# Official Journal C 325/28 S

| | ISSN 1977-091X |
| --- | --- |
| Official Journal
  of the European Union | C 325 |
| | |
| English edition | Information and Notices | Volume 6028 September 2017 |

ISSN 1977-091X

Official Journal

of the European Union

C 325

English edition

Information and Notices

Volume 6028 September 2017

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| Notice No | Contents | page |
| --- | --- | --- |
| | IV   Notices |
| | NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES |
| | European Commission |
| 2017/C 325/01 | Communication from the Commission to the European Parliament, the Council and the Court of Auditors — Annual accounts of the European Development Fund 2016 | 1 |
| 2017/C 325/02 | The Court’s statement of assurance on the 8th, 9th, 10th and 11th EDFs to the European Parliament and the Council — Independent auditor’s report | 139 |

Notice No

Contents

page

IV   Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

European Commission

2017/C 325/01

Communication from the Commission to the European Parliament, the Council and the Court of Auditors — Annual accounts of the European Development Fund 2016

1

2017/C 325/02

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

139

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

EN

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IV Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

European Commission

| 28.9.2017 | EN | Official Journal of the European Union | C 325/1 |
| --- | --- | --- | --- |

28.9.2017

EN

Official Journal of the European Union

C 325/1

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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 2016

(2017/C 325/01)

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 | 7 |
| --- | --- |

| NOTES TO THE FINANCIAL STATEMENTS OF THE EDF | 15 |
| --- | --- |

| REVENUE | 30 |
| --- | --- |

| EXPENSES | 31 |
| --- | --- |

| FINANCIAL STATEMENTS OF THE EU TRUST FUNDS CONSOLIDATED IN EDF | 40 |
| --- | --- |

| FINAL ANNUAL ACCOUNTS OF THE BÊKOU EU TRUST FUND | 41 |
| --- | --- |

| BACKGROUND INFORMATION ON THE BÊKOU EU TRUST FUND | 41 |
| --- | --- |

| FINAL ANNUAL ACCOUNTS OF THE EUTF FOR AFRICA | 46 |
| --- | --- |

| BACKGROUND INFORMATION ON THE EUTF FOR AFRICA | 46 |
| --- | --- |

| CONSOLIDATED FINANCIAL STATEMENTS OF THE EDF AND THE EU TRUST FUNDS | 51 |
| --- | --- |

| EDF REPORT ON FINANCIAL IMPLEMENTATION | 55 |
| --- | --- |

| ANNUAL REPORT ON IMPLEMENTATION — FUNDS MANAGED BY THE EUROPEAN INVESTMENT BANK | 84 |
| --- | --- |

CERTIFICATION OF THE ACCOUNTS

The annual accounts of the European Development Fund for the year 2016 have been prepared in accordance with Title IX of the Financial Regulation of the 11th European Development Fund and with the accounting principles, rules and methods set out in annex 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 20 of the Financial Regulation of the 11th European Development Fund.

I have obtained from the authorising officers 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.

[signed]

Rosa ALDEA BUSQUETS

Accounting Officer

23 June 2017

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. In order to assure continuity between the end of the 10th EDF and the entry into force of the 11th EDF, the Commission proposed transitional measures, known as the Bridging Facility (BF) (2). The BF is presented under the 11th EDF.

1

2

At the same time the 10th EDF Financial Regulation (3) was amended and the new Financial Regulation applicable to the transition period was adopted (4). They entered into force on 30 May 2014. On 2 March 2015 the Council adopted the 11th EDF Financial Regulation (5) and the Implementation Rules (6). They entered into force on 6 March 2015.

3

4

5

6

Within the framework of the ACP-EU Partnership Agreement, the Investment Facility was established. This Investment Facility is managed by the EIB and is 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 (7).

7

2.   HOW IS THE EDF FUNDED?

HOW IS THE EDF FUNDED?

The European Council of 2 December 2013 adopted the Multi-annual 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 inter-governmental 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, the EDF is a fund operating on the basis of 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 above mentioned 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 46 of the EDF Financial Regulation, the EDF financial statements are prepared on the basis of 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 and consolidation, as required by Article 152 of the EU Financial Regulation. 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. He/she ensures that the annual accounts of 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 EU Trust Fund for Africa (8) (see section ‘Financial statements of EUTF for Africa’). The trust funds individual financial statements are prepared under the responsibility of the EC Accounting Officer and subject to external audit carried out by a private auditor. The trust funds’ financial statements included in these annual accounts are the final financial statements, i.e. after the necessary audit adjustments.

8

It should be noted that the layout of the financial statements and the explanatory notes were changed in 2016. The changes are purely in the presentation of the financial information and aim at giving a closer alignment to the other EU entities’. The 2015 comparative amounts are presented in line with the new format.

The annual accounts are adopted by the Commission by 31 July of the subsequent year 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 and resource management are overseen 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 is the discharge of the financial implementation of the EDF resources for a given financial year. The European Parliament is the discharge authority of the EDF. This means that 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, and also following questions and further information requests to the Commission.

FUNDS MANAGED BY THE EUROPEAN COMMISSION (1)

1

CONTENTS

CONTENTS

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

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

| FINANCIAL STATEMENTS OF THE EDF | 7 |
| --- | --- |

| EDF BALANCE SHEET | 7 |
| --- | --- |

| EDF STATEMENT OF FINANCIAL PERFORMANCE | 8 |
| --- | --- |

| EDF CASHFLOW STATEMENT | 9 |
| --- | --- |

| EDF STATEMENT OF CHANGES IN NET ASSETS | 10 |
| --- | --- |

| BALANCE SHEET BY EDF | 11 |
| --- | --- |

| STATEMENT OF FINANCIAL PERFORMANCE BY EDF | 12 |
| --- | --- |

| STATEMENT OF CHANGES IN NET ASSETS BY EDF | 13 |
| --- | --- |

| NOTES TO THE FINANCIAL STATEMENTS OF THE EDF | 15 |
| --- | --- |

| FINANCIAL STATEMENTS OF THE EU TRUST FUNDS CONSOLIDATED IN EDF | 40 |
| --- | --- |

| FINAL ANNUAL ACCOUNTS OF THE BÊKOU EU TRUST FUND | 41 |
| --- | --- |

| BACKGROUND INFORMATION ON THE BÊKOU EU TRUST FUND | 41 |
| --- | --- |

| BALANCE SHEET | 43 |
| --- | --- |

| STATEMENT OF FINANCIAL PERFORMANCE | 44 |
| --- | --- |

| CASHFLOW STATEMENT | 44 |
| --- | --- |

| STATEMENT OF CHANGES IN NET ASSETS | 45 |
| --- | --- |

| FINAL ANNUAL ACCOUNTS OF THE EUTF FOR AFRICA | 46 |
| --- | --- |

| BACKGROUND INFORMATION ON THE EUTF FOR AFRICA | 46 |
| --- | --- |

| BALANCE SHEET | 48 |
| --- | --- |

| STATEMENT OF FINANCIAL PERFORMANCE | 49 |
| --- | --- |

| CASHFLOW STATEMENT | 49 |
| --- | --- |

| STATEMENT OF CHANGES IN NET ASSETS | 50 |
| --- | --- |

| CONSOLIDATED FINANCIAL STATEMENTS OF THE EDF AND THE EU TRUST FUNDS | 51 |
| --- | --- |

| CONSOLIDATED BALANCE SHEET | 51 |
| --- | --- |

| CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE | 52 |
| --- | --- |

| CONSOLIDATED CASH FLOW STATEMENT | 53 |
| --- | --- |

| CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS | 54 |
| --- | --- |

| EDF REPORT ON FINANCIAL IMPLEMENTATION | 55 |
| --- | --- |

| ANNUAL REPORT ON IMPLEMENTATION — FUNDS MANAGED BY THE EUROPEAN INVESTMENT BANK | 84 |
| --- | --- |

FINANCIAL STATEMENTS OF THE EDF
   (9)

FINANCIAL STATEMENTS OF THE EDF

9

EDF BALANCE SHEET

EDF BALANCE SHEET

| EUR millions |
| --- |
| | Note | 31.12.2016 | 31.12.2015 |
| NON-CURRENT ASSETS | | | |
| Pre-financing | 2.1 | 409 | 516 |
| Trust Fund contributions | 2.2 | 98 | 34 |
| | | 507 | 550 |
| CURRENT ASSETS | | | |
| Pre-financing | 2.1 | 1 372 | 1 145 |
| Exchange receivables and non-exchange recoverables | 2.3 | 132 | 171 |
| Cash and cash equivalents | 2.4 | 680 | 504 |
| | | 2 184 | 1 820 |
| TOTAL ASSETS | | 2 691 | 2 370 |
| | | | |
| NON-CURRENT LIABILITIES | | | |
| Provisions | 2.5 | (4) | (4) |
| Financial liabilities | 2.6 | (6) | (10) |
| | | (10) | (14) |
| CURRENT LIABILITIES | | | |
| Payables | 2.7 | (549) | (520) |
| Accrued charges and deferred income | 2.8 | (776) | (855) |
| | | (1 324 ) | (1 376 ) |
| TOTAL LIABILITIES | | (1 334 ) | (1 389 ) |
| NET ASSETS | | 1 357 | 980 |
| FUNDS & RESERVES | | | |
| Called fund capital — active EDFs | 2.9 | 42 323 | 38 873 |
| Called fund capital from closed EDFs carried forward | 2.9 | 2 252 | 2 252 |
| Called fund capital transfers between active EDFs | 2.9 | — | — |
| Economic result carried forward from previous years | | (40 146 ) | (36 994 ) |
| Economic result of the year | | (3 073 ) | (3 152 ) |
| NET ASSETS | | 1 357 | 980 |

EUR millions

Note

31.12.2016

31.12.2015

NON-CURRENT ASSETS

NON-CURRENT ASSETS

Pre-financing

Pre-financing

2.1

2.1

409

409

516

516

Trust Fund contributions

Trust Fund contributions

2.2

2.2

98

98

34

34

507

507

550

550

CURRENT ASSETS

CURRENT ASSETS

Pre-financing

Pre-financing

2.1

2.1

1 372

1 372

1 145

1 145

Exchange receivables and non-exchange recoverables

Exchange receivables and non-exchange recoverables

2.3

2.3

132

132

171

171

Cash and cash equivalents

Cash and cash equivalents

2.4

2.4

680

680

504

504

2 184

2 184

1 820

1 820

TOTAL ASSETS

TOTAL ASSETS

2 691

2 691

2 370

2 370

NON-CURRENT LIABILITIES

NON-CURRENT LIABILITIES

Provisions

Provisions

2.5

2.5

(4)

(4)

(4)

(4)

Financial liabilities

Financial liabilities

2.6

2.6

(6)

(6)

(10)

(10)

(10)

(10)

(14)

(14)

CURRENT LIABILITIES

CURRENT LIABILITIES

Payables

Payables

2.7

2.7

(549)

(549)

(520)

(520)

Accrued charges and deferred income

Accrued charges and deferred income

2.8

2.8

(776)

(776)

(855)

(855)

(1 324 )

(1 324 )

(1 376 )

(1 376 )

TOTAL LIABILITIES

TOTAL LIABILITIES

(1 334 )

(1 334 )

(1 389 )

(1 389 )

NET ASSETS

NET ASSETS

1 357

1 357

980

980

FUNDS & RESERVES

FUNDS & RESERVES

Called fund capital — active EDFs

Called fund capital — active EDFs

2.9

2.9

42 323

42 323

38 873

38 873

Called fund capital from closed EDFs carried forward

Called fund capital from closed EDFs carried forward

2.9

2.9

2 252

2 252

2 252

2 252

Called fund capital transfers between active EDFs

Called fund capital transfers between active EDFs

2.9

2.9

—

—

—

—

Economic result carried forward from previous years

Economic result carried forward from previous years

(40 146 )

(40 146 )

(36 994 )

(36 994 )

Economic result of the year

Economic result of the year

(3 073 )

(3 073 )

(3 152 )

(3 152 )

NET ASSETS

NET ASSETS

1 357

1 357

980

980

EDF STATEMENT OF FINANCIAL PERFORMANCE

EDF STATEMENT OF FINANCIAL PERFORMANCE

| EUR millions |
| --- |
| | Note | 2016 | 2015 |
| REVENUE | | | |
| Revenue from non-exchange transactions | 3.1 | | |
| Recovery of expenses | | 8 | 90 |
| | | 8 | 90 |
| Revenue from exchange transactions | 3.2 | | |
| Financial income | | 3 | 8 |
| Other income | | 62 | 42 |
| | | 66 | 50 |
| Total Revenue | | 73 | 140 |
| EXPENSES | | | |
| Aid instruments | 3.3 | (2 970 ) | (3 059 ) |
| Co-financing expenses | 3.4 | 15 | (69) |
| Finance costs | 3.6 | 4 | (1) |
| Other expenses | 3.7 | (196) | (162) |
| Total Expenses | | (3 146 ) | (3 291 ) |
| ECONOMIC RESULT OF THE YEAR | | (3 073 ) | (3 152 ) |

EUR millions

Note

2016

2015

REVENUE

REVENUE

Revenue from non-exchange transactions

Revenue from non-exchange transactions

3.1

3.1

Recovery of expenses

Recovery of expenses

8

8

90

90

8

8

90

90

Revenue from exchange transactions

Revenue from exchange transactions

3.2

3.2

Financial income

Financial income

3

3

8

8

Other income

Other income

62

62

42

42

66

66

50

50

Total Revenue

Total Revenue

73

73

140

140

EXPENSES

EXPENSES

Aid instruments

Aid instruments

3.3

3.3

(2 970 )

(2 970 )

(3 059 )

(3 059 )

Co-financing expenses

Co-financing expenses

3.4

3.4

15

15

(69)

(69)

Finance costs

Finance costs

3.6

3.6

4

4

(1)

(1)

Other expenses

Other expenses

3.7

3.7

(196)

(196)

(162)

(162)

Total Expenses

Total Expenses

(3 146 )

(3 146 )

(3 291 )

(3 291 )

ECONOMIC RESULT OF THE YEAR

ECONOMIC RESULT OF THE YEAR

(3 073 )

(3 073 )

(3 152 )

(3 152 )

EDF CASHFLOW STATEMENT

EDF CASHFLOW STATEMENT

| EUR millions |
| --- |
| | Note | 2016 | 2015 |
| Economic result of the year | | (3 073 ) | (3 152 ) |
| Operating activities | | | |
| Capital increase — contributions | | 3 450 | 3 200 |
| (Increase)/decrease in trust funds contributions | | (64) | 5 |
| (Increase)/decrease in pre-financing | | (120) | 214 |
| (Increase)/decrease in exchange receivables and non-exchange recoverables | | 39 | (87) |
| Increase/(decrease) in provisions | | — | 4 |
| Increase/(decrease) in financial liabilities | | (4) | (24) |
| Increase/(decrease) in payables | | 28 | (179) |
| Increase/(decrease) in accrued charges and deferred income | | (80) | 131 |
| NET CASHFLOW | | 177 | 113 |
| Net increase/(decrease) in cash and cash equivalents | | 177 | 113 |
| Cash and cash equivalents at the beginning of the year | 2.4 | 504 | 391 |
| Cash and cash equivalents at year-end | 2.4 | 680 | 504 |

EUR millions

Note

2016

2015

Economic result of the year

Economic result of the year

(3 073 )

(3 073 )

(3 152 )

(3 152 )

Operating activities

Operating activities

Capital increase — contributions

Capital increase — contributions

3 450

3 450

3 200

3 200

(Increase)/decrease in trust funds contributions

(Increase)/decrease in trust funds contributions

(64)

(64)

5

5

(Increase)/decrease in pre-financing

(Increase)/decrease in pre-financing

(120)

(120)

214

214

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

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

39

39

(87)

(87)

Increase/(decrease) in provisions

Increase/(decrease) in provisions

—

—

4

4

Increase/(decrease) in financial liabilities

Increase/(decrease) in financial liabilities

(4)

(4)

(24)

(24)

Increase/(decrease) in payables

Increase/(decrease) in payables

28

28

(179)

(179)

Increase/(decrease) in accrued charges and deferred income

Increase/(decrease) in accrued charges and deferred income

(80)

(80)

131

131

NET CASHFLOW

NET CASHFLOW

177

177

113

113

Net increase/(decrease) in cash and cash equivalents

Net increase/(decrease) in cash and cash equivalents

177

177

113

113

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the beginning of the year

2.4

2.4

504

504

391

391

Cash and cash equivalents at year-end

Cash and cash equivalents at year-end

2.4

2.4

680

680

504

504

EDF STATEMENT OF CHANGES IN NET ASSETS

EDF STATEMENT OF CHANGES IN NET ASSETS

| EUR millions |
| --- |
| | 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) | Total Net Assets
  (C)+(D)+(E) |
| BALANCE AS AT 31.12.2014 | 45 691 | 10 018 | 35 673 | (36 994 ) | 2 252 | 932 |
| Capital increase — contributions | | (4 795 ) | 4 795 | — | — | 4 795 |
| Capital decrease — funds committed under the Bridging Facility | (1 595 ) | | (1 595 ) | | | (1 595 ) |
| Recognition of the 11th EDF capital | 29 367 | 29 367 | — | | | — |
| Economic result of the year | — | — | — | (3 152 ) | — | (3 152 ) |
| BALANCE AS AT 31.12.2015 | 73 464 | 34 590 | 38 873 | (40 146 ) | 2 252 | 980 |
| Capital increase — contributions | | (3 450 ) | 3 450 | | | 3 450 |
| Economic result of the year | | | — | (3 073 ) | | (3 073 ) |
| BALANCE AS AT 31.12.2016 | 73 464 | 31 140 | 42 323 | (43 219 ) | 2 252 | 1 357 |

EUR millions

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)

Total Net Assets

(C)+(D)+(E)

BALANCE AS AT 31.12.2014

BALANCE AS AT 31.12.2014

45 691

45 691

10 018

10 018

35 673

35 673

(36 994 )

(36 994 )

2 252

2 252

932

932

Capital increase — contributions

Capital increase — contributions

(4 795 )

(4 795 )

4 795

4 795

—

—

4 795

4 795

Capital decrease — funds committed under the Bridging Facility

Capital decrease — funds committed under the Bridging Facility

(1 595 )

(1 595 )

(1 595 )

(1 595 )

(1 595 )

(1 595 )

Recognition of the 11th EDF capital

Recognition of the 11th EDF capital

29 367

29 367

29 367

29 367

—

—

—

—

Economic result of the year

Economic result of the year

—

—

—

(3 152 )

(3 152 )

—

(3 152 )

(3 152 )

BALANCE AS AT 31.12.2015

BALANCE AS AT 31.12.2015

73 464

73 464

34 590

34 590

38 873

38 873

(40 146 )

(40 146 )

2 252

2 252

980

980

Capital increase — contributions

Capital increase — contributions

(3 450 )

(3 450 )

3 450

3 450

3 450

3 450

Economic result of the year

Economic result of the year

—

—

(3 073 )

(3 073 )

(3 073 )

(3 073 )

BALANCE AS AT 31.12.2016

BALANCE AS AT 31.12.2016

73 464

73 464

31 140

31 140

42 323

42 323

(43 219 )

(43 219 )

2 252

2 252

1 357

1 357

BALANCE SHEET BY EDF

BALANCE SHEET BY EDF

| EUR millions |
| --- |
| | | 31.12.2016 | 31.12.2015 |
| | Note | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF |
| NON-CURRENT ASSETS | | | | | | | | | |
| Pre-financing | 2.1 | — | 32 | 242 | 135 | — | 63 | 368 | 84 |
| Trust Fund contributions | 2.2 | — | — | — | 98 | — | — | — | 34 |
| | | — | 32 | 242 | 232 | — | 63 | 368 | 118 |
| CURRENT ASSETS | | | | | | | | | |
| Pre-financing | 2.1 | 1 | 50 | 909 | 412 | 3 | 67 | 879 | 195 |
| Exchange receivables and non-exchange recoverables | 2.3 | 1 | 71 | 59 | 2 | 1 | 65 | 103 | 2 |
| Liaison accounts | 2.3 | 196 | 424 | 3 424 | — | 214 | 657 | 1 190 | — |
| Cash and cash equivalents | 2.4 | — | — | — | 680 | — | — | — | 504 |
| | | 198 | 544 | 4 391 | 1 094 | 218 | 790 | 2 172 | 701 |
| TOTAL ASSETS | | 198 | 577 | 4 633 | 1 327 | 218 | 853 | 2 541 | 819 |
| NON-CURRENT LIABILITIES | | | | | | | | | |
| Provisions | 2.5 | — | — | — | (4) | — | — | — | (4) |
| Financial liabilities | 2.6 | — | — | (6) | — | — | — | (10) | — |
| | | — | — | (6) | (4) | — | — | (10) | (4) |
| CURRENT LIABILITIES | | | | | | | | | |
| Payables | 2.7 | (0) | (12) | (438) | (99) | (0) | (14) | (492) | (14) |
| Liaison accounts | 2.3 | — | — | — | (4 043 ) | — | — | — | (2 062 ) |
| Accrued charges and deferred income | 2.8 | (1) | (93) | (567) | (115) | (3) | (114) | (682) | (57) |
| | | (1) | (104) | (1 005 ) | (4 257 ) | (3) | (128) | (1 174 ) | (2 132 ) |
| TOTAL LIABILITIES | | (1) | (104) | (1 011 ) | (4 261 ) | (3) | (128) | (1 184 ) | (2 136 ) |
| NET ASSETS | | 197 | 472 | 3 622 | (2 934 ) | 214 | 726 | 1 357 | (1 317 ) |
| FUNDS & RESERVES | | | | | | | | | |
| Called fund capital — active EDFs | 2.9 | 12 164 | 10 973 | 19 187 | — | 12 164 | 10 973 | 15 737 | — |
| Called fund capital from closed EDFs carried forward | 2.9 | 627 | 1 625 | — | — | 627 | 1 625 | — | — |
| Called fund capital transfers between active EDFs | 2.9 | (2 496 ) | 2 214 | 247 | 35 | (2 476 ) | 2 376 | 35 | 65 |
| Economic result carried forward from previous years | | (10 100 ) | (14 248 ) | (14 415 ) | (1 382 ) | (10 107 ) | (14 223 ) | (12 183 ) | (481) |
| Economic result of the year | | 2 | (91) | (1 397 ) | (1 587 ) | 6 | (26) | (2 232 ) | (901) |
| NET ASSETS | | 197 | 472 | 3 622 | (2 934 ) | 214 | 726 | 1 357 | (1 317 ) |

EUR millions

31.12.2016

31.12.2015

Note

Eighth EDF

Ninth EDF

10th EDF

11th EDF

Eighth EDF

Ninth EDF

10th EDF

11th EDF

NON-CURRENT ASSETS

NON-CURRENT ASSETS

Pre-financing

Pre-financing

2.1

2.1

—

32

32

242

242

135

135

—

63

63

368

368

84

84

Trust Fund contributions

Trust Fund contributions

2.2

2.2

—

—

—

98

98

—

—

—

—

—

—

34

34

—

32

32

242

242

232

232

—

63

63

368

368

118

118

CURRENT ASSETS

CURRENT ASSETS

Pre-financing

Pre-financing

2.1

2.1

1

1

50

50

909

909

412

412

3

3

67

67

879

879

195

195

Exchange receivables and non-exchange recoverables

Exchange receivables and non-exchange recoverables

2.3

2.3

1

1

71

71

59

59

2

2

1

1

65

65

103

103

2

2

Liaison accounts

Liaison accounts

2.3

2.3

196

196

424

424

3 424

3 424

—

—

214

214

657

657

1 190

1 190

—

—

Cash and cash equivalents

Cash and cash equivalents

2.4

2.4

—

—

—

680

680

—

—

—

—

504

504

198

198

544

544

4 391

4 391

1 094

1 094

218

218

790

790

2 172

2 172

701

701

TOTAL ASSETS

TOTAL ASSETS

198

198

577

577

4 633

4 633

1 327

1 327

218

218

853

853

2 541

2 541

819

819

NON-CURRENT LIABILITIES

NON-CURRENT LIABILITIES

Provisions

Provisions

2.5

2.5

—

—

—

—

—

—

(4)

(4)

—

—

—

—

—

—

(4)

(4)

Financial liabilities

Financial liabilities

2.6

2.6

—

—

(6)

(6)

—

—

—

—

(10)

(10)

—

—

—

—

(6)

(6)

(4)

(4)

—

—

(10)

(10)

(4)

(4)

CURRENT LIABILITIES

CURRENT LIABILITIES

Payables

Payables

2.7

2.7

(0)

(0)

(12)

(12)

(438)

(438)

(99)

(99)

(0)

(0)

(14)

(14)

(492)

(492)

(14)

(14)

Liaison accounts

Liaison accounts

2.3

2.3

—

—

—

—

—

—

(4 043 )

(4 043 )

—

—

—

—

—

—

(2 062 )

(2 062 )

Accrued charges and deferred income

Accrued charges and deferred income

2.8

2.8

(1)

(1)

(93)

(93)

(567)

(567)

(115)

(115)

(3)

(3)

(114)

(114)

(682)

(682)

(57)

(57)

(1)

(1)

(104)

(104)

(1 005 )

(1 005 )

(4 257 )

(4 257 )

(3)

(3)

(128)

(128)

(1 174 )

(1 174 )

(2 132 )

(2 132 )

TOTAL LIABILITIES

TOTAL LIABILITIES

(1)

(1)

(104)

(104)

(1 011 )

(1 011 )

(4 261 )

(4 261 )

(3)

(3)

(128)

(128)

(1 184 )

(1 184 )

(2 136 )

(2 136 )

NET ASSETS

NET ASSETS

197

197

472

472

3 622

3 622

(2 934 )

(2 934 )

214

214

726

726

1 357

1 357

(1 317 )

(1 317 )

FUNDS & RESERVES

FUNDS & RESERVES

Called fund capital — active EDFs

Called fund capital — active EDFs

2.9

2.9

12 164

12 164

10 973

10 973

19 187

19 187

—

12 164

12 164

10 973

10 973

15 737

15 737

—

Called fund capital from closed EDFs carried forward

Called fund capital from closed EDFs carried forward

2.9

2.9

627

627

1 625

1 625

—

—

627

627

1 625

1 625

—

—

Called fund capital transfers between active EDFs

Called fund capital transfers between active EDFs

2.9

2.9

(2 496 )

(2 496 )

2 214

2 214

247

247

35

35

(2 476 )

(2 476 )

2 376

2 376

35

35

65

65

Economic result carried forward from previous years

Economic result carried forward from previous years

(10 100 )

(10 100 )

(14 248 )

(14 248 )

(14 415 )

(14 415 )

(1 382 )

(1 382 )

(10 107 )

(10 107 )

(14 223 )

(14 223 )

(12 183 )

(12 183 )

(481)

(481)

Economic result of the year

Economic result of the year

2

2

(91)

(91)

(1 397 )

(1 397 )

(1 587 )

(1 587 )

6

6

(26)

(26)

(2 232 )

(2 232 )

(901)

(901)

NET ASSETS

NET ASSETS

197

197

472

472

3 622

3 622

(2 934 )

(2 934 )

214

214

726

726

1 357

1 357

(1 317 )

(1 317 )

