of which EUR 48,5 million are allocated to Overseas Countries and territories (‘OCT countries’), |
| --- | --- |

—

the Facility, a EUR 3 685,5 million risk-bearing revolving fund geared to fostering private sector investment in ACP States of which EUR 48,5 million are allocated to Overseas Countries and territories (‘OCT countries’),

| — | grants for the financing of interest subsidies worth max. EUR 1 220,85 million for ACP States and max. EUR 8,5 million for OCT countries. Up to 15 % of these subsidies can be used to fund project-related technical assistance (‘TA’). |
| --- | --- |

—

grants for the financing of interest subsidies worth max. EUR 1 220,85 million for ACP States and max. EUR 8,5 million for OCT countries. Up to 15 % of these subsidies can be used to fund project-related technical assistance (‘TA’).

Transitional arrangements that would allow EIB financing to carry on operations in ACP region until the end of 2020 have been agreed on the EU and ACP sides (Decision No 3/2019 of the ACP-EU Committee of Ambassadors of 17 December 2019 to adopt transitional measures pursuant to Article 95(4) of the ACP-EU Partnership Agreement). The Bank will continue approving operations in line with its Mandate until the end of 2020, which is the end of the commitment period for the use of IF revolving funds specified under the 11th EDF.

In June 2018, the Commission also published the budget proposal for the external action of the EU for the period 2021-2027, the regulation establishing the Neighbourhood, Development and International Cooperation Instrument (‘NDICI’). An important aspect of the proposal is the simplification of its funding architecture, bringing together nine separate instruments and funds, as well as the integration of the current extra-budgetary EDF into the EU budget. The NDICI Regulation will provide the legal basis for the Commission to entrust future EU mandates to the EIB for its activity outside the EU. It will also provide the external investment framework for the Union to cooperate with partner institutions through grants or guarantees from the EU budget. NDICI negotiations are still on-going Without prejudice to a Council decision, the EIB and the EC are in talks about a proposal to continue the use of the IF reflows for an agreed number of years.

The present financial statements cover the period from 1 January 2019 to 31 December 2019.

On a proposal from the Management Committee of EIB, the Board of Directors of EIB adopted the Financial Statements on 12 March 2020, and authorised their submission to the Board of Governors for approval by 24 April 2020.

2.   Significant accounting policies

Significant accounting policies

2.1.   
  Basis of preparation — Statement of compliance

Basis of preparation — Statement of compliance

The Facility’s financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

2.2.   
  Significant accounting judgments and estimates

Significant accounting judgments and estimates

The preparation of financial statements requires the use of accounting estimates. It also requires the Bank’s Management to exercise its judgment in the process of applying the Investment Facility’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed hereafter.

The most significant use of judgments and estimates are as follows:

—   Measurement of fair value of financial instruments

Measurement of fair value of financial instruments

Fair values of financial assets (‘FA’) and financial liabilities (‘FL’) that are traded in active markets are based on quoted market prices or broker price quotations. Where the fair values cannot be derived from active markets, they are determined using a variety of valuation techniques that include the use of mathematical models. The input to these models is taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. The valuations are categorised into different levels in the fair value hierarchy based on the inputs used in the valuation techniques as described and disclosed in Notes 2.4.2 and 4.

—   Impairment losses on loans and advances

Impairment losses on loans and advances

The expected credit loss (‘ECL’) measurement requires management to apply significant judgments, in particular, the assessment of a significant increase in credit risk since initial recognition, the incorporation of forward looking information and further the estimation of the amount and timing of future cash flows and collateral values when determining impairment losses. These estimates are driven by a number of factors, changes in which can result in significant changes to the timing and amount of allowance for credit loss to be recognised (Note 2.4.2).

—   Valuation of unquoted equity investments

Valuation of unquoted equity investments

Valuation of unquoted equity investments is normally based on one of the following:

| — | recent arm’s length market transactions, |
| --- | --- |

—

recent arm’s length market transactions,

| — | current fair value of another instrument that is substantially the same, |
| --- | --- |

—

current fair value of another instrument that is substantially the same,

| — | the expected cash flows discounted at current rates applicable for items with similar terms and risk characteristics, |
| --- | --- |

—

the expected cash flows discounted at current rates applicable for items with similar terms and risk characteristics,

| — | adjusted net assets method, or |
| --- | --- |

—

adjusted net assets method, or

| — | other valuation models. |
| --- | --- |

—

other valuation models.

The determination of the cash flows and discount factors for unquoted equity investments requires significant estimation. The Facility calibrates the valuation techniques periodically and tests them for validity using either price from observable current market transactions in the same instrument or from other available observable market data.

—   Consolidation of entities in which the Facility holds interest

Consolidation of entities in which the Facility holds interest

The Facility made significant judgements that none of the entities in which it holds interest, are controlled by the Facility. This is due to the fact that in all such entities, either the General Partner or the Fund Manager or the Management Board have the sole responsibility for the management and control of the activities and affairs of the partnership and have the power and authority to do all things necessary to carry out the purpose and objectives of the partnership complying with the investment and policy guidelines.

2.3.   
  Changes in accounting policies

Changes in accounting policies

Except for the changes below, the Facility has consistently applied the accounting policies set out in Note 2.4 to all periods presented in these financial statements. The Facility has adopted the following new standards and amendments to standards.

Standards adopted

Standards adopted

The following interpretations as well as the amendments to and revision of existing standards became effective for the Facility`s financial statements as of 1 January 2019:

IFRS 16 Leases

IFRS 16 Leases

IFRS 16 became effective for annual reporting periods beginning on or after 1 January 2019 and replaces the existing guidance of IAS 17. It results in almost all leases are being recognised on the balance sheet, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. The only exemptions are short-term and low-value leases. The accounting for lessors not changed significantly.

This change had no material impact on the Facility`s financial statements.

Prepayment Features with Negative Compensation — Amendments to IFRS 9

Prepayment Features with Negative Compensation — Amendments to IFRS 9

The amendments clarify, that a financial asset passes the Solely Payments of Principal and Interest (‘SPPI’) criterion, regardless of the event or circumstance that causes the early termination of the contract and irrespective of which party pays or receives reasonable compensation for the early termination of the contract. The basis for conclusions to the amendments clarified that the early termination can result from a contractual term or from an event outside the control of the parties to the contract, such as a change in law or regulation leading to the early termination of the contract.

The adoption of the amendments had no material impacts on the Facility’s financial statements.

Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28)

Long-term Interests in Associates and Joint Ventures (Amendments to IAS 28)

The amendments clarify that an entity applies IFRS 9 to long-term interests in an associate or joint venture to which the equity method is not applied but that, in substance, form part of the net investment in the associate or joint venture (long-term interests). This clarification is relevant because it implies that the expected credit loss model in IFRS 9 applies to such long-term interests.

The amendments also clarify that, in applying IFRS 9, an entity does not take account of any losses of the associate or joint venture, or any impairment losses on the net investment, recognised as adjustments to the net investment in the associate or joint venture that arise from applying IAS 28 Investments in Associates and Joint Ventures.

The amendments had no material impact on the Facility’s financial statements.

Plan Amendment, Curtailment or Settlement (Amendments to IAS 19)

Plan Amendment, Curtailment or Settlement (Amendments to IAS 19)

The amendments specify that when a plan amendment, curtailment or settlement occurs during the annual reporting period, an entity is required to:

| — | Determine current service cost for the remainder of the period after the plan amendment, curtailment or settlement, using the actuarial assumptions used to remeasure the net defined benefit liability reflecting the benefits offered under the plan and the plan assets after that event |
| --- | --- |

—

Determine current service cost for the remainder of the period after the plan amendment, curtailment or settlement, using the actuarial assumptions used to remeasure the net defined benefit liability reflecting the benefits offered under the plan and the plan assets after that event

| — | Determine net interest for the remainder of the period after the plan amendment, curtailment or settlement using: the net defined benefit liability reflecting the benefits offered under the plan and the plan assets after that event; and the discount rate used to remeasure that net defined benefit liability |
| --- | --- |

—

Determine net interest for the remainder of the period after the plan amendment, curtailment or settlement using: the net defined benefit liability reflecting the benefits offered under the plan and the plan assets after that event; and the discount rate used to remeasure that net defined benefit liability

These amendments had no impact on the Facility’s financial statements.

Annual Improvements to IFRSs 2015–2017 Cycle (Amendments to IFRS 3, IFRS 11)

Annual Improvements to IFRSs 2015–2017 Cycle (Amendments to IFRS 3, IFRS 11)

These amendments had no impact on the Facility’s financial statements as there is no transaction where joint control is obtained.

Standards issued but not yet adopted

Standards issued but not yet adopted

Definition of Material — Amendments to IAS 1 ‘Presentation of financial statements’ and lAS 8 ‘Accounting policies, changes in accounting estimates and errors’ Effective for annual periods beginning on or after 1 January 2020.

Definition of Material — Amendments to IAS 1 ‘Presentation of financial statements’ and lAS 8 ‘Accounting policies, changes in accounting estimates and errors’ Effective for annual periods beginning on or after 1 January 2020.

The amendments clarify the definition of ‘material’ and align the definition used in the Conceptual Framework and the standards themselves.

The amended definition states that ‘Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.’

The amendment also clarifies the meaning of ‘primary users of general purpose financial statements’ to whom those financial statements are directed, by defining them as ‘existing and potential investors, lenders and other creditors’ that must rely on general purpose financial statements for much of the financial information they need.

The amendments are effective for annual periods beginning on or after 1 January 2020. The Facility did not adopt these amendments early and does not expect it to have a significant impact on the Facility’s financial statements.

Interest Rate Benchmark Reform — Amendments to IFRS 9, IAS 39 and IFRS 7

Interest Rate Benchmark Reform — Amendments to IFRS 9, IAS 39 and IFRS 7

In September 2019, the IASB issued amendments to IFRS 9, IAS 39 and IFRS 7, which provide temporary reliefs that would enable hedge accounting to continue during the period of uncertainty before the replacement of an existing interest rate benchmark with an alternative nearly risk-free interest rate (a RFR).

The amendments to IFRS 9 include a number of reliefs, which apply to all hedging relationships that are directly affected by the interest rate benchmark reform. The first three reliefs provide for:

| — | The assessment of whether a forecast transaction (or component thereof) is highly probable, |
| --- | --- |

—

The assessment of whether a forecast transaction (or component thereof) is highly probable,

| — | Assessing when to reclassify the amount in the cash flow hedge reserve to profit and loss, |
| --- | --- |

—

Assessing when to reclassify the amount in the cash flow hedge reserve to profit and loss,

| — | The assessment of the economic relationship between the hedged item and the hedging instrument. |
| --- | --- |

—

The assessment of the economic relationship between the hedged item and the hedging instrument.

For each of these reliefs, it is assumed that the benchmark on which the hedged cash flows are based are not altered as a result of IBOR reform.

The fourth relief provides that, a non-contractually specified risk component only needs to be separately identifiable need at initial hedge designation and not on ongoing basis.

Application of the reliefs is mandatory and the reliefs continue indefinitely in the absence of any of the events described in the amendments.

The amendments also introduce specific disclosure requirements for hedging relationships to which the reliefs are applied.

The amendments are effective for annual periods beginning on or after 1 January 2020. The Facility did not adopt these amendments early and the Bank established a cross-services IBOR working group to assess the impact and manage its transition.

Amendments to References to Conceptual Framework in IFRS Standards — effective 1 January 2020.

The revised Conceptual Framework sets out a comprehensive set of concepts for financial reporting, standard setting, guidance for preparers in developing consistent accounting policies and assistance to others in their efforts to understand and interpret the standards.

The revised Conceptual Framework for Financial Reporting is not a standard, and none of the concepts override those in any standard or any requirements in a standard, but mainly has the purpose to assist the Board in developing standards, to help preparers develop consistent accounting policies if there is no applicable standard in place and to assist all parties to understand and interpret the standards.

The Conceptual Framework includes some new concepts, provides updated definitions and recognition criteria for assets and liabilities and clarifies some important concepts. Conceptual Framework, it is effective for annual periods beginning on or after 1 January 2020.

The Facility did not adopt the revised Conceptual Framework early and does not expect it to have a significant impact on the Facility`s financial statements.

2.4.   
  Summary of significant accounting policies

Summary of significant accounting policies

The statement of financial position represents assets and liabilities in decreasing order of liquidity and does not distinguish between current and non-current items.

2.4.1.   Foreign currency translation

Foreign currency translation

The Facility uses the Euro (EUR) for presenting its financial statements, which is also the functional currency. Except as otherwise indicated, financial information presented in EUR has been rounded to the nearest thousand.

Foreign currency transactions are translated, at the exchange rate prevailing on the date of the transaction.

Monetary assets and liabilities denominated in currencies other than Euro are translated into Euro at the exchange rate prevailing at the statement of financial position date. The gain or loss arising from such translation is recorded in the statement of profit or loss and other comprehensive income.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

Exchange differences arising on the settlement of transactions at rates different from those at the date of the transaction, and unrealised foreign exchange differences on unsettled foreign currency monetary assets and liabilities, are recognised in the statement of profit or loss and other comprehensive income.

2.4.2.   Financial assets other than derivatives

Financial assets other than derivatives

Non-derivative financial instruments are initially recognised using the settlement date basis.

Classification and measurement

Classification and measurement

Financial assets

Financial assets

On initial recognition, a financial asset is classified as measured at amortised cost (‘AC’), fair value through other comprehensive income (‘FVOCI’) or fair value through P&L (‘FVTPL’) and a financial liability is classified as measured at AC or FVTPL.

Under IFRS 9, classification starts with determining whether the financial asset shall be considered as a debt or equity instrument. IFRS 9 refers to the definitions in IAS 32 Financial Instruments: Presentation.

Debt instruments are those instruments that meet the definition of a financial liability from the counterparty’s perspective, loans and debt securities including bonds, notes or certificates issued by structured entities, government or corporates.

A debt instrument is classified at AC if it meets both of the following conditions and is not designated as at FVTPL:

| — | the asset is held within a business model whose objective is to hold assets to collect contractual cash flows, and |
| --- | --- |

—

the asset is held within a business model whose objective is to hold assets to collect contractual cash flows, and

| — | the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (SPPI criteria). |
| --- | --- |

—

the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (SPPI criteria).

A debt instrument is classified at FVOCI only if it meets both of the following conditions and is not designated as at FVTPL:

| — | the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and |
| --- | --- |

—

the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and

| — | the contractual terms of the financial asset give rise on specific dates to cash flows that are fulfilling the SPPI criteria. |
| --- | --- |

—

the contractual terms of the financial asset give rise on specific dates to cash flows that are fulfilling the SPPI criteria.

The above requirements should be applied to an entire financial asset, even if it contains an embedded derivative.

Equity instruments are instruments that meet the definition of equity from the issuer’s perspective; that is, instruments that do not contain a contractual obligation to pay and that evidence a residual interest in the issuer’s net assets. Equity instruments are measured at FVTPL.

On initial recognition of an equity investment that is not held for trading, the Facility may irrevocably elect to present subsequent changes in other comprehensive income. This election is made on an investment-by-investment basis.

All other financial assets are classified as measured at FVTPL.

Business model assessment

Business model assessment

The EIB, as a manager of the Facility, makes an assessment of the objective of a business model in which a debt instrument is held at a portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes:

| — | the stated policies and objectives for the portfolio and the operation of those policies in practice. In particular, whether management's strategy focuses on earning contractual interest revenue, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of the liabilities that are funding those assets or realising cash flows through the sale of the assets, |
| --- | --- |

—

the stated policies and objectives for the portfolio and the operation of those policies in practice. In particular, whether management's strategy focuses on earning contractual interest revenue, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of the liabilities that are funding those assets or realising cash flows through the sale of the assets,

| — | how the performance of the portfolio is evaluated and reported to the Facility’s management, |
| --- | --- |

—

how the performance of the portfolio is evaluated and reported to the Facility’s management,

| — | the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed, and |
| --- | --- |

—

the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed, and

| — | the frequency, volume and timing of sales in prior periods, the reasons for such sales and its expectation about future sales activity. |
| --- | --- |

—

the frequency, volume and timing of sales in prior periods, the reasons for such sales and its expectation about future sales activity.

However, information about sales activity is not considered in isolation, but as part of an overall assessment of how the Facility stated objective for managing the financial assets is achieved and how cash flows are realised.

The business model for the Impact Financing Envelope direct loan operations has been changed as described and disclosed in Note 7 and Note 24.

Solely payment of principal and interests (‘SPPI’) criteria

Solely payment of principal and interests (‘SPPI’) criteria

For the purpose of this assessment, ‘principal’ is defined as the fair value of the debt instrument on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the contractual terms of the instrument are considered. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition.

Derecognition

Derecognition

The Facility derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or the rights to receive the contractual cash flow are transferred in a transaction in which either the Facility transfers the risks and rewards of ownership of the financial asset or it retains substantially all of the risks and rewards of ownership but does not retain control of the financial asset.

On derecognition of a financial asset or financial liability (Note 2.4.4), the difference between the carrying amount of the asset or liability (or the carrying amount allocated to the portion of the asset or liability derecognised) and the sum of (i) the consideration received or paid; and (ii) any cumulative gain or loss that had been recognised in other comprehensive income is recognised in profit or loss except for the cumulative gains or losses recognised in other comprehensive income for equity investments measured at fair value through other comprehensive income which are transferred to the reserve fund rather than profit or loss on disposal.

Reclassification

Reclassification

Financial assets are not reclassified subsequent to their initial recognition, except in the period after the Facility changes its business model for managing financial assets.

Modification

Modification

A financial asset measured at amortised cost is considered modified when its contractual cash flows are renegotiated or otherwise modified. Renegotiation or modification may or may not lead to derecognition of the old and recognition of the new financial instrument.

A substantial contractual modification on the cash flows of a financial asset measured at amortised cost which results in the derecognition of the financial asset, leads to the recognition of the new financial asset at its fair value, and the recording of the modification gain or loss impact in the consolidated income statement under ‘Result on financial operations’.

Measurement of fair values of financial instruments

Measurement of fair values of financial instruments

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal, or in its absence, the most advantageous market to which the Facility has access at that date.

When applicable, the EIB on behalf of the Facility measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an on-going basis.

Where the fair values of financial assets and financial liabilities recorded on the statement of financial position cannot be derived from active markets, they are determined using a variety of valuation techniques that include the use of mathematical models. The input to these models is taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. The chosen valuation technique incorporates all the factors that market participants would take into account in pricing a transaction.

These valuation techniques may include net present value and discounted cash flow models, comparison to similar instruments for which market observable prices exist, Black-Scholes and polynomial option pricing models and other valuation models. Assumptions and inputs used in valuation techniques include risk-free and benchmark interest rates, credit spreads used in estimating discount rates, bond and equity prices, foreign currency exchange rates, equity and equity index prices and expected price volatilities and correlations.

The objective of valuation techniques is to arrive at a fair value measurement that reflects the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date.

The Facility uses widely recognised valuation models for determining the fair value of common and more simple financial instruments, like interest rate and currency swaps that use only observable market data and require limited management judgement and estimation. Observable prices and model inputs are usually available in the market for listed debt and equity securities, exchange traded derivatives and simple over the counter derivatives like interest rate swaps. Availability of observable market prices and model inputs reduces the need for management judgement and estimation and also reduces the uncertainty associated with determination of fair values. Availability of observable market prices and inputs varies depending on the products and markets and is prone to changes based on specific events and general conditions in the financial markets.

For more complex instruments, the Facility uses own valuation models, which are developed from recognised valuation models. Some or all of the significant inputs into these models may not be observable in the market, and are derived from market prices or rates or are estimated based on assumptions. Example of instruments involving significant unobservable inputs includes certain loans and guarantees for which there is no active market. Valuation models that employ significant unobservable inputs require a higher degree of management judgement and estimation in the determination of fair value. Management judgement and estimation are usually required for selection of the appropriate valuation model to be used, determination of expected future cash flows on the financial instrument being valued, determination of probability or counterparty default and prepayments and selection of appropriate discount rates.

The Facility measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:

| — | Level 1: inputs that are unadjusted quoted market prices in active markets for identical instruments to which the Facility has access. |
| --- | --- |

—

Level 1: inputs that are unadjusted quoted market prices in active markets for identical instruments to which the Facility has access.

| — | Level 2: inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using quoted market prices in active markets for similar instruments, quoted prices for identical or similar instruments in markets that are considered less than active or other valuation techniques where all significant inputs are directly or indirectly observable from market data. |
| --- | --- |

—

Level 2: inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using quoted market prices in active markets for similar instruments, quoted prices for identical or similar instruments in markets that are considered less than active or other valuation techniques where all significant inputs are directly or indirectly observable from market data.

| — | Level 3: inputs that are not observable. This category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument’s valuation. This category includes instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments. |
| --- | --- |

—

Level 3: inputs that are not observable. This category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument’s valuation. This category includes instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

The Facility recognises transfers between levels of the fair value hierarchy as of the end of the reporting period during which the change has occurred.

Impairment on financial assets

Impairment on financial assets

IFRS 9 forward-looking ‘expected credit loss’ (‘ECL’) impairment model apply to financial assets measured at AC, to financial guarantee contracts, as well as to off-balance sheet commitments. This require judgement to determine the underlying variable (PD, LGD, EAD) used in order to assess how changes in economic and other factors affect ECLs, which will be determined on a probability-weighted basis.

Under IFRS 9, loss allowances is measured on either of the following bases:

| — | 12-month ECLs: these are the ECLs that result from possible default events within the 12 months after the reporting date, and |
| --- | --- |

—

12-month ECLs: these are the ECLs that result from possible default events within the 12 months after the reporting date, and

| — | Lifetime ECLs: these are the ECLs that result from all possible default events over the expected life of a financial instrument. |
| --- | --- |

—

Lifetime ECLs: these are the ECLs that result from all possible default events over the expected life of a financial instrument.

The IFRS 9 Standard sets out a ‘three-stage’ model for impairment based on changes in credit quality since initial recognition. Financial instruments are classified in Stage 1 except for those instruments for which significant increase in credit risk (‘SICR’) since initial recognition is identified. This includes both quantitative and qualitative information and analysis, based on the Bank’s expertise, including forward-looking information.

Purchased or originated credit-impaired assets (‘POCI’) are the financial assets which are, from the moment of initial recognition, deemed to be classified as Stage 3. For POCI financial assets, the cumulative changes in lifetime ECL since initial recognition are recognised in the statement of profit or loss.

The Facility’s assessment of the Stage is based on a sequential approach which is consistent with the Credit Risk Guidelines (‘CRG’) and the Financial Monitoring Guidelines and Procedures (‘FMGs’), notably covering watch list, internal rating and arrears.

If significant increase in credit risk has occurred, the financial instrument is moved to Stage 2 but is not yet deemed to be credit-impaired. If the financial instrument is credit-impaired, the financial instrument is then moved to Stage 3.

To identify Stage 3 exposures, the Facility determines whether or not there is objective evidence of default event. A financial asset is considered to be in default when the borrower is unlikely to pay its credit obligations to the Facility in full, without recourse by the Facility or the borrower is past due more than 90 days on any material credit obligation to the Facility.

In this respect, a financial asset is considered impaired when it is determined that it is probable that the Facility will not be able to collect all amounts due according to the original contractual terms or an equivalent value. Individual credit exposures are evaluated based upon the borrower’s characteristics, overall financial condition, resources and payment record, the prospects for support from any financially responsible guarantors and, where applicable, the realisable value of any collateral.

All impaired claims are reviewed and analysed at least semi-annually. Any subsequent changes to the amounts and timing of the expected future cash flows compared to the prior estimates will result in a change in the provision for credit losses and be charged or credited to the income statement. An allowance for impairment is reversed only when the credit quality has improved such that there is reasonable assurance of timely collection of principal and interest in accordance with the original contractual terms of the claim agreement. A write-off is made when all or part of a claim is deemed uncollectible or forgiven. Write-offs are charged against previously established impairments or directly to the income statement and reduce the principal amount of a claim. Recoveries in part or in full of amounts previously written off are credited to the income statement.

Measuring ECL — Inputs, Assumptions and Techniques

Measuring ECL — Inputs, Assumptions and Techniques

Lifetime ECL measurement applies to Stage 2 and Stage 3 assets, while 12-month ECL measurement applies to Stage 1 assets.

The expected credit losses were calculated based on the following variables:

| — | Probability of default (PD), |
| --- | --- |

—

Probability of default (PD),

| — | Loss Given default (LGD), |
| --- | --- |

—

Loss Given default (LGD),

| — | Exposure at default (EAD). |
| --- | --- |

—

Exposure at default (EAD).

The probability of default represents the likelihood of a counterpart defaulting on its financial obligation, either over the next 12 months, or over the remaining lifetime of the obligation. PD is estimated at a certain date, which are calculated based on statistical rating models, and assessed using rating tools tailored to the various categories of counterparties and exposures.

Ratings are primary input into the determination of the term structure of PD for exposures. The EIB collects performance and default information about the Facility’s credit risk exposures. The collected data are segmented by type of industry and by type of region. Different industries and regions reacting in a homogenous manner to credit cycles are analysed together.

The EIB employs statistical models to analyse the data collected and generate estimates of the remaining lifetime PD of exposures and how these are expected to change as a result of the passage of time.

The loss given default represents the EIB’s expectation of the ratio of the loss on an exposure due to the default of a counterparty to the amount outstanding at default. Loss given default can be also defined as ‘1 — Recovery Rate’. LGD estimates are determined mainly by geography and by type of counterparty, with five main exposure classes: Sovereigns, Public Institutions, Financial Institutions, Corporate and Project Finance. LGD values can be further adjusted based on the product and contract specific features of the exposure.

The EAD represents the expected exposure in the event of a default EAD and is based on the current exposure to the counterparty and potential changes to the current amount allowed under the contract including amortisation. The EAD of a financial asset is its gross carrying amount. For lending commitments and financial guarantees, the EAD includes the amount drawn, as well as potential future amounts that may be drawn under the contract.

The EIB incorporates forward-looking information into both its assessment of whether the credit risk of an instrument has increased significantly since its initial recognition and its measurement of expected credit losses.

2.4.2.1.   Cash and cash equivalents

Cash and cash equivalents

The Facility defines cash and cash equivalents as current accounts, short-term deposits or commercial papers with original maturities of three months or less. Cash and cash equivalents are carried at AC in the statement of financial position.

2.4.2.2.   Treasury financial assets

Treasury financial assets

Treasury financial assets comprise quoted and unquoted bonds with the intention of holding them to maturity, and commercial papers with original maturities of more than three months and are consequently classified at AC.

Those bonds and commercial papers are initially measured at cost, which is the fair value plus any directly attributable transaction cost. The difference between entry price and redemption value is amortised in accordance with the effective interest method over the remaining life of the instrument.

2.4.2.3.   Loans and advances

Loans and advances

The loan and advances portfolio may consist of debt instruments such as loans and debt securities including bonds, notes or certificates issued by structured entities with the intention of holding them to maturity and to collect the contractual cash flows.

Loans and advances include:

| — | Loans and advances measured at AC, |
| --- | --- |

—

Loans and advances measured at AC,

| — | Loans and advances mandatorily measured at FVTPL. |
| --- | --- |

—

Loans and advances mandatorily measured at FVTPL.

Loans originated by the Facility are recognised in the assets of the Facility when cash is advanced to borrowers. Undisbursed parts of loans are recorded in the off-balance at their nominal value. Loans passing the SPPI test are initially recorded at cost (their net disbursed amounts), which is the fair value of the cash given to originate the loan, including any transaction costs, and are subsequently measured at AC using the effective interest rate method.