STATEMENT OF FINANCIAL PERFORMANCE BY EDF

STATEMENT OF FINANCIAL PERFORMANCE BY EDF

| EUR millions |
| --- |
| | | 2016 | 2015 |
| Note | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF |
| REVENUE | | | | | | | | | |
| Revenue from non-exchange transactions | 3.1 | | | | | | | | |
| Recovery of expenses | | 1 | 5 | (2) | 4 | 1 | 10 | 77 | 2 |
| | | 1 | 5 | (2) | 4 | 1 | 10 | 77 | 2 |
| Revenue from exchange transactions | 3.2 | | | | | | | | |
| Financial income | | (0) | 2 | 2 | (1) | (0) | 6 | 0 | 2 |
| Other income | | 2 | 17 | 40 | 3 | 3 | 15 | 22 | 2 |
| | | 2 | 19 | 43 | 2 | 3 | 21 | 22 | 4 |
| Total revenue | | 3 | 23 | 41 | 7 | 4 | 30 | 99 | 6 |
| EXPENSES | | | | | | | | | |
| Aid instruments | 3.3 | 2 | (95) | (1 411 ) | (1 465 ) | 5 | (47) | (2 197 ) | (820) |
| Co-financing expenses | 3.4 | — | — | 15 | — | — | — | (68) | (1) |
| Finance costs | 3.6 | (0) | (0) | 4 | (0) | 0 | 7 | (8) | (0) |
| Other expenses | 3.7 | (3) | (19) | (46) | (129) | (3) | (15) | (58) | (86) |
| Total expenses | | (1) | (114) | (1 437 ) | (1 594 ) | 2 | (56) | (2 331 ) | (907) |
| ECONOMIC RESULT OF THE YEAR | | 2 | (91) | (1 397 ) | (1 587 ) | 6 | (25) | (2 232 ) | (901) |

EUR millions

2016

2015

Note

Eighth EDF

Ninth EDF

10th EDF

11th EDF

Eighth EDF

Ninth EDF

10th EDF

11th EDF

REVENUE

REVENUE

Revenue from non-exchange transactions

Revenue from non-exchange transactions

3.1

3.1

Recovery of expenses

Recovery of expenses

1

1

5

5

(2)

(2)

4

4

1

1

10

10

77

77

2

2

1

1

5

5

(2)

(2)

4

4

1

1

10

10

77

77

2

2

Revenue from exchange transactions

Revenue from exchange transactions

3.2

3.2

Financial income

Financial income

(0)

(0)

2

2

2

2

(1)

(1)

(0)

(0)

6

6

0

0

2

2

Other income

Other income

2

2

17

17

40

40

3

3

3

3

15

15

22

22

2

2

2

2

19

19

43

43

2

2

3

3

21

21

22

22

4

4

Total revenue

Total revenue

3

3

23

23

41

41

7

7

4

4

30

30

99

99

6

6

EXPENSES

EXPENSES

Aid instruments

Aid instruments

3.3

3.3

2

2

(95)

(95)

(1 411 )

(1 411 )

(1 465 )

(1 465 )

5

5

(47)

(47)

(2 197 )

(2 197 )

(820)

(820)

Co-financing expenses

Co-financing expenses

3.4

3.4

—

—

—

—

15

15

—

—

—

—

—

—

(68)

(68)

(1)

(1)

Finance costs

Finance costs

3.6

3.6

(0)

(0)

(0)

(0)

4

4

(0)

(0)

0

0

7

7

(8)

(8)

(0)

(0)

Other expenses

Other expenses

3.7

3.7

(3)

(3)

(19)

(19)

(46)

(46)

(129)

(129)

(3)

(3)

(15)

(15)

(58)

(58)

(86)

(86)

Total expenses

Total expenses

(1)

(1)

(114)

(114)

(1 437 )

(1 437 )

(1 594 )

(1 594 )

2

2

(56)

(56)

(2 331 )

(2 331 )

(907)

(907)

ECONOMIC RESULT OF THE YEAR

ECONOMIC RESULT OF THE YEAR

2

2

(91)

(91)

(1 397 )

(1 397 )

(1 587 )

(1 587 )

6

6

(25)

(25)

(2 232 )

(2 232 )

(901)

(901)

STATEMENT OF CHANGES IN NET ASSETS BY EDF

STATEMENT OF CHANGES IN NET ASSETS BY EDF

| EUR millions |
| --- |
| 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 31.12.2014 | 12 840 | — | 12 840 | (10 107 ) | 627 | (3 147 ) | 214 |
| Capital decrease — funds committed under the Bridging Facility | (676) | | (676) | | | | (676) |
| Transfers to/from the 10th EDF | | | — | | | (6) | (6) |
| Transfers to/from the 11th EDF | | | | | | 676 | 676 |
| Economic result of the year | | | — | 6 | | | 6 |
| BALANCE AS AT 31.12.2015 | 12 164 | — | 12 164 | (10 100 ) | 627 | (2 476 ) | 214 |
| Transfers to/from the 10th EDF | | | — | | | (20) | (20) |
| Transfers to/from the 11th EDF | | | — | | | — | — |
| Economic result of the year | | | — | 2 | | | 2 |
| BALANCE AS AT 31.12.2016 | 12 164 | — | 12 164 | (10 098 ) | 627 | (2 496 ) | 197 |

EUR millions

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 31.12.2014

BALANCE AS AT 31.12.2014

12 840

12 840

—

12 840

12 840

(10 107 )

(10 107 )

627

627

(3 147 )

(3 147 )

214

214

Capital decrease — funds committed under the Bridging Facility

Capital decrease — funds committed under the Bridging Facility

(676)

(676)

(676)

(676)

(676)

(676)

Transfers to/from the 10th EDF

Transfers to/from the 10th EDF

—

(6)

(6)

(6)

(6)

Transfers to/from the 11th EDF

Transfers to/from the 11th EDF

676

676

676

676

Economic result of the year

Economic result of the year

—

6

6

6

6

BALANCE AS AT 31.12.2015

BALANCE AS AT 31.12.2015

12 164

12 164

—

12 164

12 164

(10 100 )

(10 100 )

627

627

(2 476 )

(2 476 )

214

214

Transfers to/from the 10th EDF

Transfers to/from the 10th EDF

—

(20)

(20)

(20)

(20)

Transfers to/from the 11th EDF

Transfers to/from the 11th EDF

—

—

—

—

—

Economic result of the year

Economic result of the year

—

2

2

2

2

BALANCE AS AT 31.12.2016

BALANCE AS AT 31.12.2016

12 164

12 164

—

—

12 164

12 164

(10 098 )

(10 098 )

627

627

(2 496 )

(2 496 )

197

197

| EUR millions |
| --- |
| 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 31.12.2014 | 11 699 | — | 11 699 | (14 223 ) | 1 625 | 1 758 | 860 |
| Capital decrease — funds committed under the Bridging Facility | (727) | — | (727) | | | | (727) |
| Transfers to/from the 10th EDF | | | — | | | (109) | (109) |
| Transfers to/from the 11th EDF | | | | | | 727 | 727 |
| Economic result of the year | | | — | (26) | | | (26) |
| BALANCE AS AT 31.12.2015 | 10 973 | — | 10 973 | (14 249 ) | 1 625 | 2 376 | 726 |
| Transfers to/from the 10th EDF | | | — | | | (163) | (163) |
| Transfers to/from the 11th EDF | | | — | | | — | — |
| Economic result of the year | | | — | (91) | | | (91) |
| BALANCE AS AT 31.12.2016 | 10 973 | — | 10 973 | (14 339 ) | 1 625 | 2 214 | 472 |

EUR millions

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 31.12.2014

BALANCE AS AT 31.12.2014

11 699

11 699

—

11 699

11 699

(14 223 )

(14 223 )

1 625

1 625

1 758

1 758

860

860

Capital decrease — funds committed under the Bridging Facility

Capital decrease — funds committed under the Bridging Facility

(727)

(727)

—

—

(727)

(727)

(727)

(727)

Transfers to/from the 10th EDF

Transfers to/from the 10th EDF

—

(109)

(109)

(109)

(109)

Transfers to/from the 11th EDF

Transfers to/from the 11th EDF

727

727

727

727

Economic result of the year

Economic result of the year

—

(26)

(26)

(26)

(26)

BALANCE AS AT 31.12.2015

BALANCE AS AT 31.12.2015

10 973

10 973

—

10 973

10 973

(14 249 )

(14 249 )

1 625

1 625

2 376

2 376

726

726

Transfers to/from the 10th EDF

Transfers to/from the 10th EDF

—

(163)

(163)

(163)

(163)

Transfers to/from the 11th EDF

Transfers to/from the 11th EDF

—

—

—

—

—

Economic result of the year

Economic result of the year

—

(91)

(91)

(91)

(91)

BALANCE AS AT 31.12.2016

BALANCE AS AT 31.12.2016

10 973

10 973

—

—

10 973

10 973

(14 339 )

(14 339 )

1 625

1 625

2 214

2 214

472

472

| EUR millions |
| --- |
| 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 31.12.2014 | 21 152 | 10 018 | 11 134 | (12 183 ) | — | (209) | (1 258 ) |
| Capital increase — contributions | | (4 795 ) | 4 795 | | | | 4 795 |
| Capital decrease — funds committed under the Bridging Facility | (192) | | (192) | | | | (192) |
| Transfers to/from the Eighth and Ninth EDF | | | — | | | 84 | 84 |
| Transfers to/from the 11th EDF | | | — | | | 160 | 160 |
| Economic result of the year | | | — | (2 232 ) | | | (2 232 ) |
| BALANCE AS AT 31.12.2015 | 20 960 | 5 223 | 15 737 | (14 415 ) | — | 35 | 1 357 |
| Capital increase — contributions | | (3 450 ) | 3 450 | | | | 3 450 |
| Transfers to/from the Eighth and Ninth EDF | | | — | | | 182 | 182 |
| Transfers to/from the 11th EDF | | | — | | | 30 | 30 |
| Economic result of the year | | | — | (1 397 ) | | | (1 397 ) |
| BALANCE AS AT 31.12.2016 | 20 960 | 1 773 | 19 187 | (15 812 ) | — | 247 | 3 622 |

EUR millions

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 31.12.2014

BALANCE AS AT 31.12.2014

21 152

21 152

10 018

10 018

11 134

11 134

(12 183 )

(12 183 )

—

(209)

(209)

(1 258 )

(1 258 )

Capital increase — contributions

Capital increase — contributions

(4 795 )

(4 795 )

4 795

4 795

4 795

4 795

Capital decrease — funds committed under the Bridging Facility

Capital decrease — funds committed under the Bridging Facility

(192)

(192)

(192)

(192)

(192)

(192)

Transfers to/from the Eighth and Ninth EDF

Transfers to/from the Eighth and Ninth EDF

—

84

84

84

84

Transfers to/from the 11th EDF

Transfers to/from the 11th EDF

—

160

160

160

160

Economic result of the year

Economic result of the year

—

—

(2 232 )

(2 232 )

(2 232 )

(2 232 )

BALANCE AS AT 31.12.2015

BALANCE AS AT 31.12.2015

20 960

20 960

5 223

5 223

15 737

15 737

(14 415 )

(14 415 )

—

35

35

1 357

1 357

Capital increase — contributions

Capital increase — contributions

(3 450 )

(3 450 )

3 450

3 450

3 450

3 450

Transfers to/from the Eighth and Ninth EDF

Transfers to/from the Eighth and Ninth EDF

—

182

182

182

182

Transfers to/from the 11th EDF

Transfers to/from the 11th EDF

—

—

30

30

30

30

Economic result of the year

Economic result of the year

—

—

(1 397 )

(1 397 )

(1 397 )

(1 397 )

BALANCE AS AT 31.12.2016

BALANCE AS AT 31.12.2016

20 960

20 960

1 773

1 773

19 187

19 187

(15 812 )

(15 812 )

—

247

247

3 622

3 622

| EUR millions |
| --- |
| 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) | Total Net Assets
  (C)+(D)+(E)+(F) |
| BALANCE AS AT 31.12.2014 | — | — | — | (481) | — | 1 597 | 1 116 |
| Recognition of the 11th EDF capital in line with the Internal Agreement | 29 367 | (29 367 ) | — | | | | — |
| Transfers to/from the Eighth, Ninth and 10th EDF | | | — | | — | (1 532 ) | (1 532 ) |
| Economic result of the year | | | — | (901) | | | (901) |
| BALANCE AS AT 31.12.2015 | 29 367 | (29 367 ) | — | (1 382 ) | | 65 | (1 317 ) |
| Transfers to/from the Eighth, Ninth and 10th EDF | | | — | | | (30) | (30) |
| Economic result of the year | | | — | (1 587 ) | | | (1 587 ) |
| BALANCE AS AT 31.12.2016 | 29 367 | (29 367 ) | — | (2 969 ) | — | 35 | (2 934 ) |

EUR millions

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)

Total Net Assets

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

BALANCE AS AT 31.12.2014

BALANCE AS AT 31.12.2014

—

—

—

(481)

(481)

—

1 597

1 597

1 116

1 116

Recognition of the 11th EDF capital in line with the Internal Agreement

Recognition of the 11th EDF capital in line with the Internal Agreement

29 367

29 367

(29 367 )

(29 367 )

—

—

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

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

—

—

—

(1 532 )

(1 532 )

(1 532 )

(1 532 )

Economic result of the year

Economic result of the year

—

(901)

(901)

(901)

(901)

BALANCE AS AT 31.12.2015

BALANCE AS AT 31.12.2015

29 367

29 367

(29 367 )

(29 367 )

—

(1 382 )

(1 382 )

65

65

(1 317 )

(1 317 )

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

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

—

(30)

(30)

(30)

(30)

Economic result of the year

Economic result of the year

—

(1 587 )

(1 587 )

(1 587 )

(1 587 )

BALANCE AS AT 31.12.2016

BALANCE AS AT 31.12.2016

29 367

29 367

(29 367 )

(29 367 )

—

(2 969 )

(2 969 )

—

—

35

35

(2 934 )

(2 934 )

NOTES TO THE FINANCIAL STATEMENTS OF THE EDF
   (10)

NOTES TO THE FINANCIAL STATEMENTS OF THE EDF

10

1.   SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

1.1.   ACCOUNTING PRINCIPLES

ACCOUNTING PRINCIPLES

The objective of financial statements is to provide information about financial position, performance and cash flows 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, reliability, understandability and comparability.

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 millions of euros, the euro being the EDF’s functional and reporting 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 | 31.12.2016 | 31.12.2015 | Currency | 31.12.2016 | 31.12.2015 |
| --- | --- | --- | --- | --- | --- |
| BGN | 1,9558 | 1,9558 | PLN | 4,4103 | 4,2639 |
| CZK | 27,0210 | 27,0230 | RON | 4,5390 | 4,5240 |
| DKK | 7,4344 | 7,4626 | SEK | 9,5525 | 9,1895 |
| GBP | 0,8562 | 0,7340 | CHF | 1,0739 | 1,0835 |
| HRK | 7,5597 | 7,6380 | JPY | 123,4000 | 131,0700 |
| HUF | 309,8300 | 315,9800 | USD | 1,0541 | 1,0887 |

Currency

31.12.2016

31.12.2015

Currency

31.12.2016

31.12.2015

BGN

BGN

1,9558

1,9558

1,9558

1,9558

PLN

PLN

4,4103

4,4103

4,2639

4,2639

CZK

CZK

27,0210

27,0210

27,0230

27,0230

RON

RON

4,5390

4,5390

4,5240

4,5240

DKK

DKK

7,4344

7,4344

7,4626

7,4626

SEK

SEK

9,5525

9,5525

9,1895

9,1895

GBP

GBP

0,8562

0,8562

0,7340

0,7340

CHF

CHF

1,0739

1,0739

1,0835

1,0835

HRK

HRK

7,5597

7,5597

7,6380

7,6380

JPY

JPY

123,4000

123,4000

131,0700

131,0700

HUF

HUF

309,8300

309,8300

315,9800

315,9800

USD

USD

1,0541

1,0541

1,0887

1,0887

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; accrued and deferred income and charges, provisions, financial risk on accounts receivables, contingent assets and liabilities, and degree of impairment of assets. Actual results could differ from those estimates.

Reasonable estimates are 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

Acquired computer software licences are stated at historical cost less accumulated amortisation and impairment losses. The assets are amortised on a straight-line basis over their estimated useful lives. The estimated useful lives of intangible assets depend on their specific economic lifetime or legal lifetime determined by an agreement. Internally developed intangible assets are capitalised when the relevant criteria of the EU accounting rules are met. The costs capitalisable 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.

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. Historical cost includes expenditure that is directly attributable to the acquisition or construction 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 and works of art are not depreciated as they are 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

Leases of tangible assets, where the entity has substantially all the risks and rewards of ownership, are classified as finance leases. Finance leases are capitalised at the inception of the lease at the lower of the fair value of the leased asset and the present value of the minimum lease payments. The interest element of the finance lease payment is charged to statement of financial performance over the period of the lease at a constant periodic rate in relation to the balance outstanding. The rental obligations, net of finance charges, are included in financial liabilities (non-current and current). The interest element of the finance cost is charged to the statement of financial performance over the lease period so as to produce a constant periodic interest rate on the remaining balance of the liability for each period. The assets held under finance leases are depreciated over the shorter of the assets’ useful life and the lease term.

Leases where the lessor retains a significant portion of the risks and rewards inherent to ownership are classified as operating leases. Payments made under operating leases are charged to the statement of financial performance on a straight-line basis over the period of the lease.

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 reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable 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. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. 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

The financial assets are classified in the following categories: financial assets at fair value through profit or loss; 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 profit or loss

Financial assets at fair value through profit or loss

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 categorised 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.

Initial recognition and measurement

Initial recognition and measurement

Purchases and sales of financial assets at fair value through profit and loss, held-to-maturity and available for sale are recognised on trade date — the date on which the entity commits to purchase or sell the asset. Cash equivalents, loans and term deposits are recognised at settlement date. Financial instruments are initially recognised at fair value. For all financial assets not carried at fair value through profit and loss transaction costs are added to the fair value at initial recognition.

Financial instruments are derecognised when the rights to receive cash flows 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 profit and loss are subsequently carried at fair value with gains and losses arising 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 being recognised in the fairs 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. The amount of the pre-financing may be reduced (wholly or partially) by the acceptance of eligible costs (which are recognised as expenses).

Pre-financing is, on subsequent balance sheet dates, 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

As the EU accounting rules require a separate presentation of exchange and non-exchange transactions, for the purpose of drawing up the accounts, receivables are defined as stemming from non-exchange transactions and recoverables are defined as stemming from exchange transactions (when the entity receives value from another entity without directly giving approximately equal value in exchange).

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).

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 non-exchange transactions related e.g. to cost claims from beneficiaries, grants or other EU funding.

Where grants or other funding is 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 income and charges

Accrued and deferred income 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 income 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 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 account for the majority of the entity’s operating expenses. They 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.

1.6.   CO-FINANCING

CO-FINANCING

Co-financing contributions received fulfil the criteria of revenues from non-exchange transactions under condition 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

2.1.   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 on the basis of progress reports. Pre-financing is normally paid in the currency of the country or territory where the project is executed.

The timing of the recoverability or utilisation of pre-financing governs whether it is disclosed as a current or a non-current pre-financing asset. The utilisation is defined by the project’s underlying agreement. Any repayments or utilisation due within 12 months of 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 millions |
| --- |
| | Note | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2016 | 31.12.2015 |
| Non-current pre-financing | 2.1.1 | — | 32 | 242 | 135 | 409 | 516 |
| Current pre-financing | 2.1.2 | 1 | 50 | 909 | 412 | 1 372 | 1 145 |
| Total | | 1 | 82 | 1 151 | 546 | 1 781 | 1 661 |

EUR millions

Note

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2016

31.12.2016

31.12.2015

31.12.2015

Non-current pre-financing

Non-current pre-financing

2.1.1

2.1.1

—

—

32

32

242

242

135

135

409

409

516

516

Current pre-financing

Current pre-financing

2.1.2

2.1.2

1

1

50

50

909

909

412

412

1 372

1 372

1 145

1 145

Total

Total

1

1

82

82

1 151

1 151

546

546

1 781

1 781

1 661

1 661

2.1.1.   
  Non-current pre-financing

Non-current pre-financing

| EUR millions |
| --- |
| | 31.12.2016 | 31.12.2015 |
| Direct Management | 71 | 65 |
| | Implemented by: |

EUR millions

31.12.2016

31.12.2015

Direct Management

Direct Management

71

71

65

65

Implemented by:

Implemented by:

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

Commission

Commission

39

39

43

43

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

EU executive agencies

EU executive agencies

4

4

1

1

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

EU delegations

EU delegations

29

29

21

21

Indirect Management

Indirect Management

338

338

451

451

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

Implemented by:

Implemented by:

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

EIB and EIF

EIB and EIF

180

180

323

323

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

International organisations

International organisations

87

87

90

90

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

Private law bodies with a public service mission

Private law bodies with a public service mission

25

25

3

3

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

Public law bodies

Public law bodies

13

13

10

10

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

Third countries

Third countries

34

34

25

25

Total

Total

409

409

516

516

2.1.2.   
  Current pre-financing

Current pre-financing

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2016 | 31.12.2015 |
| Pre-financing (gross) | 9 | 231 | 2 945 | 1 560 | 4 745 | 4 250 |
| Cleared via cut-off | (8) | (181) | (2 037 ) | (1 148 ) | (3 373 ) | (3 105 ) |
| Total | 1 | 50 | 909 | 412 | 1 372 | 1 145 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2016

31.12.2016

31.12.2015

31.12.2015

Pre-financing (gross)

Pre-financing (gross)

9

9

231

231

2 945

2 945

1 560

1 560

4 745

4 745

4 250

4 250

Cleared via cut-off

Cleared via cut-off

(8)

(8)

(181)

(181)

(2 037 )

(2 037 )

(1 148 )

(1 148 )

(3 373 )

(3 373 )

(3 105 )

(3 105 )

Total

Total

1

1

50

50

909

909

412

412

1 372

1 372

1 145

1 145

| EUR millions |
| --- |
| | 31.12.2016 | 31.12.2015 |
| Direct Management | 246 | 283 |
| | Implemented by: |

EUR millions

31.12.2016

31.12.2015

Direct Management

Direct Management

246

246

283

283

Implemented by:

Implemented by:

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

Commission

Commission

115

115

123

123

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

EU executive agencies

EU executive agencies

10

10

1

1

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

EU delegations

EU delegations

122

122

159

159

Indirect Management

Indirect Management

1 125

1 125

861

861

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

Implemented by:

Implemented by:

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

EIB and EIF

EIB and EIF

372

372

235

235

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

International organisations

International organisations

432

432

336

336

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

Private law bodies with a public service mission

Private law bodies with a public service mission

121

121

5

5

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

Public law bodies

Public law bodies

53

53

56

56

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

Third countries

Third countries

148

148

229

229

Total

Total

1 372

1 372

1 145

1 145

The overall pre-financing at 31 December 2016 (EUR 1 781 million) is comparable to the total pre-financing at 31 December 2015 (EUR 1 661 million).

The slight increase in current pre-financing by EUR 227 million compared to 31 December 2015 is explained by a large number of new contracts for which no costs were yet incurred in 2016. This increase is offset by a decrease of the long term pre-financing (see note 2.1.1).

2.1.1

2.1.3.   
  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 2016 the guarantees received by the EDF in respect of pre-financing amounted to EUR 53 million (2015 EUR 83 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.

2.2.   TRUST FUND CONTRIBUTIONS

TRUST FUND CONTRIBUTIONS

This heading represents the amount paid as contributions to the Bêkou EU Trust Fund and the EUTF for Africa. 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 millions |
| --- |
| Trust Funds | Net contribution at 31.12.2015 | Contributions paid in 2016 | Allocation of TF’s net expenses 2016 | Net contribution at 31.12.2016 |
| Africa | — | 99 | (27) | 72 |
| Bêkou | 34 | — | (8) | 26 |
| Total | 34 | 99 | (35) | 98 |

EUR millions

Trust Funds

Net contribution at 31.12.2015

Contributions paid in 2016

Allocation of TF’s net expenses 2016

Net contribution at 31.12.2016

Africa

—

99

(27)

72

Bêkou

34

—

(8)

26

Total

Total

34

34

99

99

(35)

(35)

98

98

2.3.   NON-EXCHANGE RECOVERABLES AND EXCHANGE RECEIVABLES

NON-EXCHANGE RECOVERABLES AND EXCHANGE RECEIVABLES

| EUR millions |
| --- |
| | Note | 31.12.2016 | 31.12.2015 |
| Recoverables from non-exchange transactions | 2.3.1 | 62 | 104 |
| Receivables from exchange transactions | 2.3.2 | 70 | 67 |
| Total | | 132 | 171 |

EUR millions

Note

31.12.2016

31.12.2015

Recoverables from non-exchange transactions

Recoverables from non-exchange transactions

2.3.1

2.3.1

62

62

104

104

Receivables from exchange transactions

Receivables from exchange transactions

2.3.2

2.3.2

70

70

67

67

Total

Total

132

132

171

171

2.3.1.   
  Recoverables from non-exchange transactions

Recoverables from non-exchange transactions

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2016 | 31.12.2015 |
| Member States | — | 0 | 40 | — | 40 | 90 |
| Customers | 4 | 9 | 6 | 0 | 18 | 23 |
| Public bodies | — | 13 | 10 | 0 | 23 | 16 |
| Third states | 0 | 3 | 1 | — | 4 | 2 |
| Write down | (3) | (17) | (5) | — | (25) | (29) |
| Liaison accounts with EU institutions | — | — | — | 2 | 2 | 1 |
| Total | 1 | 8 | 51 | 2 | 62 | 104 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2016

31.12.2016

31.12.2015

31.12.2015

Member States

Member States

—

—

0

0

40

40

—

—

40

40

90

90

Customers

Customers

4

4

9

9

6

6

0

0

18

18

23

23

Public bodies

Public bodies

—

—

13

13

10

10

0

0

23

23

16

16

Third states

Third states

0

0

3

3

1

1

—

—

4

4

2

2

Write down

Write down

(3)

(3)

(17)

(17)

(5)

(5)

—

—

(25)

(25)

(29)

(29)

Liaison accounts with EU institutions

Liaison accounts with EU institutions

—

—

—

—

—

—

2

2

2

2

1

1

Total

Total

1

1

8

8

51

51

2

2

62

62

104

104

Recoverables from Member States include ordinary contributions as well as amounts still to be received as a consequence of Bridging Facility adjustments. The activities of the Bridging Facility were financed through decommitted amounts from previous EDF’s and the related capital movements were recorded in 2015.

The amounts are summarised in the table below:

| EUR millions |
| --- |
| Member States | Amounts to be received from MS | Amounts to be deducted from MS’s contributions | Net amount at 31.12.2016 |
| Belgium | 25 | — | 25 |
| Cyprus | 0 | — | 0 |
| Czech Republic | 2 | — | 2 |
| Greece | 0 | — | 0 |
| Latvia | 0 | — | 0 |
| Portugal | 0 | — | 0 |
| Romania | 2 | — | 2 |
| Slovenia | 1 | — | 1 |
| United Kingdom | 10 | — | 10 |
| Total | 40 | — | 40 |

EUR millions

Member States

Amounts to be received from MS

Amounts to be deducted from MS’s contributions

Net amount at 31.12.2016

Belgium

Belgium

25

25

—

25

25

Cyprus

Cyprus

0

0

—

0

0

Czech Republic

Czech Republic

2

2

—

2

2

Greece

Greece

0

0

—

0

0

Latvia

Latvia

0

0

—

0

0

Portugal

Portugal

0

0

—

0

0

Romania

Romania

2

2

—

2

2

Slovenia

Slovenia

1

1

—

1

1

United Kingdom

United Kingdom

10

10

—

10

10

Total

Total

40

40

—

—

40

40

2.3.2.   
  Receivables from exchange transactions

Receivables from exchange transactions

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2016 | 31.12.2015 |
| Accrued income | 0 | 63 | 7 | 0 | 70 | 67 |
| Liaison accounts between EDFs | 196 | 424 | 3 424 | (4 043 ) | (0) | 0 |
| Total | 196 | 487 | 3 431 | (4 043 ) | 70 | 67 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2016

31.12.2016

31.12.2015

31.12.2015

Accrued income

Accrued income

0

0

63

63

7

7

0

0

70

70

67

67

Liaison accounts between EDFs

Liaison accounts between EDFs

196

196

424

424

3 424

3 424

(4 043 )

(4 043 )

(0)

(0)

0

0

Total

Total

196

196

487

487

3 431

3 431

(4 043 )

(4 043 )

70

70

67

67

Included under accrued income are primarily amounts of accrued interest on pre-financing related to projects (EUR 63 million) and related to the EU-Africa Trust Fund (EUR 7 million).

For efficiency reasons, the single treasury covering all the EDFs is allocated to the 11th EDF (11); this leads to operations between the various EDFs, which are balanced out in the liaison accounts between the various EDF balance sheets. Liaison accounts are presented only in the individual EDFs.

11

2.4.   CASH AND CASH EQUIVALENTS
   (12)

CASH AND CASH EQUIVALENTS

12

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2016 | 31.12.2015 |
| Special accounts: | | | | | | |
| Financial institutions of Member States | — | — | — | 291 | 291 | 126 |
| Current accounts: | | | | | | |
| Commercial banks | — | — | — | 389 | 389 | 377 |
| Democratic Republic Congo Special fund (*1) | — | — | — | — | — | 1 |
| Total | — | — | — | 680 | 680 | 504 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2016

31.12.2016

31.12.2015

31.12.2015

Special accounts:

Special accounts:

Financial institutions of Member States

Financial institutions of Member States

—

—

—

291

291

291

291

126

126

Current accounts:

Current accounts:

Commercial banks

Commercial banks

—

—

—

389

389

389

389

377

377

Democratic Republic Congo Special fund (*1)

Democratic Republic Congo Special fund (*1

—

—

—

—

—

—

—

1

1

Total

Total

—

—

—

680

680

680

680

504

504

The overall increase in cash and cash equivalents is mainly explained by the advance payment of the first 2017 contributions by some Member States in December 2016.

It should be noted that there are Stabex funds held by beneficiary ACP States and thus not included on the EDF balance sheet. Stabex is the acronym for an EU compensatory finance scheme to stabilise export earnings of the ACP countries. Once the Commission and the beneficiary (ACP) State reach agreement on how the Stabex funds are to be utilised, a transfer convention is signed by both parties. In accordance with the provisions of Article 211 of the Lomé IV Agreement (13) (as revised), the funds are transferred into an interest bearing double signature account (Commission and Beneficiary State) opened in the name of the ACP State. The funds remain in these double signature accounts until a Framework of Mutual Obligations (FMO) justifies a transfer for a project. The Commission’s Authorising Officer retains the power of signature over the account in order to ensure that the funds are disbursed as intended. The funds in the double signature accounts are the property of the ACP State and are consequently not recorded as assets in the EDF accounts. The transfers to these accounts are recorded as Stabex payments. See also note 3.1.1 for more information.

13

3.1.1

With the aim of improving the presentation in the 2016 annual accounts, the classification of financial insitutions and banks has been reviewed. The comparative figures for 2015 are disclosed accordingly.

LIABILITIES

2.5.   PROVISIONS

PROVISIONS

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2016 | 31.12.2015 |
| Provisions | — | — | — | 4 | 4 | 4 |
| Total | — | — | — | 4 | 4 | 4 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2016

31.12.2016

31.12.2015

31.12.2015

Provisions

Provisions

—

—

—

—

4

4

4

4

4

4

Total

Total

—

—

—

—

4

4

4

4

4

4

The provision is the best possible estimation of the probable amount to be paid by the EDF to finance the orderly closure of the Centre de Development (CDE), decided by the ACP-EU Committee of Ambassadors (Decision No 4/2014 of 23 October 2014).

The amount includes court cases (EUR 1,2 million) raised against the CDE and the remaining expected cost of the passive phase (e.g. residual administrative tasks, other residual litigations, archive, etc.) that started on 31 December 2016 (see note 4.3.2).

4.3.2

2.6.   FINANCIAL LIABILITIES

FINANCIAL LIABILITIES

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2016 | 31.12.2015 |
| Co-financing — payables | — | — | 6 | — | 6 | 10 |
| Total | — | — | 6 | — | 6 | 10 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2016

31.12.2016

31.12.2015

31.12.2015

Co-financing — payables

Co-financing — payables

—

—

6

6

—

6

6

10

10

Total

Total

—

—

6

6

—

6

6

10

10

The change in the total co-financing liabilities is explained in the note 2.7.2.1.

2.7.2.1.

2.7.   PAYABLES

PAYABLES

| EUR millions |
| --- |
| | Note | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2016 | 31.12.2015 |
| Current payables | 2.7.1 | 0 | 12 | 112 | 97 | 222 | 180 |
| Sundry payables | 2.7.2 | — | (0) | 325 | 2 | 327 | 340 |
| Total | | 0 | 12 | 438 | 99 | 549 | 520 |

EUR millions

Note

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2016

31.12.2016

31.12.2015

31.12.2015

Current payables

Current payables

2.7.1

2.7.1

0

0

12

12

112

112

97

97

222

222

180

180

Sundry payables

Sundry payables

2.7.2

2.7.2

—

—

(0)

(0)

325

325

2

2

327

327

340

340

Total

Total

0

0

12

12

438

438

99

99

549

549

520

520

2.7.1.   
  Current payables

Current payables

| EUR millions |
| --- |
| | | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2016 | 31.12.2015 |
| Suppliers | | 0 | 11 | 69 | 19 | 98 | 79 |
| Member States | | — | — | 0 | — | 0 | 0 |
| Third states | | 0 | 0 | 29 | 61 | 91 | 83 |
| Public bodies | | 0 | 1 | 18 | 14 | 32 | 21 |
| Other current payables | | 0 | 1 | (4) | 4 | 1 | (3) |
| Total | | 0 | 12 | 112 | 97 | 222 | 180 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2016

31.12.2016

31.12.2015

31.12.2015

Suppliers

Suppliers

0

0

11

11

69

69

19

19

98

98

79

79

Member States

Member States

—

—

—

0

0

—

—

0

0

0

0

Third states

Third states

0

0

0

0

29

29

61

61

91

91

83

83

Public bodies

Public bodies

0

0

1

1

18

18

14

14

32

32

21

21

Other current payables

Other current payables

0

0

1

1

(4)

(4)

4

4

1

1

(3)

(3)

Total

Total

0

0

12

12

112

112

97

97

222

222

180

180

Payables include cost statements received by the EDF relating to its grant activity. They are recorded for the amount being claimed from the moment the demand 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.

2.7.2.   
  Sundry payables

Sundry payables

| EUR millions |
| --- |
| | Note | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2016 | 31.12.2015 |
| Co-financing payables | 2.7.2.1 | — | — | 63 | 1 | 64 | 31 |
| Deferred fund capital contributions | 2.7.2.2 | — | — | 261 | — | 261 | 307 |
| Other sundry payables | 2.7.2.3 | — | — | — | 2 | 2 | 2 |
| Total | | — | — | 324 | 3 | 327 | 340 |

EUR millions

Note

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2016

31.12.2016

31.12.2015

31.12.2015

Co-financing payables

Co-financing payables

2.7.2.1

2.7.2.1

—

—

—

—

63

63

1

1

64

64

31

31

Deferred fund capital contributions

Deferred fund capital contributions

2.7.2.2

2.7.2.2

—

—

—

261

261

—

—

261

261

307

307

Other sundry payables

Other sundry payables

2.7.2.3

2.7.2.3

—

—

—

—

—

—

2

2

2

2

2

2

Total

Total

—

—

—

—

324

324

3

3

327

327

340

340

2.7.2.1.   Co-financing payables

Co-financing payables

The breakdown of the non-current and current co-financing payables by Member State is summarized in the table below:

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2016 | 31.12.2015 |
| Non-current co-financing | | | | | | |
| Belgium | — | — | 2 | — | 2 | 1 |
| Germany | — | — | 0 | — | 0 | 1 |
| United Kingdom | — | — | 1 | — | 1 | 3 |
| Sweden | — | — | 2 | — | 2 | 4 |
| Canada | — | — | 0 | — | 0 | 1 |
| | — | — | 6 | — | 6 | 10 |
| Current co-financing | | | | | | |
| Belgium | — | — | 3 | 1 | 4 | 3 |
| Denmark | — | — | 1 | 0 | 1 | 1 |
| France | — | — | 37 | — | 37 | 10 |
| Germany | — | — | 1 | — | 1 | 1 |
| Netherlands | — | — | 1 | — | 1 | 1 |
| Spain | — | — | 3 | — | 3 | 3 |
| United Kingdom | — | — | 11 | — | 11 | 1 |
| Sweden | — | — | 7 | — | 7 | 12 |
| Canada | — | — | 0 | — | 0 | (1) |
| | — | — | 63 | 1 | 64 | 31 |
| Total | — | — | 69 | 1 | 70 | 41 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2016

31.12.2016

31.12.2015

31.12.2015

Non-current co-financing

Non-current co-financing

Belgium

Belgium

—

—

2

2

—

2

2

1

1

Germany

Germany

—

—

0

0

—

0

0

1

1

United Kingdom

United Kingdom

—

—

1

1

—

1

1

3

3

Sweden

Sweden

—

—

2

2

—

2

2

4

4

Canada

Canada

—

—

0

0

—

0

0

1

1

—

—

—

—

6

6

—

—

6

6

10

10

Current co-financing

Current co-financing

Belgium

Belgium

—

—

3

3

1

1

4

4

3

3

Denmark

Denmark

—

—

1

1

0

0

1

1

1

1

France

France

—

—

37

37

—

37

37

10

10

Germany

Germany

—

—

1

1

—

1

1

1

1

Netherlands

Netherlands

—

—

1

1

—

1

1

1

1

Spain

Spain

—

—

3

3

—

3

3

3

3

United Kingdom

United Kingdom

—

—

11

11

—

11

11

1

1

Sweden

Sweden

—

—

7

7

—

7

7

12

12

Canada

Canada

—

—

0

0

—

0

0

(1)

(1)

—

—

—

—

63

63

1

1

64

64

31

31

Total

Total

—

—

—

—

69

69

1

1

70

70

41

41

The total non-current and current co-financing payables increased by EUR 29 million compared to the previous reporting period.

During 2016, new co-financing contributions were received from United Kingdom (EUR 9,4 million), Belgium (EUR 3,3 million) and Sweden (EUR 0,9 million).

The total non-current and current co-financing payables increased by EUR 15 million in order to recognise revenue and expenses related to co-financed projects (see notes 3.1.2 and 3.4).

3.1.2

3.4

2.7.2.2.   Deferred fund capital contributions

Deferred fund capital contributions

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2016 | 31.12.2015 |
| United Kingdom | — | — | 252 | — | 252 | 259 |
| Sweden | — | — | — | — | — | 48 |
| Hungary | — | — | 9 | — | 9 | — |
| Total | — | — | 261 | — | 261 | 307 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2016

31.12.2016

31.12.2015

31.12.2015

United Kingdom

United Kingdom

—

—

252

252

—

252

252

259

259

Sweden

Sweden

—

—

—

—

—

—

—

48

48

Hungary

Hungary

—

—

—

9

9

—

—

9

9

—

—

Total

Total

—

—

261

261

—

261

261

307

307

The heading deferred fund capital contributions relates to Member States’ contributions paid in advance.

2.7.2.3.   Other sundry payables

Other sundry payables

Included under this heading are mainly unallocated cash receipts and returned payments.

2.8.   ACCRUED CHARGES AND DEFERRED INCOME

ACCRUED CHARGES AND DEFERRED INCOME

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2016 | 31.12.2015 |
| Accrued charges | 1 | 93 | 567 | 110 | 770 | 853 |
| Other accruals and deferrals | — | (0) | (0) | 6 | 6 | 2 |
| Total | 1 | 93 | 567 | 115 | 776 | 855 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2016

31.12.2016

31.12.2015

31.12.2015

Accrued charges

Accrued charges

1

1

93

93

567

567

110

110

770

770

853

853

Other accruals and deferrals

Other accruals and deferrals

—

(0)

(0)

(0)

(0)

6

6

6

6

2

2

Total

Total

1

1

93

93

567

567

115

115

776

776

855

855

Accrued charges comprise estimated operating expenses for on-going or ended contracts without validated cost claims where the 2016 eligible expenses incurred by beneficiaries of EDF were estimated using the best available information about the existing contracts. 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 2.1).

2.1

NET ASSETS

2.9.   FUND CAPITAL

FUND CAPITAL

2.9.1.   Called fund capital — active EDFs

Called fund capital — active EDFs

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | Total |
| Fund capital | 12 164 | 10 973 | 20 960 | 29 367 | 73 464 |
| Uncalled fund capital | (0) | (0) | (5 223 ) | (29 367 ) | (34 590 ) |
| Called fund capital 31.12.2015 | 12 164 | 10 973 | 15 737 | — | 38 873 |
| | | | | | |
| Fund capital | 12 164 | 10 973 | 20 960 | 29 367 | 73 464 |
| Uncalled fund capital | — | (0) | (1 773 ) | (29 367 ) | (31 140 ) |
| Called fund capital 31.12.2016 | 12 164 | 10 973 | 19 187 | — | 42 323 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

Total

Total

Fund capital

Fund capital

12 164

12 164

10 973

10 973

20 960

20 960

29 367

29 367

73 464

73 464

Uncalled fund capital

Uncalled fund capital

(0)

(0)

(0)

(0)

(5 223 )

(5 223 )

(29 367 )

(29 367 )

(34 590 )

(34 590 )

Called fund capital 31.12.2015

Called fund capital 31.12.2015

12 164

12 164

10 973

10 973

15 737

15 737

—

38 873

38 873

Fund capital

Fund capital

12 164

12 164

10 973

10 973

20 960

20 960

29 367

29 367

73 464

73 464

Uncalled fund capital

Uncalled fund capital

—

(0)

(0)

(1 773 )

(1 773 )

(29 367 )

(29 367 )

(31 140 )

(31 140 )

Called fund capital 31.12.2016

Called fund capital 31.12.2016

12 164

12 164

10 973

10 973

19 187

19 187

—

42 323

42 323

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 the initial allocation not yet called up from Member States.

The called fund capital represents the amount of the initial allocations which have been called up for transfer to the treasury accounts by the Member States (see note 2.9.2 below).

2.9.2

2.9.2.   Called and uncalled fund capital by Member State

Called and uncalled fund capital by Member State

| EUR millions |
| --- |
| Contributions | % | Uncalled capital 31.12.2015 | Capital called in 2016 | Uncalled capital 31.12.2016 |
| Austria | 2,41 | 126 | (83) | 43 |
| Belgium | 3,53 | 184 | (122) | 63 |
| Bulgaria | 0,14 | 7 | (5) | 2 |
| Cyprus | 0,09 | 5 | (3) | 2 |
| Czech Republic | 0,51 | 27 | (18) | 9 |
| Denmark | 2,00 | 104 | (69) | 35 |
| Estonia | 0,05 | 3 | (2) | 1 |
| Finland | 1,47 | 77 | (51) | 26 |
| France | 19,55 | 1 021 | (674) | 347 |
| Germany | 20,50 | 1 071 | (707) | 364 |
| Greece | 1,47 | 77 | (51) | 26 |
| Hungary | 0,55 | 29 | (19) | 10 |
| Ireland | 0,91 | 48 | (31) | 16 |
| Italy | 12,86 | 672 | (444) | 228 |
| Latvia | 0,07 | 4 | (2) | 1 |
| Lithuania | 0,12 | 6 | (4) | 2 |
| Luxembourg | 0,27 | 14 | (9) | 5 |
| Malta | 0,03 | 2 | (1) | 1 |
| Netherlands | 4,85 | 253 | (167) | 86 |
| Poland | 1,30 | 68 | (45) | 23 |
| Portugal | 1,15 | 60 | (40) | 20 |
| Romania | 0,37 | 19 | (13) | 7 |
| Slovakia | 0,21 | 11 | (7) | 4 |
| Slovenia | 0,18 | 9 | (6) | 3 |
| Spain | 7,85 | 410 | (271) | 139 |
| Sweden | 2,74 | 143 | (95) | 49 |
| United Kingdom | 14,82 | 774 | (511) | 263 |
| Total | 100,00 | 5 223 | (3 450 ) | 1 773 |

EUR millions

Contributions

%

Uncalled capital 31.12.2015

Capital called in 2016

Uncalled capital 31.12.2016

Austria

2,41

126

(83)

43

Belgium

3,53

184

(122)

63

Bulgaria

0,14

7

(5)

2

Cyprus

0,09

5

(3)

2

Czech Republic

0,51

27

(18)

9

Denmark

2,00

104

(69)

35

Estonia

0,05

3

(2)

1

Finland

1,47

77

(51)

26

France

19,55

1 021

(674)

347

Germany

20,50

1 071

(707)

364

Greece

1,47

77

(51)

26

Hungary

0,55

29

(19)

10

Ireland

0,91

48

(31)

16

Italy

12,86

672

(444)

228

Latvia

0,07

4

(2)

1

Lithuania

0,12

6

(4)

2

Luxembourg

0,27

14

(9)

5

Malta

0,03

2

(1)

1

Netherlands

4,85

253

(167)

86

Poland

1,30

68

(45)

23

Portugal

1,15

60

(40)

20

Romania

0,37

19

(13)

7

Slovakia

0,21

11

(7)

4

Slovenia

0,18

9

(6)

3

Spain

7,85

410

(271)

139

Sweden

2,74

143

(95)

49

United Kingdom

14,82

774

(511)

263

Total

Total

100,00

100,00

5 223

5 223

(3 450 )

(3 450 )

1 773

1 773

Capital called in 2016 comprises entirely calls from 10th EDF. The total amount composes of ordinary call (EUR 3 450 million). The capital of the Eighth and the Ninth EDF has been called up and received in its entirety. No capital has yet been called from 11th EDF.

2.9.3.   Called fund capital from closed EDFs carried forward

Called fund capital from closed EDFs carried forward

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2016 | 31.12.2015 |
| Funds transferred from closed EDFs | 627 | 1 625 | — | — | 2 252 | 2 252 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2016

31.12.2016

31.12.2015

31.12.2015

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.

2.9.4.   Called fund capital transfers between active EDFs

Called fund capital transfers between active EDFs

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | Total |
| Balance at 31.12.2014 | (3 147 ) | 1 758 | (209) | 1 597 | — |
| Transfer of decommitted amounts to the 10th EDF performance reserve from previous EDFs | (6) | (109) | 114 | — | — |
| Transfer of decommitted amounts to the 11th EDF performance reserve from previous EDFs | — | — | (32) | 32 | — |
| Transfer from the 10th and 11th performance reserves to the Bridging Facility | — | — | (41) | 41 | — |
| Recoveries from the Bridging Facility to the 10th and 11th performance reserves | — | — | 11 | (11) | — |
| Return of funds committed under the Bridging Facility | 676 | 727 | 192 | (1 595 ) | — |
| Balance at 31.12.2015 | (2 476 ) | 2 376 | 35 | 65 | — |
| Transfer of decommitted amounts to the 10th EDF performance reserve from previous EDFs | (20) | (163) | 182 | | — |
| Transfer of decommitted amounts to the 11th EDF performance reserve from previous EDFs | — | — | (356) | 356 | — |
| Transfer from the 11th performance reserve to the African Peace Facility (10th EDF) | — | — | 386 | (386) | — |
| Balance at 31.12.2016 | (2 496 ) | 2 214 | 247 | 35 | — |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

Total

Balance at 31.12.2014

Balance at 31.12.2014

(3 147 )

(3 147 )

1 758

1 758

(209)

(209)

1 597

1 597

—

—

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

(6)

(6)

(109)

(109)

114

114

—

—

—

—

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

—

—

—

—

(32)

(32)

32

32

—

—

Transfer from the 10th and 11th performance reserves to the Bridging Facility

Transfer from the 10th and 11th performance reserves to the Bridging Facility

—

—

—

—

(41)

(41)

41

41

—

—

Recoveries from the Bridging Facility to the 10th and 11th performance reserves

Recoveries from the Bridging Facility to the 10th and 11th performance reserves

—

—

—

—

11

11

(11)

(11)

—

—

Return of funds committed under the Bridging Facility

Return of funds committed under the Bridging Facility

676

676

727

727

192

192

(1 595 )

(1 595 )

—

—

Balance at 31.12.2015

Balance at 31.12.2015

(2 476 )

(2 476 )

2 376

2 376

35

35

65

65

—

—

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

(20)

(20)

(163)

(163)

182

182

—

—

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

—

—

—

—

(356)

(356)

356

356

—

—

Transfer from the 11th performance reserve to the African Peace Facility (10th EDF)

Transfer from the 11th performance reserve to the African Peace Facility (10th EDF)

—

—

—

—

386

386

(386)

(386)

—

—

Balance at 31.12.2016

Balance at 31.12.2016

(2 496 )

(2 496 )

2 214

2 214

247

247

35

35

—

—

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.

In 2016 EUR 386 million was taken from the 11th Performance reserve to finance the African Peace Facility under the 10th EDF.

3.   NOTES TO THE STATEMENT OF FINANCIAL PERFORMANCE

NOTES TO THE STATEMENT OF FINANCIAL PERFORMANCE

REVENUE

| EUR millions |
| --- |
| | Note | 2016 | 2015 |
| Revenue from non-exchange transactions | 3.1 | 8 | 90 |
| Revenue from exchange transactions | 3.2 | 66 | 50 |
| Total | | 73 | 140 |

EUR millions

Note

2016

2015

Revenue from non-exchange transactions

Revenue from non-exchange transactions

3.1

3.1

8

8

90

90

Revenue from exchange transactions

Revenue from exchange transactions

3.2

3.2

66

66

50

50

Total

Total

73

73

140

140

3.1.   REVENUE FROM NON-EXCHANGE TRANSACTIONS

REVENUE FROM NON-EXCHANGE TRANSACTIONS

| EUR millions |
| --- |
| | Note | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 2016 | 2015 |
| Recovery of expenses | | 0 | 5 | 13 | 4 | 23 | 20 |
| Recovery of Stabex funds | 3.1.1 | 1 | — | — | — | 1 | 1 |
| Co-financing revenue | 3.1.2 | — | — | (15) | — | (15) | 69 |
| Total | | 1 | 5 | (2) | 4 | 8 | 90 |

EUR millions

Note

Eighth EDF

Ninth EDF

10th EDF

11th EDF

2016

2016

2015

2015

Recovery of expenses

Recovery of expenses

0

0

5

5

13

13

4

4

23

23

20

20

Recovery of Stabex funds

Recovery of Stabex funds

3.1.1

3.1.1

1

1

—

—

—

—

—

—

1

1

1

1

Co-financing revenue

Co-financing revenue

3.1.2

3.1.2

—

—

—

—

(15)

(15)

—

—

(15)

(15)

69

69

Total

Total

1

1

5

5

(2)

(2)

4

4

8

8

90

90

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

| EUR millions |
| --- |
| | 2016 | 2015 |
| Direct Management | 6 | 61 |
| | Implemented by: |

EUR millions

2016

2015

Direct Management

Direct Management

6

6

61

61

Implemented by:

Implemented by:

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

Commission

Commission

1

1

3

3

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

EU delegations

EU delegations

5

5

58

58

Indirect Management

Indirect Management

2

2

29

29

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

Implemented by:

Implemented by:

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

Third countries

Third countries

(0)

(0)

14

14

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

International organisations

International organisations

2

2

14

14

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

Public law bodies

Public law bodies

0

0

0

0

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

Private law bodies with a public service mission

Private law bodies with a public service mission

0

0

1

1

Total

Total

8

8

90

90

3.1.1.   
  Recovery of Stabex funds

Recovery of Stabex funds

During 2016, EUR 1 million was returned to the EDF from double signature accounts in ACP countries. These revenues are included under revenue from non-exchange transactions (recovery of Stabex funds) in the statement of financial performance of the Eighth EDF.

3.1.2.   
  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. The received contributions remain under liabilities (see note 2.7.2.1) 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 as non-exchange revenue from co-financing. Consequently the effect on economic result of the year is nil.

2.7.2.1

3.4

3.2.   REVENUE FROM EXCHANGE TRANSACTIONS

REVENUE FROM EXCHANGE TRANSACTIONS

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 2016 | 2015 |
| Financial income | (0) | 2 | 2 | (1) | 3 | 8 |
| Other income | 2 | 17 | 40 | 3 | 62 | 42 |
| Total | 2 | 19 | 43 | 2 | 66 | 50 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

2016

2016

2015

2015

Financial income

Financial income

(0)

(0)

2

2

2

2

(1)

(1)

3

3

8

8

Other income

Other income

2

2

17

17

40

40

3

3

62

62

42

42

Total

Total

2

2

19

19

43

43

2

2

66

66

50

50

The financial income largely comprises interest on pre-financing that in 2016 amounted to EUR 3 million (2) (2015: EUR 7 million).

2

Other income entirely relates to the realised and unrealised foreign exchange gains.

EXPENSES

EXPENSES

3.3.   AID INSTRUMENTS

AID INSTRUMENTS

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 2016 | 2015 |
| Programmable aid | 1 | (3) | 1 007 | 746 | 1 751 | 1 971 |
| Macroeconomic support | — | 39 | — | — | 39 | 51 |
| Sectoral policy | (0) | 18 | — | — | 18 | (24) |
| Intra ACP projects | — | 41 | 301 | 351 | 693 | 746 |
| Interest rate subsidies | (3) | — | — | — | (3) | (6) |
| Emergency aid | — | (0) | 98 | 300 | 398 | 285 |
| Other aid programmes related to former EDFs | — | 1 | — | — | 1 | 0 |
| Institutional support | — | — | 5 | 33 | 38 | 34 |
| Compensation export receipts | (0) | 0 | — | — | 0 | (3) |
| Contributions to Trust Funds | — | — | — | 35 | 35 | 5 |
| Total | (2) | 95 | 1 411 | 1 465 | 2 970 | 3 059 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

2016

2016

2015

2015

Programmable aid

Programmable aid

1

1

(3)

(3)

1 007

1 007

746

746

1 751

1 751

1 971

1 971

Macroeconomic support

Macroeconomic support

—

—

39

39

—

—

—

—

39

39

51

51

Sectoral policy

Sectoral policy

(0)

(0)

18

18

—

—

—

—

18

18

(24)

(24)

Intra ACP projects

Intra ACP projects

—

—

41

41

301

301

351

351

693

693

746

746

Interest rate subsidies

Interest rate subsidies

(3)

(3)

—

—

—

—

—

—

(3)

(3)

(6)

(6)

Emergency aid

Emergency aid

—

—

(0)

(0)

98

98

300

300

398

398

285

285

Other aid programmes related to former EDFs

Other aid programmes related to former EDFs

—

—

1

1

—

—

—

—

1

1

0

0

Institutional support

Institutional support

—

—

—

—

5

5

33

33

38

38

34

34

Compensation export receipts

Compensation export receipts

(0)

(0)

0

0

—

—

—

—

0

0

(3)

(3)

Contributions to Trust Funds

Contributions to Trust Funds

—

—

—

—

—

—

35

35

35

35

5

5

Total

Total

(2)

(2)

95

95

1 411

1 411

1 465

1 465

2 970

2 970

3 059

3 059

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

3.4.   CO-FINANCING EXPENSES

CO-FINANCING EXPENSES

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 2016 | 2015 |
| Co-financing | — | — | (15) | — | (15) | 69 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

2016

2016

2015

2015

Co-financing

Co-financing

—

—

—

—

(15)

(15)

—

—

(15)

(15)

69

69

Included under this heading are the expenses incurred on co-financing projects in 2016. 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). Because the reversals of the 2015 estimated expenses (EUR 50 million) exceed the expenses incurred in 2016 (EUR 35 million), the co-financing expenses are negative for 2016. Corresponding negative revenue has been recognised in the statement of financial performance (see note 3.1.2).