Debt securities are recognised in the assets of the Facility when cash is advanced to the issuer and can take the form of a contractually linked or single tranche debt instrument. Undisbursed parts of debt securities are recorded in the off-balance at their nominal value. Debt securities are initially measured at cost, which is the fair value plus any directly attributable transaction cost, and are subsequently measured at AC using the effective interest rate method. The difference between entry price and redemption value is amortised in accordance with the effective interest method over the remaining life of the instrument.

Impairment policy on loans and advances is described under the note 2.4.2.

Loans and advances not fulfilling the SPPI criterion are mandatorily measured at FVTPL. The fair value measurement technique used is based on a discounted cash flow technique.

2.4.2.4.   Shares and other variable yield securities

Shares and other variable yield securities

There are two types of equity investments at the Facility: (i) direct equity investments; and (ii) venture capital funds. The shares and other variable yield securities are initially recognised at fair value plus transactions costs. Subsequently changes in fair value, including foreign currency translation gains and losses, are recognised in the statement of profit or loss and other comprehensive income under the caption net result on shares and other variable yield securities.

For unquoted investment, when the fair value cannot be derived from active markets, the fair value is determined by applying recognised valuation techniques (Note 4.2.1).

The participations acquired by the Facility typically represent investments in private equity or venture capital funds. According to industry practice, such investments are generally investments jointly subscribed by a number of investors, none of whom is in a position to individually influence the daily operations and the investment activity of such fund. As a consequence, any membership by an investor in a governing body of such fund does not in principle entitle such investor to influence the day-to-day operations of the fund. In addition, individual investors in a private equity or a venture capital fund do not determine policies of a fund such as distribution policies on dividends or other distributions. Such decisions are typically taken by the management of a fund on the basis of the shareholders agreement governing the rights and obligations of the management and all shareholders of the fund. The shareholders’ agreement also generally prevents individual investors from bilaterally executing material transactions with the fund, interchanging managerial personnel or obtaining privileged access to essential technical information. The Facility’s investments are executed in line with the above stated industry practice, ensuring that the Facility neither controls nor exercises any form of significant influence within the meaning of IFRS 10 and IAS 28 over any of these investments, including those investments in which the Facility holds over 20 % of the voting rights.

2.4.3.   Financial guarantees

Financial guarantees

Financial guarantee contracts are contracts that require the Facility to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.

Under the existing rules, these guarantees do not meet the definition of an insurance contract (IFRS 4 Insurance Contracts).

Financial guarantees are accounted for under IFRS 9 — Financial Instruments, either as ‘Derivatives’ or as ‘Financial Guarantees’, depending on their features and characteristics as defined by IFRS 9.

The accounting policy for derivatives is disclosed under Note 2.4.5.

Financial guarantees are initially recognised in the statement of financial position under ‘Provisions for guarantees issued’ at fair value plus transaction costs that are directly attributable to the issuance of the financial guarantees. At initial recognition the obligation to pay corresponds to the Net Present Value (NPV) of expected premium inflows or the initial expected loss.

Subsequent to initial recognition, financial guarantees are measured at the higher of:

| — | The amount of the loss allowance as determined under IFRS 9, and |
| --- | --- |

—

The amount of the loss allowance as determined under IFRS 9, and

| — | The premium initially recognised less income recognised in accordance with the principles of IFRS 15. |
| --- | --- |

—

The premium initially recognised less income recognised in accordance with the principles of IFRS 15.

Any increase or decrease in the net liability (as measured per IFRS 9) relating to financial guarantees other than the payment of guarantee calls is recognised in the statement of profit or loss and other comprehensive income under ‘Change in provisions for guarantees’.

The premium received is recognised in the statement of profit or loss and other comprehensive income in ‘Fee and commission income’ on the basis of an amortisation schedule in accordance with IFRS 15 over the life of the financial guarantee.

In addition, when a guarantee agreement is signed, it is presented as a contingent liability for the Facility and when the guarantee is engaged, as a commitment for the Facility.

2.4.4.   Financial liabilities other than derivatives

Financial liabilities other than derivatives

Classification and measurement

Classification and measurement

Financial liabilities

Financial liabilities

A financial liability is measured at amortised cost except for financial liabilities that meet the definition of held for trading (e.g. derivative liabilities).

The Facility derecognises a financial liability when its contractual obligations are discharged, cancelled or expired.

2.4.5.   Derivative financial instruments

Derivative financial instruments

Derivative financial instruments include cross currency swaps, cross currency interest rate swaps, short term currency swaps (‘FX swaps’) and interest rate swaps.

Derivative financial instruments are initially recognised using the trade date basis.

In the normal course of its activity, the Facility may enter into swap contracts with a view to hedge specific lending operations or into currency forward contract with a view to hedge its currency positions, denominated in actively traded currencies other than the Euro, in order to offset any gain or loss caused by foreign exchange rate fluctuations.

All derivatives are measured at FVTPL and are reported as derivative financial instruments. Fair values are derived primarily from discounted cash-flow models, option-pricing models and from third party quotes.

Derivatives are recorded at fair value and carried as assets when their fair value is positive and as liabilities when their fair value is negative. Changes in the fair value of derivative financial instruments are shown in the statement of profit and loss and other comprehensive income under ‘Fair value change of derivative financial instruments’.

Under IFRS 9, bifurcation requirements regarding embedded derivatives have been eliminated for financial assets or financial liabilities and therefore, the hybrid contract is treated as a whole for classification of financial assets or financial liability accordingly.

2.4.6.   Contributions

Contributions

Contributions from Member States are recognised as receivables in the statement of financial position on the date of the Council Decision fixing the financial contribution to be paid by the Member States to the Facility.

The Member States contributions meet the following conditions and are consequently classified as equity:

| — | as defined in the contribution agreement, they entitle the Member States to decide on the utilisation of the Facility’s net assets in the events of the Facility’s liquidation; |
| --- | --- |

—

as defined in the contribution agreement, they entitle the Member States to decide on the utilisation of the Facility’s net assets in the events of the Facility’s liquidation;

| — | they are in the class of instruments that is subordinated to all other classes of instruments; |
| --- | --- |

—

they are in the class of instruments that is subordinated to all other classes of instruments;

| — | all financial instruments in the class of instruments that are subordinated to all other classes of instruments have identical features; |
| --- | --- |

—

all financial instruments in the class of instruments that are subordinated to all other classes of instruments have identical features;

| — | the instrument does not include any features that would require classification as a liability; and |
| --- | --- |

—

the instrument does not include any features that would require classification as a liability; and

| — | the total expected cash flows attributable to the instrument over its life are based substantially on the profit or loss, the change in the recognised net assets or the change in the fair value of the recognised and unrecognised net assets of the Facility over the life of the instrument. |
| --- | --- |

—

the total expected cash flows attributable to the instrument over its life are based substantially on the profit or loss, the change in the recognised net assets or the change in the fair value of the recognised and unrecognised net assets of the Facility over the life of the instrument.

Contributions are classified and measured at AC in the financial statements.

2.4.7.   Interest and similar income

Interest and similar income

Interest on loans originated by the Facility is recorded in the statement of profit or loss and other comprehensive income (‘Interest and similar income’) and in the statement of financial position (‘Loans and advances’) on an accrual basis using the effective interest rate, which is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the loan to the net carrying amount of the loan. Once the recorded value of a loan has been reduced due to impairment, interest income continues to be recognised using the original effective interest rate applied to the new carrying amount.

Interest on the POCI loans is recorded in the statement of profit or loss and other comprehensive income (‘Interest and similar income’) and in the statement of financial position (‘Loans and advances’) on an accrual basis using the credit- adjusted effective interest rate through the whole life of the loan, which is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the loan to the amortised cost of the loan.

Commitment fees are deferred and recognised in income using the effective interest method over the period from disbursement to repayment of the related loan, and are presented in the statement of profit or loss and other comprehensive income within interest and similar income.

2.4.8.   Interest subsidies and technical assistance

Interest subsidies and technical assistance

As part of its activity, the Facility manages interest subsidies and technical assistance on behalf of the Member States.

The part of the Member States contributions allocated to the payment of interest subsidies and TA is not accounted for in the Facility’s contributors’ resources but is classified as amounts owed to third parties. The Facility operates the disbursement to the final beneficiaries and then decreases the amounts owed to third parties.

When amounts contributed with regard to interest subsidies and TA are not fully granted, they are reclassified as contribution to the Facility.

2.4.9.   Interest income on cash and cash equivalents

Interest income on cash and cash equivalents

Interest income on cash and cash equivalents is recognised in the statement of profit or loss and other comprehensive income of the Facility on an accrual basis.

2.4.10.   Fees, commissions and dividends

Fees, commissions and dividends

Fees received in respect of services provided over a period of time are recognised as income as the services are provided, while fees that are earned on the execution of a significant act are recognised as income when the significant act has been completed. These fees are presented in the statement of profit or loss and other comprehensive income within fee and commission income.

Dividends relating to shares and other variable yield securities are recognised when received and presented in the statement of profit or loss and other comprehensive income within net realised gains on shares and other variable yield securities.

2.4.11.   Taxation

Taxation

The Protocol on the Privileges and Immunities of the European Union, appended to the treaty on the European Union and the treaty of the functioning of the European Union, stipulates that the assets, revenues and other property of the Institutions of the Union are exempt from all direct taxes.

3.   Risk Management

Risk Management

This note presents information about the Facility’s exposure to and its management and control of credit and financial risks, in particular the primary risks associated with its use of financial instruments. These are:

| — | credit risk — the risk of loss resulting from client or counterparty default and arising on credit exposure in all forms, including settlement risk, |
| --- | --- |

—

credit risk — the risk of loss resulting from client or counterparty default and arising on credit exposure in all forms, including settlement risk,

| — | liquidity risk — the risk that an entity is not able to fund increases in assets and meet obligations as they come due, without incurring unacceptable losses, |
| --- | --- |

—

liquidity risk — the risk that an entity is not able to fund increases in assets and meet obligations as they come due, without incurring unacceptable losses,

| — | market risk — the risk that changes in market prices and rates, such as interest rates, equity prices and foreign exchange rates will affect an entity’s income or the value of its holdings in financial instruments. |
| --- | --- |

—

market risk — the risk that changes in market prices and rates, such as interest rates, equity prices and foreign exchange rates will affect an entity’s income or the value of its holdings in financial instruments.

3.1.   
  Risk management organisation

Risk management organisation

The EIB adapts the IF`s risk management framework on an ongoing basis.

The Risk Management Directorate of EIB independently identifies, assesses, monitors and reports the risks to which the Facility is exposed. Within a framework whereby the segregation of duties is preserved, the Risk Management Directorate is independent of the Front Office. At EIB level the Director General of Risk Management reports for risk matters to the designated Vice-President for Risk Management. The designated Vice-President is responsible for overseeing risk reporting to the EIB’s Management Committee and the Board of Directors.

3.2.   
  Credit risk

Credit risk

Credit risk is the potential loss that could result from client or counterparty default and arising on credit exposure in all forms, including settlement.

3.2.1.   Credit risk policy

Credit risk policy

In carrying out the credit analysis on loan counterparts, EIB assesses the credit risk and expected loss with a view to quantify and price the risk. EIB has developed an Internal Rating Methodology (IRM) to determine the Internal Ratings of its credit-relevant borrower/guarantor counterparts. The methodology is based on a system of scoring sheets tailored for each major credit counterpart type (e.g. Corporates, Banks, Public Sector Entities, etc). Taking into consideration both, Best Banking Practice and the principles set under the Basel International Capital Accord (Basel II), all counterparts that are material to the credit profile of a specific transaction are classified into internal rating categories using the IRM for the specific counterpart type. Each counterpart is assigned an Internal Rating reflecting its probability of default foreign currency rating following an in-depth analysis of the counterpart’s business and financial risk profile and its country risk operating context.

The credit assessment of project finance and other structured limited recourse operations is using credit risk tools relevant for the sector, focused mainly on cash flow availability and debt service capacity. These tools include the analysis of projects’ contractual framework, counterpart’s analysis and cash flow simulations. Similarly to corporates and financial institutions, each project is assigned an internal risk rating.

All Internal Ratings are monitored over loan life, and periodically updated.

All non-sovereign (or non sovereign guaranteed/assimilated) operations are subject to specific transaction-level and counterpart size limits. Counterpart limits are set at consolidated group exposure level, where applicable. Such limits typically reflect e.g. the size of counterparts own funds.

In order to mitigate credit risk the EIB uses, where appropriate and on a case-by-case basis, various credit enhancements which are:

| — | Counterparty or project related securities (e.g., pledge over the shares; pledge over the assets; assignment of rights; pledge over the accounts), or/and |
| --- | --- |

—

Counterparty or project related securities (e.g., pledge over the shares; pledge over the assets; assignment of rights; pledge over the accounts), or/and

| — | guarantees, generally provided by the sponsor of the financed project (e.g., completion guarantees, first demand guarantees) or bank guarantees. |
| --- | --- |

—

guarantees, generally provided by the sponsor of the financed project (e.g., completion guarantees, first demand guarantees) or bank guarantees.

The Facility does not use any credit derivatives to mitigate credit risk.

3.2.2.   Maximum exposure to credit risk without taking into account any collateral and other credit enhancements

Maximum exposure to credit risk without taking into account any collateral and other credit enhancements

The following table shows the maximum exposure to credit risk for the components of the statement of financial position, including derivatives. The maximum exposure is shown gross, before the effect of mitigation through the use of collateral.

| in EUR’000 |
| --- |
| Maximum exposure | 31.12.2019 | 31.12.2018 |
| ASSETS | | |
| Cash and cash equivalents | 837 777 | 573 708 |
| Amounts receivable from contributors | 86 330 | 100 000 |
| Treasury financial assets | 330 587 | 335 140 |
| Derivative financial instruments | 14 184 | 9 873 |
| Loans and advances | 1 518 675 | 1 540 991 |
| Other assets | — | 171 |
| Total | 2 787 553 | 2 559 883 |
| Provisions for loan commitments | -37 269 | -23 822 |
| OFF BALANCE SHEET | | |
| OFF BALANCE SHEET | | |
| Contingent liabilities | | |
| — | Issued Guarantees |

in EUR’000

Maximum exposure

31.12.2019

31.12.2018

ASSETS

ASSETS

Cash and cash equivalents

837 777

573 708

Amounts receivable from contributors

86 330

100 000

Treasury financial assets

330 587

335 140

Derivative financial instruments

14 184

9 873

Loans and advances

1 518 675

1 540 991

Other assets

—

171

Total

Total

2 787 553

2 787 553

2 559 883

2 559 883

Provisions for loan commitments

Provisions for loan commitments

-37 269

-37 269

-23 822

-23 822

OFF BALANCE SHEET

OFF BALANCE SHEET

OFF BALANCE SHEET

OFF BALANCE SHEET

Contingent liabilities

—

Issued Guarantees

200 013

2 800

Commitments

| — | Undisbursed loans |
| --- | --- |

—

Undisbursed loans

1 357 320

1 283 932

| — | Non-issued guarantees |
| --- | --- |

—

Non-issued guarantees

1 359 818

1 553 668

Total off balance sheet

Total off balance sheet

2 917 151

2 917 151

2 840 400

2 840 400

Total credit exposure

Total credit exposure

5 667 435

5 667 435

5 376 461

5 376 461

3.2.3.   Credit risk on loans and advances

Credit risk on loans and advances

3.2.3.1.   Credit risk measurement for loans and advances

Credit risk measurement for loans and advances

Loans and advances or guarantee undertaken by the Facility benefits from a comprehensive risk assessment and quantification of expected loss estimates that are reflected in a Loan Grading (‘LG’). Operations under the IFE (as described in Note 24), with the exception of intermediated loans, are not subject to the Credit Risk Policy Guidelines and are subject to a different procedure. LGs are established according to generally accepted criteria, based on the quality of the borrower, the maturity of the loan, the guarantee and, where appropriate, the guarantor.

The loan grading system comprises the methodologies, processes, databases and IT systems supporting the assessment of credit risk in lending operations and the quantification of expected loss estimates. It summarises a large amount of information with the purpose of offering a relative ranking of loans’ credit risks. LGs reflect the present value of the estimated level of the ‘expected loss’, this being the product of the probability of default of the main obligors, the exposure at risk and the loss severity in the case of default. LGs are used for the following purposes:

| — | as an aid to a finer and more quantitative assessment of lending risks, |
| --- | --- |

—

as an aid to a finer and more quantitative assessment of lending risks,

| — | as help in distributing monitoring efforts, |
| --- | --- |

—

as help in distributing monitoring efforts,

| — | as a description of the loan’s portfolio quality at any given date, |
| --- | --- |

—

as a description of the loan’s portfolio quality at any given date,

| — | as one input in risk-pricing decisions based on the expected loss. |
| --- | --- |

—

as one input in risk-pricing decisions based on the expected loss.

The following factors enter into the determination of an LG:

| (i) | The borrower’s creditworthiness: Risk Management independently reviews borrowers and assesses their creditworthiness based on internal methodologies and external data. In line with the Basel II Advanced Approach chosen, the Bank has developed an internal rating methodology (IRM) to determine the internal ratings of borrowers and guarantors. This is based on a set of scoring sheets specific to defined counterparty types. |
| --- | --- |

(i)

The borrower’s creditworthiness: Risk Management independently reviews borrowers and assesses their creditworthiness based on internal methodologies and external data. In line with the Basel II Advanced Approach chosen, the Bank has developed an internal rating methodology (IRM) to determine the internal ratings of borrowers and guarantors. This is based on a set of scoring sheets specific to defined counterparty types.

| (ii) | The default correlation: it quantifies the chances of simultaneous financial difficulties arising for both the borrower and the guarantor. The higher the correlation between the borrower and the guarantor’s default probabilities, the lower the value of the guarantee and therefore the lower (worse) the LG. |
| --- | --- |

(ii)

The default correlation: it quantifies the chances of simultaneous financial difficulties arising for both the borrower and the guarantor. The higher the correlation between the borrower and the guarantor’s default probabilities, the lower the value of the guarantee and therefore the lower (worse) the LG.

| (iii) | The value of guarantee instruments and of securities: this value is assessed on the basis of the combination of the issuer’s creditworthiness and the type of instrument used. |
| --- | --- |

(iii)

The value of guarantee instruments and of securities: this value is assessed on the basis of the combination of the issuer’s creditworthiness and the type of instrument used.

| (iv) | The applicable recovery rate: being the amount assumed to be recovered following a default by the relevant counterpart expressed as a percentage of the relevant loan exposure |
| --- | --- |

(iv)

The applicable recovery rate: being the amount assumed to be recovered following a default by the relevant counterpart expressed as a percentage of the relevant loan exposure

| (v) | The contractual framework: a sound contractual framework will add to the loan’s quality and enhance its internal grading. |
| --- | --- |

(v)

The contractual framework: a sound contractual framework will add to the loan’s quality and enhance its internal grading.

| (vi) | The duration of the loan or, more generally, the cash-flows of the loan: all else being equal, the longer the loan, the higher the risk of incurring difficulties in the servicing of the loan. |
| --- | --- |

(vi)

The duration of the loan or, more generally, the cash-flows of the loan: all else being equal, the longer the loan, the higher the risk of incurring difficulties in the servicing of the loan.

A loan’s expected loss is computed by combining the five elements discussed above. Depending on the level of this loss, a loan is assigned to one of the following LG classes listed below:

| ‘A’ – | Prime quality loans of which there are three sub-categories:






  — | ‘A0’ comprising loans to or guaranteed by an EU Member State which have an expected loss of 0 % (based on the Bank’s preferred creditor status and statutory protection which are deemed to assure a full recovery of the Bank’s assets upon maturity). |
| --- | --- | --- |

‘A’ –

Prime quality loans of which there are three sub-categories:

—

‘A0’ comprising loans to or guaranteed by an EU Member State which have an expected loss of 0 % (based on the Bank’s preferred creditor status and statutory protection which are deemed to assure a full recovery of the Bank’s assets upon maturity).

| — | ‘A+’ comprising loans granted to (or guaranteed by) entities other than EU Member States in respect of which there is no expectation of deterioration in quality over their term. |
| --- | --- |

—

‘A+’ comprising loans granted to (or guaranteed by) entities other than EU Member States in respect of which there is no expectation of deterioration in quality over their term.

| — | ‘A-’ includes those lending operations where there is some doubt about the maintenance of their current status but where any downside is expected to be limited. |
| --- | --- |

—

‘A-’ includes those lending operations where there is some doubt about the maintenance of their current status but where any downside is expected to be limited.

| ‘B’ – | High quality loans: these represent an asset class with which the bank feels comfortable, although a minor deterioration is not ruled out in the future. B+ and B- are used to denote the relative likelihood of the possibility of such deterioration occurring. |
| --- | --- |

‘B’ –

High quality loans: these represent an asset class with which the bank feels comfortable, although a minor deterioration is not ruled out in the future. B+ and B- are used to denote the relative likelihood of the possibility of such deterioration occurring.

| ‘C’ – | Good quality loans: an example could be unsecured loans to solid banks and corporates with a 7-year bullet, or equivalent amortising, maturity at disbursement. |
| --- | --- |

‘C’ –

Good quality loans: an example could be unsecured loans to solid banks and corporates with a 7-year bullet, or equivalent amortising, maturity at disbursement.

| ‘D’ – | This rating class represents the borderline between ‘acceptable quality’ loans and those that have experienced some difficulties. This watershed in loan grading is more precisely determined by the sub-classifications D+ and D-. Loans rated D- require heightened monitoring. |
| --- | --- |

‘D’ –

This rating class represents the borderline between ‘acceptable quality’ loans and those that have experienced some difficulties. This watershed in loan grading is more precisely determined by the sub-classifications D+ and D-. Loans rated D- require heightened monitoring.

| ‘E’ – | This LG category includes loans with a risk profile greater than generally accepted. It also includes loans which in the course of their lives have experienced severe problems and their sliding into a situation of loss cannot be excluded. For this reason, the loans are subject to close and high monitoring. The sub-classes E+ and E- differentiate the intensity of this special monitoring process, with those operations graded E- being in a position where there is a strong possibility that debt service cannot be maintained on a timely basis and therefore some form of debt restructuring is required, possibly leading to an impairment loss. |
| --- | --- |

‘E’ –

This LG category includes loans with a risk profile greater than generally accepted. It also includes loans which in the course of their lives have experienced severe problems and their sliding into a situation of loss cannot be excluded. For this reason, the loans are subject to close and high monitoring. The sub-classes E+ and E- differentiate the intensity of this special monitoring process, with those operations graded E- being in a position where there is a strong possibility that debt service cannot be maintained on a timely basis and therefore some form of debt restructuring is required, possibly leading to an impairment loss.

| ‘F’ – | F (fail) denotes loans representing unacceptable risks. F- graded loans can only arise out of outstanding transactions that have experienced, after signature, unforeseen, exceptional and dramatic adverse circumstances. All operations where there is a loss of principal to the Facility are graded F and a specific provision is applied. |
| --- | --- |

‘F’ –

F (fail) denotes loans representing unacceptable risks. F- graded loans can only arise out of outstanding transactions that have experienced, after signature, unforeseen, exceptional and dramatic adverse circumstances. All operations where there is a loss of principal to the Facility are graded F and a specific provision is applied.

Generally, loans internally graded D- or below are placed on the Watch List. However, if a loan was originally approved with a risk profile of D- or weaker, it will only be placed on the Watch List as a result of a material credit event causing a further deterioration of its LG classification.

The table in section 3.2.3.3 shows the credit quality analysis of the Facility’s loan portfolio based on the various LG classes as described above.

3.2.3.2.   Analysis of lending credit risk exposure

Analysis of lending credit risk exposure

The following table shows the maximum exposure (net carrying amount) to credit risk on loans and advances signed (disbursed and undisbursed) by nature of borrower taking into account guarantees provided by guarantors:

| in EUR’000 |
| --- |
| At 31.12.2019 | Guaranteed | Other credit enhancements | Not guaranteed | Total | % of Total disbursed |
| Banks | 111 806 | — | 803 861 | 915 667 | 60 % |
| Corporates | 190 006 | 36 704 | 172 082 | 398 792 | 26 % |
| Public institutions | 26 908 | — | 1 686 | 28 594 | 2 % |
| States | — | 2 085 | 173 537 | 175 622 | 12 % |
| Total disbursed | 328 720 | 38 789 | 1 151 166 | 1 518 675 | 100 % |
| Undisbursed | 191 191 | — | 1 128 860 | 1 320 051 | |
| Total disbursed and undisbursed | 519 911 | 38 789 | 2 280 026 | 2 838 726 | |

in EUR’000

At 31.12.2019

Guaranteed

Other credit enhancements

Not guaranteed

Total

% of Total disbursed

Banks

111 806

—

803 861

915 667

915 667

60 %

60 %

Corporates

190 006

36 704

172 082

398 792

398 792

26 %

26 %

Public institutions

26 908

—

1 686

28 594

28 594

2 %

2 %

States

—

2 085

173 537

175 622

175 622

12 %

12 %

Total disbursed

Total disbursed

328 720

328 720

38 789

38 789

1 151 166

1 151 166

1 518 675

1 518 675

100 %

100 %

Undisbursed

Undisbursed

191 191

191 191

—

—

1 128 860

1 128 860

1 320 051

1 320 051

Total disbursed and undisbursed

Total disbursed and undisbursed

519 911

519 911

38 789

38 789

2 280 026

2 280 026

2 838 726

2 838 726

| in EUR’000 |
| --- |
| At 31.12.2018 | Guaranteed | Other credit enhancements | Not guaranteed | Total | % of Total disbursed |
| Banks | 88 263 | — | 856 484 | 944 747 | 61 % |
| Corporates | 147 551 | 45 820 | 205 198 | 398 569 | 26 % |
| Public institutions | 29 182 | — | — | 29 182 | 2 % |
| States | — | 2 647 | 165 846 | 168 493 | 11 % |
| Total disbursed | 264 996 | 48 467 | 1 227 528 | 1 540 991 | 100 % |
| Undisbursed | 170 356 | — | 1 089 753 | 1 260 110 | |
| Total disbursed and undisbursed | 435 352 | 48 467 | 2 317 281 | 2 801 101 | |

in EUR’000

At 31.12.2018

Guaranteed

Other credit enhancements

Not guaranteed

Total

% of Total disbursed

Banks

88 263

—

856 484

944 747

944 747

61 %

61 %

Corporates

147 551

45 820

205 198

398 569

398 569

26 %

26 %

Public institutions

29 182

—

—

29 182

29 182

2 %

2 %

States

—

2 647

165 846

168 493

168 493

11 %

11 %

Total disbursed

Total disbursed

264 996

264 996

48 467

48 467

1 227 528

1 227 528

1 540 991

1 540 991

100 %

100 %

Undisbursed

Undisbursed

170 356

170 356

—

—

1 089 753

1 089 753

1 260 110

1 260 110

Total disbursed and undisbursed

Total disbursed and undisbursed

435 352

435 352

48 467

48 467

2 317 281

2 317 281

2 801 101

2 801 101

Transaction Management and Restructuring Directorate is tasked with the responsibility of performing borrower and guarantor monitoring, as well as project-related financial and contractual monitoring. Thus, the creditworthiness of the Facility’s loans, borrowers and guarantors are continually monitored, at least annually but more frequently on an as-needed basis and as a function of credit events taking place. In particular, Transaction Management and Restructuring Directorate reviews if contractual rights are met and, in case of a rating deterioration and/or contractual default, remedy action is taken. Mitigation measures are pursued, whenever necessary in accordance with the credit risk guidelines. Also, in case of renewals of bank guarantees received for its loans, it is ensured that these are replaced or action is taken in a timely manner.

3.2.3.3.   Credit quality analysis per type of borrower

Credit quality analysis per type of borrower

The tables below show the credit quality analysis of the Facility’s loan portfolio as at 31 December 2019 and 31 December 2018 by the Loan Grading applications, based on the exposure signed (disbursed and undisbursed):

| in EUR’000 |
| --- |
| At 31.12.2019 | High Grade | Standard Grade | Min. Accept. Risk | High Risk | No grading (26) | Total | % of Total |
| A to B- | C | D+ | D- and below |
| Borrower | Banks | 234 072 | 219 467 | 335 841 | 817 894 | — | 1 607 274 | 57 % |
| Corporates | 100 115 | 49 458 | — | 524 532 | 95 925 | 770 030 | 27 % |
| Public institutions | — | 26 908 | — | — | 1 686 | 28 594 | 1 % |
| States | — | 6 285 | 4 486 | 422 057 | — | 432 828 | 15 % |
| Total | 334 187 | 302 118 | 340 327 | 1 764 483 | 97 611 | 2 838 726 | 100 % |

in EUR’000

At 31.12.2019

High Grade

Standard Grade

Min. Accept. Risk

High Risk

No grading (26)

26

Total

% of Total

A to B-

C

D+

D- and below

Borrower

Banks

234 072

219 467

335 841

817 894

—

1 607 274

1 607 274

57 %

57 %

Corporates

100 115

49 458

—

524 532

95 925

770 030

770 030

27 %

27 %

Public institutions

—

26 908

—

—

1 686

28 594

28 594

1 %

1 %

States

—

6 285

4 486

422 057

—

432 828

432 828

15 %

15 %

Total

Total

334 187

334 187

302 118

302 118

340 327

340 327

1 764 483

1 764 483

97 611

97 611

2 838 726

2 838 726

100 %

100 %

| in EUR’000 |
| --- |
| At 31.12.2018 | High Grade | Standard Grade | Min. Accept. Risk | High Risk | No grading | Total | % of Total |
| A to B- | C | D+ | D- and below |
| Borrower | Banks | 232 467 | 238 619 | 349 756 | 698 562 | — | 1 519 404 | 54 % |
| Corporates | 103 845 | 7 564 | 744 | 693 100 | 50 000 | 855 253 | 31 % |
| Public institutions | — | — | 29 182 | 2 994 | — | 32 176 | 1 % |
| States | — | 4 786 | 7 681 | 381 801 | — | 394 268 | 14 % |
| Total | 336 312 | 250 969 | 387 363 | 1 776 457 | 50 000 | 2 801 101 | 100 % |

in EUR’000

At 31.12.2018

High Grade

Standard Grade

Min. Accept. Risk

High Risk

No grading

Total

% of Total

A to B-

C

D+

D- and below

Borrower

Banks

232 467

238 619

349 756

698 562

—

1 519 404

1 519 404

54 %

54 %

Corporates

103 845

7 564

744

693 100

50 000

855 253

855 253

31 %

31 %

Public institutions

—

—

29 182

2 994

—

32 176

32 176

1 %

1 %

States

—

4 786

7 681

381 801

—

394 268

394 268

14 %

14 %

Total

Total

336 312

336 312

250 969

250 969

387 363

387 363

1 776 457

1 776 457

50 000

50 000

2 801 101

2 801 101

100 %

100 %

3.2.3.4.   Risk concentrations of loans and advances

Risk concentrations of loans and advances

3.2.3.4.1.   
  Geographical analysis

Geographical analysis

Based on the country of borrower, the Facility’s loan portfolio can be analysed by the following geographical regions.

| in EUR‘000 |
| --- |
| Country of borrower | 31.12.2019 | 31.12.2018 |
| Kenya | 230 837 | 233 269 |
| Nigeria | 179 499 | 172 515 |
| Egypt | 101 316 | 74 431 |
| Tanzania | 96 640 | 124 718 |
| Mauritius | 96 014 | 133 132 |
| Barbados | 75 342 | 74 638 |
| Congo (Democratic Republic) | 66 754 | 62 708 |
| Uganda | 64 882 | 81 766 |
| Ethiopia | 62 005 | 55 215 |
| Mauritania | 49 139 | 50 727 |
| Rwanda | 48 839 | 28 704 |
| Dominican Republic | 45 393 | 54 326 |
| New Caledonia | 43 980 | 21 124 |
| Zambia | 43 036 | 17 700 |
| Senegal | 42 750 | 18 330 |
| Jamaica | 33 436 | 72 165 |
| Cameroon | 32 238 | 14 784 |
| Ghana | 31 635 | 39 246 |
| Malawi | 21 800 | 26 827 |
| Guinea | 20 399 | — |
| Angola | 19 269 | 20 651 |
| Togo | 18 022 | 30 634 |
| Cape Verde | 17 226 | 18 923 |
| Regional-ACP | 14 674 | 24 335 |
| Mozambique | 12 709 | 14 719 |
| French Polynesia | 12 556 | 17 453 |
| Cayman Islands | 12 203 | 13 213 |
| Niger | 5 399 | 9 655 |
| Mali | 4 234 | 4 767 |
| Seychelles | 4 201 | 4 786 |
| Haiti | 3 345 | 4 748 |
| Samoa | 3 036 | 3 986 |
| Burkina Faso | 1 861 | 4 649 |
| Vanuatu | 1 527 | 1 848 |
| Botswana | 1 004 | 7 278 |
| Palau | 768 | 1 107 |
| Micronesia | 648 | 759 |
| Benin | 59 | — |
| Liberia | — | 1 153 |
| South Africa | — | 2 |
| Total | 1 518 675 | 1 540 991 |

in EUR‘000

Country of borrower

31.12.2019

31.12.2018

Kenya

230 837

233 269

Nigeria

179 499

172 515

Egypt

101 316

74 431

Tanzania

96 640

124 718

Mauritius

96 014

133 132

Barbados

75 342

74 638

Congo (Democratic Republic)

66 754

62 708

Uganda

64 882

81 766

Ethiopia

62 005

55 215

Mauritania

49 139

50 727

Rwanda

48 839

28 704

Dominican Republic

45 393

54 326

New Caledonia

43 980

21 124

Zambia

43 036

17 700

Senegal

42 750

18 330

Jamaica

33 436

72 165

Cameroon

32 238

14 784

Ghana

31 635

39 246

Malawi

21 800

26 827

Guinea

20 399

—

Angola

19 269

20 651

Togo

18 022

30 634

Cape Verde

17 226

18 923

Regional-ACP

14 674

24 335

Mozambique

12 709

14 719

French Polynesia

12 556

17 453

Cayman Islands

12 203

13 213

Niger

5 399

9 655

Mali

4 234

4 767

Seychelles

4 201

4 786

Haiti

3 345

4 748

Samoa

3 036

3 986

Burkina Faso

1 861

4 649

Vanuatu

1 527

1 848

Botswana

1 004

7 278

Palau

768

1 107

Micronesia

648

759

Benin

59

—

Liberia

—

1 153

South Africa

—

2

Total

Total

1 518 675

1 518 675

1 540 991

1 540 991

3.2.3.4.2.   
  Industry sector analysis

Industry sector analysis

The table below analyses the Facility’s loan portfolio by industry sector of the borrower. Operations which are first disbursed to a financial intermediary before being disbursed to the final beneficiary are reported under ‘Tertiary and other’:

| in EUR’000 |
| --- |
| Industry sector of borrower | 31.12.2019 | 31.12.2018 |
| Tertiary and other | 932 901 | 957 602 |
| Electricity, coal and others | 226 314 | 181 317 |
| Urban development, renovation and transport | 195 042 | 192 400 |
| Chemicals, plastics and pharmaceuticals | 51 865 | 20 436 |
| Basic material and mining | 44 746 | 45 820 |
| Airports and air traffic management systems | 26 908 | 29 182 |
| Telecommunications | 21 546 | 26 095 |
| Food chain | 8 355 | 15 386 |
| Waste recuperation | 6 812 | 7 564 |
| Investment goods, Consumer durables | 4 186 | — |
| Materials processing, construction | — | 33 144 |
| Roads and motorways | — | 32 043 |
| Social infrastructure, education and health | — | 2 |
| Total | 1 518 675 | 1 540 991 |

in EUR’000

Industry sector of borrower

31.12.2019

31.12.2019

31.12.2018

31.12.2018

Tertiary and other

932 901

957 602

Electricity, coal and others

226 314

181 317

Urban development, renovation and transport

195 042

192 400

Chemicals, plastics and pharmaceuticals

51 865

20 436

Basic material and mining

44 746

45 820

Airports and air traffic management systems

26 908

29 182

Telecommunications

21 546

26 095

Food chain

8 355

15 386

Waste recuperation

6 812

7 564

Investment goods, Consumer durables

4 186

—

Materials processing, construction

—

33 144

Roads and motorways

—

32 043

Social infrastructure, education and health

—

2

Total

Total

1 518 675

1 518 675

1 540 991

1 540 991

3.2.3.5.   Credit risk exposure for each internal risk rating

Credit risk exposure for each internal risk rating

The Facility uses an internal rating methodology in line with the Internal ratings based approach under Basel III. The majority of the Facility’s counterparties have been assigned an internal rating according to this methodology. The table below shows a breakdown of the Facility’s loan portfolio by the better of the borrower’s or guarantor’s internal ratings, where available. In cases where an internal rating is not available, the external rating has been used for this analysis.

The table shows both the exposures signed (disbursed and undisbursed) and the risk-weighted exposures, based on an internal methodology that the Facility uses for limit management.

| in EUR’000 |
| --- |
| | | 2019 |
| | Moody’s equiv. grade | 12-month ECL | Lifetime ECL not credit-impaired | Lifetime ECL credit-impaired | POCI | FVTPL | Total |
| Loans and advances at AC | | | | | | | |
| Internal Rating 1 — minimal credit risk | Aaa | — | 82 211 | — | — | — | 82 211 |
| Internal Rating 2 — very low credit risk | Aa1 — Aa3 | 75 352 | — | — | — | — | 75 352 |
| Internal Rating 3 — low credit risk | A1 — A3 | 5 399 | — | — | — | — | 5 399 |
| Internal Rating 4 — moderate credit risk | Baa1 — Baa3 | 60 385 | 16 449 | — | — | — | 76 834 |
| Internal Rating 5 — financially weak counterpart | Ba1 — Ba3 | 192 201 | 6 199 | — | — | — | 198 400 |
| Internal Rating 6 — high credit risk | B1 — B3 | 708 162 | 159 858 | — | — | — | 868 020 |
| Internal Rating 7 — very high credit risk | below Caa1 | 79 411 | 145 176 | — | — | — | 224 587 |
| Internal Rating 8 — counterpart in default | below Caa1 but in default | — | — | 136 749 | — | — | 136 749 |
| Loans and advances at FVTPL | | — | — | — | — | 37 366 | 37 366 |
| Loss allowance and FV adjustment | | -17 191 | -38 509 | - 114 307 | — | -16 236 | - 186 243 |
| Carrying amount of loans and advances | | 1 103 719 | 371 384 | 22 442 | — | 21 130 | 1 518 675 |
| Loan commitments | | | | | | | |
| Internal Rating 1 — minimal credit risk | Aaa | — | — | — | — | — | — |
| Internal Rating 2 — very low credit risk | Aa1 — Aa3 | 102 092 | — | — | — | — | 102 092 |
| Internal Rating 3 — low credit risk | A1 — A3 | 12 000 | — | — | — | — | 12 000 |
| Internal Rating 4 — moderate credit risk | Baa1 — Baa3 | 61 461 | — | — | — | — | 61 461 |
| Internal Rating 5 — financially weak counterpart | Ba1 — Ba3 | 323 080 | — | — | — | — | 323 080 |
| Internal Rating 6 — high credit risk | B1 — B3 | 405 773 | 126 076 | — | — | — | 531 849 |
| Internal Rating 7 — very high credit risk | below Caa1 | 14 883 | 104 328 | — | — | — | 119 211 |
| Internal Rating 8 — counterpart in default | below Caa1 but in default | — | — | 51 377 | — | — | 51 377 |
| No internal rating (27) | | 79 669 | — | — | — | — | 79 669 |
| Loans and advances at FVTPL | | — | — | — | — | 76 581 | 76 581 |
| Loss allowance and FV adjustment | | -3 943 | -33 326 | — | — | — | -37 269 |
| Carrying amount of loan commitments | | 995 015 | 197 078 | 51 377 | — | 76 581 | 1 320 051 |

in EUR’000

2019

Moody’s equiv. grade

12-month ECL

Lifetime ECL not credit-impaired

Lifetime ECL credit-impaired

POCI

FVTPL

Total

Loans and advances at AC

Loans and advances at AC

Internal Rating 1 — minimal credit risk

Aaa

—

82 211

—

—

—

82 211

Internal Rating 2 — very low credit risk

Aa1 — Aa3

75 352

—

—

—

—

75 352

Internal Rating 3 — low credit risk

A1 — A3

5 399

—

—

—

—

5 399

Internal Rating 4 — moderate credit risk

Baa1 — Baa3

60 385

16 449

—

—

—

76 834

Internal Rating 5 — financially weak counterpart

Ba1 — Ba3

192 201

6 199

—

—

—

198 400

Internal Rating 6 — high credit risk

B1 — B3

708 162

159 858

—

—

—

868 020

Internal Rating 7 — very high credit risk

below Caa1

79 411

145 176

—

—

—

224 587

Internal Rating 8 — counterpart in default

below Caa1 but in default

—

—

136 749

—

—

136 749

Loans and advances at FVTPL

Loans and advances at FVTPL

—

—

—

—

37 366

37 366

37 366

37 366

Loss allowance and FV adjustment

Loss allowance and FV adjustment

-17 191

-17 191

-38 509

-38 509

- 114 307

- 114 307

—

-16 236

-16 236

- 186 243

- 186 243

Carrying amount of loans and advances

Carrying amount of loans and advances

1 103 719

1 103 719

371 384

371 384

22 442

22 442

—

21 130

21 130

1 518 675

1 518 675

Loan commitments

Loan commitments

Internal Rating 1 — minimal credit risk

Aaa

—

—

—

—

—

—

Internal Rating 2 — very low credit risk

Aa1 — Aa3

102 092

—

—

—

—

102 092

Internal Rating 3 — low credit risk

A1 — A3

12 000

—

—

—

—

12 000

Internal Rating 4 — moderate credit risk

Baa1 — Baa3

61 461

—

—

—

—

61 461

Internal Rating 5 — financially weak counterpart

Ba1 — Ba3

323 080

—

—

—

—

323 080

Internal Rating 6 — high credit risk

B1 — B3

405 773

126 076

—

—

—

531 849

Internal Rating 7 — very high credit risk

below Caa1

14 883

104 328

—

—

—

119 211

Internal Rating 8 — counterpart in default

below Caa1 but in default

—

—

51 377

—

—

51 377

No internal rating (27)

27

79 669

—

—

—

—

79 669

Loans and advances at FVTPL

Loans and advances at FVTPL

—

—

—

—

76 581

76 581

76 581

76 581

Loss allowance and FV adjustment

Loss allowance and FV adjustment

-3 943

-33 326

—

—

—

-37 269

Carrying amount of loan commitments

Carrying amount of loan commitments

995 015

995 015

197 078

197 078

51 377

51 377

—

76 581

76 581

1 320 051

1 320 051

| in EUR’000 |
| --- |
| | | 2018 |
| | Moody’s equiv. grade | 12-month ECL | Lifetime ECL not credit-impaired | Lifetime ECL credit-impaired | POCI | FVTPL | Total |
| Loans and advances at AC | | | | | | | |
| Internal Rating 1 — minimal credit risk | Aaa | — | 90 875 | — | — | — | 90 875 |
| Internal Rating 2 — very low credit risk | Aa1 — Aa3 | 74 650 | — | — | — | — | 74 650 |
| Internal Rating 3 — low credit risk | A1 — A3 | 17 804 | — | — | — | — | 17 804 |
| Internal Rating 4 — moderate credit risk | Baa1 — Baa3 | 39 295 | 18 783 | — | — | — | 58 078 |
| Internal Rating 5 — financially weak counterpart | Ba1 — Ba3 | 165 551 | — | — | — | — | 165 551 |
| Internal Rating 6 — high credit risk | B1 — B3 | 834 194 | 94 749 | — | — | — | 928 943 |
| Internal Rating 7 — very high credit risk | below Caa1 | 75 057 | 134 701 | — | — | — | 209 758 |
| Internal Rating 8 — counterpart in default | below Caa1 but in default | — | — | 185 273 | 3 588 | — | 188 861 |
| Loans and advances at FVTPL | | — | — | — | — | 1 806 | 1 806 |
| Loss allowance and FV adjustment | | -22 023 | -27 342 | - 143 092 | -1 794 | -1 084 | - 195 335 |
| Carrying amount of loans and advances | | 1 184 528 | 311 766 | 42 181 | 1 794 | 722 | 1 540 991 |
| Loan commitments | | | | | | | |
| Internal Rating 2 — very low credit risk | Aa1 — Aa3 | 102 092 | — | — | — | — | 102 092 |
| Internal Rating 3 — low credit risk | A1 — A3 | 12 000 | — | — | — | — | 12 000 |
| Internal Rating 4 — moderate credit risk | Baa1 — Baa3 | 12 463 | — | — | — | — | 12 463 |
| Internal Rating 5 — financially weak counterpart | Ba1 — Ba3 | 230 455 | — | — | — | — | 230 455 |
| Internal Rating 6 — high credit risk | B1 — B3 | 567 573 | 22 467 | — | — | — | 590 040 |
| Internal Rating 7 — very high credit risk | below Caa1 | 100 055 | 96 074 | — | — | — | 196 129 |
| Internal Rating 8 — counterpart in default | below Caa1 but in default | — | — | 16 932 | — | — | 16 932 |
| No internal rating (28) | | 123 821 | — | — | — | — | 123 821 |
| Loss allowance and FV adjustment | | -7 225 | -16 597 | — | — | — | -23 822 |
| Carrying amount of loan commitments | | 1 141 234 | 101 944 | 16 932 | — | — | 1 260 110 |

in EUR’000

2018

Moody’s equiv. grade

12-month ECL

Lifetime ECL not credit-impaired

Lifetime ECL credit-impaired

POCI

FVTPL

Total

Loans and advances at AC

Loans and advances at AC

Internal Rating 1 — minimal credit risk

Aaa

—

90 875

—

—

—

90 875

Internal Rating 2 — very low credit risk

Aa1 — Aa3

74 650

—

—

—

—

74 650

Internal Rating 3 — low credit risk

A1 — A3

17 804

—

—

—

—

17 804

Internal Rating 4 — moderate credit risk

Baa1 — Baa3

39 295

18 783

—

—

—

58 078

Internal Rating 5 — financially weak counterpart

Ba1 — Ba3

165 551

—

—

—

—

165 551

Internal Rating 6 — high credit risk

B1 — B3

834 194

94 749

—

—

—

928 943

Internal Rating 7 — very high credit risk

below Caa1

75 057

134 701

—

—

—

209 758

Internal Rating 8 — counterpart in default

below Caa1 but in default

—

—

185 273

3 588

—

188 861

Loans and advances at FVTPL

Loans and advances at FVTPL

—

—

—

—

1 806

1 806

1 806

1 806

Loss allowance and FV adjustment

Loss allowance and FV adjustment

-22 023

-22 023

-27 342

-27 342

- 143 092

- 143 092

-1 794

-1 794

-1 084

-1 084

- 195 335

- 195 335

Carrying amount of loans and advances

Carrying amount of loans and advances

1 184 528

1 184 528

311 766

311 766

42 181

42 181

1 794

1 794

722

722

1 540 991

1 540 991

Loan commitments

Loan commitments

Internal Rating 2 — very low credit risk

Aa1 — Aa3

102 092

—

—

—

—

102 092

Internal Rating 3 — low credit risk

A1 — A3

12 000

—

—

—

—

12 000

Internal Rating 4 — moderate credit risk

Baa1 — Baa3

12 463

—

—

—

—

12 463

Internal Rating 5 — financially weak counterpart

Ba1 — Ba3

230 455

—

—

—

—

230 455

Internal Rating 6 — high credit risk

B1 — B3

567 573

22 467

—

—

—

590 040

Internal Rating 7 — very high credit risk

below Caa1

100 055

96 074

—

—

—

196 129

Internal Rating 8 — counterpart in default

below Caa1 but in default

—

—

16 932

—

—

16 932

No internal rating (28)

28

123 821

—

—

—

—

123 821

Loss allowance and FV adjustment

Loss allowance and FV adjustment

-7 225

-7 225

-16 597

-16 597

—

—

—

-23 822

-23 822

Carrying amount of loan commitments

Carrying amount of loan commitments

1 141 234

1 141 234

101 944

101 944

16 932

16 932

—

—

1 260 110

1 260 110

The Facility continually monitors events affecting its borrowers and guarantors, especially banks. In particular, the Facility is assessing on a case-by-case basis its contractual rights in case of rating deterioration and is seeking mitigating measures. It is also closely following the renewals of bank guarantees received for its loans to ensure that these are replaced or action is taken in a timely manner if need be.

3.2.3.6.   Arrears on loans and impairments

Arrears on loans and impairments

Amounts in arrears are identified, monitored and reported according to the procedures defined into the bank wide ‘Finance Monitoring Guidelines and Procedures’. These procedures are in line with best banking practices and are adopted for all loans managed by the EIB.

The monitoring process is structured in order to make sure that (i) potential arrears are detected and reported to the services in charge with minimum delay; (ii) critical cases are promptly escalated to the right operational and decision level; (iii) regular reporting to EIB management and to Member States is provided on the overall status of arrears and on the recovery measures already taken or to be taken.

The arrears and impairments on loans can be analysed as follows:

| in EUR’000 |
| --- |
| | Loans and advances | Loans and advances |
| | 31.12.2019 | 31.12.2018 |
| Carrying amount | 1 518 675 | 1 540 991 |
| Lifetime ECL credit-impaired | | |
| Gross amount | 136 749 | 188 861 |
| Impairment-loss allowance | - 114 307 | - 144 886 |
| Carrying amount of lifetime ECL credit-impaired | 22 442 | 43 975 |
| Past due but not credit-impaired | | |
| Past due comprises | | |
| 0-30 days | 61 | 804 |
| 30-60 days | 924 | — |
| 60-90 days | — | — |
| 90-180 days | 135 | — |
| more 180 days | 26 | 1 |
| Carrying amount past due but not credit-impaired | 1 146 | 805 |
| Carrying amount neither past due nor credit-impaired | 1 495 087 | 1 496 211 |
| Total carrying amount loans and advances | 1 518 675 | 1 540 991 |

in EUR’000

Loans and advances

Loans and advances

31.12.2019

31.12.2018

Carrying amount

Carrying amount

1 518 675

1 518 675

1 540 991

1 540 991

Lifetime ECL credit-impaired

Lifetime ECL credit-impaired

Gross amount

136 749

188 861

Impairment-loss allowance

- 114 307

- 144 886

Carrying amount of lifetime ECL credit-impaired

Carrying amount of lifetime ECL credit-impaired

22 442

22 442

43 975

43 975

Past due but not credit-impaired

Past due but not credit-impaired

Past due comprises

Past due comprises

0-30 days

61

804

30-60 days

924

—

60-90 days

—

—

90-180 days

135

—

more 180 days

26

1

Carrying amount past due but not credit-impaired

Carrying amount past due but not credit-impaired

1 146

1 146

805

805

Carrying amount neither past due nor credit-impaired

Carrying amount neither past due nor credit-impaired

1 495 087

1 495 087

1 496 211

1 496 211

Total carrying amount loans and advances

Total carrying amount loans and advances

1 518 675

1 518 675

1 540 991

1 540 991

3.2.3.7.   Loan renegotiation and forbearance

Loan renegotiation and forbearance

The Facility considers loans to be forborne if in response to adverse changes in the financial position of a borrower the Facility renegotiates the original terms of the contractual arrangements with this borrower affecting directly the future cash flows of the financial instrument, which may result in a loss to the Facility. However, the financial impact of restructuring activities is in general limited to impairment losses, if any, as financial neutrality is generally applied by the Facility and reflected in the renegotiated pricing conditions of the operations restructured.

In the normal course of business, the Loan Grading (LG) of the loans in question would have deteriorated and the loan would have been included in the Watch List before renegotiation. Once renegotiated, the Facility will continue to closely monitor these loans. If the renegotiated payment terms will not recover the original carrying amount of the asset, it will be considered as impaired. The corresponding impairment losses will be calculated based on the forecasted cash flows discounted at the original effective interest rate. The need for impairment for all loans whose LG deteriorated to E- is assessed regularly; all loans with a LG of F require impairment. Once the Loan Grading of a loan has improved sufficiently, it will be removed from the Watch List in line with the procedures of the Facility.

Forbearance measures and practices undertaken by the Bank’s restructuring team during the reporting period includes extension of maturity, deferral of capital only, deferral of capital and interest and capitalisation of arrears. Such forbearance measures do not lead to the derecognition of the underlying operation unless the impact of the contractual changes on the net present value of the loan at the date of restructuring is considered significant. If such newly recognised financial asset is credit-impaired, it would meet the definition of the POCI financial asset.

Exposures subject to changes in contractual terms which do not affect future cash flows, such as collateral or other security arrangements or the waiver of contractual rights under covenants, are not considered as forborne and hence those events are not considered as sufficient to indicate impairment on their own.

Operations subject to forbearance measures are reported as such in the table below:

| in EUR’000 |
| --- |
| | 31.12.2019 | 31.12.2018 |
| Number of operations subject to forbearance practices | 28 | 33 |
| Carrying values (incl. interest and amounts in arrears) | 245 534 | 280 720 |
| ECL allowance recognised | 7 916 | 9 506 |
| Impairment recognised | 57 321 | 86 334 |
| Interest income in respect of forborne operations | 8 985 | 13 465 |
| Exposures written off (following the termination/sale of the operation) | 280 | — |

in EUR’000

31.12.2019

31.12.2018

Number of operations subject to forbearance practices

28

33

Carrying values (incl. interest and amounts in arrears)

245 534

280 720

ECL allowance recognised

7 916

9 506

Impairment recognised

57 321

86 334

Interest income in respect of forborne operations

8 985

13 465

Exposures written off (following the termination/sale of the operation)

280

—

| in EUR’000 |
| --- |
| | Forbearance measures |
| | 31.12.2018 | Extension of maturities | Deferral of capital only | Breach of material financial covenants | Other | Contractual repayment and termination (29) | 31.12.2019 |
| Banks | 27 592 | 0 | 97 | 33 524 | 507 | -10 252 | 51 468 |
| Corporates | 253 128 | 134 | 0 | 0 | 0 | -59 196 | 194 066 |
| Total | 280 720 | 134 | 97 | 33 524 | 507 | -69 448 | 245 534 |

in EUR’000

Forbearance measures

31.12.2018

Extension of maturities

Deferral of capital only

Breach of material financial covenants

Other

Contractual repayment and termination (29)

29

31.12.2019

Banks

27 592

0

97

33 524

507

-10 252

51 468

Corporates

253 128

134

0

0

0

-59 196

194 066

Total

Total

280 720

280 720

134

134

97

97

33 524

33 524

507

507

-69 448

-69 448

245 534

245 534

3.2.4.   Credit risk on cash and cash equivalents

Credit risk on cash and cash equivalents

Available funds are invested in accordance with the Facility’s schedule of contractual disbursement obligations. As of 31 December 2019 and 31 December 2018, investments were in the form of bank deposits, certificates of deposit and commercial papers.