3.1.2

3.5.   AID INSTRUMENTS AND CO-FINANCING EXPENSES BY MANAGEMENT TYPE

AID INSTRUMENTS AND CO-FINANCING EXPENSES BY MANAGEMENT TYPE

| EUR millions |
| --- |
| | 2016 | 2015 |
| Direct Management | 1 173 | 1 106 |
| | Implemented by: |

EUR millions

2016

2015

Direct Management

Direct Management

1 173

1 173

1 106

1 106

Implemented by:

Implemented by:

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

Commission

Commission

140

140

99

99

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

EU executive agencies

EU executive agencies

10

10

2

2

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

Trust Funds

Trust Funds

36

36

5

5

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

EU delegations

EU delegations

987

987

1 000

1 000

Indirect Management

Indirect Management

1 781

1 781

2 023

2 023

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

Implemented by:

Implemented by:

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

EIB and EIF

EIB and EIF

5

5

31

31

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

International organisations

International organisations

821

821

990

990

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

Private law bodies with a public service mission

Private law bodies with a public service mission

143

143

31

31

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

Public law bodies

Public law bodies

57

57

70

70

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

Third countries

Third countries

756

756

900

900

| | | Private law bodies implementing Public Private Partnership |
| --- | --- | --- |

Private law bodies implementing Public Private Partnership

Private law bodies implementing Public Private Partnership

(1)

(1)

1

1

Total

Total

2 954

2 954

3 128

3 128

3.6.   FINANCE COSTS

FINANCE COSTS

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 2016 | 2015 |
| Write-down of receivables | 0 | 0 | (4) | — | (4) | 1 |
| Other financial expenses | — | — | — | 0 | 0 | 0 |
| Total | 0 | 0 | (4) | 0 | (4) | 1 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

2016

2016

2015

2015

Write-down of receivables

Write-down of receivables

0

0

0

0

(4)

(4)

—

—

(4)

(4)

1

1

Other financial expenses

Other financial expenses

—

—

—

—

—

—

0

0

0

0

0

0

Total

Total

0

0

0

0

(4)

(4)

0

0

(4)

(4)

1

1

The heading write-down of receivables comprises closure estimate of expenses on irrecoverable receivables and also includes reversals of the estimated amounts related to last year. Because the reversals of the 2015 amounts (EUR 29 million) exceed the amounts estimated in 2016 (EUR 25 million), the overall expenses related to write-down of receivables are negative for 2016.

3.7.   OTHER EXPENSES

OTHER EXPENSES

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 2016 | 2015 |
| Administrative and IT expenses | — | (0) | 4 | 126 | 129 | 113 |
| Provision for risks and charges | — | — | — | — | — | 4 |
| Realised losses on trade debtors | 0 | 0 | 0 | — | 0 | 2 |
| Exchange loses | 3 | 19 | 42 | 3 | 66 | 44 |
| Total | 3 | 19 | 46 | 129 | 196 | 162 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

2016

2016

2015

2015

Administrative and IT expenses

Administrative and IT expenses

—

—

(0)

(0)

4

4

126

126

129

129

113

113

Provision for risks and charges

Provision for risks and charges

—

—

—

—

—

—

—

—

—

—

4

4

Realised losses on trade debtors

Realised losses on trade debtors

0

0

0

0

0

0

—

—

0

0

2

2

Exchange loses

Exchange loses

3

3

19

19

42

42

3

3

66

66

44

44

Total

Total

3

3

19

19

46

46

129

129

196

196

162

162

This heading includes 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 millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2016 | 31.12.2015 |
| Performance guarantees | (0) | 4 | 5 | 0 | 9 | 13 |
| Retention guarantees | — | 4 | 3 | — | 7 | 6 |
| Total | (0) | 7 | 8 | 0 | 16 | 20 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2016

31.12.2016

31.12.2015

31.12.2015

Performance guarantees

Performance guarantees

(0)

(0)

4

4

5

5

0

0

9

9

13

13

Retention guarantees

Retention guarantees

—

—

4

4

3

3

—

—

7

7

6

6

Total

Total

(0)

(0)

7

7

8

8

0

0

16

16

20

20

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 contractor fulfils 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.

In case of contracts managed under the indirect mode, the guarantees belong to a contracting authority other than the EDF and they are not recorded 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 open commitments for which payments and/or de-commitments have not yet been made. This is the normal consequence of the existence of multi-annual programmes.

| EUR millions |
| --- |
| | Eighth EDF | Ninth EDF | 10th EDF | 11th EDF | 31.12.2016 | 31.12.2015 |
| Outstanding commitments not yet expensed | 2 | 202 | 2 406 | 4 136 | 6 746 | 5 821 |
| Total | 2 | 202 | 2 406 | 4 136 | 6 746 | 5 821 |

EUR millions

Eighth EDF

Ninth EDF

10th EDF

11th EDF

31.12.2016

31.12.2016

31.12.2015

31.12.2015

Outstanding commitments not yet expensed

Outstanding commitments not yet expensed

2

2

202

202

2 406

2 406

4 136

4 136

6 746

6 746

5 821

5 821

Total

Total

2

2

202

202

2 406

2 406

4 136

4 136

6 746

6 746

5 821

5 821

At 31 December 2016 the budgetary RAL totalled EUR 7 665 million (2015: EUR 6 809 million).

4.2.2.   
  Centre for the Development of Enterprise

Centre for the Development of Enterprise

The ACP-EU Council of Ministers agreed in June 2014 ‘to proceed with the orderly closing of the CDE’, and at the same time ‘to ensure that the private sector support projects implemented by the CDE in ACP countries and regions are completed in full’. For this purpose, the ACP-EU Council of Ministers granted a delegation of powers to the ACP-EU Committee of Ambassadors to take this matter forward with a view to adopt the necessary decisions.

The ACP-EU Committee of Ambassadors authorised, by Decision No 4/2014 of 23/10/2014, the Executive Board of the CDE to take, with immediate effect, all appropriate measures to prepare for the closure of the CDE. As stipulated in article 2 of that Decision, the Executive Board was instructed to contract a Curator to prepare and implement a closure plan.

The Curator submitted to the CDE Executive Board at the end of June 2015 a definitive strategic plan, with a budget and work-plan, which reflected the outcome of the social dialogue. The budget of the definitive strategic plan, approved by the CDE Executive Board, was the basis for the Commission’s proposal for a Financing Decision that was adopted by the EC in 2015 for a total amount of EUR 18,2 million. Subsequent to the adoption of the above Financing Decision, a grant agreement was concluded in December 2015 between the CDE and the European Commission providing the necessary financing for the realization of CDE’s assets and settlement of its liabilities. This grant agreement started on 1 January 2016 and will last until 31 December 2017. The value of the contract is covered by the outstanding commitments not yet expensed.

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:

| — | 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. |
| --- | --- |

—

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.

| — | EDF contributions are paid by Member States in EUR, while the EDF’s payments are denominated in EUR and in other currencies, including less well-known ones. |
| --- | --- |

—

EDF contributions are paid by Member States in EUR, while the EDF’s payments are denominated in EUR and in other currencies, including less well-known ones.

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

—

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 millions |
| --- |
| | 31.12.2016 | 31.12.2015 |
| USD | GBP | DKK | SEK | EUR | Other | Total | USD | GBP | DKK | SEK | EUR | Other | Total |
| Financial assets | | | | | | | | | | | | | | |
| Receivables and recoverables | 0 | — | — | — | 129 | 3 | 132 | — | — | — | — | 171 | 1 | 171 |
| Cash and cash equivalents | 2 | 0 | — | — | 678 | — | 680 | 4 | 0 | — | — | 500 | — | 504 |
| Total | 2 | 0 | — | — | 807 | 3 | 812 | 4 | 0 | — | — | 671 | 1 | 675 |
| Financial liabilities | | | | | | | | | | | | | | |
| Non-current financial liabilities | — | — | — | — | (6) | — | (6) | 0 | — | — | — | (10) | — | (10) |
| Payables | 0 | — | — | — | (495) | (54) | (549) | 0 | — | — | — | (473) | (47) | (520) |
| Total | 0 | — | — | — | (501) | (54) | (555) | 0 | — | — | — | (483) | (47) | (530) |
| Total | 2 | 0 | — | — | 306 | (51) | 257 | 4 | 0 | — | — | 188 | (46) | 145 |

EUR millions

31.12.2016

31.12.2015

USD

GBP

DKK

SEK

EUR

Other

Total

USD

GBP

DKK

SEK

EUR

Other

Total

Financial assets

Financial assets

Receivables and recoverables

Receivables and recoverables

0

0

—

—

—

—

—

—

129

129

3

3

132

132

—

—

—

—

—

—

—

—

171

171

1

1

171

171

Cash and cash equivalents

Cash and cash equivalents

2

2

0

0

—

—

—

—

678

678

—

—

680

680

4

4

0

0

—

—

—

—

500

500

—

—

504

504

Total

Total

2

2

0

0

—

—

—

—

807

807

3

3

812

812

4

4

0

0

—

—

—

—

671

671

1

1

675

675

Financial liabilities

Financial liabilities

Non-current financial liabilities

Non-current financial liabilities

—

—

—

—

—

—

—

—

(6)

(6)

—

—

(6)

(6)

0

0

—

—

—

—

—

—

(10)

(10)

—

—

(10)

(10)

Payables

Payables

0

0

—

—

—

—

—

—

(495)

(495)

(54)

(54)

(549)

(549)

0

0

—

—

—

—

—

—

(473)

(473)

(47)

(47)

(520)

(520)

Total

Total

0

0

—

—

—

—

—

—

(501)

(501)

(54)

(54)

(555)

(555)

0

0

—

—

—

—

—

—

(483)

(483)

(47)

(47)

(530)

(530)

Total

Total

2

2

0

0

—

—

—

—

306

306

(51)

(51)

257

257

4

4

0

0

—

—

—

—

188

188

(46)

(46)

145

145

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 as a consequence it is not exposed to interest rate risk.

Interest is accrued on balances it holds on its different banks accounts. The Commission, on behalf of the EDF, has therefore put in place measures to ensure that interest earned regularly reflect 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, any negative remuneration on these accounts is borne by the relevant Member State.

Overnight balances held on 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 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 millions |
| --- |
| | Total | Neither past due nor impaired | Past due but not impaired |
| < 1 year | 1-5 years | > 5 years |
| Exchange receivables and non-exchange recoverables | 132 | 93 | 36 | 4 | — |
| Total at 31.12.2016 | 132 | 93 | 36 | 4 | — |
| Exchange receivables and non-exchange recoverables | 171 | 50 | 120 | 1 | — |
| Total at 31.12.2015 | 171 | 50 | 120 | 1 | — |

EUR millions

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

132

132

93

93

36

36

4

4

—

—

Total at 31.12.2016

Total at 31.12.2016

132

132

93

93

36

36

4

4

—

—

Exchange receivables and non-exchange recoverables

Exchange receivables and non-exchange recoverables

171

171

50

50

120

120

1

1

—

—

Total at 31.12.2015

Total at 31.12.2015

171

171

50

50

120

120

1

1

—

—

Financial assets by risk category:

Financial assets by risk category:

| EUR millions |
| --- |
| | 31.12.2016 | 31.12.2015 |
| Receivables | Cash | Total | Receivables | Cash | Total |
| Counterparties with external credit rating | | | | | | |
| Prime and high grade | 34 | 284 | 318 | 6 | 167 | 173 |
| Upper medium grade | 3 | 371 | 374 | 34 | 16 | 50 |
| Lower medium grade | 2 | 16 | 18 | 36 | 312 | 348 |
| Non- investment grade | 1 | 9 | 10 | 14 | 9 | 23 |
| Total | 40 | 680 | 720 | 90 | 503 | 593 |
| Counterparties without external credit rating | | | | | | |
| Group 1 (debtors without defaults in the past) | 92 | 0 | 92 | 81 | 1 | 82 |
| Group 2 (debtors with defaults in the past) | — | — | — | — | — | — |
| Total | 92 | 0 | 92 | 81 | 1 | 82 |
| Total | 132 | 680 | 812 | 171 | 504 | 675 |

EUR millions

31.12.2016

31.12.2015

Receivables

Cash

Total

Receivables

Cash

Total

Counterparties with external credit rating

Counterparties with external credit rating

Prime and high grade

Prime and high grade

34

34

284

284

318

318

6

6

167

167

173

173

Upper medium grade

Upper medium grade

3

3

371

371

374

374

34

34

16

16

50

50

Lower medium grade

Lower medium grade

2

2

16

16

18

18

36

36

312

312

348

348

Non- investment grade

Non- investment grade

1

1

9

9

10

10

14

14

9

9

23

23

Total

Total

40

40

680

680

720

720

90

90

503

503

593

593

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)

92

92

0

0

92

92

81

81

1

1

82

82

Group 2 (debtors with defaults in the past)

Group 2 (debtors with defaults in the past)

—

—

—

—

—

—

—

—

—

—

—

—

Total

Total

92

92

0

0

92

92

81

81

1

1

82

82

Total

Total

132

132

680

680

812

812

171

171

504

504

675

675

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 22(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. As a consequence 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 further minimise counterparty risk to which the EDF is exposed.

All commercial banks are selected by call for tenders. 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 required 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 millions |
| --- |
| | < 1 year | 1-5 years | > 5 years | Total |
| Financial liabilities | 549 | 6 | — | 555 |
| Total at 31.12.2016 | 549 | 6 | — | 555 |
| Financial liabilities | 520 | 10 | — | 530 |
| Total at 31.12.2015 | 520 | 10 | — | 530 |

EUR millions

< 1 year

1-5 years

> 5 years

Total

Financial liabilities

Financial liabilities

549

549

6

6

—

—

555

555

Total at 31.12.2016

Total at 31.12.2016

549

549

6

6

—

—

555

555

Financial liabilities

Financial liabilities

520

520

10

10

—

—

530

530

Total at 31.12.2015

Total at 31.12.2015

520

520

10

10

—

—

530

530

Budget principles applied to the EDF ensure that overall cash resources for the budgetary period are always sufficient for the execution of all related 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 certain 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’ treasury and the relevant spending departments in order to ensure that payments executed in any given period do not exceed the available treasury resources.

In addition to the above, in the context of the EDF’s daily 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 EU Trust Fund and the EUTF for Africa. 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 accounts, 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.

8.   RECONCILIATION OF ECONOMIC RESULT AND BUDGET RESULT

RECONCILIATION OF ECONOMIC RESULT AND BUDGET RESULT

The economic result of the year is calculated on the basis of 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 reconcilable. The table below shows this reconciliation, highlighting the key reconciling amounts, split between revenue and expenditure items.

| EUR millions |
| --- |
| | 2016 | 2015 |
| ECONOMIC RESULT OF THE YEAR | (3 073 ) | (3 152 ) |
| Revenue | | |
| Entitlements not affecting the budget result | (2) | (1) |
| Entitlements established in current year but not yet collected | (7) | (11) |
| Entitlements established in previous years and collected in current year | 16 | 19 |
| Net effect of pre-financing | 43 | 28 |
| Accrued revenue (net) | 8 | 29 |
| Expenses | | |
| Expenses of the current year not yet paid | 63 | 61 |
| Expenses of previous years paid in the current year | (129) | (221) |
| Payments cancellation | 22 | 12 |
| Net effect of pre-financing | (459) | (53) |
| Accrued expenses (net) | 168 | 200 |
| BUDGET RESULT OF THE YEAR | (3 350 ) | (3 088 ) |

EUR millions

2016

2015

ECONOMIC RESULT OF THE YEAR

ECONOMIC RESULT OF THE YEAR

(3 073 )

(3 073 )

(3 152 )

(3 152 )

Revenue

Revenue

Entitlements not affecting the budget result

Entitlements not affecting the budget result

(2)

(2)

(1)

(1)

Entitlements established in current year but not yet collected

Entitlements established in current year but not yet collected

(7)

(7)

(11)

(11)

Entitlements established in previous years and collected in current year

Entitlements established in previous years and collected in current year

16

16

19

19

Net effect of pre-financing

Net effect of pre-financing

43

43

28

28

Accrued revenue (net)

Accrued revenue (net)

8

8

29

29

Expenses

Expenses

Expenses of the current year not yet paid

Expenses of the current year not yet paid

63

63

61

61

Expenses of previous years paid in the current year

Expenses of previous years paid in the current year

(129)

(129)

(221)

(221)

Payments cancellation

Payments cancellation

22

22

12

12

Net effect of pre-financing

Net effect of pre-financing

(459)

(459)

(53)

(53)

Accrued expenses (net)

Accrued expenses (net)

168

168

200

200

BUDGET RESULT OF THE YEAR

BUDGET RESULT OF THE YEAR

(3 350 )

(3 350 )

(3 088 )

(3 088 )

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.

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.

The net effect of pre-financing is the clearing of the recovered pre-financing amounts. This is a cash receipt which has no impact on the economic result.

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.

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 impact 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 (14)

14

FINAL ANNUAL ACCOUNTS OF THE BÊKOU EU TRUST FUND (15)

15

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

A trust fund is a legal arrangement with a distinct financial structure that pools the funds of several donors to jointly finance an action on the basis of commonly agreed objectives and reporting formats.

In accordance with Article 187(1) of the Financial Regulation applicable to the general budget of the Union (EU FR) and Article 42 of the Financial Regulation applicable to the 11th European Development Fund (EDF FR), the Commission is authorised to create Union Trust Funds for external actions (EUTF). The EUTFs are created under an agreement concluded with other donors to respond to emergency, post-emergency or thematic actions. The establishment of an EUTF needs to be justified namely by EU added value (its objectives can be better met at EU than at national level), and complementarity (the trust fund should not duplicate already existing and similar instruments).

EUTFs are created for a limited duration, which is, together with its objectives, defined by the constitutive act of each trust fund. In accordance with Article 187 of the EU FR, the EUTF has specific governance arrangements and contributions are placed outside the EU budget. Each EUTF has a governing board (‘trust fund board’) chaired by the Commission with representation of the donors and the non-contributing Member States as observers.

The Operational Board that is composed of the EU representative (the ‘Chair’), founding Members (‘Deputy Chairs’) and representatives of other donors, who contributed at least EUR 3 million (‘Members’), decides upon the use of the funds of the EUTF and assesses the effectiveness of the activities financed by the EUTF. On the administrative level the Operational Board is amongst others responsible for approval of the annual report, audited annual accounts, assessing the effectiveness of the internal control systems, follow up of observations by internal and external auditors, etc.

EUTFs are managed by the Commission under the responsibility of the authorising officer by delegation who provides assurance on the use of the funds to the Commission and to third donors. The EUTF manager is the authorising officer by sub-delegation. As is the case for the European Development Fund, the accounting officer of a EUTF is the accounting officer of the Commission, who is responsible for laying down accounting procedures and chart of accounts common to all EUTFs.

The Bêkou Trust Fund

The Bêkou Trust Fund

The first multi-donor EU Trust Fund called Bêkou, which means ‘hope’ in Sango, was established on 15 July 2014, by the EU Commission (represented by DGs DEVCO and ECHO, and the EEAS) and three of its 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. The trust fund is managed from Brussels.

Annual accounts of the Bêkou Trust Fund

Annual accounts of the Bêkou 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 prepared by 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 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 board for approval (Article 8.3.4(c)).

Highlights of the year

Highlights of the year

At the end of 2016, 7 donors contributed to the Bêkou Trust Fund: the European Development Fund (EDF), the EU Budget, 4 Member States (MS) and 1 non-Member State.

The Trust Fund will finance activities that contribute to assisting the Central African Republic in its recovery from crisis and in all aspects of reconstruction, with the emphasis on measures designed to:

| — | Restore essential public services (e.g. electricity, transport, access to justice and access to water) and basic social services (health and education), and stabilise the food and nutrition situation; |
| --- | --- |

—

Restore essential public services (e.g. electricity, transport, access to justice and access to water) and basic social services (health and education), and stabilise the food and nutrition situation;

| — | Revive economic activity; |
| --- | --- |

—

Revive economic activity;

| — | Stabilise the country and restore the social fabric, in particular through reconciliation, peaceful coexistence between the communities of CAR and respect for human rights; |
| --- | --- |

—

Stabilise the country and restore the social fabric, in particular through reconciliation, peaceful coexistence between the communities of CAR and respect for human rights;

| — | Re-establish the legitimacy, rebuild capacity and restore the operation of national and local administrative structures. |
| --- | --- |

—

Re-establish the legitimacy, rebuild capacity and restore the operation of national and local administrative structures.

It will also finance activities that contribute to mitigating the impact of the crisis on the countries sharing a common border with CAR and/or sheltering refugees and those fleeing the violence in CAR.

At the end of 2016 the total contribution pledged to the EUTF amounted to approximately EUR 173 million: EDF with EUR 68 million, EU Budget with EUR 50 million while MS and other donors have announced pledges of EUR 55 million.

In total, 11 programmes had been adopted for the recovery of the country. Up to the end of 2016 an amount of EUR 91,3 million in the areas of health, food and nutrition security, infrastructure, integration of women in the society as well as aid to central african refugies in surrounding countries had been committed.

BALANCE SHEET OF THE BÊKOU EU TRUST FUND

BALANCE SHEET OF THE BÊKOU EU TRUST FUND

| EUR ‘000 |
| --- |
| | 31.12.2016 | 31.12.2015 |
| NON-CURRENT ASSETS | | |
| Pre-financing | 3 604 | 3 446 |
| | 3 604 | 3 446 |
| CURRENT ASSETS | | |
| Pre-financing | 12 458 | 6 047 |
| Exchange receivables and non-exchange recoverables | 1 455 | 1 364 |
| Cash and cash equivalents | 43 036 | 52 461 |
| | 56 949 | 59 873 |
| TOTAL ASSETS | 60 554 | 63 319 |
| NON-CURRENT LIABILITIES | | |
| Financial liabilities | (59 339 ) | (63 125 ) |
| | (59 339 ) | (63 125 ) |
| CURRENT LIABILITIES | | |
| Accrued charges and deferred income | (1 215 ) | (193) |
| | (1 215 ) | (193) |
| TOTAL LIABILITIES | (60 554 ) | (63 319 ) |
| NET ASSETS | — | — |
| FUNDS & RESERVES | | |
| Accumulated surplus | — | — |
| Economic result of the year | — | — |
| NET ASSETS | — | — |

EUR ‘000

31.12.2016

31.12.2015

NON-CURRENT ASSETS

NON-CURRENT ASSETS

Pre-financing

Pre-financing

3 604

3 604

3 446

3 446

3 604

3 604

3 446

3 446

CURRENT ASSETS

CURRENT ASSETS

Pre-financing

Pre-financing

12 458

12 458

6 047

6 047

Exchange receivables and non-exchange recoverables

Exchange receivables and non-exchange recoverables

1 455

1 455

1 364

1 364

Cash and cash equivalents

Cash and cash equivalents

43 036

43 036

52 461

52 461

56 949

56 949

59 873

59 873

TOTAL ASSETS

TOTAL ASSETS

60 554

60 554

63 319

63 319

NON-CURRENT LIABILITIES

NON-CURRENT LIABILITIES

Financial liabilities

Financial liabilities

(59 339 )

(59 339 )

(63 125 )

(63 125 )

(59 339 )

(59 339 )

(63 125 )

(63 125 )

CURRENT LIABILITIES

CURRENT LIABILITIES

Accrued charges and deferred income

Accrued charges and deferred income

(1 215 )

(1 215 )

(193)

(193)

(1 215 )

(1 215 )

(193)

(193)

TOTAL LIABILITIES

TOTAL LIABILITIES

(60 554 )

(60 554 )

(63 319 )

(63 319 )

NET ASSETS

NET ASSETS

—

—

FUNDS & RESERVES

FUNDS & RESERVES

Accumulated surplus

Accumulated surplus

—

—

Economic result of the year

Economic result of the year

—

—

NET ASSETS

NET ASSETS

—

—

STATEMENT OF FINANCIAL PERFORMANCE OF THE BÊKOU EU TRUST FUND

STATEMENT OF FINANCIAL PERFORMANCE OF THE BÊKOU EU TRUST FUND

| EUR ‘000 |
| --- |
| | 2016 | 2015 |
| REVENUE | | |
| Revenue from non-exchange transactions | | |
| Revenue from donations | 17 232 | 9 354 |
| | 17 232 | 9 354 |
| Revenue from exchange transactions | | |
| Financial income | 48 | 101 |
| | 48 | 101 |
| Total Revenue | 17 280 | 9 455 |
| EXPENSES | | |
| Operating expenses | (16 432 ) | (8 824 ) |
| Other expenses | (848) | (631) |
| Total Expenses | (17 280 ) | (9 455 ) |
| ECONOMIC RESULT OF THE YEAR | — | — |

EUR ‘000

2016

2015

REVENUE

REVENUE

Revenue from non-exchange transactions

Revenue from non-exchange transactions

Revenue from donations

Revenue from donations

17 232

17 232

9 354

9 354

17 232

17 232

9 354

9 354

Revenue from exchange transactions

Revenue from exchange transactions

Financial income

Financial income

48

48

101

101

48

48

101

101

Total Revenue

Total Revenue

17 280

17 280

9 455

9 455

EXPENSES

EXPENSES

Operating expenses

Operating expenses

(16 432 )

(16 432 )

(8 824 )

(8 824 )

Other expenses

Other expenses

(848)

(848)

(631)

(631)

Total Expenses

Total Expenses

(17 280 )

(17 280 )

(9 455 )

(9 455 )

ECONOMIC RESULT OF THE YEAR

ECONOMIC RESULT OF THE YEAR

—

—

—

—

CASHFLOW STATEMENT OF THE BÊKOU EU TRUST FUND

CASHFLOW STATEMENT OF THE BÊKOU EU TRUST FUND

| EUR ‘000 |
| --- |
| | 2016 | 2015 |
| Economic result of the year | — | — |
| Operating activities | | |
| (Increase)/decrease in pre-financing | (6 569 ) | (9 493 ) |
| (Increase)/decrease in exchange receivables and non-exchange recoverables | (91) | (1 364 ) |
| Increase/(decrease) in financial liabilities | (3 786 ) | 18 125 |
| Increase/(decrease) in accrued charges and deferred income | 1 021 | 193 |
| NET CASHFLOW | (9 425 ) | 7 461 |
| Net increase/(decrease) in cash and cash equivalents | (9 425 ) | 7 461 |
| Cash and cash equivalents at the beginning of the year | 52 461 | 45 000 |
| Cash and cash equivalents at year-end | 43 036 | 52 461 |

EUR ‘000

2016

2015

Economic result of the year

Economic result of the year

—

—

Operating activities

Operating activities

(Increase)/decrease in pre-financing

(Increase)/decrease in pre-financing

(6 569 )

(6 569 )

(9 493 )

(9 493 )

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

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

(91)

(91)

(1 364 )

(1 364 )

Increase/(decrease) in financial liabilities

Increase/(decrease) in financial liabilities

(3 786 )

(3 786 )

18 125

18 125

Increase/(decrease) in accrued charges and deferred income

Increase/(decrease) in accrued charges and deferred income

1 021

1 021

193

193

NET CASHFLOW

NET CASHFLOW

(9 425 )

(9 425 )

7 461

7 461

Net increase/(decrease) in cash and cash equivalents

Net increase/(decrease) in cash and cash equivalents

(9 425 )

(9 425 )

7 461

7 461

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the beginning of the year

52 461

52 461

45 000

45 000

Cash and cash equivalents at year-end

Cash and cash equivalents at year-end

43 036

43 036

52 461

52 461

STATEMENT OF CHANGES IN NET ASSETS OF THE BÊKOU EU TRUST FUND

STATEMENT OF CHANGES IN NET ASSETS OF THE BÊKOU EU TRUST FUND

| EUR ‘000 |
| --- |
| | Accumulated surplus/
  (deficit) | Economic result of the year | Net assets |
| BALANCE AS AT 31.12.2015 | — | — | — |
| Economic result of the year | — | — | — |
| BALANCE AS AT 31.12.2016 | — | — | — |

EUR ‘000

Accumulated surplus/

(deficit)

Economic result of the year

Net assets

BALANCE AS AT 31.12.2015

BALANCE AS AT 31.12.2015

—

—

—

Economic result of the year

Economic result of the year

—

—

—

BALANCE AS AT 31.12.2016

BALANCE AS AT 31.12.2016

—

—

—

FINAL ANNUAL ACCOUNTS OF THE EUTF FOR AFRICA (16)

16

BACKGROUND INFORMATION ON THE EUTF FOR AFRICA

BACKGROUND INFORMATION ON THE EUTF FOR AFRICA

General background on Union Trust Funds

General background on Union Trust Funds

A trust fund is a legal arrangement with a distinct financial structure that pools the funds of several donors to jointly finance an action on the basis of commonly agreed objectives and reporting formats.

In accordance with Article 187(1) of the Financial Regulation applicable to the general budget of the Union (EU FR) and Article 42 of the Financial Regulation applicable to the 11th European Development Fund (EDF FR), the Commission is authorised to create Union Trust Funds for external actions (EUTF). The EUTFs are created under an agreement concluded with other donors to respond to emergency, postemergency or thematic actions. The establishment of an EUTF needs to be justified namely by EU added value (its objectives can be better met at EU than at national level), and complementarity (the trust fund should not duplicate already existing and similar instruments).

EUTFs offer a number of advantages: they are EU led instruments, offering better coordination with EU Member States; better control of operations by the Union and other donors and enhanced EU visibility. The EUTFs benefit from fast decision-making processes and from their capacity to pool larger sums from different sources making them a flexible, proactive and adaptable tool.

EUTFs are created for a limited duration, which is, together with its objectives, defined by the constitutive act of each trust fund. In accordance with Article 187 of the EU FR, the EUTF has specific governance arrangements and contributions are placed outside the EU budget. Each EUTF has a governing board (‘trust fund board’) chaired by the Commission with representation of the donors and the non-contributing Member States as observers. The trust fund board decides upon the use of the funds of the EUTF.

The work plan of the EUTF is approved by the Operational Board that is composed of the EU representative (the ‘Chair’), founding Members (‘Deputy Chairs’) and representatives of other donors, who contributed at least EUR 3 million (‘Members’) who also assesses the effectiveness of the activities financed by the EUTF. On the administrative level the Operational Board is amongst others resonsible for approval of the annual report, audited annual accounts, assessing the effectiveness of the internal control systems, follow up of observations by internal and external auditors, etc.

EUTFs are managed by the Commission under the responsibility of the authorising officer by delegation who provides assurance on the use of the funds to the Commission and to third donors. The EUTF manager is the authorising officer by sub-delegation. As is the case for the European Development Fund, the accounting officer of a EUTF is the accounting officer of the Commission, who is responsible for laying down accounting procedures and chart of accounts common to all EUTFs.

The EUTF for Africa

The EUTF for Africa

European Union Emergency Trust Fund for stability and addressing root causes of irregular migration and displaced persons in Africa (‘EUTF for Africa’) was launched on 12 November 2015 during the Valletta Summit on Migration. The main objectives of this trust fund is 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 but also the neighbouring countries of the eligible countries may benefit, on a case by case basis, from the Trust fund’s project. 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.

Annual accounts of the EUTF for Africa

Annual accounts of the EUTF for 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 prepared by 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 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 board for approval (Article 8.3.4(c)).

The 2016 is the first year in which the financial statements of the EUTF for Africa are issued. This is in accordance with Article 8.3.2 following which the obligation of the accounting officer to prepare financial statements only applies in respect of that first financial year if the trust fund existed for more than six months. The transactions of 2015 are reflected in the comparative figures.

Highlights of the year

Highlights of the year

At the end of 2016 the total pledged resources amounted to EUR 2 555 million. Total external contributions amounted to EUR 152 million and the contributions from the EU and EDF budgets amounted to EUR 2 403 million.

In just a year, a total of 106 projects worth EUR 1 589 million have been approved for the Sahel/Lake Chad, the Horn of Africa and the North of Africa regions. The projects can be split by a geographical window as follows: 65 programs in the Sahel/Lake Chad region for a total amount of EUR 918,5 million; 35 programs in the Horn of Africa region for a total amount of EUR 606 million, and 6 programs in the North of Africa region for a total amount of EUR 64,5 million. The projects cover the following priority areas: development benefits of migration (EUR 942 million); legal migration and mobility (EUR 68 million); protection and asylum (EUR 233 million); prevention of and fight against irregular migration; migrant smuggling and trafficking in human beings (EUR 170 million); return, readmission and reintegration (EUR 163 million) and other (EUR 13 million). Out of the approved amount EUR 1 488 million has been committed and EUR 600 million has been contracted to implementing partners.

BALANCE SHEET OF THE EUTF FOR AFRICA

BALANCE SHEET OF THE EUTF FOR AFRICA

| EUR ‘000 |
| --- |
| | 31.12.2016 | 31.12.2015 |
| NON-CURRENT ASSETS | | |
| Pre-financing | 44 854 | — |
| | 44 854 | — |
| CURRENT ASSETS | | |
| Pre-financing | 70 731 | — |
| Exchange receivables and non-exchange recoverables | 9 476 | — |
| Cash and cash equivalents | 14 879 | 32 642 |
| | 95 086 | 32 642 |
| TOTAL ASSETS | 139 941 | 32 642 |
| NON-CURRENT LIABILITIES | | |
| Financial liabilities | (138 502 ) | (32 642 ) |
| | (138 502 ) | (32 642 ) |
| CURRENT LIABILITIES | | |
| Payables | (702) | — |
| Accrued charges and deferred income | (736) | — |
| | (1 439 ) | — |
| TOTAL LIABILITIES | (139 941 ) | (32 642 ) |
| NET ASSETS | — | — |
| FUNDS & RESERVES | | |
| Accumulated surplus | — | — |
| Economic result of the year | — | — |
| NET ASSETS | — | — |

EUR ‘000

31.12.2016

31.12.2015

NON-CURRENT ASSETS

NON-CURRENT ASSETS

Pre-financing

Pre-financing

44 854

44 854

—

44 854

44 854

—

CURRENT ASSETS

CURRENT ASSETS

Pre-financing

Pre-financing

70 731

70 731

—

—

Exchange receivables and non-exchange recoverables

Exchange receivables and non-exchange recoverables

9 476

9 476

—

Cash and cash equivalents

Cash and cash equivalents

14 879

14 879

32 642

32 642

95 086

95 086

32 642

32 642

TOTAL ASSETS

TOTAL ASSETS

139 941

139 941

32 642

32 642

NON-CURRENT LIABILITIES

NON-CURRENT LIABILITIES

Financial liabilities

Financial liabilities

(138 502 )

(138 502 )

(32 642 )

(32 642 )

(138 502 )

(138 502 )

(32 642 )

(32 642 )

CURRENT LIABILITIES

CURRENT LIABILITIES

Payables

Payables

(702)

(702)

—

—

Accrued charges and deferred income

Accrued charges and deferred income

(736)

(736)

—

—

(1 439 )

(1 439 )

—

TOTAL LIABILITIES

TOTAL LIABILITIES

(139 941 )

(139 941 )

(32 642 )

(32 642 )

NET ASSETS

NET ASSETS

—

—

FUNDS & RESERVES

FUNDS & RESERVES

Accumulated surplus

Accumulated surplus

—

—

Economic result of the year

Economic result of the year

—

—

NET ASSETS

NET ASSETS

—

—

STATEMENT OF FINANCIAL PERFORMANCE OF THE EUTF FOR AFRICA

STATEMENT OF FINANCIAL PERFORMANCE OF THE EUTF FOR AFRICA

| EUR ‘000 |
| --- |
| | 2016 | 2015 |
| REVENUE | | |
| Revenue from non-exchange transactions | | |
| Revenue from donations | 52 246 | — |
| | 52 246 | — |
| Revenue from exchange transactions | | |
| Financial income | 54 | — |
| Other exchange revenue | 43 | — |
| | 97 | — |
| Total revenue | 52 343 | — |
| EXPENSES | | |
| Operating expenses | (49 042 ) | — |
| Other expenses | (3 301 ) | — |
| Total expenses | (52 343 ) | — |
| ECONOMIC RESULT OF THE YEAR | — | — |

EUR ‘000

2016

2015

REVENUE

REVENUE

Revenue from non-exchange transactions

Revenue from non-exchange transactions

Revenue from donations

Revenue from donations

52 246

52 246

—

—

52 246

52 246

—

—

Revenue from exchange transactions

Revenue from exchange transactions

Financial income

Financial income

54

54

—

—

Other exchange revenue

Other exchange revenue

43

43

—

—

97

97

—

—

Total revenue

Total revenue

52 343

52 343

—

—

EXPENSES

EXPENSES

Operating expenses

Operating expenses

(49 042 )

(49 042 )

—

—

Other expenses

Other expenses

(3 301 )

(3 301 )

—

—

Total expenses

Total expenses

(52 343 )

(52 343 )

—

—

ECONOMIC RESULT OF THE YEAR

ECONOMIC RESULT OF THE YEAR

—

—

—

—

CASHFLOW STATEMENT OF THE EUTF FOR AFRICA

CASHFLOW STATEMENT OF THE EUTF FOR AFRICA

| EUR ‘000 |
| --- |
| | 2016 | 2015 |
| Economic result of the year | — | — |
| Operating activities | | |
| (Increase)/decrease in pre-financing | (115 585 ) | — |
| (Increase)/decrease in exchange receivables and non-exchange recoverables | (9 476 ) | — |
| Increase/(decrease) in financial liabilities | 105 860 | 32 642 |
| Increase/(decrease) in payables | 702 | — |
| Increase/(decrease) in accrued charges and deferred income | 736 | — |
| NET CASHFLOW | (17 763 ) | 32 642 |
| Net increase/(decrease) in cash and cash equivalents | (17 763 ) | 32 642 |
| Cash and cash equivalents at the beginning of the year | 32 642 | — |
| Cash and cash equivalents at year-end | 14 879 | 32 642 |

EUR ‘000

2016

2015

Economic result of the year

Economic result of the year

—

—

Operating activities

Operating activities

(Increase)/decrease in pre-financing

(Increase)/decrease in pre-financing

(115 585 )

(115 585 )

—

—

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

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

(9 476 )

(9 476 )

—

—

Increase/(decrease) in financial liabilities

Increase/(decrease) in financial liabilities

105 860

105 860

32 642

32 642

Increase/(decrease) in payables

Increase/(decrease) in payables

702

702

—

—

Increase/(decrease) in accrued charges and deferred income

Increase/(decrease) in accrued charges and deferred income

736

736

—

—

NET CASHFLOW

NET CASHFLOW

(17 763 )

(17 763 )

32 642

32 642

Net increase/(decrease) in cash and cash equivalents

Net increase/(decrease) in cash and cash equivalents

(17 763 )

(17 763 )

32 642

32 642

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the beginning of the year

32 642

32 642

—

—

Cash and cash equivalents at year-end

Cash and cash equivalents at year-end

14 879

14 879

32 642

32 642

STATEMENT OF CHANGES IN NET ASSETS OF THE EUTF FOR AFRICA

STATEMENT OF CHANGES IN NET ASSETS OF THE EUTF FOR AFRICA

| EUR ‘000 |
| --- |
| | Accumulated surplus/
  (deficit) | Economic result of the year | Net assets |
| BALANCE AS AT 31.12.2015 | — | — | — |
| Economic result of the year | — | — | — |
| BALANCE AS AT 31.12.2016 | — | — | — |

EUR ‘000

Accumulated surplus/

(deficit)

Economic result of the year

Net assets

BALANCE AS AT 31.12.2015

BALANCE AS AT 31.12.2015

—

—

—

Economic result of the year

Economic result of the year

—

—

—

BALANCE AS AT 31.12.2016

BALANCE AS AT 31.12.2016

—

—

—

CONSOLIDATED FINANCIAL STATEMENTS OF THE EDF AND THE EU TRUST FUNDS
   (17)

CONSOLIDATED FINANCIAL STATEMENTS OF THE EDF AND THE EU TRUST FUNDS

17

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET

| EUR millions |
| --- |
| | 31.12.2016 | 31.12.2015 |
| NON-CURRENT ASSETS | | |
| Pre-financing | 457 | 520 |
| Trust Fund contributions | — | — |
| Exchange receivables and non-exchange recoverables | — | — |
| | 457 | 520 |
| CURRENT ASSETS | | |
| Pre-financing | 1 455 | 1 151 |
| Exchange receivables and non-exchange recoverables | 143 | 172 |
| Cash and cash equivalents | 738 | 589 |
| | 2 336 | 1 912 |
| TOTAL ASSETS | 2 794 | 2 432 |
| NON-CURRENT LIABILITIES | | |
| Provisions | (4) | (4) |
| Financial liabilities | (106) | (72) |
| | (110) | (76) |
| CURRENT LIABILITIES | | |
| Payables | (549) | (520) |
| Accrued charges and deferred income | (778) | (855) |
| | (1 327 ) | (1 376 ) |
| TOTAL LIABILITIES | (1 437 ) | (1 451 ) |
| NET ASSETS | 1 357 | 980 |
| FUNDS & RESERVES | | |
| Called fund capital — active EDFs | 42 323 | 38 873 |
| Called fund capital from closed EDFs carried forward | 2 252 | 2 252 |
| Called fund capital transfers between active EDFs | — | — |
| Economic result carried forward from previous years | (40 146 ) | (36 994 ) |
| Economic result of the year | (3 073 ) | (3 152 ) |
| NET ASSETS | 1 357 | 980 |

EUR millions

31.12.2016

31.12.2015

NON-CURRENT ASSETS

NON-CURRENT ASSETS

Pre-financing

Pre-financing

457

457

520

520

Trust Fund contributions

Trust Fund contributions

—

—

—

—

Exchange receivables and non-exchange recoverables

Exchange receivables and non-exchange recoverables

—

—

—

—

457

457

520

520

CURRENT ASSETS

CURRENT ASSETS

Pre-financing

Pre-financing

1 455

1 455

1 151

1 151

Exchange receivables and non-exchange recoverables

Exchange receivables and non-exchange recoverables

143

143

172

172

Cash and cash equivalents

Cash and cash equivalents

738

738

589

589

2 336

2 336

1 912

1 912

TOTAL ASSETS

TOTAL ASSETS

2 794

2 794

2 432

2 432

NON-CURRENT LIABILITIES

NON-CURRENT LIABILITIES

Provisions

Provisions

(4)

(4)

(4)

(4)

Financial liabilities

Financial liabilities

(106)

(106)

(72)

(72)

(110)

(110)

(76)

(76)

CURRENT LIABILITIES

CURRENT LIABILITIES

Payables

Payables

(549)

(549)

(520)

(520)

Accrued charges and deferred income

Accrued charges and deferred income

(778)

(778)

(855)

(855)

(1 327 )

(1 327 )

(1 376 )

(1 376 )

TOTAL LIABILITIES

TOTAL LIABILITIES

(1 437 )

(1 437 )

(1 451 )

(1 451 )

NET ASSETS

NET ASSETS

1 357

1 357

980

980

FUNDS & RESERVES

FUNDS & RESERVES

Called fund capital — active EDFs

Called fund capital — active EDFs

42 323

42 323

38 873

38 873

Called fund capital from closed EDFs carried forward

Called fund capital from closed EDFs carried forward

2 252

2 252

2 252

2 252

Called fund capital transfers between active EDFs

Called fund capital transfers between active EDFs

—

—

—

—

Economic result carried forward from previous years

Economic result carried forward from previous years

(40 146 )

(40 146 )

(36 994 )

(36 994 )

Economic result of the year

Economic result of the year

(3 073 )

(3 073 )

(3 152 )

(3 152 )

NET ASSETS

NET ASSETS

1 357

1 357

980

980

CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE

CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE

| EUR millions |
| --- |
| | 2016 | 2015 |
| REVENUE | | |
| Revenue from non-exchange transactions | | |
| Recovery of expenses | 8 | 90 |
| Revenue from trust funds donations | 35 | 4 |
| | 43 | 94 |
| Revenue from exchange transactions | | |
| Financial income | 4 | 8 |
| Other income | 62 | 42 |
| | 66 | 50 |
| Total Revenue | 108 | 144 |
| EXPENSES | | |
| Aid instruments | (2 935 ) | (3 059 ) |
| Co-financing expenses | 15 | (69) |
| Finance costs | 4 | (1) |
| Expenses implemented by trust funds | (65) | (4) |
| Other expenses | (200) | (163) |
| Total Expenses | (3 181 ) | (3 296 ) |
| ECONOMIC RESULT OF THE YEAR | (3 073 ) | (3 152 ) |

EUR millions

2016

2015

REVENUE

REVENUE

Revenue from non-exchange transactions

Revenue from non-exchange transactions

Recovery of expenses

Recovery of expenses

8

8

90

90

Revenue from trust funds donations

Revenue from trust funds donations

35

35

4

4

43

43

94

94

Revenue from exchange transactions

Revenue from exchange transactions

Financial income

Financial income

4

4

8

8

Other income

Other income

62

62

42

42

66

66

50

50

Total Revenue

Total Revenue

108

108

144

144

EXPENSES

EXPENSES

Aid instruments

Aid instruments

(2 935 )

(2 935 )

(3 059 )

(3 059 )

Co-financing expenses

Co-financing expenses

15

15

(69)

(69)

Finance costs

Finance costs

4

4

(1)

(1)

Expenses implemented by trust funds

Expenses implemented by trust funds

(65)

(65)

(4)

(4)

Other expenses

Other expenses

(200)

(200)

(163)

(163)

Total Expenses

Total Expenses

(3 181 )

(3 181 )

(3 296 )

(3 296 )

ECONOMIC RESULT OF THE YEAR

ECONOMIC RESULT OF THE YEAR

(3 073 )

(3 073 )

(3 152 )

(3 152 )

CONSOLIDATED CASH FLOW STATEMENT

CONSOLIDATED CASH FLOW STATEMENT

| EUR millions |
| --- |
| | 2016 | 2015 |
| Economic result of the year | (3 073 ) | (3 152 ) |
| Operating activities | | |
| Capital increase — contributions | 3 450 | 3 200 |
| (Increase)/decrease in trust funds contributions | (0) | 39 |
| (Increase)/decrease in pre-financing | (242) | 204 |
| (Increase)/decrease in exchange receivables and non-exchange recoverables | 29 | (43) |
| Increase/(decrease) in provisions | — | 4 |
| Increase/(decrease) in financial liabilities | 34 | (7) |
| Increase/(decrease) in payables | 29 | (179) |
| Increase/(decrease) in accrued charges and deferred income | (78) | 132 |
| NET CASHFLOW | 149 | 198 |
| Net increase/(decrease) in cash and cash equivalents | 149 | 198 |
| Cash and cash equivalents at the beginning of the year | 589 | 391 |
| Cash and cash equivalents at year-end | 738 | 589 |

EUR millions

2016

2015

Economic result of the year

Economic result of the year

(3 073 )

(3 073 )

(3 152 )

(3 152 )

Operating activities

Operating activities

Capital increase — contributions

Capital increase — contributions

3 450

3 450

3 200

3 200

(Increase)/decrease in trust funds contributions

(Increase)/decrease in trust funds contributions

(0)

(0)

39

39

(Increase)/decrease in pre-financing

(Increase)/decrease in pre-financing

(242)

(242)

204

204

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

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

29

29

(43)

(43)

Increase/(decrease) in provisions

Increase/(decrease) in provisions

—

—

4

4

Increase/(decrease) in financial liabilities

Increase/(decrease) in financial liabilities

34

34

(7)

(7)

Increase/(decrease) in payables

Increase/(decrease) in payables

29

29

(179)

(179)

Increase/(decrease) in accrued charges and deferred income

Increase/(decrease) in accrued charges and deferred income

(78)

(78)

132

132

NET CASHFLOW

NET CASHFLOW

149

149

198

198

Net increase/(decrease) in cash and cash equivalents

Net increase/(decrease) in cash and cash equivalents

149

149

198

198

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the beginning of the year

589

589

391

391

Cash and cash equivalents at year-end

Cash and cash equivalents at year-end

738

738

589

589

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

| EUR millions |
| --- |
| | 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) | Total Net Assets
  (C)+(D)+(E) |
| BALANCE AS AT 31.12.2014 | 45 691 | 10 018 | 35 673 | (36 994 ) | 2 252 | 932 |
| Capital increase — contributions | | (4 795 ) | 4 795 | — | — | 4 795 |
| Capital decrease — funds committed under the Bridging Facility | (1 595 ) | | (1 595 ) | | | (1 595 ) |
| Recognition of the 11th EDF capital | 29 367 | 29 367 | — | | | — |
| Economic result of the year | — | — | — | (3 152 ) | — | (3 152 ) |
| BALANCE AS AT 31.12.2015 | 73 464 | 34 590 | 38 874 | (40 146 ) | 2 252 | 980 |
| Capital increase — contributions | | (3 450 ) | 3 450 | | | 3 450 |
| Economic result of the year | | | — | (3 073 ) | | (3 073 ) |
| BALANCE AS AT 31.12.2016 | 73 464 | 31 140 | 42 323 | (43 219 ) | 2 252 | 1 357 |

EUR millions

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)

Total Net Assets

(C)+(D)+(E)

BALANCE AS AT 31.12.2014

BALANCE AS AT 31.12.2014

45 691

45 691

10 018

10 018

35 673

35 673

(36 994 )

(36 994 )

2 252

2 252

932

932

Capital increase — contributions

Capital increase — contributions

(4 795 )

(4 795 )

4 795

4 795

—

—

4 795

4 795

Capital decrease — funds committed under the Bridging Facility

Capital decrease — funds committed under the Bridging Facility

(1 595 )

(1 595 )

(1 595 )

(1 595 )

(1 595 )

(1 595 )

Recognition of the 11th EDF capital

Recognition of the 11th EDF capital

29 367

29 367

29 367

29 367

—

—

—

—

Economic result of the year

Economic result of the year

—

—

—

—

—

—

(3 152 )

(3 152 )

—

—

(3 152 )

(3 152 )

BALANCE AS AT 31.12.2015

BALANCE AS AT 31.12.2015

73 464

73 464

34 590

34 590

38 874

38 874

(40 146 )

(40 146 )

2 252

2 252

980

980

Capital increase — contributions

Capital increase — contributions

(3 450 )

(3 450 )

3 450

3 450

3 450

3 450

Economic result of the year

Economic result of the year

—

—

(3 073 )

(3 073 )

(3 073 )

(3 073 )

BALANCE AS AT 31.12.2016

BALANCE AS AT 31.12.2016

73 464

73 464

31 140

31 140

42 323

42 323

(43 219 )

(43 219 )

2 252

2 252

1 357

1 357

EDF REPORT ON FINANCIAL IMPLEMENTATION

REPORT ON FINANCIAL IMPLEMENTATION — 2016

REPORT ON FINANCIAL IMPLEMENTATION — 2016

INTRODUCTORY NOTE

Previous EDFs

Previous EDFs

| — | As the Sixth EDF was closed in 2006 and the Seventh 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 Ninth EDF. |
| --- | --- |

—

As the Sixth EDF was closed in 2006 and the Seventh 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 Ninth EDF.

| — | As in past years, to ensure transparency in the presentation of the accounts for 2016, the tables set out separately for the Eighth EDF the part used for Lomé Convention programming and the part used for programming under the Cotonou Agreement. |
| --- | --- |

—

As in past years, to ensure transparency in the presentation of the accounts for 2016, the tables set out separately for the Eighth 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 Ninth EDF, balances and decommitments of previous EDFs have been transferred to the Ninth EDF, and, during the life ot the Ninth EDF, have been committed as Ninth EDF funds. |
| --- | --- |

—

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

10th EDF

10th 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 EU Council Decision of 27 November 2001 (2001/822/EC) on the association of the overseas countries and territories (OCTs) with the European Union entered into force on 2 December 2001. This Decision was amended on 19 March 2007 (Decision 2007/249/EC).

The Internal Agreement on the financing of Community aid under the multiannual financial framework for the period 2008-2013 in accordance with the revised Cotonou Agreement, adopted by the Representatives of the Governments of the Member States of the European Community on 17 July 2006, entered into force on 1 July 2008.

Under the Cotonou Agreement, the second period (2008-2013) of Community aid to the ACP States and OCTs is funded by the 10th EDF for an amount of EUR 22 682 million, of which:

| — | EUR 21 966 million is allocated to the ACP countries in accordance with the multiannual financial framework set out in Annex Ib to the revised Cotonou Agreement, of which EUR 20 466 million is managed by the European Commission; |
| --- | --- |

—

EUR 21 966 million is allocated to the ACP countries in accordance with the multiannual financial framework set out in Annex Ib to the revised Cotonou Agreement, of which EUR 20 466 million is managed by the European Commission;

| — | EUR 286 million is allocated to the OCTs in accordance with Annex IIAa of the revised Council Decision on the association of the OCTs with the European Community, of which 256 million is managed by the European Commission; |
| --- | --- |

—

EUR 286 million is allocated to the OCTs in accordance with Annex IIAa of the revised Council Decision on the association of the OCTs with the European Community, of which 256 million is managed by the European Commission;

| — | EUR 430 million is for the Commission to finance the costs arising from the programming and implementation of 10th EDF resources, in accordance with Article 6 of the Internal Agreement. |
| --- | --- |

—

EUR 430 million is for the Commission to finance the costs arising from the programming and implementation of 10th EDF resources, in accordance with Article 6 of the Internal Agreement.