The authorised entities have a rating similar to the short-term and long-term ratings required for the EIB’s own treasury placements. In case of different ratings being granted by more than one credit rating agency, the lowest rating governs. The maximum authorised limit for each authorised bank is currently EUR 50 000 000(fifty million euro). An exception to this rule has been granted to Societe Generale where the Facility has its operational cash accounts. The short term credit limit for Societe Generale as at 31 December 2019 and 31 December 2018 amounts to EUR 110 000 000 (one hundred and ten million euro). The increased limit applies to the sum of the cash held at the operational cash accounts and the instruments issued by this counterpart and held by the treasury portfolio.

All investments have been done with authorised entities with a maximum tenor of three months from value date. All credit exposure limit breaches have been reported to the mandators. As at 31 December 2019 and as at 31 December 2018 all term deposits, commercial papers and cash in hand held by the treasury portfolio of the Facility had a minimum rating of at least P-2 (Moody’s equivalent) at settlement day.

The following table shows the situation of cash and cash equivalents including accrued interest:

| in EUR’000 |
| --- |
| Minimum short-term rating | Minimum long-term rating | 31.12.2019 | 31.12.2018 |
| (Moody’s term) | (Moody’s term) |
| P-1 | Aaa | 98 945 | 12 % | 71 914 | 13 % |
| P-1 | Aa2 | 67 799 | 8 % | — | 0 % |
| P-1 | Aa3 | 89 983 | 11 % | 49 972 | 9 % |
| P-1 | A1 | 213 914 | 26 % | 199 938 | 34 % |
| P-1 | A2 | 212 199 | 25 % | 201 899 | 35 % |
| P-1 | A3 | 104 944 | 12 % | — | 0 % |
| P-2 | A3 | 49 993 | 6 % | 49 985 | 9 % |
| Total | 837 777 | 100 % | 573 708 | 100 % |

in EUR’000

Minimum short-term rating

Minimum long-term rating

31.12.2019

31.12.2018

(Moody’s term)

(Moody’s term)

P-1

Aaa

98 945

12 %

71 914

13 %

P-1

Aa2

67 799

8 %

—

0 %

P-1

Aa3

89 983

11 %

49 972

9 %

P-1

A1

213 914

26 %

199 938

34 %

P-1

A2

212 199

25 %

201 899

35 %

P-1

A3

104 944

12 %

—

0 %

P-2

A3

49 993

6 %

49 985

9 %

Total

Total

837 777

837 777

100 %

100 %

573 708

573 708

100 %

100 %

3.2.5.   Credit risk on derivatives

Credit risk on derivatives

3.2.5.1.   Credit risk policy of derivatives

Credit risk policy of derivatives

The credit risk with respect to derivatives is represented by the loss which a given party would incur where the other counterparty to the deal would be unable to honour its contractual obligations. The credit risk associated with derivatives varies according to a number of factors (such as interest and exchange rates) and generally corresponds to only a small portion of their notional value.

In the normal course of its activity, the Facility may enter into swap contracts with a view to hedge specific lending operations or into currency forward contracts, with a view to hedge its currency positions denominated in actively traded currencies other than the Euro. All the swaps are executed by the EIB with an external counterpart. The swaps are arranged by the same Master Swap Agreements and Credit Support Annexes signed between the EIB and its external counterparts.

3.2.5.2.   Credit risk measurement for derivatives

Credit risk measurement for derivatives

All the swaps executed by the EIB that are related to the Facility are treated within the same contractual framework and methodologies applied for the derivatives negotiated by the EIB for its own purposes. In particular, eligibility of swap counterparts is determined by the EIB based on the same eligibility conditions applied for its general swap purposes.

The EIB measures the credit risk exposure related to swaps and derivatives transactions using the Net Market Exposure (‘NME’) and Potential Future Exposure (‘PFE’) approach for reporting and limit monitoring. The NME and the PFE fully include the derivatives related to the Investment Facility.

The following table shows the maturities of cross currency interest rate swaps, sub-divided according to their notional amount and fair value:

| in EUR’000 |
| --- |
| Swap contracts as at 31.12.2019 | less than | 1 year | 5 years | more than | Total 2019 |
| 1 year | to 5 years | to 10 years | 10 years |
| Notional amount | — | — | — | — | — |
| Fair Value (i.e. net discounted value) | — | — | — | — | — |

in EUR’000

Swap contracts as at 31.12.2019

less than

1 year

5 years

more than

Total 2019

1 year

to 5 years

to 10 years

10 years

Notional amount

—

—

—

—

—

—

Fair Value (i.e. net discounted value)

—

—

—

—

—

—

| in EUR’000 |
| --- |
| Swap contracts as at 31.12.2018 | less than | 1 year | 5 years | more than | Total 2018 |
| 1 year | to 5 years | to 10 years | 10 years |
| Notional amount | — | 5 245 | — | — | 5 245 |
| Fair Value (i.e. net discounted value) | — | - 325 | — | — | - 325 |

in EUR’000

Swap contracts as at 31.12.2018

less than

1 year

5 years

more than

Total 2018

1 year

to 5 years

to 10 years

10 years

Notional amount

—

5 245

—

—

5 245

5 245

Fair Value (i.e. net discounted value)

—

- 325

—

—

- 325

- 325

The Facility enters into foreign exchange short-term currency swaps (‘FX swaps’) contracts in order to hedge currency risk on loan disbursements in currencies other than EUR. FX swaps have a maturity of maximum three months and are regularly rolled over. The notional amount of FX swaps stood at EUR 1 545,0 million as at 31 December 2019 against EUR 1 460,6 million as at 31 December 2018. The fair value of FX swaps amounts to EUR 14,1 million as at 31 December 2019 against EUR 1,1 million as at 31 December 2018.

The Facility enters into interest rate swap contracts in order to hedge the interest rate risk on loans disbursed. As at 31 December 2019, there are two interest rate swaps outstanding with a notional amount of EUR 24,2 million (2018: EUR 28,5 million) and a fair value of EUR -0,1 million (2018: EUR 0,7 million).

3.2.6.   Credit risk on treasury financial assets

Credit risk on treasury financial assets

The following table shows the situation of the treasury portfolio entirely composed of commercial papers issued by sub-sovereigns, banks and non-bank entities with remaining maturities of up to three months. EU Member States, their agencies, banks and non-bank entities are eligible issuers. The maximum authorised limit for each authorised issuer is EUR 50 000 000 (fifty million euro). Investments in medium and long-term bonds could also be eligible, according to the investment guidelines and depending on liquidity requirements:

| Minimum short-term rating | Minimum long-term rating | 31.12.2019 | 31.12.2018 |
| --- | --- | --- | --- |
| (Moody’s term) | (Moody’s term) |
| P-1 | Aa1 | 50 046 | 15 % | — | 0 % |
| P-1 | Aa2 | 19 997 | 6 % | 80 041 | 24 % |
| P-1 | Aa3 | 50 025 | 15 % | 95 055 | 29 % |
| P-1 | A1 | 55 050 | 17 % | 15 005 | 4 % |
| P-1 | A2 | — | 0 % | 45 008 | 13 % |
| P-2 | A2 | — | 0 % | 50 015 | 15 % |
| P-2 | A3 | 85 027 | 26 % | 50 016 | 15 % |
| P-2 | Baa1 | 30 433 | 9 % | — | 0 % |
| P-2 | Baa3 | 40 009 | 12 % | — | 0 % |
| Total | 330 587 | 100 % | 335 140 | 100 % |

Minimum short-term rating

Minimum long-term rating

31.12.2019

31.12.2018

(Moody’s term)

(Moody’s term)

P-1

Aa1

50 046

15 %

—

0 %

P-1

Aa2

19 997

6 %

80 041

24 %

P-1

Aa3

50 025

15 %

95 055

29 %

P-1

A1

55 050

17 %

15 005

4 %

P-1

A2

—

0 %

45 008

13 %

P-2

A2

—

0 %

50 015

15 %

P-2

A3

85 027

26 %

50 016

15 %

P-2

Baa1

30 433

9 %

—

0 %

P-2

Baa3

40 009

12 %

—

0 %

Total

Total

330 587

330 587

100 %

100 %

335 140

335 140

100 %

100 %

3.3.   
  Liquidity risk

Liquidity risk

Liquidity risk refers to an entity’s ability to fund increases in assets and meet obligations as they come due, without incurring unacceptable losses. It can be split into funding liquidity risk and market liquidity risk. Funding liquidity risk is the risk that an entity will not be able to meet efficiently both expected and unexpected current and future cash flow needs without affecting its daily operations or its financial condition. Market liquidity risk is the risk that an entity cannot easily offset or eliminate a position at the market price because of inadequate market depth or market disruption.

3.3.1.   Liquidity risk management

Liquidity risk management

The Facility is primarily funded by annual contributions from Member States as well as by reflows stemming from the Facility’s operations. The Facility manages its funding liquidity risk primarily by planning its net liquidity needs and the required Member States annual contributions.

In order to calculate Member States’ annual contributions, disbursement patterns of the existing and pipelined portfolio is analysed and followed up throughout the year. Special events, such as early reimbursements, sales of shares or default cases are taken into account to correct annual liquidity requirements.

To further minimise the liquidity risk, the Facility maintains a liquidity reserve sufficient to cover at any point in time forecasted cash disbursements, as communicated periodically by EIB’s Lending Department. Funds are invested on the money market and bond markets in the form of interbank deposits and other short term financial instruments by taking into consideration the Facility’s cash disbursement obligations. The Facility’s liquid assets are managed by the Bank’s Treasury Department with a view to maintain appropriate liquidity to enable the Facility to meet its obligations.

In accordance with the principle of segregation of duties between the Front and Back Office, settlement operations related to the investment of these assets are under the responsibility of the EIB’s Planning and Settlement of Operations Department. Furthermore, the authorisation of counterparts and limits for treasury investments, as well as the monitoring of such limits, are the responsibility of the Bank’s Risk Management Directorate.

3.3.2.   Liquidity risk measurement

Liquidity risk measurement

The tables in this section analyse the financial liabilities of the Facility by maturity on the basis of the period remaining between the balance sheet date and the contractual maturity date (based on undiscounted cash flows).

In terms of non-derivative financial liabilities, the Facility holds commitments in form of undisbursed portions of the credit under signed loan agreements, of undisbursed portions of signed capital subscription/investment agreements, of loan guarantees granted, or of committed interest subsidies and TA.

Loans under the IF have a disbursement deadline. However, disbursements are made at times and in amounts reflecting the progress of underlying investment projects. Moreover, the IF’s loans are transactions performed in a relatively volatile operating environment, hence their disbursement schedule is subject to a significant degree of uncertainty.

Capital investments become due when and as soon as equity fund managers issue valid calls for capital, reflecting the progress in their investment activities. The drawdown period is usually of 3 years, with frequent prolongation by one or two years. Some disbursement commitments usually survive the end of the drawdown period until full disposal of the fund’s underlying investments, as the fund’s liquidity may be insufficient from time to time to meet payment obligations arising in respect of fees or other expenses.

Guarantees are not subject to specific disbursement commitments unless a guarantee is called. The amount of guarantees outstanding is reduced alongside the repayment schedule of guaranteed loans.

Committed interest subsidies’ cash outflows occur in the case of subsidised loans financed by the Bank’s own resources. Therefore, reported outflows represent only commitments related to these loans rather than the total amount of committed undisbursed interest subsidies. As in the case of loans, their disbursement schedule is uncertain.

Committed TA ‘gross nominal outflow’ in the ‘Maturity profile of non-derivative financial liabilities’ table refers to the total undisbursed portion of signed TA contracts. The disbursement time pattern is subject to a significant degree of uncertainty. Cash outflows classified in the ‘3 months or less’ bucket represent the amount of outstanding invoices received by the reporting date.

Commitments for non-derivative financial liabilities for which there is no defined contractual maturity date are classified under ‘Maturity Undefined’. Commitments, for which there is a recorded cash disbursement request at the reporting date, are classified under the relevant time bucket.

In terms of derivative financial liabilities, the maturity profile represents the contractual undiscounted gross cash flows of swap contracts including cross currency swaps (CCS), cross currency interest rate swaps (CCIRS), short-term currency swaps and interest rate swaps.

| in EUR’000 |
| --- |
| Maturity profile of non-derivative financial liabilities | 3 months or less | More than 3 months to 1 year | More than 1 year to 5 years | More than 5 years | Maturity Undefined | Gross nominal outflow |
| As at 31.12.2019 |
| Outflows for committed but undisbursed loans | 33 038 | — | — | — | 1 324 282 | 1 357 320 |
| Outflows for committed investment funds and share subscription | 369 | — | — | — | 405 551 | 405 920 |
| Others (signed non-issued guarantees, issued guarantees) | — | — | — | — | 1 559 831 | 1 559 831 |
| Outflows for committed interest subsidies | — | — | — | — | 350 678 | 350 678 |
| Outflows for committed TA | 3 898 | — | — | — | 21 166 | 25 064 |
| Total | 37 305 | — | — | — | 3 661 508 | 3 698 813 |

in EUR’000

Maturity profile of non-derivative financial liabilities

3 months or less

More than 3 months to 1 year

More than 1 year to 5 years

More than 5 years

Maturity Undefined

Gross nominal outflow

As at 31.12.2019

Outflows for committed but undisbursed loans

33 038

—

—

—

1 324 282

1 357 320

Outflows for committed investment funds and share subscription

369

—

—

—

405 551

405 920

Others (signed non-issued guarantees, issued guarantees)

—

—

—

—

1 559 831

1 559 831

Outflows for committed interest subsidies

—

—

—

—

350 678

350 678

Outflows for committed TA

3 898

—

—

—

21 166

25 064

Total

Total

37 305

37 305

—

—

—

3 661 508

3 661 508

3 698 813

3 698 813

| in EUR’000 |
| --- |
| Maturity profile of non-derivative financial liabilities | 3 months or less | More than 3 months to 1 year | More than 1 year to 5 years | More than 5 years | Maturity Undefined | Gross nominal outflow |
| As at 31.12.2018 |
| Outflows for committed but undisbursed loans | 7 854 | — | — | — | 1 276 078 | 1 283 932 |
| Outflows for committed investment funds and share subscription | 2 023 | — | — | — | 345 144 | 347 167 |
| Others (signed non-issued guarantees, issued guarantees) | — | — | — | — | 1 556 468 | 1 556 468 |
| Outflows for committed interest subsidies | — | — | — | — | 360 655 | 360 655 |
| Outflows for committed TA | 2 373 | — | — | — | 24 082 | 26 455 |
| Total | 12 250 | — | — | — | 3 562 427 | 3 574 677 |

in EUR’000

Maturity profile of non-derivative financial liabilities

3 months or less

More than 3 months to 1 year

More than 1 year to 5 years

More than 5 years

Maturity Undefined

Gross nominal outflow

As at 31.12.2018

Outflows for committed but undisbursed loans

7 854

—

—

—

1 276 078

1 283 932

Outflows for committed investment funds and share subscription

2 023

—

—

—

345 144

347 167

Others (signed non-issued guarantees, issued guarantees)

—

—

—

—

1 556 468

1 556 468

Outflows for committed interest subsidies

—

—

—

—

360 655

360 655

Outflows for committed TA

2 373

—

—

—

24 082

26 455

Total

Total

12 250

12 250

—

—

—

3 562 427

3 562 427

3 574 677

3 574 677

| in EUR’000 |
| --- |
| Maturity profile of derivative financial liabilities | 3 months or less | More than 3 months to 1 year | More than 1 year to 5 years | More than v5 years | Gross nominal inflow/outflow |
| As at 31.12.2019 |
| CCS and CCIRS — Inflows | — | — | — | — | — |
| CCS and CCIRS — Outflows | — | — | — | — | — |
| Short term currency swaps — Inflows | 1 545 000 | — | — | — | 1 545 000 |
| Short term currency swaps — Outflows | -1 535 571 | — | — | — | -1 535 571 |
| Interest Rate Swaps — Inflows | 310 | 820 | 2 045 | | 3 175 |
| Interest Rate Swaps — Outflows | — | -1 128 | -2 138 | | -3 266 |
| Total | 9 739 | - 308 | - 93 | — | 9 338 |

in EUR’000

Maturity profile of derivative financial liabilities

3 months or less

More than 3 months to 1 year

More than 1 year to 5 years

More than v5 years

Gross nominal inflow/outflow

As at 31.12.2019

CCS and CCIRS — Inflows

—

—

—

—

—

CCS and CCIRS — Outflows

—

—

—

—

—

Short term currency swaps — Inflows

1 545 000

—

—

—

1 545 000

Short term currency swaps — Outflows

-1 535 571

—

—

—

-1 535 571

Interest Rate Swaps — Inflows

310

820

2 045

3 175

Interest Rate Swaps — Outflows

—

-1 128

-2 138

-3 266

Total

Total

9 739

9 739

- 308

- 308

- 93

- 93

—

—

9 338

9 338

| in EUR’000 |
| --- |
| Maturity profile of derivative financial liabilities | 3 months or less | More than 3 months to 1 year | More than 1 year to 5 years | More than 5 years | Gross nominal inflow/outflow |
| as at 31.12.2018 |
| CCS and CCIRS — Inflows | 5 | 3 281 | 1 816 | — | 5 102 |
| CCS and CCIRS — Outflows | — | -4 081 | -1 770 | — | -5 851 |
| Short term currency swaps — Inflows | 1 460 608 | — | — | — | 1 460 608 |
| Short term currency swaps — Outflows | -1 465 498 | — | — | — | -1 465 498 |
| Interest Rate Swaps — Inflows | 397 | 1 171 | 3 473 | 204 | 5 245 |
| Interest Rate Swaps — Outflows | — | -1 340 | -3 030 | - 175 | -4 545 |
| Total | -4 488 | - 969 | 489 | 29 | -4 939 |

in EUR’000

Maturity profile of derivative financial liabilities

3 months or less

More than 3 months to 1 year

More than 1 year to 5 years

More than 5 years

Gross nominal inflow/outflow

as at 31.12.2018

CCS and CCIRS — Inflows

5

3 281

1 816

—

5 102

CCS and CCIRS — Outflows

—

-4 081

-1 770

—

-5 851

Short term currency swaps — Inflows

1 460 608

—

—

—

1 460 608

Short term currency swaps — Outflows

-1 465 498

—

—

—

-1 465 498

Interest Rate Swaps — Inflows

397

1 171

3 473

204

5 245

Interest Rate Swaps — Outflows

—

-1 340

-3 030

- 175

-4 545

Total

Total

-4 488

-4 488

- 969

- 969

489

489

29

29

-4 939

-4 939

3.3.3.   Long term financial assets and liabilities

Long term financial assets and liabilities

The following table sets out the carrying amounts of non-derivative financial assets and financial liabilities expected to be recovered or settled more than 12 months after the reporting date.

| in EUR’000 |
| --- |
| | 31.12.2019 | 31.12.2018 |
| Financial assets: | | |
| Loans and advances | 1 636 520 | 1 666 232 |
| Shares and other variable yield securities | 619 928 | 567 292 |
| Other assets | — | 171 |
| Total | 2 256 448 | 2 233 695 |
| Financial liabilities: | | |
| Provisions for guarantees issued | 628 | 793 |
| Amount owed to third parties (30) | 93 531 | 93 641 |
| Provisions for loan commitments | 37 269 | 23 822 |
| Total | 131 428 | 118 256 |

in EUR’000

31.12.2019

31.12.2018

Financial assets:

Financial assets:

Loans and advances

1 636 520

1 666 232

Shares and other variable yield securities

619 928

567 292

Other assets

—

171

Total

Total

2 256 448

2 256 448

2 233 695

2 233 695

Financial liabilities:

Financial liabilities:

Provisions for guarantees issued

628

793

Amount owed to third parties (30)

30

93 531

93 641

Provisions for loan commitments

37 269

23 822

Total

Total

131 428

131 428

118 256

118 256

3.4.   
  Market risk

Market risk

Market risk represents the risk that changes in market prices and rates, such as interest rates, equity prices and foreign exchange rates will affect an entity’s income or the value of its holdings in financial instruments.

3.4.1.   Interest rate risk

Interest rate risk

Interest rate risk arises from the volatility in the economic value of, or in the income derived from, interest rate bearing positions due to adverse movements in interest rates.

The Facility is not directly impacted by the fluctuation of its economic value or to pricing mismatches between different assets, liabilities and hedge instruments because (i) it does not have any direct borrowing costs or interest rate bearing liabilities and (ii) it accepts the impact of interest rate fluctuations on the revenues from its investments.

The Facility measures the sensitivity of its loan portfolio and micro hedging swaps to interest rate fluctuations via a Basis Point Value (BPV) calculation.

The BPV measures the gain or loss in the net present value of the relevant portfolio, due to a 1 basis point (0,01 %) increase in interest rates tenors ranging within a specified time bucket ‘money market — up to one year’, ‘very short — 2 to 3 years’, ‘short — 4 to 6 years’, ‘medium — 7 to 11 years’, ‘long — 12 to 20 years’ or ‘extra-long — more than 21 years’.

To determine the net present value (NPV) of the loans’ cash flows denominated in EUR, the Facility uses the EIB’s EUR base funding curve (EUR swap curve adjusted with EIB’s global funding spread). The EIB’s USD funding curve is used for the calculation of the NPV of loan’s cash flows denominated in USD. The NPV of the loans’ cash flows denominated in currencies for which a reliable and sufficiently complete discount curve is not available, is determined by using EIB’s EUR base funding curve as a proxy.

To calculate the net present value of the micro hedging swaps, the facility uses the EUR swap curve for cash flows denominated in EUR and the USD swap curve for cash flows denominated in USD.

As shown in the following table the net present value of the loan portfolio including related micro-hedging swaps as at 31 December 2019 would decrease by EUR 533k (as at 31 December 2018: decrease by EUR 483k) if all relevant interest rates curves are simultaneously shifted upwards in parallel by 1 basis point.

| in EUR’000 |
| --- |
| Basis point value | Money | Very Short | Short | Medium | Long | Extra Long | Total |
| Market |
| As at 31.12.2019 | 1 year | 2 to 3 years | 4 to 6 years | 7 to 11 years | 12 to 20 years | 21 years |
| Total sensitivity of loans and micro hedging swaps | - 42 | - 99 | - 172 | - 163 | - 57 | — | - 533 |

in EUR’000

Basis point value

Money

Very Short

Short

Medium

Long

Extra Long

Total

Market

As at 31.12.2019

1 year

2 to 3 years

4 to 6 years

7 to 11 years

12 to 20 years

21 years

Total sensitivity of loans and micro hedging swaps

- 42

- 99

- 172

- 163

- 57

—

- 533

| in EUR’000 |
| --- |
| Basis point value | Money | Very Short | Short | Medium | Long | Extra Long | Total |
| Market |
| As at 31.12.2018 | 1 year | 2 to 3 years | 4 to 6 years | 7 to 11 years | 12 to 20 years | 21 years |
| Total sensitivity of loans and micro hedging swaps | - 38 | - 94 | - 168 | - 154 | - 29 | — | - 483 |

in EUR’000

Basis point value

Money

Very Short

Short

Medium

Long

Extra Long

Total

Market

As at 31.12.2018

1 year

2 to 3 years

4 to 6 years

7 to 11 years

12 to 20 years

21 years

Total sensitivity of loans and micro hedging swaps

- 38

- 94

- 168

- 154

- 29

—

- 483

3.4.2.   Foreign exchange risk

Foreign exchange risk

Foreign exchange (‘FX’) risk for the IF is the risk of loss in earnings or economic value due to adverse movements of FX rates.

Given a reference accounting currency (EUR for the IF), the Facility is exposed to FX risk whenever there is a mismatch between assets and liabilities denominated in a non-reference accounting currency. FX risk also includes the effect of changes in the value of future cash flows denominated in non-reference accounting currency, e.g. interest and dividend payments, due to fluctuations in exchange rates.

3.4.2.1.   Foreign exchange risk and treasury assets

Foreign exchange risk and treasury assets

The IF’s treasury assets are denominated in either EUR or USD.

FX risk is hedged by means of FX cross currency spot or forward transactions, FX swaps or cross-currency swaps. The EIB’s Treasury Department can, where deemed necessary and appropriate, use any other instrument, in line with the Bank’s policy, that provide protection against market risks incurred in connection with the IF’s financial activities.

3.4.2.2.   Foreign exchange risk and operations financed or guaranteed by the IF

Foreign exchange risk and operations financed or guaranteed by the IF

Member States’ IF contributions are received in EUR. The operations financed or guaranteed by the IF as well as interest subsidies can be denominated in EUR, USD or any other authorised currency.

A foreign exchange risk exposure (against the EUR reference currency) arises whenever transactions denominated in currencies other than the EUR are left un-hedged. The IF’s foreign exchange risk hedging guidelines are set out below.

3.4.2.2.1.   
  Hedging of operations denominated in USD

Hedging of operations denominated in USD

The FX risk generated by IF operations denominated in USD shall be covered on an aggregated basis via the use of EUR/USD FX swaps, rolled over and adjusted in terms of amount on a periodic basis. The use of FX swaps serves a dual purpose. On one side the necessary liquidity for new disbursements (loans and equity) is generated and on the other side an FX macro hedge is maintained.

At the beginning of each period, the cash flows to be received or paid in USD during the next period shall be estimated on the basis of planned or expected reflows/disbursements. Subsequently, the maturing FX swaps shall be rolled over, their amount being adjusted to cover at least the USD liquidity needs projected over the next period.

On a monthly basis, the USD FX position shall be hedged, if exceeding the relevant limits, by means of a spot or forward operation.

Within a roll-over period, unexpected USD liquidity deficits shall be covered by means of ad hoc FX swap operations while liquidity surpluses shall either be invested in treasury assets or converted into EUR if occurred from an increase of the FX position.

3.4.2.2.2.   
  Hedging of operations denominated in currencies other than EUR or USD

Hedging of operations denominated in currencies other than EUR or USD

IF operations denominated in currencies other than EUR and USD shall be hedged through cross-currency swap contracts with the same financial profile as the underlying Loan, provided that a swap market is operational.

IF has operations denominated in currencies for which hedging possibilities are either not efficiently available or available at a high cost. These operations are denominated in local currencies (LCs) but settled in EUR or USD. IF’s financial risk framework, which was approved by the IF Committee on 22 January 2015, offers the possibility to hedge the FX exposure in LCs that exhibit a significant positive correlation with the USD synthetically via USD-denominated derivatives. The LCs hedged synthetically with USD denominated derivatives are reported in the table in section 3.4.2.2.3. below under item ‘Local currencies (under synthetic hedge)’, while the LCs not hedged synthetically with the USD are reported in the same table under item ‘Local currencies (not under synthetic hedge)’.

3.4.2.2.3.   
  Foreign exchange position (in EUR’000)

Foreign exchange position (in EUR’000)

The tables of this note show the Facility’s foreign exchange position.

The foreign exchange position is presented in the tables below in accordance with the IF’s Risk Policies (as described in the IF’s financial risk framework). The FX position as per Risk Policies is based on accounting figures and defined as the balance between selected assets and liabilities. The assets and liabilities defined in the FX position as per Risk Policies are selected to ensure that the earnings will only be converted into the reporting currency (EUR) when received.

The fair value change on shares and other variable yield securities are included in the FX position as per Risk Policies, as well as impairments on loans and advances. Derivatives included in the FX position as per Risk Policies are considered at their nominal value instead of their fair value, in order to be aligned with the retained value of the assets, considered also at their nominal value adjusted by the impairment for loans.