According to the ‘Sunset clause’ of the 10th EDF, (Articles 1(4) and 1(5) of the 10th EDF Internal Agreement) no funds could be committed after 31 December 2013. Uncommitted funds were transferred to the 11th EDF performance reserve.

Sunset clause’

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 EU Council Decision of 27 November 2001 (2001/822/EC) on the association of the overseas countries and territories (OCTs) with the European Union entered into force on 2 December 2001. This Decision was amended on 19 March 2007 (Decision 2007/249/EC).

The Internal Agreement on the financing of Community aid under the multiannual financial framework for the period 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 31/12/2016

Remaining funds on non-mobilisable performance reserves at 31/12/2016

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

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

During 2016, 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 of 2 August 2016 (2016/1337), an amount of decommitted funds from the 10th EDF was transferred for the purpose of replenishing the African Peace Facility for the period 2016-2018 up to a maximum of EUR 491 million and up to EUR 16 million for support of expenditure.

| EUR millions |
| --- |
| Total available on non-mobilisable performance reserves at 31/12/2015 | 151 |
| Total made available on non-mobilisable performance reserves during 2016 | 534 |
| Less amount transferred for replenishing the African Peace Facility at 31/12/2016 | (386) |
| Balance of non-mobilisable reserve (from decommitted funds under the Eighth, Ninth and 10th EDF) at 31/12/2016 | 299 |

EUR millions

Total available on non-mobilisable performance reserves at 31/12/2015

151

Total made available on non-mobilisable performance reserves during 2016

534

Less amount transferred for replenishing the African Peace Facility at 31/12/2016

(386)

Balance of non-mobilisable reserve (from decommitted funds under the Eighth, Ninth and 10th EDF) at 31/12/2016

299

—   
  11th EDF Stabex reserve

11th EDF Stabex reserve

Following the closure of Stabex accounts, unused/decommitted funds are transferred to the 11th EDF Stabex A Envelope reserve (10th EDF Internal Agreement Art. 1(4)) and then to the national indicative programmes of the countries concerned.

—   
  EDF Co-financings

EDF Co-financings

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 209 million, while payment appropriations were opened for the cashed amounts totalling EUR 190 million.

The situation of co-financing appropriations at 31/12/2016 is shown in the table below:

| EUR millions |
| --- |
| | Commitments appropriations | Payment appropriations |
| Co-financing — A Envelope | 190,0 | 171,3 |
| Co-financing — Intra ACP | 13,4 | 13,4 |
| Co-financing — Administrative expenses | 5,5 | 5,4 |
| | 209,4 | 190,1 |

EUR millions

Commitments appropriations

Payment appropriations

Co-financing — A Envelope

190,0

171,3

Co-financing — Intra ACP

13,4

13,4

Co-financing — Administrative expenses

5,5

5,4

209,4

209,4

190,1

190,1

The following tables, concerning the amounts decided, contracted and paid, show 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 2016

EVOLUTION OF APPROPRIATIONS: 31 December 2016

ANALYSIS OF CREDITS PER INSTRUMENT

ANALYSIS OF CREDITS PER INSTRUMENT

| (EUR million) |
| --- |
| INSTRUMENT | INITIAL APPROPRIATION | INCREASES/DECREASES IN CUMULATIVE RESOURCES AT 31 DECEMBER 2015 | INCREASE OR DECREASE IN RESOURCES IN 2016 | Notes | CURRENT LEVEL APPROPRIATION |
| ACP | | | | | |
| Lomé | | | | | |
| Regular MS Contributions | 12 967 | (3 256 ) | (15) | | 9 695 |
| Aid for refugees | 120 | (20) | (0) | | 100 |
| Emergency aid (Lomé) | 140 | (4) | | | 136 |
| Heavily indebted poor countries (Lomé) | 0 | 1 060 | | | 1 060 |
| Interest-rate subsidies | 370 | (291) | (7) | | 72 |
| Risk capital | 1 000 | 16 | (1) | | 1 015 |
| Stabex | 1 800 | (1 077 ) | | | 723 |
| Structural adjustment | 1 400 | 97 | | | 1 497 |
| Sysmin | 575 | (474) | | | 101 |
| Total indicative programmes | 7 562 | (2 599 ) | (6) | (3) | 4 957 |
| Utilisation of interest income | 0 | 35 | | | 35 |
| Cotonou | | | | | |
| Regular MS Contributions | 0 | 654 | (4) | | 650 |
| A Envelope — National Allocations | 0 | 418 | (0) | (3) | 417 |
| B Envelope — National Allocations | 0 | 237 | (4) | (3) | 233 |
| Interests and other receipts | 0 | 0 | | | 0 |
| SUB TOTAL ACP | 12 967 | (2 602 ) | (19) | | 10 346 |
| OCT | | | | | |
| Lomé | | | | | |
| Regular MS Contributions | 163 | (116) | (0) | | 46 |
| Interest-rate subsidies | 9 | (8) | | | 1 |
| Risk capital | 30 | (24) | | | 6 |
| Stabex | 6 | (5) | | | 1 |
| Sysmin | 3 | (1) | (0) | (3) | 2 |
| Total indicative programmes | 115 | (79) | | | 36 |
| SUB TOTAL OCT | 163 | (116) | (0) | | 46 |
| TOTAL 8th EDF | 13 130 | (2 718 ) | (20) | | 10 392 |

(EUR million)

INSTRUMENT

INITIAL APPROPRIATION

INCREASES/DECREASES IN CUMULATIVE RESOURCES AT 31 DECEMBER 2015

INCREASE OR DECREASE IN RESOURCES IN 2016

Notes

CURRENT LEVEL APPROPRIATION

ACP

ACP

Lomé

Lomé

Regular MS Contributions

Regular MS Contributions

12 967

12 967

(3 256 )

(3 256 )

(15)

(15)

9 695

9 695

Aid for refugees

120

(20)

(0)

100

Emergency aid (Lomé)

140

(4)

136

Heavily indebted poor countries (Lomé)

0

1 060

1 060

Interest-rate subsidies

370

(291)

(7)

72

Risk capital

1 000

16

(1)

1 015

Stabex

1 800

(1 077 )

723

Structural adjustment

1 400

97

1 497

Sysmin

575

(474)

101

Total indicative programmes

7 562

(2 599 )

(6)

(3)

3

4 957

Utilisation of interest income

0

35

35

Cotonou

Cotonou

Regular MS Contributions

Regular MS Contributions

0

0

654

654

(4)

(4)

650

650

A Envelope — National Allocations

0

418

(0)

(3)

3

417

B Envelope — National Allocations

0

237

(4)

(3)

3

233

Interests and other receipts

0

0

0

SUB TOTAL ACP

SUB TOTAL ACP

12 967

12 967

(2 602 )

(2 602 )

(19)

(19)

10 346

10 346

OCT

OCT

Lomé

Lomé

Regular MS Contributions

Regular MS Contributions

163

163

(116)

(116)

(0)

(0)

46

46

Interest-rate subsidies

9

(8)

1

Risk capital

30

(24)

6

Stabex

6

(5)

1

Sysmin

3

(1)

(0)

(3)

3

2

Total indicative programmes

115

(79)

36

SUB TOTAL OCT

SUB TOTAL OCT

163

163

(116)

(116)

(0)

(0)

46

46

TOTAL 8th EDF

TOTAL 8th EDF

13 130

13 130

(2 718 )

(2 718 )

(20)

(20)

10 392

10 392

Table 1.2

Table 1.2

9th EDF

9th EDF

EVOLUTION OF APPROPRIATIONS: 31 December 2016

EVOLUTION OF APPROPRIATIONS: 31 December 2016

ANALYSIS OF CREDITS PER INSTRUMENT

ANALYSIS OF CREDITS PER INSTRUMENT

| (EUR million) |
| --- |
| INSTRUMENT | INITIAL APPROPRIATION | INCREASES/DECREASES IN CUMULATIVE RESOURCES AT 31 DECEMBER 2015 | INCREASE OR DECREASE IN RESOURCES IN 2016 | Notes | CURRENT LEVEL APPROPRIATION |
| ACP | | | | | |
| Lomé | | | | | |
| Regular MS Contributions | 0 | 689 | (17) | | 672 |
| Transfers from 6th EDF — Lomé | 0 | 20 | (0) | (4) | 20 |
| Transfers from 7th EDF — Lomé | 0 | 668 | (17) | (4) | 651 |
| Cotonou | | | | | |
| Regular MS Contributions | 8 919 | 5 727 | (144) | | 14 502 |
| A Envelope — National Allocations | 5 318 | 3 398 | (79) | (4) | 8 637 |
| B Envelope — National Allocations | 2 108 | (881) | (15) | (4) | 1 212 |
| CDE, CTA and Parliamentary Assembly | 164 | (10) | | | 154 |
| Implementation costs | 125 | 52 | | | 177 |
| Interests and other receipts | 0 | 63 | | | 63 |
| Other Intra-ACP allocations | 300 | 2 329 | (15) | (4) | 2 614 |
| Peace facility | 0 | 360 | (6) | (4) | 354 |
| Regional allocations | 904 | (105) | (29) | (4) | 770 |
| Special allocation R.D. Congo | 0 | 105 | | | 105 |
| Special allocation South Sudan | 0 | 267 | | (6) | 267 |
| Special allocation Sudan | 0 | 110 | | (5) | 110 |
| Voluntary contribution Peace facility | 0 | 39 | | | 39 |
| SUB TOTAL ACP | 8 919 | 6 415 | (161) | | 15 174 |
| OCT | | | | | |
| Lomé | | | | | |
| Regular MS Contributions | 0 | 3 | (0) | | 3 |
| Transfers from 6th EDF — Lomé | 0 | 0 | | | 0 |
| Transfers from 7th EDF — Lomé | 0 | 3 | (0) | (4) | 3 |
| Cotonou | | | | | |
| Regular MS Contributions | 10 | 282 | (2) | | 290 |
| A Envelope — National Allocations | 0 | 239 | (2) | (4) | 237 |
| B Envelope — National Allocations | 0 | 4 | | | 4 |
| Regional allocations | 8 | 40 | | | 48 |
| Studies/Technical assistance OCT | 2 | (1) | | | 1 |
| SUB TOTAL OCT | 10 | 285 | (2) | | 293 |
| TOTAL 9th EDF | 8 929 | 6 701 | (163) | | 15 467 |

(EUR million)

INSTRUMENT

INITIAL APPROPRIATION

INCREASES/DECREASES IN CUMULATIVE RESOURCES AT 31 DECEMBER 2015

INCREASE OR DECREASE IN RESOURCES IN 2016

Notes

CURRENT LEVEL APPROPRIATION

ACP

ACP

Lomé

Lomé

Regular MS Contributions

Regular MS Contributions

0

0

689

689

(17)

(17)

672

672

Transfers from 6th EDF — Lomé

0

20

(0)

(4)

4

20

Transfers from 7th EDF — Lomé

0

668

(17)

(4)

4

651

Cotonou

Cotonou

Regular MS Contributions

Regular MS Contributions

8 919

8 919

5 727

5 727

(144)

(144)

14 502

14 502

A Envelope — National Allocations

5 318

3 398

(79)

(4)

4

8 637

B Envelope — National Allocations

2 108

(881)

(15)

(4)

4

1 212

CDE, CTA and Parliamentary Assembly

164

(10)

154

Implementation costs

125

52

177

Interests and other receipts

0

63

63

Other Intra-ACP allocations

300

2 329

(15)

(4)

4

2 614

Peace facility

0

360

(6)

(4)

4

354

Regional allocations

904

(105)

(29)

(4)

4

770

Special allocation R.D. Congo

0

105

105

Special allocation South Sudan

0

267

(6)

6

267

Special allocation Sudan

0

110

(5)

5

110

Voluntary contribution Peace facility

0

39

39

SUB TOTAL ACP

SUB TOTAL ACP

8 919

8 919

6 415

6 415

(161)

(161)

15 174

15 174

OCT

OCT

Lomé

Lomé

Regular MS Contributions

Regular MS Contributions

0

0

3

3

(0)

(0)

3

3

Transfers from 6th EDF — Lomé

0

0

0

Transfers from 7th EDF — Lomé

0

3

(0)

(4)

4

3

Cotonou

Cotonou

Regular MS Contributions

Regular MS Contributions

10

10

282

282

(2)

(2)

290

290

A Envelope — National Allocations

0

239

(2)

(4)

4

237

B Envelope — National Allocations

0

4

4

Regional allocations

8

40

48

Studies/Technical assistance OCT

2

(1)

1

SUB TOTAL OCT

SUB TOTAL OCT

10

10

285

285

(2)

(2)

293

293

TOTAL 9th EDF

TOTAL 9th EDF

8 929

8 929

6 701

6 701

(163)

(163)

15 467

15 467

Table 1.3

Table 1.3

10th EDF

10th EDF

EVOLUTION OF APPROPRIATIONS: 31 December 2016

EVOLUTION OF APPROPRIATIONS: 31 December 2016

ANALYSIS OF CREDITS PER INSTRUMENT

ANALYSIS OF CREDITS PER INSTRUMENT

| (EUR million) |
| --- |
| INSTRUMENT | INITIAL APPROPRIATION | INCREASES/DECREASES IN CUMULATIVE RESOURCES AT 31 DECEMBER 2015 | INCREASE OR DECREASE IN RESOURCES IN 2016 | Notes | CURRENT LEVEL APPROPRIATION |
| ACP | | | | | |
| Regular MS Contributions | 20 896 | 9 | 223 | | 21 128 |
| A Envelope — National Allocations | 0 | 13 507 | (263) | (8) | 13 244 |
| A Envelope reserve | 13 500 | (13 500 ) | | | 0 |
| B Envelope — National Allocations | 0 | 2 020 | (5) | (8) | 2 015 |
| B Envelope reserve | 1 800 | (1 800 ) | | | 0 |
| Implementation costs | 430 | (1) | 16 | | 445 |
| Institutional and support expenditure | 0 | 241 | (9) | (8) | 232 |
| Interests and other receipts | 0 | 70 | 14 | (8) | 84 |
| Intra-ACP Reserve | 2 700 | (2 700 ) | | | 0 |
| National allocations Reserve A Envelope STABEX | 0 | (0) | | (8) | (0) |
| NIP/RIP reserve | 683 | (683) | | | 0 |
| Non-mobilisable reserve | 0 | 67 | 176 | (8) | 243 |
| Other Intra-ACP allocations | 0 | 1 904 | (15) | (8) | 1 889 |
| Peace facility | 0 | 688 | 326 | | 1 014 |
| Regional allocations | 0 | 1 978 | (17) | (8) | 1 962 |
| Regional allocations reserve | 1 783 | (1 783 ) | | | 0 |
| Co-financing | 0 | 203 | 1 | | 204 |
| A Envelope — National Allocations | 0 | 186 | 1 | (9) | 187 |
| Implementation costs | 0 | 5 | 0 | (9) | 5 |
| Other Intra-ACP allocations | 0 | 12 | | (9) | 12 |
| Peace facility | 0 | 1 | | (9) | 1 |
| SUB TOTAL ACP | 20 896 | 212 | 224 | | 21 332 |
| OCT | | | | | |
| Regular MS Contributions | 256 | 20 | (1) | | 275 |
| A Envelope — National Allocations | 0 | 196 | (2) | (8) | 193 |
| A Envelope reserve | 195 | (195) | | | 0 |
| B Envelope — National Allocations | 0 | 15 | | | 15 |
| B Envelope reserve | 15 | (15) | | | 0 |
| National allocations Reserve A Envelope STABEX | 0 | 0 | | | 0 |
| Non-mobilisable reserve | 0 | 19 | 2 | (8) | 21 |
| Regional allocations | 0 | 40 | (0) | (8) | 40 |
| Regional allocations reserve | 40 | (40) | | | 0 |
| Studies/Technical assistance OCT | 6 | 0 | (1) | (8) | 5 |
| SUB TOTAL OCT | 256 | 20 | (1) | | 275 |
| TOTAL 10th EDF | 21 152 | 232 | 223 | | 21 607 |

(EUR million)

INSTRUMENT

INITIAL APPROPRIATION

INCREASES/DECREASES IN CUMULATIVE RESOURCES AT 31 DECEMBER 2015

INCREASE OR DECREASE IN RESOURCES IN 2016

Notes

CURRENT LEVEL APPROPRIATION

ACP

ACP

Regular MS Contributions

Regular MS Contributions

20 896

20 896

9

9

223

223

21 128

21 128

A Envelope — National Allocations

0

13 507

(263)

(8)

8

13 244

A Envelope reserve

13 500

(13 500 )

0

B Envelope — National Allocations

0

2 020

(5)

(8)

8

2 015

B Envelope reserve

1 800

(1 800 )

0

Implementation costs

430

(1)

16

445

Institutional and support expenditure

0

241

(9)

(8)

8

232

Interests and other receipts

0

70

14

(8)

8

84

Intra-ACP Reserve

2 700

(2 700 )

0

National allocations Reserve A Envelope STABEX

0

(0)

(8)

8

(0)

NIP/RIP reserve

683

(683)

0

Non-mobilisable reserve

0

67

176

(8)

8

243

Other Intra-ACP allocations

0

1 904

(15)

(8)

8

1 889

Peace facility

0

688

326

1 014

Regional allocations

0

1 978

(17)

(8)

8

1 962

Regional allocations reserve

1 783

(1 783 )

0

Co-financing

Co-financing

0

0

203

203

1

1

204

204

A Envelope — National Allocations

0

186

1

(9)

9

187

Implementation costs

0

5

0

(9)

9

5

Other Intra-ACP allocations

0

12

(9)

9

12

Peace facility

0

1

(9)

9

1

SUB TOTAL ACP

SUB TOTAL ACP

20 896

20 896

212

212

224

224

21 332

21 332

OCT

OCT

Regular MS Contributions

Regular MS Contributions

256

256

20

20

(1)

(1)

275

275

A Envelope — National Allocations

0

196

(2)

(8)

8

193

A Envelope reserve

195

(195)

0

B Envelope — National Allocations

0

15

15

B Envelope reserve

15

(15)

0

National allocations Reserve A Envelope STABEX

0

0

0

Non-mobilisable reserve

0

19

2

(8)

8

21

Regional allocations

0

40

(0)

(8)

8

40

Regional allocations reserve

40

(40)

0

Studies/Technical assistance OCT

6

0

(1)

(8)

8

5

SUB TOTAL OCT

SUB TOTAL OCT

256

256

20

20

(1)

(1)

275

275

TOTAL 10th EDF

TOTAL 10th EDF

21 152

21 152

232

232

223

223

21 607

21 607

Table 1.4

Table 1.4

11th EDF

11th EDF

EVOLUTION OF APPROPRIATIONS: 31 December 2016

EVOLUTION OF APPROPRIATIONS: 31 December 2016

ANALYSIS OF CREDITS PER INSTRUMENT

ANALYSIS OF CREDITS PER INSTRUMENT

| (EUR million) |
| --- |
| INSTRUMENT | INITIAL APPROPRIATION | INCREASES/DECREASES IN CUMULATIVE RESOURCES AT 31 DECEMBER 2015 | INCREASE OR DECREASE IN RESOURCES IN 2016 | Notes | CURRENT LEVEL APPROPRIATION |
| ACP | | | | | |
| Regular MS Contributions | 29 008 | 85 | (31) | | 29 062 |
| A Envelope — National Allocations | 0 | 14 799 | 317 | | 15 115 |
| B Envelope — National Allocations | 0 | 194 | 454 | | 648 |
| B Envelope reserve | 0 | 71 | (71) | | 0 |
| Implementation costs | 1 053 | 0 | | | 1 053 |
| Institutional and support expenditure | 0 | 244 | 2 | | 246 |
| Interests and other receipts | 0 | 15 | 1 | | 16 |
| Intra-ACP Reserve | 3 590 | (3 384 ) | (2) | | 203 |
| National allocations Reserve A Envelope STABEX | 0 | 0 | 0 | | 0 |
| NIP/RIP reserve | 24 365 | (19 697 ) | (1 240 ) | | 3 428 |
| Non-mobilisable reserve | 0 | 65 | (33) | (18) | 31 |
| Other Intra-ACP allocations | 0 | 2 240 | 1 | | 2 241 |
| Peace facility | 0 | 900 | | | 900 |
| Regional allocations | 0 | 4 640 | 542 | | 5 181 |
| Co-financing | 0 | 1 | 3 | | 5 |
| A Envelope — National Allocations | 0 | 0 | 3 | | 3 |
| Implementation costs | 0 | 0 | 0 | | 0 |
| Peace facility | 0 | 1 | | | 1 |
| EC Internal SLA | 0 | 1 | 0 | | 1 |
| A Envelope — National Allocations | 0 | 1 | 0 | | 1 |
| SUB TOTAL ACP | 29 008 | 87 | (28) | | 29 067 |
| OCT | | | | | |
| Regular MS Contributions | 360 | 0 | 3 | | 363 |
| A Envelope — National Allocations | 0 | 0 | 41 | | 41 |
| NIP/RIP reserve | 360 | (3) | (41) | | 316 |
| Non-mobilisable reserve | 0 | 0 | 3 | (18) | 3 |
| Studies/Technical assistance OCT | 0 | 3 | | | 3 |
| SUB TOTAL OCT | 360 | 0 | 3 | | 363 |
| TOTAL 11th EDF | 29 367 | 88 | (24) | | 29 430 |

(EUR million)

INSTRUMENT

INITIAL APPROPRIATION

INCREASES/DECREASES IN CUMULATIVE RESOURCES AT 31 DECEMBER 2015

INCREASE OR DECREASE IN RESOURCES IN 2016

Notes

CURRENT LEVEL APPROPRIATION

ACP

ACP

Regular MS Contributions

Regular MS Contributions

29 008

29 008

85

85

(31)

(31)

29 062

29 062

A Envelope — National Allocations

0

14 799

317

15 115

B Envelope — National Allocations

0

194

454

648

B Envelope reserve

0

71

(71)

0

Implementation costs

1 053

0

1 053

Institutional and support expenditure

0

244

2

246

Interests and other receipts

0

15

1

16

Intra-ACP Reserve

3 590

(3 384 )

(2)

203

National allocations Reserve A Envelope STABEX

0

0

0

0

NIP/RIP reserve

24 365

(19 697 )

(1 240 )

3 428

Non-mobilisable reserve

0

65

(33)

(18)

18

31

Other Intra-ACP allocations

0

2 240

1

2 241

Peace facility

0

900

900

Regional allocations

0

4 640

542

5 181

Co-financing

Co-financing

0

0

1

1

3

3

5

5

A Envelope — National Allocations

0

0

3

3

Implementation costs

0

0

0

0

Peace facility

0

1

1

EC Internal SLA

EC Internal SLA

0

0

1

1

0

0

1

1

A Envelope — National Allocations

0

1

0

1

SUB TOTAL ACP

SUB TOTAL ACP

29 008

29 008

87

87

(28)

(28)

29 067

29 067

OCT

OCT

Regular MS Contributions

Regular MS Contributions

360

360

0

0

3

3

363

363

A Envelope — National Allocations

0

0

41

41

NIP/RIP reserve

360

(3)

(41)

316

Non-mobilisable reserve

0

0

3

(18)

18

3

Studies/Technical assistance OCT

0

3

3

SUB TOTAL OCT

SUB TOTAL OCT

360

360

0

0

3

3

363

363

TOTAL 11th EDF

TOTAL 11th EDF

29 367

29 367

88

88

(24)

(24)

29 430

29 430

Table 2.1

Table 2.1

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2016

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2016

PROGRESS REPORT

PROGRESS REPORT

| (EUR million) |
| --- |
| | ALLOCATION | EDF |
| | 8 | 9 | 10 | 11 | TOTAL |
| Lomé | Sundry Income | 35 | | | | 35 |
| Total indicative programmes | 4 993 | | | | 4 993 |
| Total Non-Programmable Aid | 4 714 | | | | 4 714 |
| Transfers from other funds | | 675 | | | 675 |
| | SUB TOTAL: REGULAR MS CONTRIBUTIONS | 9 742 | 675 | | | 10 417 |
| Cotonou | A Envelope — National Allocations | 417 | 8 875 | 13 437 | 15 156 | 37 886 |
| B Envelope — National Allocations | 233 | 1 217 | 2 030 | 648 | 4 128 |
| Bridging facility | | | | (0) | (0) |
| CDE, CTA and Parliamentary Assembly | | 154 | | | 154 |
| | Country reserve | | | 0 | 0 | 0 |
| | Implementation Costs and Interests Revenues | 0 | 240 | 535 | 1 071 | 1 846 |
| | Intra-ACP allocations | | 2 968 | 3 135 | 3 387 | 9 490 |
| | Intra-ACP Reserve | | | 0 | 203 | 203 |
| | National allocations Reserve A Envelope STABEX | | | 0 | 0 | 0 |
| | NIP/RIP reserve | | | 0 | 3 743 | 3 743 |
| | Non-mobilisable reserve | | | 264 | 35 | 299 |
| | Regional allocations | | 818 | 2 001 | 5 181 | 8 000 |
| | Regional allocations reserve | | | | | 0 |
| | Special allocation R.D. Congo | | 105 | | | 105 |
| | Special allocation South Sudan | | 267 | | | 267 |
| | Special allocation Sudan | | 110 | | | 110 |
| | Voluntary contribution Peace facility | | 39 | | | 39 |
| | SUB TOTAL: REGULAR MS CONTRIBUTIONS | 650 | 14 792 | 21 403 | 29 425 | 66 270 |
| | A Envelope — National Allocations | | | | 1 | 1 |
| | SUB TOTAL: EC INTERNAL SLA | | | | 1 | 1 |
| | A Envelope — National Allocations | | | 187 | 3 | 190 |
| | Implementation Costs and Interests Revenues | | | 5 | 0 | 6 |
| | Intra-ACP allocations | | | 12 | 1 | 13 |
| | SUB TOTAL: CO-FINANCING | | | 204 | 5 | 209 |
| | TOTAL | 10 392 | 15 467 | 21 607 | 29 430 | 76 896 |

(EUR million)

ALLOCATION

EDF

8

9

10

11

TOTAL

Lomé

Lomé

Sundry Income

35

35

Total indicative programmes

4 993

4 993

Total Non-Programmable Aid

4 714

4 714

Transfers from other funds

675

675

SUB TOTAL: REGULAR MS CONTRIBUTIONS

SUB TOTAL: REGULAR MS CONTRIBUTIONS

9 742

675

10 417

Cotonou

Cotonou

A Envelope — National Allocations

417

8 875

13 437

15 156

37 886

B Envelope — National Allocations

233

1 217

2 030

648

4 128

Bridging facility

(0)

(0)

CDE, CTA and Parliamentary Assembly

154

154

Country reserve

0

0

0

Implementation Costs and Interests Revenues

0

240

535

1 071

1 846

Intra-ACP allocations

2 968

3 135

3 387

9 490

Intra-ACP Reserve

0

203

203

National allocations Reserve A Envelope STABEX

0

0

0

NIP/RIP reserve

0

3 743

3 743

Non-mobilisable reserve

264

35

299

Regional allocations

818

2 001

5 181

8 000

Regional allocations reserve

0

Special allocation R.D. Congo

105

105

Special allocation South Sudan

267

267

Special allocation Sudan

110

110

Voluntary contribution Peace facility

39

39

SUB TOTAL: REGULAR MS CONTRIBUTIONS

SUB TOTAL: REGULAR MS CONTRIBUTIONS

650

14 792

21 403

29 425

66 270

A Envelope — National Allocations

1

1

SUB TOTAL: EC INTERNAL SLA

SUB TOTAL: EC INTERNAL SLA

1

1

A Envelope — National Allocations

187

3

190

Implementation Costs and Interests Revenues

5

0

6

Intra-ACP allocations

12

1

13

SUB TOTAL: CO-FINANCING

SUB TOTAL: CO-FINANCING

204

5

209

TOTAL

TOTAL

10 392

15 467

21 607

29 430

76 896

| | EDF | Aggregate Total | Cummulative Figures | Annual Figures |
| --- | --- | --- | --- | --- |
| At 31/12/2016 | % of allocation | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 |
| Decisions | | | | | | | | | | | | |
| | 8 | 10 391 | 100 % | 10 786 | (42) | (45) | (60) | (64) | (98) | (63) | (12) | (13) |
| | 9 | 15 429 | 100 % | 16 633 | (54) | (116) | (9) | (297) | (72) | (381) | (170) | (104) |
| | 10 | 21 058 | 97 % | 4 766 | 3 501 | 2 349 | 3 118 | 3 524 | 4 131 | (95) | (156) | (80) |
| | 11 | 13 220 | 45 % | | | | | | | 1 160 | 5 372 | 6 688 |
| Total | | 60 097 | | 32 185 | 3 405 | 2 187 | 3 049 | 3 163 | 3 961 | 621 | 5 034 | 6 491 |
| Assigned Funds | | | | | | | | | | | | |
| | 8 | 10 378 | 100 % | 10 541 | (42) | 8 | (13) | (46) | (11) | (37) | (16) | (6) |
| | 9 | 15 309 | 99 % | 14 209 | 997 | 476 | 9 | (187) | (96) | (1) | (52) | (46) |
| | 10 | 19 576 | 91 % | 130 | 3 184 | 2 820 | 2 514 | 3 460 | 3 457 | 2 687 | 783 | 541 |
| | 11 | 7 769 | 26 % | | | | | | | 731 | 3 293 | 3 745 |
| Total | | 53 032 | | 24 881 | 4 140 | 3 304 | 2 509 | 3 226 | 3 350 | 3 380 | 4 008 | 4 234 |
| Payments | | | | | | | | | | | | |
| | 8 | 10 376 | 100 % | 9 930 | 152 | 158 | 90 | 15 | 18 | 16 | (3) | (0) |
| | 9 | 15 053 | 97 % | 10 011 | 1 806 | 1 304 | 906 | 539 | 231 | 145 | 43 | 68 |
| | 10 | 16 476 | 76 % | 90 | 1 111 | 1 772 | 1 879 | 2 655 | 2 718 | 2 760 | 2 024 | 1 466 |
| | 11 | 3 435 | 12 % | | | | | | | 595 | 1 024 | 1 816 |
| Total | | 45 339 | | 20 031 | 3 069 | 3 233 | 2 874 | 3 209 | 2 967 | 3 516 | 3 088 | 3 350 |
| * | Negative figures represent decommitments |

EDF

Aggregate Total

Cummulative Figures

Annual Figures

At 31/12/2016

% of allocation

2008

2009

2010

2011

2012

2013

2014

2015

2016

Decisions

Decisions

8

10 391

100 %

10 786

(42)

(45)

(60)

(64)

(98)

(63)

(12)

(13)

9

15 429

100 %

16 633

(54)

(116)

(9)

(297)

(72)

(381)

(170)

(104)

10

21 058

97 %

4 766

3 501

2 349

3 118

3 524

4 131

(95)

(156)

(80)

11

13 220

45 %

1 160

5 372

6 688

Total

Total

60 097

60 097

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

Assigned Funds

Assigned Funds

8

10 378

100 %

10 541

(42)

8

(13)

(46)

(11)

(37)

(16)

(6)

9

15 309

99 %

14 209

997

476

9

(187)

(96)

(1)

(52)

(46)

10

19 576

91 %

130

3 184

2 820

2 514

3 460

3 457

2 687

783

541

11

7 769

26 %

731

3 293

3 745

Total

Total

53 032

53 032

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

Payments

Payments

8

10 376

100 %

9 930

152

158

90

15

18

16

(3)

(0)

9

15 053

97 %

10 011

1 806

1 304

906

539

231

145

43

68

10

16 476

76 %

90

1 111

1 772

1 879

2 655

2 718

2 760

2 024

1 466

11

3 435

12 %

595

1 024

1 816

Total

Total

45 339

45 339

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

*

Negative figures represent decommitments

Table 2.2

Table 2.2

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2016

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2016

CLASS OF AID

CLASS OF AID

| (EUR million) |
| --- |
| | EDF |
| 8 | % | 9 | % | 10 | % | 11 | % | TOTAL | % |
| (10) | (10) | (10) | (10) | (10) |
| 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 | 4 993 | | | | | | | | 4 993 | |
| Decisions | 4 992 | 100 % | | | | | | | 4 992 | 100 % |
| Assigned funds | 4 987 | 100 % | | | | | | | 4 987 | 100 % |
| Payments | 4 986 | 100 % | | | | | | | 4 986 | 100 % |
| Total Non-Programmable Aid | | | | | | | | | | |
| Appropriations | 4 714 | | | | | | | | 4 714 | |
| Decisions | 4 714 | 100 % | | | | | | | 4 714 | 100 % |
| Assigned funds | 4 707 | 100 % | | | | | | | 4 707 | 100 % |
| Payments | 4 706 | 100 % | | | | | | | 4 706 | 100 % |
| Transfers from other funds | | | | | | | | | | |
| Appropriations | | | 675 | | | | | | 675 | |
| Decisions | | | 674 | 100 % | | | | | 674 | 100 % |
| Assigned funds | | | 671 | 99 % | | | | | 671 | 99 % |
| Payments | | | 670 | 99 % | | | | | 670 | 99 % |
| Regular MS Contributions | | | | | | | | | | |
| | |
| Cotonou | A Envelope — National Allocations | | | | | | | | | | |
| Appropriations | 417 | | 8 875 | | 13 437 | | 15 156 | | 49 258 | |
| Decisions | 417 | 100 % | 8 868 | 100 % | 13 414 | 54 % | 7 972 | 53 % | 30 671 | 62 % |
| Assigned funds | 417 | 100 % | 8 842 | 100 % | 12 436 | 50 % | 3 777 | 25 % | 25 472 | 52 % |
| Payments | 417 | 100 % | 8 804 | 99 % | 10 366 | 42 % | 1 524 | 10 % | 21 111 | 43 % |
| B Envelope — National Allocations | | | | | | | | | | |
| Appropriations | 233 | | 1 217 | | 2 030 | | 648 | | 4 865 | |
| Decisions | 233 | 100 % | 1 215 | 100 % | 2 023 | 73 % | 608 | 94 % | 4 078 | 84 % |
| Assigned funds | 232 | 99 % | 1 209 | 99 % | 1 981 | 72 % | 340 | 53 % | 3 761 | 77 % |
| Payments | 231 | 99 % | 1 204 | 99 % | 1 879 | 68 % | 243 | 37 % | 3 557 | 73 % |
| Cotonou | Bridging facility | | | | | | | | | | |
| Appropriations | | | | | | | (0) | | (0) | |
| 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 | 0 | | 240 | | 535 | | 1 071 | | 2 311 | |
| Decisions | | | 240 | 100 % | 505 | 51 % | 385 | 36 % | 1 131 | 49 % |
| Assigned funds | | | 240 | 100 % | 501 | 50 % | 337 | 31 % | 1 079 | 47 % |
| Payments | | | 239 | 100 % | 498 | 50 % | 309 | 29 % | 1 047 | 45 % |
| Intra-ACP allocations | | | | | | | | | | |
| Appropriations | | | 2 968 | | 3 135 | | 3 387 | | 11 815 | |
| Decisions | | | 2 958 | 100 % | 2 915 | 53 % | 1 365 | 40 % | 7 238 | 61 % |
| Assigned funds | | | 2 944 | 99 % | 2 695 | 49 % | 1 206 | 36 % | 6 845 | 58 % |
| Payments | | | 2 924 | 99 % | 2 319 | 42 % | 997 | 29 % | 6 240 | 53 % |
| Regional allocations | | | | | | | | | | |
| Appropriations | | | 818 | | 2 001 | | 5 181 | | 9 618 | |
| Decisions | | | 816 | 100 % | 1 999 | 55 % | 2 886 | 56 % | 5 701 | 59 % |
| Assigned funds | | | 798 | 98 % | 1 813 | 50 % | 2 106 | 41 % | 4 717 | 49 % |
| Payments | | | 771 | 94 % | 1 285 | 36 % | 362 | 7 % | 2 419 | 25 % |
| 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 | | | 217 | 81 % | | | | | 217 | 81 % |
| Payments | | | 77 | 29 % | | | | | 77 | 29 % |
| Cotonou | Special allocation Sudan | | | | | | | | | | |
| Appropriations | | | 110 | | | | | | 110 | |
| Decisions | | | 109 | 98 % | | | | | 109 | 98 % |
| Assigned funds | | | 105 | 96 % | | | | | 105 | 96 % |
| Payments | | | 80 | 73 % | | | | | 80 | 73 % |
| Voluntary contribution Peace facility | | | | | | | | | | |
| Appropriations | | | 39 | | | | | | 39 | |
| Decisions | | | 24 | 62 % | | | | | 24 | 62 % |
| Assigned funds | | | 24 | 62 % | | | | | 24 | 62 % |
| Payments | | | 24 | 62 % | | | | | 24 | 62 % |
| Regular MS Contributions | | | | | | | | | | |
| A Envelope — National Allocations | | | | | | | | | | |
| Appropriations | | | | | 187 | | 3 | | 190 | |
| Decisions | | | | | 185 | 99 % | 3 | 100 % | 188 | 99 % |
| Assigned funds | | | | | 136 | 73 % | | | 136 | 71 % |
| Payments | | | | | 116 | 62 % | | | 116 | 61 % |
| Implementation Costs and Interests Revenues | | | | | | | | | | |
| Appropriations | | | | | 5 | | 0 | | 6 | |
| Decisions | | | | | 4 | 77 % | | | 4 | 72 % |
| Assigned funds | | | | | 2 | 41 % | | | 2 | 39 % |
| Payments | | | | | 1 | 21 % | | | 1 | 19 % |
| Intra-ACP allocations | | | | | | | | | | |
| Appropriations | | | | | 12 | | 1 | | 13 | |
| Decisions | | | | | 12 | 97 % | 1 | 100 % | 13 | 98 % |
| Assigned funds | | | | | 11 | 93 % | 1 | 100 % | 13 | 94 % |
| Payments | | | | | 11 | 87 % | | | 11 | 79 % |
| Co-financing | | | | | | | | | | |
| Cotonou | A Envelope — National Allocations | | | | | | | | | | |
| Appropriations | | | | | | | 1 | | 1 | |
| Decisions | | | | | | | 1 | 71 % | 1 | 71 % |
| Assigned funds | | | | | | | 1 | 71 % | 1 | 71 % |
| Payments | | | | | | | 1 | 52 % | 1 | 52 % |
| EC Internal SLA | | | | | | | | | | |
| | |
| | Appropriations | 8 | % | 9 | % | 10 | % | 11 | % | TOTAL | % |
| (10) | (10) | (10) | (10) | (10) |
| Cotonou | Country reserve | | | | | | | 0 | | 3 401 | |
| Intra-ACP Reserve | | | | | | | 203 | | 578 | |
| National allocations Reserve A Envelope STABEX | | | | | | | 0 | | 0 | |
| NIP/RIP reserve | | | | | | | 3 743 | | 4 426 | |
| Regional allocations reserve | | | | | | | | | 205 | |
| Mobilisable reserves | | | | | | | | | | |
| Non-mobilisable reserve | | | | | 264 | | 35 | | 376 | |
| Non-mobilisable reserve | | | | | | | | | | |
| | | 8 | % | 9 | % | 10 | % | 11 | % | TOTAL | % |
| (10) | (10) | (10) | (10) | (10) |
| | Appropriations | 10 392 | | 15 467 | | 21 607 | | 29 430 | | 98 155 | |
| Decisions | 10 391 | 100 % | 15 429 | 100 % | 21 058 | 49 % | 13 220 | 45 % | 60 097 | 61 % |
| Assigned funds | 10 378 | 100 % | 15 309 | 99 % | 19 576 | 46 % | 7 769 | 26 % | 53 032 | 54 % |
| Payments | 10 376 | 100 % | 15 053 | 97 % | 16 476 | 38 % | 3 435 | 12 % | 45 339 | 46 % |
| TOTAL: ALL ALLOCATIONS | | | | | | | | | | |

(EUR million)

EDF

8

%

9

%

10

%

11

%

TOTAL

%

(10)

10

(10)

10

(10)

10

(10)

10

(10)

10

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

4 993

4 993

Decisions

4 992

100 %

4 992

100 %

Assigned funds

4 987

100 %

4 987

100 %

Payments

4 986

100 %

4 986

100 %

Total Non-Programmable Aid

Total Non-Programmable Aid

Appropriations

4 714

4 714

Decisions

4 714

100 %

4 714

100 %

Assigned funds

4 707

100 %

4 707

100 %

Payments

4 706

100 %

4 706

100 %

Transfers from other funds

Transfers from other funds

Appropriations

675

675

Decisions

674

100 %

674

100 %

Assigned funds

671

99 %

671

99 %

Payments

670

99 %

670

99 %

Regular MS Contributions

Regular MS Contributions

Cotonou

Cotonou

A Envelope — National Allocations

A Envelope — National Allocations

Appropriations

417

8 875

13 437

15 156

49 258

Decisions

417

100 %

8 868

100 %

13 414

54 %

7 972

53 %

30 671

62 %

Assigned funds

417

100 %

8 842

100 %

12 436

50 %

3 777

25 %

25 472

52 %

Payments

417

100 %

8 804

99 %

10 366

42 %

1 524

10 %

21 111

43 %

B Envelope — National Allocations

B Envelope — National Allocations

Appropriations

233

1 217

2 030

648

4 865

Decisions

233

100 %

1 215

100 %

2 023

73 %

608

94 %

4 078

84 %

Assigned funds

232

99 %

1 209

99 %

1 981

72 %

340

53 %

3 761

77 %

Payments

231

99 %

1 204

99 %

1 879

68 %

243

37 %

3 557

73 %

Cotonou

Cotonou

Bridging facility

Bridging facility

Appropriations

(0)

(0)

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

0

240

535

1 071

2 311

Decisions

240

100 %

505

51 %

385

36 %

1 131

49 %

Assigned funds

240

100 %

501

50 %

337

31 %

1 079

47 %

Payments

239

100 %

498

50 %

309

29 %

1 047

45 %

Intra-ACP allocations

Intra-ACP allocations

Appropriations

2 968

3 135

3 387

11 815

Decisions

2 958

100 %

2 915

53 %

1 365

40 %

7 238

61 %

Assigned funds

2 944

99 %

2 695

49 %

1 206

36 %

6 845

58 %

Payments

2 924

99 %

2 319

42 %

997

29 %

6 240

53 %

Regional allocations

Regional allocations

Appropriations

818

2 001

5 181

9 618

Decisions

816

100 %

1 999

55 %

2 886

56 %

5 701

59 %

Assigned funds

798

98 %

1 813

50 %

2 106

41 %

4 717

49 %

Payments

771

94 %

1 285

36 %

362

7 %

2 419

25 %

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

217

81 %

217

81 %

Payments

77

29 %

77

29 %

Cotonou

Cotonou

Special allocation Sudan

Special allocation Sudan

Appropriations

110

110

Decisions

109

98 %

109

98 %

Assigned funds

105

96 %

105

96 %

Payments

80

73 %

80

73 %

Voluntary contribution Peace facility

Voluntary contribution Peace facility

Appropriations

39

39

Decisions

24

62 %

24

62 %

Assigned funds

24

62 %

24

62 %

Payments

24

62 %

24

62 %

Regular MS Contributions

Regular MS Contributions

A Envelope — National Allocations

A Envelope — National Allocations

Appropriations

187

3

190

Decisions

185

99 %

3

100 %

188

99 %

Assigned funds

136

73 %

136

71 %

Payments

116

62 %

116

61 %

Implementation Costs and Interests Revenues

Implementation Costs and Interests Revenues

Appropriations

5

0

6

Decisions

4

77 %

4

72 %

Assigned funds

2

41 %

2

39 %

Payments

1

21 %

1

19 %

Intra-ACP allocations

Intra-ACP allocations

Appropriations

12

1

13

Decisions

12

97 %

1

100 %

13

98 %

Assigned funds

11

93 %

1

100 %

13

94 %

Payments

11

87 %

11

79 %

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

71 %

1

71 %

Payments

1

52 %

1

52 %

EC Internal SLA

EC Internal SLA

Appropriations

8

%

9

%

10

%

11

%

TOTAL

%

(10)

10

(10)

10

(10)

10

(10)

10

(10)

10

Cotonou

Cotonou

Country reserve

0

0

3 401

3 401

Intra-ACP Reserve

203

203

578

578

National allocations Reserve A Envelope STABEX

0

0

0

0

NIP/RIP reserve

3 743

3 743

4 426

4 426

Regional allocations reserve

205

205

Mobilisable reserves

Mobilisable reserves

Non-mobilisable reserve

264

264

35

35

376

376

Non-mobilisable reserve

Non-mobilisable reserve

8

%

9

%

10

%

11

%

TOTAL

%

(10)

10

(10)

10

(10)

10

(10)

10

(10)

10

Appropriations

10 392

15 467

21 607

29 430

98 155

Decisions

10 391

100 %

15 429

100 %

21 058

49 %

13 220

45 %

60 097

61 %

Assigned funds

10 378

100 %

15 309

99 %

19 576

46 %

7 769

26 %

53 032

54 %

Payments

10 376

100 %

15 053

97 %

16 476

38 %

3 435

12 %

45 339

46 %

TOTAL: ALL ALLOCATIONS

TOTAL: ALL ALLOCATIONS

Table 2.3

Table 2.3

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2016

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2016

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 | | | | | | | | | | |
| Utilisation of interest income | 35 | 35 | | 100 % | 35 | | 100 % | 35 | | 100 % |
| SUB TOTAL: SUNDRY INCOME | 35 | 35 | | 100 % | 35 | | 100 % | 35 | | 100 % |
| Total indicative programmes | 4 957 | 4 956 | (2) | 100 % | 4 952 | (2) | 100 % | 4 951 | (0) | 100 % |
| SUB TOTAL: TOTAL INDICATIVE PROGRAMMES | 4 957 | 4 956 | (2) | 100 % | 4 952 | (2) | 100 % | 4 951 | (0) | 100 % |
| Aid for refugees | 100 | 100 | (0) | 100 % | 100 | (0) | 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 | 72 | 72 | (7) | 100 % | 69 | (3) | 95 % | 69 | | 100 % |
| Risk capital | 1 015 | 1 015 | | 100 % | 1 012 | | 100 % | 1 012 | | 100 % |
| Stabex | 723 | 723 | (0) | 100 % | 723 | (0) | 100 % | 722 | 0 | 100 % |
| Structural adjustment | 1 497 | 1 497 | | 100 % | 1 497 | | 100 % | 1 497 | | 100 % |
| Sysmin | 101 | 101 | | 100 % | 101 | | 100 % | 101 | | 100 % |
| SUB TOTAL: TOTAL NON-PROGRAMMABLE AID | 4 704 | 4 703 | (8) | 100 % | 4 697 | (4) | 100 % | 4 696 | 0 | 100 % |
| Cotonou | ACP


  Regular MS Contributions | | | | | | | | | | |
| A Envelope — National Allocations | 417 | 417 | (0) | 100 % | 417 | (0) | 100 % | 417 | | 100 % |
| SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 417 | 417 | (0) | 100 % | 417 | (0) | 100 % | 417 | | 100 % |
| B Envelope — National Allocations | 233 | | | | | | | | | |
| Compensation export earnings | | 233 | (2) | | 232 | (1) | 99 % | 231 | 0 | 100 % |
| SUB TOTAL: B ENVELOPE — NATIONAL ALLOCATIONS | 233 | 233 | (2) | 100 % | 232 | (1) | 99 % | 231 | 0 | 100 % |
| Interests and other receipts | 0 | | | | | | | | | |
| SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | 0 | | | | | | | | | |
| | TOTAL ACP (A) | 10 346 | 10 345 | (13) | 100 % | 10 333 | (6) | 100 % | 10 330 | (0) | 100 % |
| Lomé | OCT


  Regular MS Contributions | | | | | | | | | | |
| Total indicative programmes | 36 | 36 | 0 | 100 % | 35 | (0) | 98 % | 35 | | 100 % |
| SUB TOTAL: TOTAL INDICATIVE PROGRAMMES | 36 | 36 | 0 | 100 % | 35 | (0) | 98 % | 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 | (0) | 100 % | 2 | | 100 % | 2 | | 100 % |
| SUB TOTAL: TOTAL NON-PROGRAMMABLE AID | 10 | 10 | (0) | 100 % | 10 | | 100 % | 10 | | 100 % |
| | TOTAL OCT (B) | 46 | 46 | (0) | 100 % | 46 | (0) | 99 % | 46 | | 100 % |
| | TOTAL: ACP+OCT (A+B) | 10 392 | 10 391 | (13) | 100 % | 10 378 | (6) | 100 % | 10 376 | (0) | 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

Utilisation of interest income

35

35

100 %

35

100 %

35

100 %

SUB TOTAL: SUNDRY INCOME

SUB TOTAL: SUNDRY INCOME

35

35

35

35

100 %

100 %

35

35

100 %

100 %

35

35

100 %

100 %

Total indicative programmes

4 957

4 956

(2)

100 %

4 952

(2)

100 %

4 951

(0)

100 %

SUB TOTAL: TOTAL INDICATIVE PROGRAMMES

SUB TOTAL: TOTAL INDICATIVE PROGRAMMES

4 957

4 957

4 956

4 956

(2)

(2)

100 %

100 %

4 952

4 952

(2)

(2)

100 %

100 %

4 951

4 951

(0)

(0)

100 %

100 %

Aid for refugees

100

100

(0)

100 %

100

(0)

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

72

72

(7)

100 %

69

(3)

95 %

69

100 %

Risk capital

1 015

1 015

100 %

1 012

100 %

1 012

100 %

Stabex

723

723

(0)

100 %

723

(0)

100 %

722

0

100 %

Structural adjustment

1 497

1 497

100 %

1 497

100 %

1 497

100 %

Sysmin

101

101

100 %

101

100 %

101

100 %

SUB TOTAL: TOTAL NON-PROGRAMMABLE AID

SUB TOTAL: TOTAL NON-PROGRAMMABLE AID

4 704

4 704

4 703

4 703

(8)

(8)

100 %

100 %

4 697

4 697

(4)

(4)

100 %

100 %

4 696

4 696

0

0

100 %

100 %

Cotonou

Cotonou

ACP

ACP

Regular MS Contributions

Regular MS Contributions

A Envelope — National Allocations

417

417

(0)

100 %

417

(0)

100 %

417

100 %

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

417

417

417

417

(0)

(0)

100 %

100 %

417

417

(0)

(0)

100 %

100 %

417

417

100 %

100 %

B Envelope — National Allocations

233

Compensation export earnings

233

(2)

232

(1)

99 %

231

0

100 %

SUB TOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

SUB TOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

233

233

233

233

(2)

(2)

100 %

100 %

232

232

(1)

(1)

99 %

99 %

231

231

0

0

100 %

100 %

Interests and other receipts

0

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

0

0

TOTAL ACP (A)

TOTAL ACP (A)

10 346

10 346

10 345

10 345

(13)

(13)

100 %

100 %

10 333

10 333

(6)

(6)

100 %

100 %

10 330

10 330

(0)

(0)

100 %

100 %

Lomé

Lomé

OCT

OCT

Regular MS Contributions

Regular MS Contributions

Total indicative programmes

36

36

0

100 %

35

(0)

98 %

35

100 %

SUB TOTAL: TOTAL INDICATIVE PROGRAMMES

SUB TOTAL: TOTAL INDICATIVE PROGRAMMES

36

36

36

36

0

0

100 %

100 %

35

35

(0)

(0)

98 %

98 %

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

(0)

100 %

2

100 %

2

100 %

SUB TOTAL: TOTAL NON-PROGRAMMABLE AID

SUB TOTAL: TOTAL NON-PROGRAMMABLE AID

10

10

10

10

(0)

(0)

100 %

100 %

10

10

100 %

100 %

10

10

100 %

100 %

TOTAL OCT (B)

TOTAL OCT (B)

46

46

46

46

(0)

(0)

100 %

100 %

46

46

(0)

(0)

99 %

99 %

46

46

100 %

100 %

TOTAL: ACP+OCT (A+B)

TOTAL: ACP+OCT (A+B)

10 392

10 392

10 391

10 391

(13)

(13)

100 %

100 %

10 378

10 378

(6)

(6)

100 %

100 %

10 376

10 376

(0)

(0)