In the tables below, the remaining part of the assets and liabilities, which includes mainly interest accruals on loans, derivatives and subsidies, are presented under ‘FX position excluded from Risk Policies’.

| As at 31 December 2019 | Assets and liabilities | Commitments and contingent liabilities |
| --- | --- | --- |
| Currencies | FX position as per Risk Policies | FX position excluded from Risk Policies | Balance sheet FX position |
| USD | - 103 746 | -56 632 | - 160 378 | 637 693 |
| Local currencies


  (under synthetic hedge)
   (6) | | | | |
| KES | 29 472 | 464 | 29 936 | — |
| TZS | 48 092 | 354 | 48 446 | — |
| DOP | 25 383 | 602 | 25 985 | — |
| UGX | 37 132 | 574 | 37 706 | — |
| RWF | 30 766 | 47 | 30 813 | — |
| Local currencies


  (not under synthetic hedge)
   (6) | | | | |
| HTG, MUR, MZN, XOF, ZMW, BWP, JMD, NGN, ZAR | 99 864 | - 530 | 99 334 | — |
| Total non-EUR currencies | 166 963 | -55 121 | 111 842 | 637 693 |
| EUR | — | 3 075 194 | 3 075 194 | 2 741 023 |
| Total EUR and non-EUR | 166 963 | 3 020 073 | 3 187 036 | 3 378 716 |

As at 31 December 2019

Assets and liabilities

Commitments and contingent liabilities

Currencies

FX position as per Risk Policies

FX position excluded from Risk Policies

Balance sheet FX position

USD

USD

- 103 746

-56 632

- 160 378

637 693

Local currencies

Local currencies

(under synthetic hedge)
   (6)

(under synthetic hedge)

6

KES

KES

29 472

464

29 936

—

TZS

TZS

48 092

354

48 446

—

DOP

DOP

25 383

602

25 985

—

UGX

UGX

37 132

574

37 706

—

RWF

RWF

30 766

47

30 813

—

Local currencies

Local currencies

(not under synthetic hedge)
   (6)

(not under synthetic hedge)

6

HTG, MUR, MZN, XOF, ZMW, BWP, JMD, NGN, ZAR

HTG, MUR, MZN, XOF, ZMW, BWP, JMD, NGN, ZAR

99 864

- 530

99 334

—

Total non-EUR currencies

Total non-EUR currencies

166 963

166 963

-55 121

-55 121

111 842

111 842

637 693

637 693

EUR

EUR

—

3 075 194

3 075 194

3 075 194

3 075 194

2 741 023

2 741 023

Total EUR and non-EUR

Total EUR and non-EUR

166 963

166 963

3 020 073

3 020 073

3 187 036

3 187 036

3 378 716

3 378 716

| As at 31 December 2018 | Assets and liabilities | Commitments and contingent liabilities |
| --- | --- | --- |
| Currencies | FX position as per Risk Policies | FX position excluded from Risk Policies | Balance sheet FX position |
| USD | - 157 177 | -52 111 | - 209 288 | 600 271 |
| Local currencies


  (under synthetic hedge)
   (7) | | | | |
| KES | 35 806 | 252 | 36 058 | — |
| TZS | 71 195 | 814 | 72 009 | — |
| DOP | 35 311 | 821 | 36 132 | — |
| UGX | 45 731 | 769 | 46 500 | — |
| RWF | 24 176 | 17 | 24 193 | — |
| Local currencies


  (not under synthetic hedge)
   (7) | | | | |
| HTG, MUR, MZN, XOF, ZMW, BWP, JMD, NGN, ZAR | 74 265 | - 432 | 73 833 | — |
| Total non-EUR currencies | 129 307 | -49 870 | 79 437 | 600 271 |
| EUR | — | 2 834 560 | 2 834 560 | 3 044 623 |
| Total EUR and non-EUR | 129 307 | 2 784 690 | 2 913 997 | 3 644 894 |

As at 31 December 2018

Assets and liabilities

Commitments and contingent liabilities

Currencies

FX position as per Risk Policies

FX position excluded from Risk Policies

Balance sheet FX position

USD

USD

- 157 177

-52 111

- 209 288

600 271

Local currencies

Local currencies

(under synthetic hedge)
   (7)

(under synthetic hedge)

7

KES

KES

35 806

252

36 058

—

TZS

TZS

71 195

814

72 009

—

DOP

DOP

35 311

821

36 132

—

UGX

UGX

45 731

769

46 500

—

RWF

RWF

24 176

17

24 193

—

Local currencies

Local currencies

(not under synthetic hedge)
   (7)

(not under synthetic hedge)

7

HTG, MUR, MZN, XOF, ZMW, BWP, JMD, NGN, ZAR

HTG, MUR, MZN, XOF, ZMW, BWP, JMD, NGN, ZAR

74 265

- 432

73 833

—

Total non-EUR currencies

Total non-EUR currencies

129 307

129 307

-49 870

-49 870

79 437

79 437

600 271

600 271

EUR

EUR

—

2 834 560

2 834 560

2 834 560

2 834 560

3 044 623

3 044 623

Total EUR and non-EUR

Total EUR and non-EUR

129 307

129 307

2 784 690

2 784 690

2 913 997

2 913 997

3 644 894

3 644 894

3.4.2.3.   Foreign exchange sensitivity analysis

Foreign exchange sensitivity analysis

As at 31 December 2019, a 10 percent depreciation of EUR versus all non-EUR currencies would result in an increase of the contributors’ resources amounting to EUR 14,0 million (31 December 2018: EUR 8,8 million). A 10 percent appreciation of the EUR versus all non-EUR currencies would result in a decrease of the contributors’ resources amounting to EUR 11,4 million (31 December 2018: EUR 7,2 million).

3.4.2.4.   Conversion rates

Conversion rates

The following conversion rates were used for establishing the balance sheet at 31 December 2019 and 31 December 2018:

| | 31 December 2019 | 31 December 2018 |
| --- | --- | --- |
| Non-EU currencies | | |
| Botswana Pula (BWP) | 11,8376 | 12,2038 |
| Dominican Republic Pesos (DOP) | 59,3644 | 57,4037 |
| Fiji Dollars (FJD) | 2,4045 | 2,4104 |
| Haitian Gourde (HTG) | 100,99 | 86,92 |
| Jamaican Dollar (JMD) | 147,6966 | 144,081 |
| Kenya Shillings (KES) | 113,63 | 116,24 |
| Mauritania Ouguiyas (MRU) | 42,2135 | 41,1660 |
| Mauritius Rupees (MUR) | 40,63 | 39,05 |
| Mozambican Metical (MZN) | 68,64 | 70,14 |
| Nigerian Naira (NGN) | 343,45 | 351,05 |
| Rwanda Francs (RWF) | 1 051,12 | 1 020,10 |
| Tanzania Shillings (TZS) | 2 573,66 | 2 624,33 |
| Uganda Shillings (UGX) | 4 108 | 4 239 |
| United States Dollars (USD) | 1,1234 | 1,145 |
| Franc CFA Francs (XAF/XOF) | 655,957 | 655,957 |
| South Africa Rand (ZAR) | 15,7773 | 16,4594 |
| Zambia Kvacha (ZMW) | 15,7894 | 13,6077 |

31 December 2019

31 December 2018

Non-EU currencies

Non-EU currencies

Botswana Pula (BWP)

11,8376

12,2038

Dominican Republic Pesos (DOP)

59,3644

57,4037

Fiji Dollars (FJD)

2,4045

2,4104

Haitian Gourde (HTG)

100,99

86,92

Jamaican Dollar (JMD)

147,6966

144,081

Kenya Shillings (KES)

113,63

116,24

Mauritania Ouguiyas (MRU)

42,2135

41,1660

Mauritius Rupees (MUR)

40,63

39,05

Mozambican Metical (MZN)

68,64

70,14

Nigerian Naira (NGN)

343,45

351,05

Rwanda Francs (RWF)

1 051,12

1 020,10

Tanzania Shillings (TZS)

2 573,66

2 624,33

Uganda Shillings (UGX)

4 108

4 239

United States Dollars (USD)

1,1234

1,145

Franc CFA Francs (XAF/XOF)

655,957

655,957

South Africa Rand (ZAR)

15,7773

16,4594

Zambia Kvacha (ZMW)

15,7894

13,6077

3.4.3.   Equity price risk

Equity price risk

Equity price risk refers to the risk that the fair values of equity investments decrease as the result of changes in the levels of equity prices and/or the value of equity investments.

The IF is exposed to equity price risk via its investments in direct equity and venture capital funds.

The value of non-listed equity positions is not readily available for the purpose of monitoring and control on a continuous basis. For such positions, the best indications available include prices derived from any relevant valuation techniques.

The effect on the Facility’s contributors’ resources (as a result of a change in the fair value of the equity instruments portfolio) due to a +/-10 % change in the value of individual direct equity and venture capital investments, with all other variables held constant, is EUR 62,0 million and EUR -62,0 million respectively as at 31 December 2019 (EUR 56,7 million and EUR -56,7 million respectively as at 31 December 2018).

4.   Fair values of financial instruments

Fair values of financial instruments

4.1.   
  Accounting classifications and fair values

Accounting classifications and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. These do not include fair value information for financial assets and financial liabilities not carried at fair value if the carrying amount is a reasonable approximation of fair value.

| in EUR’000 |
| --- |
| At 31 December 2019 | Carrying amount | Fair value |
| | Derivative financial instruments | Shares and other variable yield securities | Cash, loans and advances | Treasury financial assets | Other financial liabilities | Total | Level 1 | Level 2 | Level 3 | Total |
| Financial assets mandatorily measured at FVTPL | | | | | | | | | | |
| Derivative financial instruments | 14 184 | — | — | — | — | 14 184 | — | 14 184 | — | 14 184 |
| Venture Capital Fund | — | 504 694 | — | — | — | 504 694 | 362 | — | 504 332 | 504 694 |
| Direct Equity Investment | — | 115 234 | — | — | — | 115 234 | 15 255 | — | 99 979 | 115 234 |
| Loans and advances | — | — | 21 702 | — | — | 21 702 | — | — | 21 702 | 21 702 |
| Total financial assets mandatorily measured at FVTPL | 14 184 | 619 928 | 21 702 | — | — | 655 814 | 15 617 | 35 886 | 604 311 | 655 814 |
| Financial assets measured at AC | | | | | | | | | | |
| Cash and cash equivalents | — | — | 837 777 | — | — | 837 777 | — | — | — | — |
| Loans and advances | — | — | 1 496 973 | — | — | 1 496 973 | — | 1 699 057 | — | 1 699 057 |
| Amounts receivable from contributors | — | — | 86 330 | — | — | 86 330 | — | — | — | — |
| Treasury financial assets | — | — | — | 330 587 | — | 330 587 | 144 097 | 186 083 | — | 330 180 |
| Other assets | — | — | — | — | — | — | — | — | — | — |
| Total financial assets measured at AC | — | — | 2 421 080 | 330 587 | — | 2 751 667 | 144 097 | 1 885 140 | — | 2 029 237 |
| Total financial assets | 14 184 | 619 928 | 2 442 782 | 330 587 | — | 3 407 487 | | | | |
| Financial liabilities measured at FVTPL | | | | | | | | | | |
| Derivative financial instruments | - 191 | — | — | — | — | - 191 | — | - 191 | — | - 191 |
| Total financial liabilities measured at FVTPL | - 191 | — | — | — | — | - 191 | — | - 191 | — | - 191 |
| Financial liability measured at AC: | | | | | | | | | | |
| Provisions for guarantees issued | — | — | — | — | - 628 | - 628 | | | | |
| Provisions for loan commitments | — | — | — | — | -37 269 | -37 269 | | | | |
| Amounts owed to third parties | — | — | — | — | - 147 438 | - 147 438 | | | | |
| Other liabilities | — | — | — | — | -2 353 | -2 353 | | | | |
| Total financial liabilities measured at AC | — | — | — | — | - 187 688 | - 187 688 | | | | |
| Total financial liabilities | - 191 | — | — | — | - 187 688 | - 187 879 | | | | |

in EUR’000

At 31 December 2019

Carrying amount

Fair value

Derivative financial instruments

Shares and other variable yield securities

Cash, loans and advances

Treasury financial assets

Other financial liabilities

Total

Level 1

Level 2

Level 3

Total

Financial assets mandatorily measured at FVTPL

Financial assets mandatorily measured at FVTPL

Derivative financial instruments

14 184

—

—

—

—

14 184

—

14 184

—

14 184

Venture Capital Fund

—

504 694

—

—

—

504 694

362

—

504 332

504 694

Direct Equity Investment

—

115 234

—

—

—

115 234

15 255

—

99 979

115 234

Loans and advances

—

—

21 702

—

—

21 702

—

—

21 702

21 702

Total financial assets mandatorily measured at FVTPL

Total financial assets mandatorily measured at FVTPL

14 184

14 184

619 928

619 928

21 702

21 702

—

—

655 814

655 814

15 617

15 617

35 886

35 886

604 311

604 311

655 814

655 814

Financial assets measured at AC

Financial assets measured at AC

Cash and cash equivalents

—

—

837 777

—

—

837 777

—

—

—

—

Loans and advances

—

—

1 496 973

—

—

1 496 973

—

1 699 057

—

1 699 057

Amounts receivable from contributors

—

—

86 330

—

—

86 330

—

—

—

—

Treasury financial assets

—

—

—

330 587

—

330 587

144 097

186 083

—

330 180

Other assets

—

—

—

—

—

—

—

—

—

—

Total financial assets measured at AC

Total financial assets measured at AC

—

—

2 421 080

2 421 080

330 587

330 587

—

2 751 667

2 751 667

144 097

144 097

1 885 140

1 885 140

—

2 029 237

2 029 237

Total financial assets

Total financial assets

14 184

14 184

619 928

619 928

2 442 782

2 442 782

330 587

330 587

—

3 407 487

3 407 487

Financial liabilities measured at FVTPL

Financial liabilities measured at FVTPL

Derivative financial instruments

- 191

—

—

—

—

- 191

—

- 191

—

- 191

Total financial liabilities measured at FVTPL

Total financial liabilities measured at FVTPL

- 191

- 191

—

—

—

—

- 191

- 191

—

- 191

- 191

—

- 191

- 191

Financial liability measured at AC:

Financial liability measured at AC:

Provisions for guarantees issued

—

—

—

—

- 628

- 628

Provisions for loan commitments

—

—

—

—

-37 269

-37 269

Amounts owed to third parties

—

—

—

—

- 147 438

- 147 438

Other liabilities

—

—

—

—

-2 353

-2 353

Total financial liabilities measured at AC

Total financial liabilities measured at AC

—

—

—

—

- 187 688

- 187 688

- 187 688

- 187 688

Total financial liabilities

Total financial liabilities

- 191

- 191

—

—

—

- 187 688

- 187 688

- 187 879

- 187 879

| in EUR’000 |
| --- |
| As at 31 December 2018 tito | Carrying amount | Fair value |
| | Derivative financial instruments | Shares and other variable yield securities | Cash, loans and receivables | Treasury financial assets | Other financial liabilities | Total | Level 1 | Level 2 | Level 3 | Total |
| Financial assets mandatorily measured at FVTPL | | | | | | | | | | |
| Derivative financial instruments | 9 873 | — | — | — | — | 9 873 | — | 9 873 | — | 9 873 |
| Venture Capital Funds | — | 467 152 | — | — | — | 467 152 | — | — | 467 152 | 467 152 |
| Direct Equity Investments | — | 100 140 | — | — | — | 100 140 | 16 675 | — | 83 465 | 100 140 |
| Loans and advances | — | — | 720 | — | — | 720 | — | 720 | — | 720 |
| Total financial assets mandatorily measured at FVTPL | 9 873 | 567 292 | 720 | — | — | 577 885 | 16 675 | 10 593 | 550 617 | 577 885 |
| Financial assets measured at AC | | | | | | | | | | |
| Cash and cash equivalents | — | — | 573 708 | — | — | 573 708 | — | — | — | — |
| Loans and advances | — | — | 1 540 271 | — | — | 1 540 271 | — | 1 760 576 | — | 1 760 576 |
| Amounts receivable from contributors | — | — | 100 000 | — | — | 100 000 | — | — | — | — |
| Treasury financial assets | — | — | — | 335 140 | — | 335 140 | 191 475 | 145 061 | — | 336 536 |
| Other assets | — | — | 171 | — | — | 171 | — | — | — | — |
| Total financial assets measured at AC | — | — | 2 214 150 | 335 140 | — | 2 549 290 | 191 475 | 1 905 637 | — | 2 097 112 |
| Total financial assets | 9 873 | 567 292 | 2 214 870 | 335 140 | — | 3 127 175 | | | | |
| Financial liabilities measured at FVTPL | | | | | | | | | | |
| Derivative financial instruments | -8 493 | — | — | — | — | -8 493 | — | -8 493 | — | -8 493 |
| Total financial liabilities measured at FVTPL | -8 493 | — | — | — | — | -8 493 | — | -8 493 | — | -8 493 |
| Financial liabilities measured at AC: | | | | | | | | | | |
| Provisions for guarantees issued | — | — | — | — | - 793 | - 793 | | | | |
| Provisions for loan commitments | — | — | — | — | -23 822 | -23 822 | | | | |
| Amounts owed to third parties | — | — | — | — | - 143 813 | - 143 813 | | | | |
| Other liabilities | — | — | — | — | -2 493 | -2 493 | | | | |
| Total financial liabilities measured at AC | — | — | — | — | - 170 921 | - 170 921 | | | | |
| Total financial liabilities | -8 493 | — | — | — | - 170 921 | - 179 414 | | | | |

in EUR’000

As at 31 December 2018 tito

Carrying amount

Fair value

Derivative financial instruments

Shares and other variable yield securities

Cash, loans and receivables

Treasury financial assets

Other financial liabilities

Total

Level 1

Level 2

Level 3

Total

Financial assets mandatorily measured at FVTPL

Financial assets mandatorily measured at FVTPL

Derivative financial instruments

9 873

—

—

—

—

9 873

—

9 873

—

9 873

Venture Capital Funds

—

467 152

—

—

—

467 152

—

—

467 152

467 152

Direct Equity Investments

—

100 140

—

—

—

100 140

16 675

—

83 465

100 140

Loans and advances

—

—

720

—

—

720

—

720

—

720

Total financial assets mandatorily measured at FVTPL

Total financial assets mandatorily measured at FVTPL

9 873

9 873

567 292

567 292

720

720

—

—

577 885

577 885

16 675

16 675

10 593

10 593

550 617

550 617

577 885

577 885

Financial assets measured at AC

Financial assets measured at AC

Cash and cash equivalents

—

—

573 708

—

—

573 708

—

—

—

—

Loans and advances

—

—

1 540 271

—

—

1 540 271

—

1 760 576

—

1 760 576

Amounts receivable from contributors

—

—

100 000

—

—

100 000

—

—

—

—

Treasury financial assets

—

—

—

335 140

—

335 140

191 475

145 061

—

336 536

Other assets

—

—

171

—

—

171

—

—

—

—

Total financial assets measured at AC

Total financial assets measured at AC

—

—

2 214 150

2 214 150

335 140

335 140

—

2 549 290

2 549 290

191 475

191 475

1 905 637

1 905 637

—

2 097 112

2 097 112

Total financial assets

Total financial assets

9 873

9 873

567 292

567 292

2 214 870

2 214 870

335 140

335 140

—

3 127 175

3 127 175

Financial liabilities measured at FVTPL

Financial liabilities measured at FVTPL

Derivative financial instruments

-8 493

—

—

—

—

-8 493

—

-8 493

—

-8 493

Total financial liabilities measured at FVTPL

Total financial liabilities measured at FVTPL

-8 493

-8 493

—

—

—

—

-8 493

-8 493

—

-8 493

-8 493

—

-8 493

-8 493

Financial liabilities measured at AC:

Financial liabilities measured at AC:

Provisions for guarantees issued

—

—

—

—

- 793

- 793

Provisions for loan commitments

—

—

—

—

-23 822

-23 822

Amounts owed to third parties

—

—

—

—

- 143 813

- 143 813

Other liabilities

—

—

—

—

-2 493

-2 493

Total financial liabilities measured at AC

Total financial liabilities measured at AC

—

—

—

—

- 170 921

- 170 921

- 170 921

- 170 921

Total financial liabilities

Total financial liabilities

-8 493

-8 493

—

—

—

- 170 921

- 170 921

- 179 414

- 179 414

4.2.   
  Measurement of fair values

Measurement of fair values

4.2.1.   Valuation techniques and significant unobservable inputs

Valuation techniques and significant unobservable inputs

The table below sets out information about the valuation techniques and significant unobservable inputs used in measuring financial instruments, categorised as Level 2 and 3 in the fair value hierarchy:

| Valuation technique | Significant unobservable inputs | Relationship of unobservable inputs to fair value measurement |
| --- | --- | --- |
| Financial instruments carried at fair value | | |
| Derivative financial instruments | Discounted cash flow: Future cash flows are estimated based on forward exchange/interest rates (from observable forward exchange rates and yield curves at the end of the reporting period) and contract forward/interest rates, discounted at a rate that reflects the credit risk of various counterparties. | Not applicable. | Not applicable. |
| Venture Capital Fund (VCF) | Adjusted net assets method: The fair value is determined by applying either the Facility’s percentage ownership in the underlying vehicle to the net asset value reflected in the most recent report adjusted for cash flows or, where available, the precise share value at the same date, submitted by the respective Fund Manager. In order to bridge the interval between the last available Net assets value (NAV) and the year-end reporting, a subsequent event review procedure is performed and if necessary the reported NAV is adjusted. | Adjustment for time elapsed between the last reporting date of the VCF and the measurement date, taking into account: operating expenses and management fees, subsequent changes in the fair value of the VCF’s underlying assets, additional liabilities incurred, market changes or other economic condition changes. | The longer the period between the fair value measurement date and the last reporting date of the VCF, the higher the adjustment for time elapsed. |
| Direct Equity Investment | Adjusted net assets. | Adjustment for time elapsed between the last reporting date of the investee and the measurement date, taking into account: operating expenses, subsequent changes in the fair value of the investee’s underlying assets, additional liabilities incurred, market changes or other economic condition changes, capital increase, sale/change of control.
  Discount for lack of marketability (liquidity) determined by reference to previous transaction prices for similar equities in the country/region, ranging from 5 to 30 %. | The higher the marketability discount, the lower the fair value. |
| Loans at fair value (IFE) | For going concern borrowers: Discounted cash flow using contractual/expected future cash flows discounted with appropriate risk-adjusted discount rate that captures the risk inherent to the loan (including credit risk of the borrower). The discount rate is compared/assessed with any relevant market benchmark.
  For borrowers not going concern: Net assets approach (liquidation value approach). | Components of the discount rate to reflect the credit risk of borrower compared to the risk-free market rates. | The higher the discount rate the lower the fair value. |
| Financial instruments not carried at fair value | | |
| Loans and advances | Discounted cash flows: The valuation model uses contractual cash flows that are conditional upon the non-occurrence of default by the debtor and do not take into account any collateral values or early repayments’ scenarios. To obtain the Net Present Value (NPV) of the loans, the model retained discounts the contractual cash flows of each loan using an adjusted market discount curve. The individual loan NPV is then adjusted to take into consideration the relevant associated Expected Loss. The results are then summed to obtain the fair value of loans and advances. | Not applicable. | Not applicable. |
| Treasury financial assets | Discounted cash flows. | Not applicable. | Not applicable. |

Valuation technique

Significant unobservable inputs

Relationship of unobservable inputs to fair value measurement

Financial instruments carried at fair value

Financial instruments carried at fair value

Derivative financial instruments

Discounted cash flow: Future cash flows are estimated based on forward exchange/interest rates (from observable forward exchange rates and yield curves at the end of the reporting period) and contract forward/interest rates, discounted at a rate that reflects the credit risk of various counterparties.

Not applicable.

Not applicable.

Venture Capital Fund (VCF)

Adjusted net assets method: The fair value is determined by applying either the Facility’s percentage ownership in the underlying vehicle to the net asset value reflected in the most recent report adjusted for cash flows or, where available, the precise share value at the same date, submitted by the respective Fund Manager. In order to bridge the interval between the last available Net assets value (NAV) and the year-end reporting, a subsequent event review procedure is performed and if necessary the reported NAV is adjusted.

Adjustment for time elapsed between the last reporting date of the VCF and the measurement date, taking into account: operating expenses and management fees, subsequent changes in the fair value of the VCF’s underlying assets, additional liabilities incurred, market changes or other economic condition changes.

The longer the period between the fair value measurement date and the last reporting date of the VCF, the higher the adjustment for time elapsed.

Direct Equity Investment

Adjusted net assets.

Adjustment for time elapsed between the last reporting date of the investee and the measurement date, taking into account: operating expenses, subsequent changes in the fair value of the investee’s underlying assets, additional liabilities incurred, market changes or other economic condition changes, capital increase, sale/change of control.

Discount for lack of marketability (liquidity) determined by reference to previous transaction prices for similar equities in the country/region, ranging from 5 to 30 %.

The higher the marketability discount, the lower the fair value.

Loans at fair value (IFE)

For going concern borrowers: Discounted cash flow using contractual/expected future cash flows discounted with appropriate risk-adjusted discount rate that captures the risk inherent to the loan (including credit risk of the borrower). The discount rate is compared/assessed with any relevant market benchmark.

For borrowers not going concern: Net assets approach (liquidation value approach).

Components of the discount rate to reflect the credit risk of borrower compared to the risk-free market rates.

The higher the discount rate the lower the fair value.

Financial instruments not carried at fair value

Financial instruments not carried at fair value

Loans and advances

Discounted cash flows: The valuation model uses contractual cash flows that are conditional upon the non-occurrence of default by the debtor and do not take into account any collateral values or early repayments’ scenarios. To obtain the Net Present Value (NPV) of the loans, the model retained discounts the contractual cash flows of each loan using an adjusted market discount curve. The individual loan NPV is then adjusted to take into consideration the relevant associated Expected Loss. The results are then summed to obtain the fair value of loans and advances.

Not applicable.

Not applicable.

Treasury financial assets

Discounted cash flows.

Not applicable.

Not applicable.

With the application of IFRS 13, valuation adjustments are included in the fair value of derivatives as at 31 December 2019 and 31 December 2018, namely:

| — | Credit valuation adjustments (CVA), reflecting counterparty credit risk on derivative transactions, amounting to EUR -32,8k as at 31 December 2019 and to EUR -37,4k as at 31 December 2018. |
| --- | --- |

—

Credit valuation adjustments (CVA), reflecting counterparty credit risk on derivative transactions, amounting to EUR -32,8k as at 31 December 2019 and to EUR -37,4k as at 31 December 2018.

| — | Debit valuation adjustments (DVA), reflecting own credit risk on derivative transactions, amounting to EUR +28,7k as at 31 December 2019 and EUR +15,1k as at 31 December 2018. |
| --- | --- |

—

Debit valuation adjustments (DVA), reflecting own credit risk on derivative transactions, amounting to EUR +28,7k as at 31 December 2019 and EUR +15,1k as at 31 December 2018.

4.2.2.   Transfers between Level 1 and 2

Transfers between Level 1 and 2

The Facility’s policy is to recognise the transfers between Levels as of the date of the event or change in circumstances that caused the transfer.

In 2019 and 2018, the Facility did not make transfers from Level 1 to 2 or Level 2 to 1 of the fair value hierarchy.

4.2.3.   Level 3 fair values

Level 3 fair values

Reconciliation of Level 3 fair values

Reconciliation of Level 3 fair values

The following tables present the changes in Level 3 instruments for the year ended 31 December 2019 and 31 December 2018:

| in EUR’000 |
| --- |
| Shares and other variable yield securities |
| Balance as at 1 January 2019 | 550 617 |
| Gains or losses included in profit or loss: | |
| — | net realised result on shares and other variable yield securities |

in EUR’000

Shares and other variable yield securities

Balance as at 1 January 2019

Balance as at 1 January 2019

550 617

550 617

Gains or losses included in profit or loss:

Gains or losses included in profit or loss:

—

net realised result on shares and other variable yield securities

1 708

| — | net fair value change on shares and other variable yield securities |
| --- | --- |

—

net fair value change on shares and other variable yield securities

17 666

Total

Total

19 374

19 374

Disbursements

106 943

Repayments

-79 435

Foreign exchange rates differences

6 812

Balance as at 31 December 2019

Balance as at 31 December 2019

604 311

604 311

| in EUR’000 |
| --- |
| Shares and other variable yield securities |
| Balance as at 1 January 2018 | 473 081 |
| Gains or losses included in profit or loss: | |
| — | net realised result on shares and other variable yield securities |

in EUR’000

Shares and other variable yield securities

Balance as at 1 January 2018

Balance as at 1 January 2018

473 081

473 081

Gains or losses included in profit or loss:

Gains or losses included in profit or loss:

—

net realised result on shares and other variable yield securities

-10 622

| — | net fair value change on shares and other variable yield securities |
| --- | --- |

—

net fair value change on shares and other variable yield securities

-13 411

Total

Total

-24 033

-24 033

Disbursements

95 434

Repayments

-11 165

Foreign exchange rates differences

17 300

Balance as at 31 December 2018

Balance as at 31 December 2018

550 617

550 617

In 2019 and 2018, the Facility did not make transfers out or to Level 3 of the fair value hierarchy.

5.   Cash and cash equivalents

Cash and cash equivalents

The cash and cash equivalents are composed of:

| in EUR’000 |
| --- |
| | 31.12.2019 | 31.12.2018 |
| Cash in hand | 72 166 | 51 936 |
| Term deposits | 622 991 | 521 882 |
| Commercial papers | 142 823 | — |
| Cash and cash equivalents in the cash flow statement | 837 980 | 573 818 |
| Accrued interest | - 203 | - 110 |
| Cash and cash equivalents in the statement of financial position | 837 777 | 573 708 |

in EUR’000

31.12.2019

31.12.2018

Cash in hand

72 166

51 936

Term deposits

622 991

521 882

Commercial papers

142 823

—

Cash and cash equivalents in the cash flow statement

Cash and cash equivalents in the cash flow statement

837 980

837 980

573 818

573 818

Accrued interest

- 203

- 110

Cash and cash equivalents in the statement of financial position

Cash and cash equivalents in the statement of financial position

837 777

837 777

573 708

573 708

6.   Derivative financial instruments

Derivative financial instruments

The main components of derivative financial instruments, classified as held for trading, are as follows:

| in EUR’000 |
| --- |
| As at 31 December 2019 | Fair Value | Notional amount |
| Assets | Liabilities |
| Cross currency swaps | — | — | — |
| Interest rate swaps | 99 | - 191 | 24,181 |
| FX swaps | 14 085 | — | 1 545 000 |
| Total derivative financial instruments | 14 184 | - 191 | 1 569 181 |

in EUR’000

As at 31 December 2019

Fair Value

Notional amount

Assets

Liabilities

Cross currency swaps

—

—

—

Interest rate swaps

99

- 191

24,181

FX swaps

14 085

—

1 545 000

Total derivative financial instruments

Total derivative financial instruments

14 184

14 184

- 191

- 191

1 569 181

1 569 181

| In EUR'000 |
| --- |
| As at 31 December 2018 | Fair Value | Notional amount |
| Assets | Liabilities |
| Cross currency interest rate swaps | 340 | - 665 | 5 245 |
| Interest rate swaps | 654 | — | 28 470 |
| FX swaps | 8 879 | -7 828 | 1 460 608 |
| Total derivative financial instruments | 9 873 | -8 493 | 1 494 323 |

In EUR'000

As at 31 December 2018

Fair Value

Notional amount

Assets

Liabilities

Cross currency interest rate swaps

340

- 665

5 245

Interest rate swaps

654

—

28 470

FX swaps

8 879

-7 828

1 460 608

Total derivative financial instruments

Total derivative financial instruments

9 873

9 873

-8 493

-8 493

1 494 323

1 494 323

7.   Loans and advances

Loans and advances

7.1.   
  Loans and advances

Loans and advances

The following table show reconciliation from the opening to the closing balance of the loans and advances with ECL IFRS 9 impairment model.

| in EUR’000 |
| --- |
| | Global loans (8) | Senior loans | Subordinated loans | POCI | Total |
| Nominal of loans at AC as at 1 January 2019 | 1 051 317 | 593 324 | 60 717 | 3 588 | 1 708 946 |
| Disbursements | 164 308 | 123 416 | — | — | 287 724 |
| Write offs | - 2 | - 278 | — | — | - 280 |
| Repayments | - 206 517 | - 113 100 | -34 496 | — | - 354 113 |
| Sale of loans | -2 591 | — | — | — | -2 591 |
| Business model change (IFE) (9) | — | -10 062 | — | -3 588 | -13 650 |
| Foreign exchange rates differences | 15 041 | 4 064 | 1 493 | — | 20 598 |
| Nominal of loans at AC as at 31 December 2019 | 1 021 556 | 597 364 | 27 714 | — | 1 646 634 |
| Impairment — loss allowance as at 1 January 2019 | - 103 868 | -49 609 | -29 360 | -1 794 | - 184 631 |
| Net changes of the 12 month ECL | 5 164 | - 86 | — | — | 5 078 |
| Net changes of lifetime ECL not credit-impaired | -15 558 | 2 559 | 2 205 | — | -10 794 |
| Lifetime ECL credit-impaired | -4 397 | - 47 | — | — | -4 444 |
| Reversal of lifetime ECL credit-impaired | 21 811 | 5 592 | — | — | 27 403 |
| Sale of loans | 2 591 | — | — | — | 2 591 |
| Business model change (IFE) (9) | — | 5 031 | — | 1 794 | 6 825 |
| Write offs | 2 | 278 | — | — | 280 |
| Foreign exchange rates differences | -1 911 | - 368 | - 559 | — | -2 838 |
| Impairment — loss allowance as at 31 December 2019 | -96 166 | -36 650 | -27 714 | — | - 160 530 |
| Loans and advances at AC as at 31 December 2019 | 925 390 | 560 714 | — | — | 1 486 104 |
| Nominal of loans at FVTPL as at 1 January 2019 | 1 800 | — | — | — | 1 800 |
| Disbursements | — | 23 461 | — | — | 23 461 |
| Business model change (IFE) (9) | — | 13 650 | — | — | 13 650 |
| Repayments | - 720 | - 245 | — | — | - 965 |
| Write offs | — | — | — | — | — |
| Foreign exchange rates differences | — | - 8 | — | — | - 8 |
| Nominal of loans at FVTPL as at 31 December 2019 | 1 080 | 36 858 | — | — | 37 938 |
| Fair value adjustment as at 1 January 2019 | -1 080 | — | — | — | -1 080 |
| Net FV change | — | -8 331 | — | — | -8 331 |
| Business model change (IFE) (9) | — | -6 825 | — | — | -6 825 |
| Fair value adjustment as at 31 December 2019 | -1 080 | -15 156 | — | — | -16 236 |
| Loans and advances at FVTPL as at 31 December 2019 | — | 21 702 | — | — | 21 702 |
| Amortised Cost | -3 545 | -4 950 | 10 | — | -8 485 |
| Interest | 10 451 | 8 903 | — | — | 19 354 |
| Loans and advances as at 31 December 2019 | 932 296 | - 586 369 | 10 | — | 1 518 675 |

in EUR’000

Global loans (8)

8

Senior loans

Subordinated loans

POCI

Total

Nominal of loans at AC as at 1 January 2019

Nominal of loans at AC as at 1 January 2019

1 051 317

1 051 317

593 324

593 324

60 717

60 717

3 588

3 588

1 708 946

1 708 946

Disbursements

164 308

123 416

—

—

287 724

Write offs

- 2

- 278

—

—

- 280

Repayments

- 206 517

- 113 100

-34 496

—

- 354 113

Sale of loans

-2 591

—

—

—

-2 591

Business model change (IFE) (9)

9

—

-10 062

—

-3 588

-13 650

Foreign exchange rates differences

15 041

4 064

1 493

—

20 598

Nominal of loans at AC as at 31 December 2019

Nominal of loans at AC as at 31 December 2019

1 021 556

1 021 556

597 364

597 364

27 714

27 714

—

—

1 646 634

1 646 634

Impairment — loss allowance as at 1 January 2019

Impairment — loss allowance as at 1 January 2019

- 103 868

- 103 868

-49 609

-49 609

-29 360

-29 360

-1 794

-1 794

- 184 631

- 184 631

Net changes of the 12 month ECL

5 164

- 86

—

—

5 078

Net changes of lifetime ECL not credit-impaired

-15 558

2 559

2 205

—

-10 794

Lifetime ECL credit-impaired

-4 397

- 47

—

—

-4 444

Reversal of lifetime ECL credit-impaired

21 811

5 592

—

—

27 403

Sale of loans

2 591

—

—

—

2 591

Business model change (IFE) (9)

9

—

5 031

—

1 794

6 825

Write offs

2

278

—

—

280

Foreign exchange rates differences

-1 911

- 368

- 559

—

-2 838

Impairment — loss allowance as at 31 December 2019

Impairment — loss allowance as at 31 December 2019

-96 166

-96 166

-36 650

-36 650

-27 714

-27 714

—

—

- 160 530

- 160 530

Loans and advances at AC as at 31 December 2019

Loans and advances at AC as at 31 December 2019

925 390

925 390

560 714

560 714

—

—

—

—

1 486 104

1 486 104

Nominal of loans at FVTPL as at 1 January 2019

Nominal of loans at FVTPL as at 1 January 2019

1 800

1 800

—

—

—

—

—

—

1 800

1 800

Disbursements

—

23 461

—

—

23 461

Business model change (IFE) (9)

9

—

13 650

—

—

13 650

Repayments

- 720

- 245

—

—

- 965

Write offs

—

—

—

—

—

Foreign exchange rates differences

—

- 8

—

—

- 8

Nominal of loans at FVTPL as at 31 December 2019

Nominal of loans at FVTPL as at 31 December 2019

1 080

1 080

36 858

36 858

—

—

—

—

37 938

37 938

Fair value adjustment as at 1 January 2019

Fair value adjustment as at 1 January 2019

-1 080

-1 080

—

—

—

—

—

—

-1 080

-1 080

Net FV change

—

-8 331

—

—

-8 331

Business model change (IFE) (9)

9

—

-6 825

—

—

-6 825

Fair value adjustment as at 31 December 2019

Fair value adjustment as at 31 December 2019

-1 080

-1 080

-15 156

-15 156

—

—

—

—

-16 236

-16 236

Loans and advances at FVTPL as at 31 December 2019

Loans and advances at FVTPL as at 31 December 2019

—

—

21 702

21 702

—

—

—

—

21 702

21 702

Amortised Cost

-3 545

-4 950

10

—

-8 485

Interest

10 451

8 903

—

—

19 354

Loans and advances as at 31 December 2019

Loans and advances as at 31 December 2019

932 296

932 296

- 586 369

- 586 369

10

10

—

—

1 518 675

1 518 675

| in EUR’000 |
| --- |
| | Global loans (10) | Senior loans | Subordinated loans | POCI | Total |
| Nominal of loans at AC as at 1 January 2018 | 1 003 294 | 687 499 | 62 546 | — | 1 753 339 |
| Disbursements | 203 352 | 52 274 | — | 3 588 | 259 214 |
| Write offs | — | — | — | — | — |
| Repayments | - 192 355 | - 157 952 | -4 548 | — | - 354 855 |
| Interest capitalised | — | — | — | — | — |
| Foreign exchange rates differences | 37 026 | 11 503 | 2 719 | — | 51 248 |
| Nominal of loans at AC as at 31 December 2018 | 1 051 317 | 593 324 | 60 717 | 3 588 | 1 708 946 |
| Impairment — loss allowance as at 1 January 2018 | -35 082 | -57 911 | -62 546 | — | - 155 539 |
| Net changes of the 12 month ECL | -1 853 | 288 | — | — | -1 565 |
| Net changes of lifetime ECL not credit-impaired | 4 696 | 870 | -2 146 | — | 3 420 |
| Lifetime ECL credit-impaired | -71 204 | — | — | -1 794 | -72 998 |
| Reversal of lifetime ECL credit-impaired | 2 214 | 8 480 | 37 678 | — | 48 372 |
| Write offs | — | — | — | — | — |
| Foreign exchange rates differences | -2 639 | -1 336 | -2 346 | — | -6 321 |
| Impairment — loss allowance as at 1 January 2018 | - 103 868 | -49 609 | -29 360 | -1 794 | - 184 631 |
| Loans and advances at AC as at 31 December 2018 | 947 449 | 543 715 | 31 357 | 1 794 | 1 524 315 |
| Nominal of loans at FVTPL as at 1 January 2018 | 1 800 | — | — | — | 1 800 |
| Disbursements | — | — | — | — | — |
| Repayments | — | — | — | — | — |
| Write offs | — | — | — | — | — |
| Foreign exchange rates differences | — | — | — | — | — |
| Nominal of loans at FVTPL as at 31 December 2018 | 1 800 | — | — | — | 1 800 |
| Fair value adjustment as at 1 January 2018 | - 378 | — | — | — | - 378 |
| Net FV change | - 702 | — | — | — | - 702 |
| Fair value adjustment as at 31 December 2018 | -1 080 | — | — | — | -1 080 |
| Loans and advances at FVTPL as at 31 December 2018 | 720 | — | — | — | 720 |
| Amortised Cost | -3 550 | -3 109 | 11 | — | -6 648 |
| Interest | 12 330 | 9 243 | 1 031 | — | 22 604 |
| Loans and advances as at 31 December 2018 | 956 949 | 549 849 | 32 399 | 1 794 | 1 540 991 |

in EUR’000

Global loans (10)

10

Senior loans

Subordinated loans

POCI

Total

Nominal of loans at AC as at 1 January 2018

Nominal of loans at AC as at 1 January 2018

1 003 294

1 003 294

687 499

687 499

62 546

62 546

—

—

1 753 339

1 753 339

Disbursements

203 352

52 274

—

3 588

259 214

Write offs

—

—

—

—

—

Repayments

- 192 355

- 157 952

-4 548

—

- 354 855

Interest capitalised

—

—

—

—

—

Foreign exchange rates differences

37 026

11 503

2 719

—

51 248

Nominal of loans at AC as at 31 December 2018

Nominal of loans at AC as at 31 December 2018

1 051 317

1 051 317

593 324

593 324

60 717

60 717

3 588

3 588

1 708 946

1 708 946

Impairment — loss allowance as at 1 January 2018

Impairment — loss allowance as at 1 January 2018

-35 082

-35 082

-57 911

-57 911

-62 546

-62 546

—

—

- 155 539

- 155 539

Net changes of the 12 month ECL

-1 853

288

—

—

-1 565

Net changes of lifetime ECL not credit-impaired

4 696

870

-2 146

—

3 420

Lifetime ECL credit-impaired

-71 204

—

—

-1 794

-72 998

Reversal of lifetime ECL credit-impaired

2 214

8 480

37 678

—

48 372

Write offs

—

—

—

—

—

Foreign exchange rates differences

-2 639

-1 336

-2 346

—

-6 321

Impairment — loss allowance as at 1 January 2018

Impairment — loss allowance as at 1 January 2018

- 103 868

- 103 868

-49 609

-49 609

-29 360

-29 360

-1 794

-1 794

- 184 631

- 184 631

Loans and advances at AC as at 31 December 2018

Loans and advances at AC as at 31 December 2018

947 449

947 449

543 715

543 715

31 357

31 357

1 794

1 794

1 524 315

1 524 315

Nominal of loans at FVTPL as at 1 January 2018

Nominal of loans at FVTPL as at 1 January 2018

1 800

1 800

—

—

—

—

—

—

1 800

1 800

Disbursements

—

—

—

—

—

Repayments

—

—

—

—

—

Write offs

—

—

—

—

—

Foreign exchange rates differences

—

—

—

—

—

Nominal of loans at FVTPL as at 31 December 2018

Nominal of loans at FVTPL as at 31 December 2018

1 800

1 800

—

—

—

—

—

—

1 800

1 800

Fair value adjustment as at 1 January 2018

Fair value adjustment as at 1 January 2018

- 378

- 378

—

—

—

—

—

—

- 378

- 378

Net FV change

- 702

—

—

—

- 702

Fair value adjustment as at 31 December 2018

Fair value adjustment as at 31 December 2018

-1 080

-1 080

—

—

—

—

—

—

-1 080

-1 080

Loans and advances at FVTPL as at 31 December 2018

Loans and advances at FVTPL as at 31 December 2018

720

720

—

—

—

—

—

—

720

720

Amortised Cost

-3 550

-3 109

11

—

-6 648

Interest

12 330

9 243

1 031

—

22 604

Loans and advances as at 31 December 2018

Loans and advances as at 31 December 2018

956 949

956 949

549 849

549 849

32 399

32 399

1 794

1 794

1 540 991

1 540 991

7.2.   
  Impairment on loans and advances — Loss allowances, net of reversals

Impairment on loans and advances — Loss allowances, net of reversals

| in EUR’000 |
| --- |
| | 2019 |
| 12-month ECL | Lifetime ECL not credit-impaired | Lifetime ECL credit-impaired | POCI | Total |
| Loans and advances at AC | | | | | |
| Balance as at 1 January 2019 | 22 023 | 27 342 | 133 472 | 1 794 | 184 631 |
| Transfer to 12-month ECL | 3 952 | — | — | — | 3 952 |
| Transfer to lifetime ECL not credit-impaired | -4 005 | 25 150 | — | — | 21 145 |
| Transfer to lifetime ECL credit-impaired | — | - 46 | — | — | - 46 |
| Sale of loans | — | — | -2 591 | — | -2 591 |
| Business model change (IFE) (11) | — | - 10 | -5 031 | -1 794 | -6 835 |
| Financial assets that have been derecognised | - 129 | -10 049 | — | — | -10 178 |
| Write-offs | — | — | - 280 | — | - 280 |
| Foreign exchange rates differences | 247 | 371 | 2 221 | — | 2 839 |
| Balance as at 31 December 2019 | 17 191 | 38 509 | 104 830 | — | 160 530 |

in EUR’000

2019

12-month ECL

Lifetime ECL not credit-impaired

Lifetime ECL credit-impaired

POCI

Total

Loans and advances at AC

Loans and advances at AC

Balance as at 1 January 2019

Balance as at 1 January 2019

22 023

22 023

27 342

27 342

133 472

133 472

1 794

1 794

184 631

184 631

Transfer to 12-month ECL

3 952

—

—

—

3 952

Transfer to lifetime ECL not credit-impaired

-4 005

25 150

—

—

21 145

Transfer to lifetime ECL credit-impaired

—

- 46

—

—

- 46

Sale of loans

—

—

-2 591

—

-2 591

Business model change (IFE) (11)

11

—

- 10

-5 031

-1 794

-6 835

Financial assets that have been derecognised

- 129

-10 049

—

—

-10 178

Write-offs

—

—

- 280

—

- 280

Foreign exchange rates differences

247

371

2 221

—

2 839

Balance as at 31 December 2019

Balance as at 31 December 2019

17 191

17 191

38 509

38 509

104 830

104 830

—

—

160 530

160 530

| in EUR’000 |
| --- |
| | 2018 |
| 12-month ECL | Lifetime ECL not credit-impaired | Lifetime ECL credit-impaired | POCI | Total |
| Loans and advances at AC | | | | | |
| Balance as at 1 January 2018 | 19 738 | 29 975 | 105 826 | — | 155 539 |
| Transfer to 12-month ECL | 2 285 | — | — | — | 2 285 |
| Transfer to lifetime ECL not credit-impaired | — | -2 633 | — | — | -2 633 |
| Transfer to lifetime ECL credit-impaired | — | — | 27 646 | 1 794 | 29 440 |
| Balance as at 31 December 2018 | 22 023 | 27 342 | 133 472 | 1 794 | 184 631 |

in EUR’000

2018

12-month ECL

Lifetime ECL not credit-impaired

Lifetime ECL credit-impaired

POCI

Total

Loans and advances at AC

Loans and advances at AC

Balance as at 1 January 2018

Balance as at 1 January 2018

19 738

19 738

29 975

29 975

105 826

105 826

—

—

155 539

155 539

Transfer to 12-month ECL

2 285

—

—

—

2 285

Transfer to lifetime ECL not credit-impaired

—

-2 633

—

—

-2 633

Transfer to lifetime ECL credit-impaired

—

—

27 646

1 794

29 440

Balance as at 31 December 2018

Balance as at 31 December 2018

22 023

22 023

27 342

27 342

133 472

133 472

1 794

1 794

184 631

184 631

8.   Shares and other variable yield securities

Shares and other variable yield securities

The following table show reconciliation from the opening to the closing balance of the Equity investments:

| in EUR’000 |
| --- |
| | Venture Capital Funds | Direct Equity Investments | Total |
| Cost as at 1 January 2019 | 421 593 | 93 214 | 514 807 |
| Disbursements | 90 972 | 15 971 | 106 943 |
| Repayments / sales | -56 387 | -13 361 | -69 748 |
| Foreign exchange rates differences | 6 126 | 281 | 6 407 |
| Cost as at 31 December 2019 | 462 304 | 96 105 | 558 409 |
| Unrealised gains and losses as at 1 January 2019 | 45 559 | 6 926 | 52 485 |
| Net change in unrealised gains and losses | -3 488 | 12 117 (1) (12) | 8 629 |
| Foreign exchange rates differences | 319 | 86 | 405 |
| Unrealised gains and losses as at 31 December 2019 | 42 390 | 19 129 | 61 519 |
| Shares and other variable yield securities as at 31 December 2019 | 504 694 | 115 234 | 619 928 |

in EUR’000

Venture Capital Funds

Direct Equity Investments

Total

Cost as at 1 January 2019

Cost as at 1 January 2019

421 593

421 593

93 214

93 214

514 807

514 807

Disbursements

90 972

15 971

106 943

Repayments / sales

-56 387

-13 361

-69 748

Foreign exchange rates differences

6 126

281

6 407

Cost as at 31 December 2019

Cost as at 31 December 2019

462 304

462 304

96 105

96 105

558 409

558 409

Unrealised gains and losses as at 1 January 2019

Unrealised gains and losses as at 1 January 2019

45 559

45 559

6 926

6 926

52 485

52 485

Net change in unrealised gains and losses

-3 488

12 117 (1) (12)

1

12

8 629

Foreign exchange rates differences

319

86

405

Unrealised gains and losses as at 31 December 2019

Unrealised gains and losses as at 31 December 2019

42 390

42 390

19 129

19 129

61 519

61 519

Shares and other variable yield securities as at 31 December 2019

Shares and other variable yield securities as at 31 December 2019

504 694

504 694

115 234

115 234

619 928

619 928

| in EUR’000 |
| --- |
| | Venture Capital Funds | Direct Equity Investments | Total |
| Cost as at 1 January 2018 | 356 086 | 70 310 | 426 396 |
| Disbursements | 73 250 | 22 184 | 95 434 |
| Repayments / sales | -21 681 | - 635 | -22 316 |
| Foreign exchange rates differences | 13 938 | 1 355 | 15 293 |
| Cost as at 31 December 2018 | 421 593 | 93 214 | 514 807 |
| Unrealised gains and losses as at 1 January 2018 | 64 018 | 7 125 | 71 143 |
| Net change in unrealised gains and losses | -20 493 | - 172 | -20 665 |
| Foreign exchange rates differences | 2 034 | - 27 | 2 007 |
| Unrealised gains and losses as at 31 December 2018 | 45 559 | 6 926 | 52 485 |
| Shares and other variable yield securities as at 31 December 2018 | 467 152 | 100 140 | 567 292 |

in EUR’000

Venture Capital Funds

Direct Equity Investments

Total

Cost as at 1 January 2018

Cost as at 1 January 2018

356 086

356 086

70 310

70 310

426 396

426 396

Disbursements

73 250

22 184

95 434

Repayments / sales

-21 681

- 635

-22 316

Foreign exchange rates differences

13 938

1 355

15 293

Cost as at 31 December 2018

Cost as at 31 December 2018

421 593

421 593

93 214

93 214

514 807

514 807

Unrealised gains and losses as at 1 January 2018

Unrealised gains and losses as at 1 January 2018

64 018

64 018

7 125

7 125

71 143

71 143

Net change in unrealised gains and losses

-20 493

- 172

-20 665

Foreign exchange rates differences

2 034

- 27

2 007

Unrealised gains and losses as at 31 December 2018

Unrealised gains and losses as at 31 December 2018

45 559

45 559

6 926

6 926

52 485

52 485

Shares and other variable yield securities as at 31 December 2018

Shares and other variable yield securities as at 31 December 2018

467 152

467 152

100 140

100 140

567 292

567 292

9.   Amounts receivable from contributors

Amounts receivable from contributors

The amounts of EUR’000 86 330 receivable from contributors are entirely composed of Member States contribution called but not paid.

10.   Treasury financial assets

Treasury financial assets

The treasury portfolio is composed of quoted bonds which have a remaining maturity of less than three months at reporting date. The following table shows the movements of the treasury portfolio:

| in EUR’000 |
| --- |
| Balance as at 1 January 2019 | 335 140 |
| Acquisitions | 2 948 021 |
| Maturities | -2 952 905 |
| Change in amortisation of premium/discount | - 93 |
| Change in accrued interest | 424 |
| Balance as at 31 December 2019 | 330 587 |

in EUR’000

Balance as at 1 January 2019

Balance as at 1 January 2019

335 140

335 140

Acquisitions

2 948 021

Maturities

-2 952 905

Change in amortisation of premium/discount

- 93

Change in accrued interest

424

Balance as at 31 December 2019

Balance as at 31 December 2019

330 587

330 587

| in EUR’000 |
| --- |
| Balance as at 1 January 2018 | 144 382 |
| Acquisitions | 2 219 062 |
| Maturities | -2 026 659 |
| Change in amortisation of premium/discount | 149 |
| Change in accrued interest | -1 794 |
| Balance as at 31 December 2018 | 335 140 |

in EUR’000

Balance as at 1 January 2018

Balance as at 1 January 2018

144 382

144 382

Acquisitions

2 219 062

Maturities

-2 026 659

Change in amortisation of premium/discount

149

Change in accrued interest

-1 794

Balance as at 31 December 2018

Balance as at 31 December 2018

335 140

335 140

11.   Other assets

Other assets

The main components of other assets are as follows:

| in EUR’000 |
| --- |
| | 31.12.2019 | 31.12.2018 |
| Financial guarantees | — | 171 |
| Total other assets | — | 171 |

in EUR’000

31.12.2019

31.12.2018

Financial guarantees

—

171

Total other assets

Total other assets

—

—

171

171

12.   Deferred income

Deferred income

The main components of deferred income are as follows:

| in EUR’000 |
| --- |
| | 31.12.2019 | 31.12.2018 |
| Deferred interest subsidies | 32 085 | 32 658 |
| Deferred commissions on loans and advances | 481 | 1 106 |
| Total deferred income | 32 566 | 33 764 |

in EUR’000

31.12.2019

31.12.2018

Deferred interest subsidies

32 085

32 658

Deferred commissions on loans and advances

481

1 106

Total deferred income

Total deferred income

32 566

32 566

33 764

33 764

13.   Provisions for guarantees issued, net of reversals

Provisions for guarantees issued, net of reversals

The following tables show reconciliation from the opening to the closing balance of the provision for financial guarantees under ECL IFRS 9 model:

| in EUR’000 |
| --- |
| | 2019 |
| 12-month ECL | Lifetime ECL not credit-impaired | Lifetime ECL credit-impaired | Total |
| Guarantees issued | | | | |
| Balance as at 1 January | 94 | 699 | — | 793 |
| Transfer to 12-month ECL | 534 | — | — | 534 |
| Transfer to lifetime ECL not credit-impaired | — | — | — | — |
| Transfer to lifetime ECL credit-impaired | — | — | — | — |
| Guarantees that have been derecognised | — | - 588 | — | - 588 |
| Guarantee calls | — | - 53 | — | - 53 |
| Amortisation of upfront fees | — | - 71 | — | - 71 |
| Foreign exchange rates differences | — | 13 | — | 13 |
| Balance as at 31 December | 628 | — | — | 628 |

in EUR’000

2019

12-month ECL

Lifetime ECL not credit-impaired

Lifetime ECL credit-impaired

Total

Guarantees issued

Guarantees issued

Balance as at 1 January

Balance as at 1 January

94

94

699

699

—

—

793

793

Transfer to 12-month ECL

534

—

—

534

Transfer to lifetime ECL not credit-impaired

—

—

—

—

Transfer to lifetime ECL credit-impaired

—

—

—

—

Guarantees that have been derecognised

—

- 588

—

- 588

Guarantee calls

—

- 53

—

- 53

Amortisation of upfront fees

—

- 71

—

- 71

Foreign exchange rates differences

—

13

—

13

Balance as at 31 December

Balance as at 31 December

628

628

—

—

—

—

628

628

| in EUR’000 |
| --- |
| | 2018 |
| 12-month ECL | Lifetime ECL not credit-impaired | Lifetime ECL credit-impaired | Total |
| Guarantees issued | | | | |
| Balance as at 1 January | — | 484 | — | 484 |
| Transfer to 12-month ECL | 94 | — | — | 94 |
| Transfer to lifetime ECL not credit-impaired | — | 391 | — | 391 |
| Transfer to lifetime ECL credit-impaired | — | — | — | — |
| Guarantees that have been derecognised | — | — | — | — |
| Guarantee calls | — | — | — | — |
| Amortisation of upfront fees | — | - 128 | — | - 128 |
| Foreign exchange rates differences | — | - 48 | — | - 48 |
| Balance as at 31 December | 94 | 699 | — | 793 |

in EUR’000

2018

12-month ECL

Lifetime ECL not credit-impaired

Lifetime ECL credit-impaired

Total

Guarantees issued

Guarantees issued

Balance as at 1 January

Balance as at 1 January

—

—

484

484

—

—

484

484

Transfer to 12-month ECL

94

—

—

94

Transfer to lifetime ECL not credit-impaired

—

391

—

391

Transfer to lifetime ECL credit-impaired

—

—

—

—

Guarantees that have been derecognised

—

—

—

—

Guarantee calls

—

—

—

—

Amortisation of upfront fees

—

- 128

—

- 128

Foreign exchange rates differences

—

- 48

—

- 48

Balance as at 31 December

Balance as at 31 December

94

94

699

699

—

—

793

793

14.   Provisions for loan commitments, net of reversals

Provisions for loan commitments, net of reversals

The following table shows reconciliation from the opening to the closing balance of the loss allowance for undisbursed loans (loan commitments) under ECL IFRS 9 model:

| in EUR’000 |
| --- |
| | 2019 |
| 12-month ECL | Lifetime ECL not credit-impaired | Lifetime ECL credit-impaired | Total |
| Loans commitments | | | | |
| Balance as at 1 January | 7 225 | 16 597 | — | 23 822 |
| Transfer to 12-month ECL | 1 669 | 9 983 | — | 11 652 |
| Transfer to lifetime ECL not credit-impaired | - 836 | 15 138  (13) | — | 14 302 |
| Transfer to lifetime ECL credit-impaired | — | — | — | — |
| Net measurement of loss allowance | 696 | 773 | — | 1 469 |
| Business model change (IFE) (14) | -2 974 | -1 387 | — | -4 361 |
| Financial assets that have been derecognised | -1 960 | -7 858 | — | -9 818 |
| Foreign exchange rates differences | 123 | 80 | — | 203 |
| Balance as at 31 December | 3 943 | 33 326 | — | 37 269 |

in EUR’000

2019

12-month ECL

Lifetime ECL not credit-impaired

Lifetime ECL credit-impaired

Total

Loans commitments

Loans commitments

Balance as at 1 January

Balance as at 1 January

7 225

7 225

16 597

16 597

—

—

23 822

23 822

Transfer to 12-month ECL

1 669

9 983

—

11 652

Transfer to lifetime ECL not credit-impaired

- 836

15 138  (13)

13

—

14 302

Transfer to lifetime ECL credit-impaired

—

—

—

—

Net measurement of loss allowance

696

773

—

1 469

Business model change (IFE) (14)

14

-2 974

-1 387

—

-4 361

Financial assets that have been derecognised

-1 960

-7 858

—

-9 818

Foreign exchange rates differences

123

80

—

203

Balance as at 31 December

Balance as at 31 December

3 943

3 943

33 326

33 326

—

—

37 269

37 269

| in EUR’000 |
| --- |
| | 2018 |
| 12-month ECL | Lifetime ECL not credit-impaired | Lifetime ECL credit-impaired | Total |
| Loans commitments | | | | |
| Balance as at 1 January | 1 993 | 2 163 | — | 4 156 |
| Transfer to 12-month ECL | 5 192 | — | — | 5 192 |
| Transfer to lifetime ECL not credit-impaired | — | 14 420 | — | 14 420 |
| Transfer to lifetime ECL credit-impaired | — | — | — | — |
| Foreign exchange rates differences | 40 | 14 | — | 54 |
| Balance as at 31 December | 7 225 | 16 597 | — | 23 822 |

in EUR’000

2018

12-month ECL

Lifetime ECL not credit-impaired

Lifetime ECL credit-impaired

Total

Loans commitments

Loans commitments

Balance as at 1 January

Balance as at 1 January

1 993

1 993

2 163

2 163

—

—

4 156

4 156

Transfer to 12-month ECL

5 192

—

—

5 192

Transfer to lifetime ECL not credit-impaired

—

14 420

—

14 420

Transfer to lifetime ECL credit-impaired

—

—

—

—

Foreign exchange rates differences

40

14

—

54

Balance as at 31 December

Balance as at 31 December

7 225

7 225

16 597

16 597

—

—

23 822

23 822

15.   Amounts owed to third parties

Amounts owed to third parties

The main components of amounts owed to third parties are as follows:

| in EUR’000 |
| --- |
| | 31.12.2019 | 31.12.2018 |
| Net general administrative expenses payable to EIB | 50 009 | 47 799 |
| Other amounts payable to EIB | 31 | 54 |
| Interest subsidies and TA not yet disbursed owed to Member States | 97 398 | 95 960 |
| Total amounts owed to third parties | 147 438 | 143 813 |

in EUR’000

31.12.2019

31.12.2018

Net general administrative expenses payable to EIB

50 009

47 799

Other amounts payable to EIB

31

54

Interest subsidies and TA not yet disbursed owed to Member States

97 398

95 960

Total amounts owed to third parties

Total amounts owed to third parties

147 438

147 438

143 813

143 813

16.   Other liabilities

Other liabilities

The main components of other liabilities are as follows:

| in EUR’000 |
| --- |
| | 31.12.2019 | 31.12.2018 |
| Loan repayments received in advance | 1 961 | 2 124 |
| Deferred income from interest subsidies | 339 | 369 |
| Financial guarantee calls | 53 | — |
| Total other liabilities | 2 353 | 2 493 |

in EUR’000

31.12.2019

31.12.2018

Loan repayments received in advance

1 961

2 124

Deferred income from interest subsidies

339

369

Financial guarantee calls

53

—

Total other liabilities

Total other liabilities

2 353

2 353

2 493

2 493

17.   Member States Contribution called

Member States Contribution called

| in EUR’000 |
| --- |
| Member States | Contribution to the Facility | Contribution to interest subsidies and technical assistance | Total contributed | Called and not paid (15) |
| Austria | 76 442 | 9 592 | 86 034 | 2 410 |
| Belgium | 112 757 | 14 105 | 126 862 | 3 530 |
| Bulgaria | 1 274 | 336 | 1 610 | 140 |
| Cyprus | 819 | 216 | 1 035 | 90 |
| Czechia | 4 641 | 1 224 | 5 865 | 510 |
| Denmark | 62 220 | 7 875 | 70 095 | 2 000 |
| Estonia | 455 | 120 | 575 | 50 |
| Finland | 43 821 | 5 655 | 49 476 | 1 470 |
| France | 677 756 | 81 837 | 759 593 | 19 550 |
| Germany | 667 065 | 82 766 | 749 831 | 20 500 |
| Greece | 39 090 | 5 324 | 44 414 | 1 470 |
| Hungary | 5 005 | 1 320 | 6 325 | 550 |
| Ireland | 21 034 | 3 075 | 24 109 | 910 |
| Italy | 374 974 | 48 883 | 423 857 | 12 860 |
| Latvia | 637 | 168 | 805 | 70 |
| Lithuania | 1 092 | 288 | 1 380 | 120 |
| Luxembourg | 8 422 | 1 065 | 9 487 | 270 |
| Malta | 273 | 72 | 345 | 30 |
| Netherlands | 151 510 | 19 140 | 170 650 | 4 850 |
| Poland | 11 830 | 3 120 | 14 950 | 1 300 |
| Portugal | 30 418 | 4 154 | 34 572 | 2 300 |
| Romania | 3 367 | 888 | 4 255 | 370 |
| Slovakia | 1 911 | 504 | 2 415 | 210 |
| Slovenia | 1 638 | 432 | 2 070 | 180 |
| Spain | 191 564 | 27 231 | 218 795 | 7 850 |
| Sweden | 81 090 | 10 499 | 91 589 | 2 740 |
| United Kingdom | 395 895 | 53 802 | 449 697 | — |
| Total as at 31 December 2019 | 2 967 000 | 383 691 | 3 350 691 | 86 330 |
| Total as at 31 December 2018 | 2 697 000 | 353 691 | 3 050 691 | 100 000 |

in EUR’000

Member States

Contribution to the Facility

Contribution to interest subsidies and technical assistance

Total contributed

Called and not paid (15)

15

Austria

76 442

9 592

86 034

2 410

Belgium

112 757

14 105

126 862

3 530

Bulgaria

1 274

336

1 610

140

Cyprus

819

216

1 035

90

Czechia

4 641

1 224

5 865

510

Denmark

62 220

7 875

70 095

2 000

Estonia

455

120

575

50

Finland

43 821

5 655

49 476

1 470

France

677 756

81 837

759 593

19 550

Germany

667 065

82 766

749 831

20 500

Greece

39 090

5 324

44 414

1 470

Hungary

5 005

1 320

6 325

550

Ireland

21 034

3 075

24 109

910

Italy

374 974

48 883

423 857

12 860

Latvia

637

168

805

70

Lithuania

1 092

288

1 380

120

Luxembourg

8 422

1 065

9 487

270

Malta

273

72

345

30

Netherlands

151 510

19 140

170 650

4 850

Poland

11 830

3 120

14 950

1 300

Portugal

30 418

4 154

34 572

2 300

Romania

3 367

888

4 255

370

Slovakia

1 911

504

2 415

210

Slovenia

1 638

432

2 070

180

Spain

191 564

27 231

218 795

7 850

Sweden

81 090

10 499

91 589

2 740

United Kingdom

395 895

53 802

449 697

—

Total as at 31 December 2019

Total as at 31 December 2019

2 967 000

2 967 000

383 691

383 691

3 350 691

3 350 691

86 330

86 330

Total as at 31 December 2018

Total as at 31 December 2018

2 697 000

2 697 000

353 691

353 691

3 050 691

3 050 691

100 000

100 000

18.   Commitments and contingent liabilities

Commitments and contingent liabilities

| in EUR’000 |
| --- |
| | 31.12.2019 | 31.12.2018 |
| Commitments | | |
| Undisbursed loans | 1 357 320 | 1 283 931 |
| Undisbursed commitment in respect of shares and other variable yield securities | 405 920 | 347 167 |
| Issued guarantees | 200 013 | 2 800 |
| Interest subsidies and technical assistance | 455 671 | 457 328 |
| Contingent liabilities | | |
| Signed non-issued guarantees | 1 359 818 | 1 553 668 |
| Total commitments and contingent liabilities | 3 778 742 | 3 644 894 |

in EUR’000

31.12.2019

31.12.2018

Commitments

Commitments

Undisbursed loans

1 357 320

1 283 931

Undisbursed commitment in respect of shares and other variable yield securities

405 920

347 167

Issued guarantees

200 013

2 800

Interest subsidies and technical assistance

455 671

457 328

Contingent liabilities

Contingent liabilities

Signed non-issued guarantees

1 359 818

1 553 668

Total commitments and contingent liabilities

Total commitments and contingent liabilities

3 778 742

3 778 742

3 644 894

3 644 894

19.   Interest and similar income and expenses

Interest and similar income and expenses

The main components of interest and similar income are as follows:

| in EUR’000 |
| --- |
| | From 1.1.2019
  to 31.12.2019 | From 1.1.2018
  to 31.12.2018 |
| Loans and advances | 89 244 | 92 506 |
| Interest subsidies | 4 679 | 4 224 |
| Total interest and similar income | 93 923 | 96 730 |

in EUR’000

From 1.1.2019

to 31.12.2019

From 1.1.2018

to 31.12.2018

Loans and advances

89 244

92 506

Interest subsidies

4 679

4 224

Total interest and similar income

Total interest and similar income

93 923

93 923

96 730

96 730

The main components of interest and similar expenses are as follows:

| in EUR’000 |
| --- |
| | From 1.1.2019
  to 31.12.2019 | From 1.1.2018
  to 31.12.2018 |
| Derivative financial instruments | - 261 | - 563 |
| Cash and cash equivalents | - 722 | - 654 |
| Treasury financial assets | -1 965 | -1 322 |
| Total interest and similar expense | -2 948 | -2 539 |

in EUR’000

From 1.1.2019

to 31.12.2019

From 1.1.2018

to 31.12.2018

Derivative financial instruments

- 261

- 563

Cash and cash equivalents

- 722

- 654

Treasury financial assets

-1 965

-1 322

Total interest and similar expense

Total interest and similar expense

-2 948

-2 948

-2 539

-2 539

20.   Fee and commission income and expenses

Fee and commission income and expenses

The main components of fee and commission income are as follows:

| in EUR’000 |
| --- |
| | From 1.1.2019
  to 31.12.2019 | From 1.1.2018
  to 31.12.2018 |
| Fee and commission on loans and advances | 4 399 | 107 |
| Fee and commission on financial guarantees | 39 | 170 |
| Other | — | 7 |
| Total fee and commission income | 4 438 | 284 |

in EUR’000

From 1.1.2019

to 31.12.2019

From 1.1.2018

to 31.12.2018

Fee and commission on loans and advances

4 399

107

Fee and commission on financial guarantees

39

170

Other

—

7

Total fee and commission income

Total fee and commission income

4 438

4 438

284

284

The main component of fee and commission expenses is as follows:

| in EUR’000 |
| --- |
| | From 1.1.2019
  to 31.12.2019 | From 1.1.2018
  to 31.12.2018 |
| Commission paid to third parties with regard to shares and other variable yield securities | - 721 | - 106 |
| Total fee and commission expenses | - 721 | - 106 |

in EUR’000

From 1.1.2019

to 31.12.2019

From 1.1.2018

to 31.12.2018

Commission paid to third parties with regard to shares and other variable yield securities

- 721

- 106

Total fee and commission expenses

Total fee and commission expenses

- 721

- 721

- 106

- 106

21.   Net result on shares and other variable yield securities

Net result on shares and other variable yield securities

The main components of net realised gains on shares and other variable yield securities are as follows:

| in EUR’000 |
| --- |
| | From 1.1.2019
  to 31.12.2019 | From 1.1.2018
  to 31.12.2018 |
| Net realised result on shares and other variable yield securities | - 133 | 3 166 |
| Dividend income | 1 408 | 7 320 |
| Net fair value change | 8 629 | -20 665 |
| Net result on shares and other variable yield securities | 9 904 | -10 179 |

in EUR’000

From 1.1.2019

to 31.12.2019

From 1.1.2018

to 31.12.2018

Net realised result on shares and other variable yield securities

- 133

3 166

Dividend income

1 408

7 320

Net fair value change

8 629

-20 665

Net result on shares and other variable yield securities

Net result on shares and other variable yield securities

9 904

9 904

-10 179

-10 179

22.   General administrative expenses

General administrative expenses

General administrative expenses represent the actual costs incurred by the EIB for managing the Facility less income generated from standard appraisal fees directly charged by the EIB to clients of the Facility.

The main components of general administrative expenses are as follows:

| in EUR’000 |
| --- |
| | From 1.1.2019
  to 31.12.2019 | From 1.1.2018
  to 31.12.2018 |
| Actual cost incurred by the EIB | -52 982 | -50 021 |
| Income from appraisal fees directly charged to clients of the Facility | 2 973 | 2 222 |
| Total general administrative expenses | -50 009 | -47 799 |

in EUR’000

From 1.1.2019

to 31.12.2019

From 1.1.2018

to 31.12.2018

Actual cost incurred by the EIB

-52 982

-50 021

Income from appraisal fees directly charged to clients of the Facility

2 973

2 222

Total general administrative expenses

Total general administrative expenses

-50 009

-50 009

-47 799

-47 799

23.   Involvement with unconsolidated structured entities (in EUR’000)

Involvement with unconsolidated structured entities (in EUR’000)

Definition of a structured entity

Definition of a structured entity

A structured entity is one that has been designed so that voting or similar rights are not the dominant factor in deciding, who controls the-entity. IFRS 12 observes that a structured entity often has some or all of the following features:

| — | Restricted activities; |
| --- | --- |

—

Restricted activities;

| — | A narrow and well-defined objective, such as to effect a tax-efficient lease, carry out research and development activities, provide a source of capital or funding to an entity or provide investment opportunities for investors by passing on risks and rewards associated with the assets of the structured entity to investors; |
| --- | --- |

—

A narrow and well-defined objective, such as to effect a tax-efficient lease, carry out research and development activities, provide a source of capital or funding to an entity or provide investment opportunities for investors by passing on risks and rewards associated with the assets of the structured entity to investors;

| — | Insufficient equity to permit the structured entity to finance its activities without subordinated financial support; |
| --- | --- |

—

Insufficient equity to permit the structured entity to finance its activities without subordinated financial support;

| — | Financing in the form of multiple contractually linked instruments to investors that create concentrations of credit or other risks (tranches). |
| --- | --- |

—

Financing in the form of multiple contractually linked instruments to investors that create concentrations of credit or other risks (tranches).

Unconsolidated structured entities

Unconsolidated structured entities

The term ‘unconsolidated structured entities’ refers to all structured entities that are not controlled by the Facility and includes interests in structured entities that are not consolidated.

Definition of Interests in structured entities

Definition of Interests in structured entities

IFRS 12 defines ‘interests’ broadly to include any contractual or non-contractual involvement that exposes the reporting entity to variability in returns from the performance of the entity. Examples of such interests include the holding of equity interests and other forms of involvement such as the provision of funding, liquidity support, credit enhancements, commitments and guarantees to the other entity. IFRS 12 states that a reporting entity does not necessarily have an interest in another entity solely because of a typical customer supplier relationship.

The table below describes the types of structured entities that the Facility does not consolidate but in which it holds an interest.

| Type of structured entity | Nature and purpose | Interest held by the Facility |
| --- | --- | --- |
| Project Finance — lending to Special Purposes Vehicles (‘SPV’) | Project Finance Transactions (PF Operations) are transactions where the Facility relies for the servicing of its debt on a borrower whose sole or main source of revenue is generated by a single or limited number of assets being financed by such debt or other pre-existing assets contractually linked to the project. PF operations are often financed through SPV. | Net disbursed amounts;
  Interest income. |
| Venture capital operations | The Facility finances venture capital and investment funds. Venture capital and investment funds pool and manage money from investors seeking private equity stakes in small and medium-size enterprises with strong growth potential as well as financing infrastructure projects. | Investments in units/shares issued by the venture capital entity;
  Dividends received as dividend income. |

Type of structured entity

Nature and purpose

Interest held by the Facility

Project Finance — lending to Special Purposes Vehicles (‘SPV’)

Project Finance Transactions (PF Operations) are transactions where the Facility relies for the servicing of its debt on a borrower whose sole or main source of revenue is generated by a single or limited number of assets being financed by such debt or other pre-existing assets contractually linked to the project. PF operations are often financed through SPV.

Net disbursed amounts;

Interest income.

Venture capital operations

The Facility finances venture capital and investment funds. Venture capital and investment funds pool and manage money from investors seeking private equity stakes in small and medium-size enterprises with strong growth potential as well as financing infrastructure projects.

Investments in units/shares issued by the venture capital entity;

Dividends received as dividend income.

The table below shows the carrying amounts of unconsolidated structured entities in which the Facility has an interest at the reporting date, as well as the Facility's maximum exposure to loss in relation to those entities. The maximum exposure to loss includes the carrying amounts and the related undisbursed commitments.

| Type of structured entity | Caption | Carrying amount at 31.12.2019 | Carrying amount at 31.12.2018 | Maximum exposure to loss at 31.12.2019 | Maximum exposure to loss at 31.12.2018 |
| --- | --- | --- | --- | --- | --- |
| Venture capital funds | Shares and other variable yield securities | 504 332 | 467 152 | 834 955 | 797 775 |
| Total | | 504 332 | 467 152 | 834 955 | 797 775 |

Type of structured entity

Caption

Carrying amount at 31.12.2019

Carrying amount at 31.12.2018

Maximum exposure to loss at 31.12.2019

Maximum exposure to loss at 31.12.2018

Venture capital funds

Shares and other variable yield securities

504 332

467 152

834 955

797 775

Total

Total

504 332

504 332

467 152

467 152

834 955

834 955

797 775

797 775

24.   Impact financing envelope (in EUR’000)

Impact financing envelope (in EUR’000)

In June 2013 the ACP-EU Joint Ministerial Council approved the new financial protocol for the 11th European Development Fund (EDF), covering the period 2014-2020.

A new EUR 500m endowment was agreed for the Investment Facility, the so called ‘impact financing envelope’ or ‘IFE’, enabling the Facility to support projects that promise a particularly high development impact whilst bearing the greater risks inherent in such investments. This envelope will present new possibilities for enhancing the Facility’s private sector lending through investments in the following instruments:

Social impact equity funds — promoted by an emerging population of private equity fund managers who put the alleviation of social or environmental issues at the core of their funds' investment strategy but still target sustainability at the levels of both the fund and its investee companies.

Social impact equity funds

Loans to financial intermediaries — (e.g. microfinance institutions, local banks and credit unions) operating in ACP countries in which the EIB cannot consider financing — in particular in local currency — under the existing credit risk guidelines, e.g. due to either high country risks, currency volatility or lack of pricing benchmarks. The main objective of such loans is to fund projects with a high developmental impact, especially in the field of support to micro and small enterprises (MSEs) and agriculture, which generally do not qualify for IF financing.

Loans to financial intermediaries

Risk sharing facilitating instruments — which take the form of first loss guarantees (‘first loss pieces’) that facilitate risk sharing operations of the EIB with local financial intermediaries (mainly commercial banks) for the benefit of underserved SMEs and small projects that meet the Impact Financing Criteria in situations where a market gap has been identified in relation to the access of SMEs/small projects to finance. The first loss pieces would be structured as a counter-guarantee in favour of senior guarantee tranches funded by the EIB — under the Investment Facility — and by other International Financial Institutions/Development Financial Institutions, thus generating a substantial leverage effect.

Risk sharing facilitating instruments

Direct financing — through debt (i.e. loans) or equity instruments in projects with sound and experienced promoters and high developmental impacts, but that will, however, also entail higher expectations of losses and difficulties to recover the investment (equity type risk with higher than usual expectation of losses). The EIB applies strict selection and eligibility criteria for this instrument, as these projects, notwithstanding their high developmental impact, would not be able to meet acceptable financing criteria (i.e. low expectation of recovering the investment or offsetting the losses through interest rates /equity returns).

Direct financing

The IFE also allows diversification into new sectors, such as health and education, agriculture and food security, and the development of new and innovative risk-sharing instruments.

From a financial and accounting perspective the IFE forms part of the IF portfolio and is accounted for in the overall IF annual financial statements.

The following table represents the carrying amounts and the committed, but undisbursed amounts, per type of asset:

| Type of IFE investment | Caption | Measurement | Gross carrying amount as at 31.12.2019 | Loss allowance/FV adj. amount as at 31.12.2019 | Carrying amount as at 31.12.2019 | Undisbursed amount as at 31.12.2019 | OFF BS ECL adj. amount as at 31.12.2019 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Social impact equity funds | Shares and other variable yield securities | FVTPL | 33 417 | -3 175 | 30 242 | 66 840 | — |
| Loans to financial intermediaries | Loans and advances | AC | 22 347 | - 354 | 21 993 | 42 400 | -1 251 |
| Risk sharing facilitating instruments | Issued guarantees | higher of approach (16) | — | — | — | 47 331 | - 50 |
| Direct equity participations | Shares and other variable yield securities | FVTPL | 58 643 | 19 626 | 78 269 | 14 | — |
| Direct loan operations | Loans and advances | FVTPL | 37 136 | -15 156 | 21 980 | 75 700 | — |
| Total | | | 151 543 | 941 | 152 484 | 232 285 | -1 301 |

Type of IFE investment

Caption

Measurement

Gross carrying amount as at 31.12.2019

Loss allowance/FV adj. amount as at 31.12.2019

Carrying amount as at 31.12.2019

Undisbursed amount as at 31.12.2019

OFF BS ECL adj. amount as at 31.12.2019

Social impact equity funds

Shares and other variable yield securities

FVTPL

33 417

-3 175

30 242

66 840

—

Loans to financial intermediaries

Loans and advances

AC

22 347

- 354

21 993

42 400

-1 251

Risk sharing facilitating instruments

Issued guarantees

higher of approach (16)

16

—

—

—

47 331

- 50

Direct equity participations

Shares and other variable yield securities

FVTPL

58 643

19 626

78 269

14

—

Direct loan operations

Loans and advances

FVTPL

37 136

-15 156

21 980

75 700

—

Total

Total

151 543

151 543

941

941

152 484

152 484

232 285

232 285

-1 301

-1 301

| Type of IFE investment | Caption | Measurement | Carrying amount as at 31.12.2018 | Undisbursed amount as at 31.12.2018 |
| --- | --- | --- | --- | --- |
| Social impact equity funds | Shares and other variable yield securities | FVTPL | 19 134 | 53 672 |
| Loans to financial intermediaries | Loans and advances | AC | 29 566 | 24 700 |
| Risk sharing facilitating instruments | Issued guarantees | higher of approach (17) | - 786 | 43 668 |
| Direct equity participations | Shares and other variable yield securities | FVTPL | 53 183 | 1 014 |
| Direct loan operations | Loans and advances | AC | 6 711 | 114 629 |
| Total | | | 107 808 | 237 683 |

Type of IFE investment

Caption

Measurement

Carrying amount as at 31.12.2018

Undisbursed amount as at 31.12.2018

Social impact equity funds

Shares and other variable yield securities

FVTPL

19 134

53 672

Loans to financial intermediaries

Loans and advances

AC

29 566

24 700

Risk sharing facilitating instruments

Issued guarantees

higher of approach (17)

17

- 786

43 668

Direct equity participations

Shares and other variable yield securities

FVTPL

53 183

1 014

Direct loan operations

Loans and advances

AC

6 711

114 629

Total

Total

107 808

107 808

237 683

237 683

Starting from 1 January 2019, the management decided to apply the General Mandate Risk Principles to IFE direct loan operations (excluding Loans to financial intermediaries), as envisaged in the EIB’s Credit and Equity Risk Guidelines, and to monitor and report the risk associated with the IFE direct loan operations on the basis of their fair value.

According to the new methodology, the Bank performs Qualitative Risk Assessment (QRA) aiming to assess the soundness of the investment rationale and plausible business viability of such operations. In this context, IFE direct loan operations are reclassified from loans measured at amortised cost to loans measured at fair value.

The change of the business model requires prospective change of the portfolio from the reclassification date. Therefore, the change has no effect on prior years. The effect on the current year Statement of profit and loss and other comprehensive income is recognised under the caption ‘Change in provisions for loan commitments’ in amount of EUR 4,4million.

25.   Subsequent events

Subsequent events

There have been no material post-balance sheet events which could require disclosure or adjustment to the 31 December 2019 financial statements.

GLOSSARY

GLOSSARY

ABAC

ABAC

This is the name given to the Commission’s accounting system, which since 2005 has been enriched by accrual accounting rules. Apart from the cash-based budget accounts, the Commission produces accrual-based accounts which recognise revenue when earned, rather than when collected. Expenses are recognised when incurred rather than when paid. This contrasts with cash basis budgetary accounting that recognises transactions and other events only when cash is received or paid.

Accounting

Accounting

The act of recording and reporting financial transactions, including the creation of the transaction, its recognition, processing, and summarisation in the financial statements.

Accounting Officer

Accounting Officer

The role, powers and responsibilities of the accounting officer are set out in the Financial Regulation:

| — | proper implementation of payments, |
| --- | --- |

—

proper implementation of payments,

| — | collection of revenue, |
| --- | --- |

—

collection of revenue,

| — | recovery of amounts and offsetting, |
| --- | --- |

—

recovery of amounts and offsetting,

| — | keeping, preparing and presenting the accounts, |
| --- | --- |

—

keeping, preparing and presenting the accounts,

| — | laying down the accounting rules and methods and the chart of accounts, |
| --- | --- |

—

laying down the accounting rules and methods and the chart of accounts,

| — | laying down and validating the accounting systems and validating systems laid down by the authorising officer to supply or justify accounting information (local systems), |
| --- | --- |

—

laying down and validating the accounting systems and validating systems laid down by the authorising officer to supply or justify accounting information (local systems),

| — | treasury management, |
| --- | --- |

—

treasury management,

| — | designation of the Imprest Administrators, |
| --- | --- |

—

designation of the Imprest Administrators,

| — | opening and closing bank accounts in the name of the Institution. |
| --- | --- |

—

opening and closing bank accounts in the name of the Institution.

Administrative appropriations

Administrative appropriations

Administrative appropriations cover the running costs of the Institutions and entities (staff, buildings, office equipment).

Adjustment

Adjustment

Amending budget or transfer of funds from one budget item to another.

Adopted budget

Adopted budget

Draft budget becomes the adopted budget as soon as approved by the Budgetary Authority.

Cf. Budget

Agencies

Agencies

EU bodies having a distinct legal personality, and to whom budget implementing powers may be delegated under strict conditions. They are subject to a distinct discharge from the discharge authority.

Amending budget

Amending budget

Decision adopted during the budget year to amend (increase, decrease, transfer) aspects of the adopted budget of that year.

Annuality

Annuality

The budgetary principle according to which expenditure and revenue is programmed and authorised for one year, starting on 1 January and ending on 31 December.

Appropriations

Appropriations

Budget funding.

The budget forecasts both commitments (legal pledges to provide finance, provided that certain conditions are fulfilled) and payments (cash or bank transfers to the beneficiaries). Appropriations for commitments and payments often differ — differentiated appropriations — because multiannual programmes and projects are usually fully committed in the year they are decided and are paid over the years as the implementation of the programme and project progresses. Non-differentiated appropriations apply to administrative expenditure and commitment appropriations equal payment appropriations.

Assigned revenue External/Internal

Assigned revenue External/Internal

Dedicated revenue received to finance specific items of expenditure.

Main sources of external assigned revenue are financial contributions from third countries to programmes financed by the Union.

are financial contributions from third countries to programmes financed by the Union.

Main sources of internal assigned revenue are revenue from third parties in respect of goods, services or work supplied at their request, revenue arising from the repayment of amounts wrongly paid and revenue from the sale of publications and films, including those on an electronic medium.

Main sources of internal assigned revenue are revenue from third parties in respect of goods, services or work supplied at their request, revenue arising from the repayment of amounts wrongly paid and revenue from the sale of publications and films, including those on an electronic medium.

The complete list of items constituting assigned revenue is given in the Financial Regulation Article 21.

Authorising Officer by Delegation (AOD)

Authorising Officer by Delegation (AOD)

The AOD is responsible in each entity for authorising revenue and expenditure operations in accordance with the principles of sound financial management and for ensuring that the requirements of legality and regularity are complied with.

The AOD is responsible for taking all financial decision concerning actions under his/her responsibility. Particularly, he/she must take decisions to implement the budget based on his/her risk analysis.

Budget

Budget

Annual financial plan, drawn up according to budgetary principles, that provides forecasts and authorises, for each financial year, an estimate of future costs and revenue and expenditures and their detailed description and justification, the latter included in budgetary remarks.

Budget result

Budget result

The difference between income received and amounts paid, including adjustments for carry-overs, cancellations and exchange rate differences.

For agencies, the resulting amount will have to be reimbursed to the funding authority as provided in the Financial Regulation for agencies.

Budget implementation

Budget implementation

Consumption of the budget through expenditure and revenue operations.

Budget item / Budget line / Budget position

Budget item / Budget line / Budget position

As far as the budget structure is concerned, revenue and expenditure are shown in the budget in accordance with a binding nomenclature, which reflects the nature and purpose of each item, as imposed by the budgetary authority. The individual headings (title, chapter, article or item) provide a formal description of the nomenclature.

Budgetary authority

Budgetary authority

Institutions with decisional powers on budgetary matters: for the EU institutions, the European Parliament and the Council of Ministers.

For the agencies and joint undertakings, their board is the budgetary authority.

Budgetary commitment

Budgetary commitment

A budgetary commitment is a reservation of appropriations to cover for subsequent expenses.

Cancellation of appropriations

Cancellation of appropriations

Unused appropriations that may no longer be used.

Carryover of appropriations

Carryover of appropriations

Exception to the principle of annuality in so far as appropriations that could not be used in a given budget year may, under strict conditions, be exceptionally carried over for use during the following year.

Commitment appropriations

Commitment appropriations

Commitment appropriations cover the total cost of legal obligations (contracts, grant agreements/decisions) that could be signed in the current financial year. Financial Regulation Article 7: Commitment appropriations cover the total cost in the current financial year of legal obligations (contracts, grant agreements/decisions) entered into for operations extending over more than one year.

Commitment appropriations cover the total cost in the current financial year of legal obligations (contracts, grant agreements/decisions) entered into for operations extending over more than one year.

De-commitment

De-commitment

Cancellation of a reservation of appropriations.

Differentiated appropriations

Differentiated appropriations

Differentiated appropriations are used to finance multiannual operations; they cover, for the current financial year, the total cost of the legal obligations entered into for operations whose implementation extends over more than one financial year. Financial Regulation Article 7: Differentiated appropriations are entered for multiannual operations. They consist of commitment appropriations and payment appropriations.

Differentiated appropriations are entered for multiannual operations. They consist of commitment appropriations and payment appropriations.

Earmarked revenue

Earmarked revenue

Revenue earmarked for a specific purpose, such as income from foundations, subsidies, gifts and bequests, including the earmarked revenue specific to each institution.

Cf. Assigned revenue

Economic result

Economic result

Impact on the balance sheet of expenditure and revenue based on accrual accounting rules.

Entitlements established

Entitlements established

Entitlements are recovery orders that the European Union must establish for collecting income.

Exchange rate difference

Exchange rate difference

The difference resulting from currency exchange rates applied to the transactions concerning countries outside the euro area, or from the revaluation of assets and liabilities in foreign currency at the closure.

Expenditure

Expenditure

Term used to describe spending the budget from all types of funds sources.

Financial regulation (FR)

Financial regulation (FR)

Adopted through the ordinary legislative procedure after consulting the European Court of Auditors, this regulation lays down the rules for the establishment and implementation of the general budget of the European Union.

For reference, Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (31).

31

Funds Source

Funds Source

Type of appropriations

Grants

Grants

Direct financial contributions, by way of donation, from the budget in order to finance either an action intended to help achieve an objective part of an EU policy or the functioning of a body, which pursues an aim of general European interest or has an objective forming part of an EU policy.

Implementation

Implementation

Cf. Budget implementation

Income

Income

Cf. Revenue

Joint Undertakings (JUs)

Joint Undertakings (JUs)

A legal EU-body established under the Treaty on the Functioning of the European Union. The term can be used to describe any collaborative structure proposed for the ‘efficient execution of Union research, technological development and demonstration programmes’.

‘efficient execution of Union research, technological development and demonstration programmes’.

Lapsing appropriations

Lapsing appropriations

Unused appropriations to be cancelled at the end of the financial year. Lapsing means the cancellation of all or part of the authorisation to make expenditures and/or incur liabilities, which is represented by an appropriation.

Lapsing

Only for joint undertakings, as specified in theirs Financial Rules, any unused appropriations may be entered in the estimate of revenue and expenditure of up to the following three financial years (the so-called ‘N+3’ rule). Hence, lapsing appropriations for JUs could be re-activated until financial year ‘N+3’.

Legal base (basic act)

Legal base (basic act)

The legal base or basis is, as a general rule, a law based on an article in the Treaty on the Functioning of the European Union giving competence to the Community for a specific policy area and setting out the conditions for fulfilling that competence including budget implementation. Certain articles from the treaty authorise the Commission to undertake certain actions, which imply spending, without there being a further legal act.

Legal commitment

Legal commitment

A legal commitment establishes a legal obligation towards third parties.

Non-differentiated appropriations

Non-differentiated appropriations

Non-differentiated appropriations are for operations of an annual nature. (Financial Regulation Article 9). In the EU Budget, non-differentiated appropriations apply to administrative expenditure, for agricultural market support and direct payments.

Operational appropriations

Operational appropriations

Operational appropriations finance the different policies, mainly in the form of grants or procurement.

Outstanding commitment

Outstanding commitment

Outstanding commitments (or RAL, from the French ‘reste à liquider’) are defined as the amount of appropriations committed that have not yet been paid or legal commitments having not fully given rise to liquidation by payments. They stem directly from the existence of multiannual programmes and the dissociation between commitment and payment appropriations.

Outturn

Outturn

Cf. Budget result

Payment

Payment

A payment is a disbursement to honour legal obligations.

Payment appropriations

Payment appropriations

Payment appropriations cover expenditure due in the current year, arising from legal commitments entered in the current year and/or earlier years (Financial Regulation Article 7).

RAL

RAL

Sum of outstanding commitments. Cf. Outstanding commitments

Recovery

Recovery

The recovery order is the procedure by which the Authorising officer by Delegation (AOD) registers an entitlement by the Commission in order to retrieve the amount, which is due. The entitlement is the right that the Commission has to claim the sum, which is due by a debtor, usually a beneficiary.

Result

Result

Cf. Budget result

Revenue

Revenue

Term used to describe income from all sources financing the budget.

Rules of application

Rules of application

Detailed rules for the implementation of the financial regulation. They are set out in a Commission regulation adopted after consulting all institutions and cannot alter the financial regulation upon which they depend.

Surplus

Surplus

Positive difference between revenue and expenditure (Cf. Budget result) which has to be returned to the funding authority as provided in the Financial Regulation.

Transfer

Transfer

Transfers between budget lines imply the relocation of appropriations from one budget line to another, in the course of the financial year, and thereby they constitute an exception to the budgetary principle of specification. However, they are expressly authorised by the Treaty on the Functioning of the European Union under the conditions laid down in the Financial Regulation. The Financial Regulation identifies different types of transfers depending on whether they are between or within budget titles, chapters, articles or headings and require different levels of authorisation.

---

(1)  OJ L 210, 6.8.2013, p. 1.

1

(2)  Council Regulation (EU) 2018/1877 of 26 November 2018 on the financial regulation applicable to the 11th European Development Fund, and repealing Regulation (EU) 2015/323 (OJ L 307, 3.12.2018, p. 1).

2

(3)  It should be noted that due to the rounding of figures into millions of euros, some financial data in the tables below may appear not to add up.

3

(4)  It should be noted that due to the rounding of figures into millions of euros, some financial data in the tables may appear not to add up.

4

(5)  In accordance with Article 53 of the Financial Regulation applicable to the 11th European Development Fund, the treasury is presented in the balance sheet of the 11th EDF. The nature of the various bank accounts is outlined in Chapter 5, Financial Risk Management.

5

(6)  Council Regulation (EU) 2016/888 of 6 June 2016 amending Regulation (EU) 2015/323 on the financial regulation applicable to the 11th European Development Fund as regards payment of the instalments (OJ L 149, 7.6.2016, p. 1).

6

(7)  It should be noted that due to the rounding of figures into thousands of euros (kEUR), some financial data in the tables may appear not to add up.

7

(8)  Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).

8

(9)  Council Regulation (EU) 2018/1877.

9

(10)  It should be noted that due to the rounding of figures into thousands of euros (kEUR), some financial data in the tables may appear not to addup.

10

(11)  Regulation (EU, Euratom) 2018/1046.

11

(12)  Council Regulation (EU) 2018/1877.

12

(13)  There is a time lag between the approval of programmes and ‘top-ups’ by Operational committees and the formal commitment in ABAC. At year-end, the total committed amount in 2019 was of EUR 722,7 million.

13

(14)  It should be noted that due to the rounding of figures into millions of euros, some financial data in the tables may appear not to add up.

14

(1)  OJ L 314, 30.11.2001, p. 1.

1

(2)  OJ L 109, 26.4.2007, p. 33.

2

(3)  Council Decision (EU) 2019/640 of 15 April 2019 concerning the allocation of funds decommitted from projects under the 10th European Development Fund for the purpose of replenishing the African Peace Facility (OJ L 109, 24.4.2019, p. 24).

3

(15)  Decreases are decommitments transferred to the non-mobilisable performance reserve of the 10th EDF.

15

(16)  All decreases are decommitments transferred to the non-mobilisable performance reserve of the 10th EDF.

16

(17)  Following Council Decision 2010/406/EU (OJ L 189,22.7.2010, p.14), 150 million was added from non-mobilisable performance reserve 10th EDF for Sudan (147 million to special allocation Sudan and 3 million to implementation costs).

17

(18)  Following Council Decision 2011/315/EU (OJ L 142, 28.5.2011, p. 61), 200 million was added from non-mobilisable performance reserve 10th EDF for Sudan (194 million to special allocation South Sudan and 6 million to implementation costs).

18

(19)  All decreases of voluntary contribution are refund to donors.

19

(20)  Transfers in / from 8th and 9th EDF decommitments to the 10th EDF reserves.

20

(21)  All decreases are decommitments transferred to the non-mobilisable performance reserve of the 11th EDF.

21

(22)  For the cofinancings, the table only presents the commitment appropriations.

22

(23)  Following Council Decision (EU) 2019/640, EUR 445,86 million was added from non-mobilisable performance reserve 10th EDF for African Peace Facility, of which EUR 408 million in 2019.

23

(24)  Transfers in / from 10th EDF decommitments to the 10th EDF reserves.

24

(25)  For the cofinancings, the table only presents the commitment appropriations.

25

(4)  % of appropriations.

4

(5)  For the year ended 31 December 2019, interest and similar income included EUR 93,9 million (2018: EUR 96,7 million) calculated on assets held at amortised cost based on effective interest method.

5

(26)  Loan operations measured at FVTPL.

26

(27)  Agency agreements for which at reporting date there is no underlying counterparts.

27

(28)  Agency agreements for which at reporting date there is no underlying counterparts.

28

(29)  Decreases are explained by repayments of capital occurred during the year on operations already considered as forborne as of 31 December 2019 and by termination of forborne measures during the year.

29

(30)  The amounts owed to third parties are including the Interest subsidies and TA not yet disbursed owed to Member States, where the maturity is mainly undefined.

30

(6)  See section 3.4.2.2.2 for explanations on synthetic hedge.

6

(7)  See section 3.4.2.2.2 for explanations on synthetic hedge.

7

(8)  Including agency agreements.

8

(9)  For details, please refer to Note 24.

9

(10)  Including agency agreements.

10

(11)  For details, please refer to Note 24.

11

(12)  Includes misstatement in relation to the fair valuation performed as at 31 December 2018 in an amount of EUR’000 5 853, which was corrected in 2019. Excluding this, the net change in unrealised gains and losses would amount to EUR’000 17 970 for the financial year 2019.

12

(13)  The methodology for the estimation of provisions for loan commitments as at 31 December 2019 was changed for the Stage 2 loan commitments, and such as the Facility did not apply the Credit Conversion Factors in the calculation. This change resulted an additional ECL in amount of EUR 7,7 million.

13

(14)  For details, please refer to Note 24.

14

(15)  On 24 October 2019, the Council fixed the amount of financial contributions to be paid by each Member State by 21 January 2020. As at 31 December 2019, EUR 86 330 were not paid in.

15

(16)  For details, please refer to section subsequent measurement of Note 2.4.3.

16

(17)  For details, please refer to section subsequent measurement of Note 2.4.3.

17

(31)  OJ L 193, 30.7.2018, p. 1.

31

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| 13.11.2020 | EN | Official Journal of the European Union | C 387/167 |
| --- | --- | --- | --- |

13.11.2020

EN

Official Journal of the European Union

C 387/167

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The ECA’s statement of assurance on the 8th, 9th, 10th and 11th EDFs to the European Parliament and the Council — Independent auditor’s report

(2020/C 387/02)

Opinion

| I. | We have audited:






  (a) | the annual accounts of the 8th, 9th, 10th and 11th EDFs, which comprise the balance sheet, the statement of financial performance, the cash flow statement, the statement of changes in net assets and the report on financial implementation for the financial year ended 31 December 2019, approved by the Commission on 16 June 2020; |
| --- | --- | --- |

I.

(a)

the annual accounts of the 8th, 9th, 10th and 11th EDFs, which comprise the balance sheet, the statement of financial performance, the cash flow statement, the statement of changes in net assets and the report on financial implementation for the financial year ended 31 December 2019, approved by the Commission on 16 June 2020;

| (b) | the legality and regularity of the underlying transactions of which financial management falls to the Commission (1). |
| --- | --- |

(b)

the legality and regularity of the underlying transactions of which financial management falls to the Commission (1).

Reliability of the accounts

| Opinion on the reliability of the accounts









  II. | In our opinion, the annual accounts of the 8th, 9th, 10th and 11th EDFs for the year ended 31 December 2019 present fairly, in all material respects, their financial position as at 31 December 2019, the results of their operations, their cash flows and the changes in their net assets for the year then ended, in accordance with the EDF Financial Regulation and with accounting rules based on internationally accepted accounting standards for the public sector. |
| --- | --- |

Opinion on the reliability of the accounts

II.

Legality and regularity of the transactions underlying the accounts

Revenue

| Opinion on the legality and regularity of revenue









  III. | In our opinion, the revenue underlying the accounts for the year ended 31 December 2019 is legal and regular in all material respects. |
| --- | --- |

Opinion on the legality and regularity of revenue

III.

Expenditure

| Adverse opinion on the legality and regularity of expenditure









  IV. | In our opinion, owing to the significance of the matter described under ‘Basis for adverse opinion on the legality and regularity of expenditure’, the expenditure accepted in the accounts for the year ended 31 December 2019 is materially affected by error. |
| --- | --- |

Adverse opinion on the legality and regularity of expenditure

IV.

Basis for Opinion

| V. | We have conducted our audit in accordance with the IFAC International Standards on Auditing (ISAs) and Codes of Ethics and the INTOSAI International Standards of Supreme Audit Institutions (ISSAIs). Our responsibilities under these standards and codes are described in more detail in the ‘Auditor’s responsibilities’ section of our report. We have also met independence requirements and fulfilled our ethical obligations under the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| --- | --- |

V.

Basis for adverse opinion on the legality and regularity of expenditure

| VI. | The expenditure recorded in 2019 under the 8th, 9th, 10th and 11th EDFs is materially affected by error. Our estimated level of error for expenditure accepted in the accounts is 3,5 %. |
| --- | --- |

VI.

Key audit matters

| VII. | Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. |
| --- | --- |

VII.

Accrued charges

| VIII. | We assessed the accrued charges presented in the accounts (see note 2.8) which are subject to a high degree of estimation. At year-end 2019, the Commission estimated that eligible expenses incurred but not yet reported by beneficiaries amounted to 5 074 million euros (year-end 2018: 5 133 million euros). |
| --- | --- |

VIII.

| IX. | We examined the calculation of these accrual estimates and reviewed a sample of 30 individual contracts to address the risk that the accrual was misstated. The work performed led us to conclude that the accrued charges recognised in the final accounts were appropriate. |
| --- | --- |

IX.

Potential impact on the 2019 EDF accounts of the United Kingdom’s withdrawal from the European Union

| X. | On 29 March 2017, the United Kingdom (UK) formally notified the European Council of its intention to leave the EU. On 12 November 2019, the Commission published the withdrawal agreement that sets out the arrangement for the withdrawal of the UK from the European Union. It states that the UK will remain party to the EDF until the closure of the 11th EDF and all previous unclosed EDFs, and will assume the same obligations as the Member States under the internal agreement by which the 11th EDF was set up, as well as the obligations arising from previous EDFs until their closure. |
| --- | --- |

X.

| XI. | The withdrawal agreement also states that, where the amounts from projects under the 10th EDF or from previous EDFs have not been committed or have been decommitted on the date of entry into force of this agreement, the UK's share of those amounts will not be reused. The same applies to the UK’s share of funds not committed or decommitted under the 11th EDF after 31 December 2020. |
| --- | --- |

XI.

| XII. | Based on this, there is no financial impact to report on the 2019 EDF accounts. We conclude that the EDF accounts as at 31 December 2019 correctly reflect the state of the withdrawal process at that date. |
| --- | --- |

XII.

Responsibilities of management

| XIII. | In accordance with Articles 310 to 325 of the TFEU and with the 11th EDF Financial Regulation, management is responsible for preparing and presenting the EDF annual accounts on the basis of internationally accepted accounting standards for the public sector and for the legality and regularity of the underlying transactions. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and presentation of financial statements that are free from material misstatement, whether due to fraud or error. The Commission is ultimately responsible for the legality and regularity of the transactions underlying the EDF accounts. |
| --- | --- |

XIII.

| XIV. | When preparing the EDF accounts, the Commission is responsible for assessing the EDFs’ ability to continue as a going concern, disclosing any relevant matters and using the going concern basis of accounting unless it either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so. |
| --- | --- |

XIV.

| XV. | The Commission is responsible for overseeing the EDFs’ financial reporting process. |
| --- | --- |

XV.

Auditor's responsibilities for the audit of the EDF accounts and underlying transactions

| XVI. | Our objectives are to obtain reasonable assurance as to whether the EDF accounts are free from material misstatement and the underlying transactions are legal and regular, and to provide, on the basis of our audit, the European Parliament and the Council with a statement of assurance as to the reliability of the accounts and the legality and regularity of the underlying transactions. Reasonable assurance is a high level of assurance, but it is not a guarantee that the audit has necessarily detected all instances of a material misstatement or non-compliance that may exist. These can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence any economic decisions taken on the basis of these EDF accounts. |
| --- | --- |

XVI.

| XVII. | As part of an audit in accordance with ISAs and ISSAIs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:






  — | Identify and assess the risks of material misstatement of the EDF accounts and of material non-compliance of the underlying transactions with the requirements of the EDF legal framework, whether due to fraud or error. We design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. Instances of material misstatement or non-compliance resulting from fraud are more difficult to detect than those resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Consequently, there is a greater risk of such instances not being detected. |
| --- | --- | --- |

XVII.

—

Identify and assess the risks of material misstatement of the EDF accounts and of material non-compliance of the underlying transactions with the requirements of the EDF legal framework, whether due to fraud or error. We design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. Instances of material misstatement or non-compliance resulting from fraud are more difficult to detect than those resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Consequently, there is a greater risk of such instances not being detected.

| — | Obtain an understanding of internal control relevant to the audit in order to design appropriate audit procedures, but not for the purpose of expressing an opinion on the effectiveness of the internal control. |
| --- | --- |

—

Obtain an understanding of internal control relevant to the audit in order to design appropriate audit procedures, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

| — | Evaluate the appropriateness of the accounting policies used by management and the reasonableness of management’s accounting estimates and related disclosures. |
| --- | --- |

—

Evaluate the appropriateness of the accounting policies used by management and the reasonableness of management’s accounting estimates and related disclosures.

| — | Conclude as to the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, as to whether material uncertainty exists owing to events or conditions that may cast significant doubt on the EDFs’ ability to continue as a going concern. If we conclude that such material uncertainty exists, we are required to draw attention in our report to the related disclosures in the EDF accounts or, if these disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the entity to cease to continue as a going concern. |
| --- | --- |

—

Conclude as to the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, as to whether material uncertainty exists owing to events or conditions that may cast significant doubt on the EDFs’ ability to continue as a going concern. If we conclude that such material uncertainty exists, we are required to draw attention in our report to the related disclosures in the EDF accounts or, if these disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the entity to cease to continue as a going concern.

| — | Evaluate the overall presentation, structure and content of the annual accounts, including all disclosures, and assess whether the annual accounts fairly represent the underlying transactions and events. |
| --- | --- |

—

Evaluate the overall presentation, structure and content of the annual accounts, including all disclosures, and assess whether the annual accounts fairly represent the underlying transactions and events.

| XVIII. | We communicate with management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including findings of any significant deficiencies in internal control. |
| --- | --- |

XVIII.

| XIX. | For revenue, we examine all contributions from Member States and a sample of other types of revenue transactions. |
| --- | --- |

XIX.

| XX. | For expenditure, we examine payment transactions once expenditure has been incurred, recorded and accepted. This examination covers all categories of payments (other than advances) at the point they are made. Advance payments are examined once the recipient of funds has provided evidence of their proper use and the institution or body has accepted that evidence by clearing the advance payment, which might not happen until a subsequent year. |
| --- | --- |

XX.

| XXI. | Of the matters discussed with the Commission, we determine which were of most significance in the audit of the EDF accounts and are therefore the key audit matters for the current period. We describe these matters in our report unless law or regulation precludes public disclosure or, as happens extremely rarely, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh any public interest benefits. |
| --- | --- |

XXI.

20 July 2020

Klaus-Heiner LEHNE

President

European Court of Auditors

12, rue Alcide De Gasperi — L-1615 Luxembourg

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(1)  Pursuant to Articles 43, 48-50 and 58 of the Financial Regulation applicable to the 11th EDF, this statement of assurance does not extend to the EDF resources managed by the EIB.

1

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