100 %

100 %

Table 2.4

Table 2.4

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2016

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2016

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 6th EDF — Lomé | 20 | 20 | (0) | 100 % | 20 | | 100 % | 20 | | 100 % |
| Transfers from 7th EDF — Lomé | 651 | 651 | (3) | 100 % | 648 | (0) | 100 % | 647 | (0) | 100 % |
| SUB TOTAL: TRANSFERS FROM OTHER FUNDS | 672 | 671 | (3) | 100 % | 668 | (0) | 100 % | 667 | (0) | 100 % |
| Cotonou | ACP | | | | | | | | | | |
| Regular MS Contributions | | | | | | | | | | |
| A Envelope — National Allocations | 8 637 | 8 631 | (49) | 100 % | 8 605 | (20) | 100 % | 8 569 | 6 | 100 % |
| SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 8 637 | 8 631 | (49) | 100 % | 8 605 | (20) | 100 % | 8 569 | 6 | 100 % |
| B Envelope — National Allocations | 1 212 | | | | | | | | | |
| Compensation export earnings | | 149 | (0) | | 149 | (0) | 100 % | 149 | 0 | 100 % |
| Emergency aid | | 1 050 | (5) | | 1 044 | (7) | 99 % | 1 040 | (0) | 100 % |
| Heavily indebted poor countries | | 11 | | | 11 | | 100 % | 11 | | 100 % |
| SUB TOTAL: B ENVELOPE — NATIONAL ALLOCATIONS | 1 212 | 1 210 | (6) | 100 % | 1 204 | (7) | 99 % | 1 200 | (0) | 100 % |
| Cotonou | CDE, CTA and Parliamentary Assembly | 154 | 154 | | 100 % | 154 | | 100 % | 154 | | 100 % |
| SUB TOTAL: CDE, CTA AND PARLIAMENTARY ASSEMBLY | 154 | 154 | | 100 % | 154 | | 100 % | 154 | | 100 % |
| Implementation costs | 177 | 177 | | 100 % | 177 | 0 | 100 % | 176 | 0 | 99 % |
| Interests and other receipts | 63 | 63 | | 100 % | 63 | | 100 % | 63 | | 100 % |
| SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | 240 | 240 | | 100 % | 240 | 0 | 100 % | 239 | 0 | 100 % |
| Other Intra-ACP allocations | 2 614 | 2 604 | (21) | 100 % | 2 591 | (14) | 99 % | 2 571 | 14 | 99 % |
| Peace facility | 354 | 354 | (0) | 100 % | 353 | (0) | 100 % | 353 | | 100 % |
| SUB TOTAL: INTRA-ACP ALLOCATIONS | 2 968 | 2 958 | (21) | 100 % | 2 944 | (15) | 100 % | 2 924 | 14 | 99 % |
| Regional allocations | 770 | 768 | (24) | 100 % | 752 | (4) | 98 % | 726 | 5 | 97 % |
| SUB TOTAL: REGIONAL ALLOCATIONS | 770 | 768 | (24) | 100 % | 752 | (4) | 98 % | 726 | 5 | 97 % |
| Special allocation R.D. Congo | 105 | 105 | | 100 % | 105 | | 100 % | 105 | | 100 % |
| SUB TOTAL: SPECIAL ALLOCATION R.D. CONGO | 105 | 105 | | 100 % | 105 | | 100 % | 105 | | 100 % |
| Special allocation South Sudan | 267 | 266 | 0 | 100 % | 217 | 1 | 82 % | 77 | 23 | 35 % |
| SUB TOTAL: SPECIAL ALLOCATION SOUTH SUDAN | 267 | 266 | 0 | 100 % | 217 | 1 | 82 % | 77 | 23 | 35 % |
| Special allocation Sudan | 110 | 109 | (0) | 98 % | 105 | (1) | 97 % | 80 | 20 | 76 % |
| SUB TOTAL: SPECIAL ALLOCATION SUDAN | 110 | 109 | (0) | 98 % | 105 | (1) | 97 % | 80 | 20 | 76 % |
| Voluntary contribution Peace facility | 39 | 24 | | 62 % | 24 | | 100 % | 24 | | 100 % |
| SUB TOTAL: VOLUNTARY CONTRIBUTION PEACE FACILITY | 39 | 24 | | 62 % | 24 | | 100 % | 24 | | 100 % |
| | TOTAL: ACP (A) | 15 174 | 15 136 | (103) | 100 % | 15 018 | (45) | 99 % | 14 764 | 68 | 98 % |
| Lomé | OCT | | | | | | | | | | |
| Regular MS Contributions | | | | | | | | | | |
| Transfers from 6th EDF — Lomé | 0 | 0 | | 100 % | 0 | | 100 % | 0 | | 100 % |
| Transfers from 7th EDF — Lomé | 3 | 3 | | 100 % | 3 | | 100 % | 3 | | 100 % |
| SUB TOTAL: TRANSFERS FROM OTHER FUNDS | 3 | 3 | | 100 % | 3 | | 100 % | 3 | | 100 % |
| Cotonou | OCT | | | | | | | | | | |
| Regular MS Contributions | | | | | | | | | | |
| A Envelope — National Allocations | 237 | 237 | (1) | 100 % | 237 | (1) | 100 % | 235 | (0) | 99 % |
| SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 237 | 237 | (1) | 100 % | 237 | (1) | 100 % | 235 | (0) | 99 % |
| B Envelope — National Allocations | 4 | | | | | | | | | |
| Emergency aid | | 4 | | | 4 | | 100 % | 4 | | 100 % |
| SUB TOTAL: B ENVELOPE — NATIONAL ALLOCATIONS | 4 | 4 | | 100 % | 4 | | 100 % | 4 | | 100 % |
| Studies/Technical assistance OCT | 1 | 1 | | 100 % | 1 | | 100 % | 1 | | 100 % |
| SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | 1 | 1 | | 100 % | 1 | | 100 % | 1 | | 100 % |
| Regional allocations | 48 | 48 | 0 | 100 % | 46 | 0 | 97 % | 45 | 0 | 98 % |
| SUB TOTAL: REGIONAL ALLOCATIONS | 48 | 48 | 0 | 100 % | 46 | 0 | 97 % | 45 | 0 | 98 % |
| | TOTAL: OCT (B) | 293 | 293 | (1) | 100 % | 291 | (1) | 99 % | 288 | 0 | 99 % |
| | TOTAL: ACP+OCT (A+B) | 15 467 | 15 429 | (104) | 100 % | 15 309 | (46) | 99 % | 15 053 | 68 | 98 % |

(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 6th EDF — Lomé

20

20

(0)

100 %

20

100 %

20

100 %

Transfers from 7th EDF — Lomé

651

651

(3)

100 %

648

(0)

100 %

647

(0)

100 %

SUB TOTAL: TRANSFERS FROM OTHER FUNDS

SUB TOTAL: TRANSFERS FROM OTHER FUNDS

672

672

671

671

(3)

(3)

100 %

100 %

668

668

(0)

(0)

100 %

100 %

667

667

(0)

(0)

100 %

100 %

Cotonou

Cotonou

ACP

ACP

Regular MS Contributions

Regular MS Contributions

A Envelope — National Allocations

8 637

8 631

(49)

100 %

8 605

(20)

100 %

8 569

6

100 %

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

8 637

8 637

8 631

8 631

(49)

(49)

100 %

100 %

8 605

8 605

(20)

(20)

100 %

100 %

8 569

8 569

6

6

100 %

100 %

B Envelope — National Allocations

1 212

Compensation export earnings

149

(0)

149

(0)

100 %

149

0

100 %

Emergency aid

1 050

(5)

1 044

(7)

99 %

1 040

(0)

100 %

Heavily indebted poor countries

11

11

100 %

11

100 %

SUB TOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

SUB TOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

1 212

1 212

1 210

1 210

(6)

(6)

100 %

100 %

1 204

1 204

(7)

(7)

99 %

99 %

1 200

1 200

(0)

(0)

100 %

100 %

Cotonou

Cotonou

CDE, CTA and Parliamentary Assembly

154

154

100 %

154

100 %

154

100 %

SUB TOTAL: CDE, CTA AND PARLIAMENTARY ASSEMBLY

SUB TOTAL: CDE, CTA AND PARLIAMENTARY ASSEMBLY

154

154

154

154

100 %

100 %

154

154

100 %

100 %

154

154

100 %

100 %

Implementation costs

177

177

100 %

177

0

100 %

176

0

99 %

Interests and other receipts

63

63

100 %

63

100 %

63

100 %

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

240

240

240

240

100 %

100 %

240

240

0

0

100 %

100 %

239

239

0

0

100 %

100 %

Other Intra-ACP allocations

2 614

2 604

(21)

100 %

2 591

(14)

99 %

2 571

14

99 %

Peace facility

354

354

(0)

100 %

353

(0)

100 %

353

100 %

SUB TOTAL: INTRA-ACP ALLOCATIONS

SUB TOTAL: INTRA-ACP ALLOCATIONS

2 968

2 968

2 958

2 958

(21)

(21)

100 %

100 %

2 944

2 944

(15)

(15)

100 %

100 %

2 924

2 924

14

14

99 %

99 %

Regional allocations

770

768

(24)

100 %

752

(4)

98 %

726

5

97 %

SUB TOTAL: REGIONAL ALLOCATIONS

SUB TOTAL: REGIONAL ALLOCATIONS

770

770

768

768

(24)

(24)

100 %

100 %

752

752

(4)

(4)

98 %

98 %

726

726

5

5

97 %

97 %

Special allocation R.D. Congo

105

105

100 %

105

100 %

105

100 %

SUB TOTAL: SPECIAL ALLOCATION R.D. CONGO

SUB TOTAL: 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

0

100 %

217

1

82 %

77

23

35 %

SUB TOTAL: SPECIAL ALLOCATION SOUTH SUDAN

SUB TOTAL: SPECIAL ALLOCATION SOUTH SUDAN

267

267

266

266

0

0

100 %

100 %

217

217

1

1

82 %

82 %

77

77

23

23

35 %

35 %

Special allocation Sudan

110

109

(0)

98 %

105

(1)

97 %

80

20

76 %

SUB TOTAL: SPECIAL ALLOCATION SUDAN

SUB TOTAL: SPECIAL ALLOCATION SUDAN

110

110

109

109

(0)

(0)

98 %

98 %

105

105

(1)

(1)

97 %

97 %

80

80

20

20

76 %

76 %

Voluntary contribution Peace facility

39

24

62 %

24

100 %

24

100 %

SUB TOTAL: VOLUNTARY CONTRIBUTION PEACE FACILITY

SUB TOTAL: VOLUNTARY CONTRIBUTION PEACE FACILITY

39

39

24

24

62 %

62 %

24

24

100 %

100 %

24

24

100 %

100 %

TOTAL: ACP (A)

TOTAL: ACP (A)

15 174

15 174

15 136

15 136

(103)

(103)

100 %

100 %

15 018

15 018

(45)

(45)

99 %

99 %

14 764

14 764

68

68

98 %

98 %

Lomé

Lomé

OCT

OCT

Regular MS Contributions

Regular MS Contributions

Transfers from 6th EDF — Lomé

0

0

100 %

0

100 %

0

100 %

Transfers from 7th EDF — Lomé

3

3

100 %

3

100 %

3

100 %

SUB TOTAL: TRANSFERS FROM OTHER FUNDS

SUB TOTAL: 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

237

237

(1)

100 %

237

(1)

100 %

235

(0)

99 %

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

237

237

237

237

(1)

(1)

100 %

100 %

237

237

(1)

(1)

100 %

100 %

235

235

(0)

(0)

99 %

99 %

B Envelope — National Allocations

4

Emergency aid

4

4

100 %

4

100 %

SUB TOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

SUB TOTAL: 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 %

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

1

1

1

1

100 %

100 %

1

1

100 %

100 %

1

1

100 %

100 %

Regional allocations

48

48

0

100 %

46

0

97 %

45

0

98 %

SUB TOTAL: REGIONAL ALLOCATIONS

SUB TOTAL: REGIONAL ALLOCATIONS

48

48

48

48

0

0

100 %

100 %

46

46

0

0

97 %

97 %

45

45

0

0

98 %

98 %

TOTAL: OCT (B)

TOTAL: OCT (B)

293

293

293

293

(1)

(1)

100 %

100 %

291

291

(1)

(1)

99 %

99 %

288

288

0

0

99 %

99 %

TOTAL: ACP+OCT (A+B)

TOTAL: ACP+OCT (A+B)

15 467

15 467

15 429

15 429

(104)

(104)

100 %

100 %

15 309

15 309

(46)

(46)

99 %

99 %

15 053

15 053

68

68

98 %

98 %

Table 2.5

Table 2.5

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2016

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2016

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 | 13 244 | 13 221 | (154) | 100 % | 12 301 | 430 | 93 % | 10 243 | 1 058 | 83 % |
| SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 13 244 | 13 221 | (154) | 100 % | 12 301 | 430 | 93 % | 10 243 | 1 058 | 83 % |
| B Envelope — National Allocations | 2 015 | | | | | | | | | |
| Compensation export earnings | | 204 | (6) | | 193 | 5 | 95 % | 179 | 11 | 93 % |
| Emergency aid | | 850 | (5) | | 830 | 4 | 98 % | 766 | 53 | 92 % |
| Heavily indebted poor countries | | 49 | | | 49 | | 100 % | 49 | | 100 % |
| Other chocs with budgetary impact | | 905 | (0) | | 896 | (1) | 99 % | 873 | 23 | 97 % |
| SUB TOTAL: B ENVELOPE — NATIONAL ALLOCATIONS | 2 015 | 2 008 | (11) | 100 % | 1 968 | 8 | 98 % | 1 866 | 87 | 95 % |
| Implementation costs | 445 | 431 | 2 | 97 % | 429 | 1 | 100 % | 427 | 2 | 100 % |
| Interests and other receipts | 84 | 69 | (0) | 82 % | 67 | (0) | 97 % | 66 | 1 | 99 % |
| SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | 529 | 500 | 1 | 94 % | 496 | 0 | 99 % | 494 | 3 | 99 % |
| Institutional and support expenditure | 232 | 232 | (6) | 100 % | 231 | (6) | 100 % | 211 | 0 | 91 % |
| Other Intra-ACP allocations | 1 889 | 1 889 | (12) | 100 % | 1 824 | (2) | 97 % | 1 492 | 127 | 82 % |
| Peace facility | 1 014 | 794 | 106 | 78 % | 640 | (20) | 81 % | 616 | (1) | 96 % |
| SUB TOTAL: INTRA-ACP ALLOCATIONS | 3 135 | 2 915 | 88 | 93 % | 2 695 | (28) | 92 % | 2 319 | 126 | 86 % |
| Regional allocations | 1 962 | 1 960 | (17) | 100 % | 1 777 | 149 | 91 % | 1 266 | 164 | 71 % |
| SUB TOTAL: REGIONAL ALLOCATIONS | 1 962 | 1 960 | (17) | 100 % | 1 777 | 149 | 91 % | 1 266 | 164 | 71 % |
| Co-financing | | | | | | | | | | |
| Allocations | | | | | | | | | | |
| A Envelope — National Allocations | 187 | 185 | 14 | 99 % | 136 | (21) | 73 % | 116 | 9 | 85 % |
| SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 187 | 185 | 14 | 99 % | 136 | (21) | 73 % | 116 | 9 | 85 % |
| Implementation costs | 5 | 4 | 1 | 84 % | 2 | 0 | 53 % | 1 | 0 | 50 % |
| SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | 5 | 4 | 1 | 84 % | 2 | 0 | 53 % | 1 | 0 | 50 % |
| Other Intra-ACP allocations | 12 | 11 | (0) | 97 % | 11 | (1) | 95 % | 10 | 1 | 94 % |
| Peace facility | 1 | 1 | | 100 % | 1 | | 99 % | 1 | | 100 % |
| SUB TOTAL: INTRA-ACP ALLOCATIONS | 12 | 12 | (0) | 97 % | 11 | (1) | 96 % | 11 | 1 | 94 % |
| Mobilisable reserves | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| A Envelope reserve | 0 | | | | | | | | | |
| B Envelope reserve | 0 | | | | | | | | | |
| SUB TOTAL: COUNTRY RESERVE | 0 | | | | | | | | | |
| Intra-ACP Reserve | 0 | | | | | | | | | |
| SUB TOTAL: INTRA-ACP RESERVE | 0 | | | | | | | | | |
| National allocations Reserve A Envelope STABEX | (0) | | | | | | | | | |
| SUB TOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX | (0) | | | | | | | | | |
| NIP/RIP reserve | 0 | | | | | | | | | |
| SUB TOTAL: NIP/RIP RESERVE | 0 | | | | | | | | | |
| Regional allocations reserve | 0 | | | | | | | | | |
| SUB TOTAL: REGIONAL ALLOCATIONS RESERVE | 0 | | | | | | | | | |
| Non-mobilisable reserve | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| Non-mobilisable reserve | 243 | | | | | | | | | |
| SUB TOTAL: NON-MOBILISABLE RESERVE | 243 | | | | | | | | | |
| OCT | | | | | | | | | | |
| Regular MS Contributions | | | | | | | | | | |
| Allocations | | | | | | | | | | |
| A Envelope — National Allocations | 193 | 193 | (2) | 100 % | 136 | 2 | 70 % | 123 | 10 | 91 % |
| SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 193 | 193 | (2) | 100 % | 136 | 2 | 70 % | 123 | 10 | 91 % |
| B Envelope — National Allocations | 15 | | | | | | | | | |
| Emergency aid | | 9 | 0 | | 7 | 0 | 77 % | 7 | 0 | 99 % |
| Other chocs with budgetary impact | | 6 | | | 6 | | 100 % | 6 | | 100 % |
| SUB TOTAL: B ENVELOPE — NATIONAL ALLOCATIONS | 15 | 15 | 0 | 100 % | 13 | 0 | 86 % | 13 | 0 | 99 % |
| Studies/Technical assistance OCT | 5 | 5 | | 100 % | 5 | 0 | 98 % | 5 | (0) | 91 % |
| SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | 5 | 5 | | 100 % | 5 | 0 | 98 % | 5 | (0) | 91 % |
| Regional allocations | 40 | 40 | 0 | 100 % | 35 | 0 | 89 % | 20 | 7 | 56 % |
| SUB TOTAL: REGIONAL ALLOCATIONS | 40 | 40 | 0 | 100 % | 35 | 0 | 89 % | 20 | 7 | 56 % |
| Mobilisable reserves | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| A Envelope reserve | 0 | | | | | | | | | |
| B Envelope reserve | 0 | | | | | | | | | |
| SUB TOTAL: COUNTRY RESERVE | 0 | | | | | | | | | |
| National allocations Reserve A Envelope STABEX | 0 | | | | | | | | | |
| SUB TOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX | 0 | | | | | | | | | |
| Regional allocations reserve | 0 | | | | | | | | | |
| SUB TOTAL: REGIONAL ALLOCATIONS RESERVE | 0 | | | | | | | | | |
| Non-mobilisable reserve | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| Non-mobilisable reserve | 21 | | | | | | | | | |
| SUB TOTAL: NON-MOBILISABLE RESERVE | 21 | | | | | | | | | |
| TOTAL: ACP+OCT (INCL. RESERVES) | 21 607 | 21 058 | (80) | 97 % | 19 576 | 541 | 93 % | 16 476 | 1 466 | 84 % |

(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

13 244

13 221

(154)

100 %

12 301

430

93 %

10 243

1 058

83 %

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

13 244

13 244

13 221

13 221

(154)

(154)

100 %

100 %

12 301

12 301

430

430

93 %

93 %

10 243

10 243

1 058

1 058

83 %

83 %

B Envelope — National Allocations

2 015

Compensation export earnings

204

(6)

193

5

95 %

179

11

93 %

Emergency aid

850

(5)

830

4

98 %

766

53

92 %

Heavily indebted poor countries

49

49

100 %

49

100 %

Other chocs with budgetary impact

905

(0)

896

(1)

99 %

873

23

97 %

SUB TOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

SUB TOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

2 015

2 015

2 008

2 008

(11)

(11)

100 %

100 %

1 968

1 968

8

8

98 %

98 %

1 866

1 866

87

87

95 %

95 %

Implementation costs

445

431

2

97 %

429

1

100 %

427

2

100 %

Interests and other receipts

84

69

(0)

82 %

67

(0)

97 %

66

1

99 %

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

529

529

500

500

1

1

94 %

94 %

496

496

0

0

99 %

99 %

494

494

3

3

99 %

99 %

Institutional and support expenditure

232

232

(6)

100 %

231

(6)

100 %

211

0

91 %

Other Intra-ACP allocations

1 889

1 889

(12)

100 %

1 824

(2)

97 %

1 492

127

82 %

Peace facility

1 014

794

106

78 %

640

(20)

81 %

616

(1)

96 %

SUB TOTAL: INTRA-ACP ALLOCATIONS

SUB TOTAL: INTRA-ACP ALLOCATIONS

3 135

3 135

2 915

2 915

88

88

93 %

93 %

2 695

2 695

(28)

(28)

92 %

92 %

2 319

2 319

126

126

86 %

86 %

Regional allocations

1 962

1 960

(17)

100 %

1 777

149

91 %

1 266

164

71 %

SUB TOTAL: REGIONAL ALLOCATIONS

SUB TOTAL: REGIONAL ALLOCATIONS

1 962

1 962

1 960

1 960

(17)

(17)

100 %

100 %

1 777

1 777

149

149

91 %

91 %

1 266

1 266

164

164

71 %

71 %

Co-financing

Co-financing

Allocations

Allocations

A Envelope — National Allocations

187

185

14

99 %

136

(21)

73 %

116

9

85 %

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

187

187

185

185

14

14

99 %

99 %

136

136

(21)

(21)

73 %

73 %

116

116

9

9

85 %

85 %

Implementation costs

5

4

1

84 %

2

0

53 %

1

0

50 %

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

5

5

4

4

1

1

84 %

84 %

2

2

0

0

53 %

53 %

1

1

0

0

50 %

50 %

Other Intra-ACP allocations

12

11

(0)

97 %

11

(1)

95 %

10

1

94 %

Peace facility

1

1

100 %

1

99 %

1

100 %

SUB TOTAL: INTRA-ACP ALLOCATIONS

SUB TOTAL: INTRA-ACP ALLOCATIONS

12

12

12

12

(0)

(0)

97 %

97 %

11

11

(1)

(1)

96 %

96 %

11

11

1

1

94 %

94 %

Mobilisable reserves

Mobilisable reserves

Reserves

Reserves

A Envelope reserve

0

B Envelope reserve

0

SUB TOTAL: COUNTRY RESERVE

SUB TOTAL: COUNTRY RESERVE

0

0

Intra-ACP Reserve

0

SUB TOTAL: INTRA-ACP RESERVE

SUB TOTAL: INTRA-ACP RESERVE

0

0

National allocations Reserve A Envelope STABEX

(0)

SUB TOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX

SUB TOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX

(0)

(0)

NIP/RIP reserve

0

SUB TOTAL: NIP/RIP RESERVE

SUB TOTAL: NIP/RIP RESERVE

0

0

Regional allocations reserve

0

SUB TOTAL: REGIONAL ALLOCATIONS RESERVE

SUB TOTAL: REGIONAL ALLOCATIONS RESERVE

0

0

Non-mobilisable reserve

Non-mobilisable reserve

Reserves

Reserves

Non-mobilisable reserve

243

SUB TOTAL: NON-MOBILISABLE RESERVE

SUB TOTAL: NON-MOBILISABLE RESERVE

243

243

OCT

OCT

Regular MS Contributions

Regular MS Contributions

Allocations

Allocations

A Envelope — National Allocations

193

193

(2)

100 %

136

2

70 %

123

10

91 %

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

193

193

193

193

(2)

(2)

100 %

100 %

136

136

2

2

70 %

70 %

123

123

10

10

91 %

91 %

B Envelope — National Allocations

15

Emergency aid

9

0

7

0

77 %

7

0

99 %

Other chocs with budgetary impact

6

6

100 %

6

100 %

SUB TOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

SUB TOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

15

15

15

15

0

0

100 %

100 %

13

13

0

0

86 %

86 %

13

13

0

0

99 %

99 %

Studies/Technical assistance OCT

5

5

100 %

5

0

98 %

5

(0)

91 %

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

5

5

5

5

100 %

100 %

5

5

0

0

98 %

98 %

5

5

(0)

(0)

91 %

91 %

Regional allocations

40

40

0

100 %

35

0

89 %

20

7

56 %

SUB TOTAL: REGIONAL ALLOCATIONS

SUB TOTAL: REGIONAL ALLOCATIONS

40

40

40

40

0

0

100 %

100 %

35

35

0

0

89 %

89 %

20

20

7

7

56 %

56 %

Mobilisable reserves

Mobilisable reserves

Reserves

Reserves

A Envelope reserve

0

B Envelope reserve

0

SUB TOTAL: COUNTRY RESERVE

SUB TOTAL: COUNTRY RESERVE

0

0

National allocations Reserve A Envelope STABEX

0

SUB TOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX

SUB TOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX

0

0

Regional allocations reserve

0

SUB TOTAL: REGIONAL ALLOCATIONS RESERVE

SUB TOTAL: REGIONAL ALLOCATIONS RESERVE

0

0

Non-mobilisable reserve

Non-mobilisable reserve

Reserves

Reserves

Non-mobilisable reserve

21

SUB TOTAL: NON-MOBILISABLE RESERVE

SUB TOTAL: NON-MOBILISABLE RESERVE

21

21

TOTAL: ACP+OCT (INCL. RESERVES)

TOTAL: ACP+OCT (INCL. RESERVES)

21 607

21 607

21 058

21 058

(80)

(80)

97 %

97 %

19 576

19 576

541

541

93 %

93 %

16 476

16 476

1 466

1 466

84 %

84 %

Table 2.6

Table 2.6

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2016

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2016

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 | 15 115 | 7 931 | 4 643 | 52 % | 3 751 | 2 268 | 47 % | 1 517 | 844 | 40 % |
| SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 15 115 | 7 931 | 4 643 | 52 % | 3 751 | 2 268 | 47 % | 1 517 | 844 | 40 % |
| B Envelope — National Allocations | 648 | | | | | | | | | |
| Emergency aid | | 499 | 336 | | 331 | 219 | 66 % | 237 | 152 | 72 % |
| Other chocs with budgetary impact | | 109 | 109 | | 9 | 9 | 8 % | 5 | 5 | 59 % |
| SUB TOTAL: B ENVELOPE — NATIONAL ALLOCATIONS | 648 | 608 | 444 | 94 % | 340 | 228 | 56 % | 243 | 157 | 71 % |
| Bridging facility | 0 | | | | | | | | | |
| SUB TOTAL: BRIDGING FACILITY | 0 | | | | | | | | | |
| Implementation costs | 1 053 | 374 | 137 | 36 % | 329 | 127 | 88 % | 302 | 111 | 92 % |
| Interests and other receipts | 16 | 8 | 2 | 52 % | 6 | 1 | 70 % | 6 | 3 | 96 % |
| SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | 1 068 | 382 | 139 | 36 % | 335 | 127 | 88 % | 308 | 114 | 92 % |
| Institutional and support expenditure | 246 | 106 | 5 | 43 % | 78 | 21 | 73 % | 60 | 20 | 77 % |
| Other Intra-ACP allocations | 2 241 | 359 | 68 | 16 % | 251 | 35 | 70 % | 206 | 206 | 82 % |
| Peace facility | 900 | 900 | 0 | 100 % | 878 | 279 | 98 % | 731 | 215 | 83 % |
| SUB TOTAL: INTRA-ACP ALLOCATIONS | 3 387 | 1 365 | 73 | 40 % | 1 206 | 335 | 88 % | 997 | 441 | 83 % |
| Regional allocations | 5 181 | 2 886 | 1 344 | 56 % | 2 106 | 759 | 73 % | 362 | 252 | 17 % |
| SUB TOTAL: REGIONAL ALLOCATIONS | 5 181 | 2 886 | 1 344 | 56 % | 2 106 | 759 | 73 % | 362 | 252 | 17 % |
| Co-financing | | | | | | | | | | |
| Allocations | | | | | | | | | | |
| A Envelope — National Allocations | 3 | 3 | 3 | 100 % | | | | | | |
| SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 3 | 3 | 3 | 100 % | | | | | | |
| Implementation costs | 0 | | | | | | | | | |
| SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | 0 | | | | | | | | | |
| Peace facility | 1 | 1 | | 100 % | 1 | | 100 % | | | |
| SUB TOTAL: INTRA-ACP ALLOCATIONS | 1 | 1 | | 100 % | 1 | | 100 % | | | |
| Mobilisable reserves | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| B Envelope reserve | 0 | | | | | | | | | |
| SUB TOTAL: COUNTRY RESERVE | 0 | | | | | | | | | |
| Intra-ACP Reserve | 203 | | | | | | | | | |
| SUB TOTAL: INTRA-ACP RESERVE | 203 | | | | | | | | | |
| National allocations Reserve A Envelope STABEX | 0 | | | | | | | | | |
| SUB TOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX | 0 | | | | | | | | | |
| NIP/RIP reserve | 3 428 | | | | | | | | | |
| SUB TOTAL: NIP/RIP RESERVE | 3 428 | | | | | | | | | |
| Non-mobilisable reserve | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| Non-mobilisable reserve | 31 | | | | | | | | | |
| SUB TOTAL: NON-MOBILISABLE RESERVE | 31 | | | | | | | | | |
| EC Internal SLA | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| A Envelope — National Allocations | 1 | 1 | | 71 % | 1 | | 100 % | 1 | | 73 % |
| SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 1 | 1 | | 71 % | 1 | | 100 % | 1 | | 73 % |
| OCT | | | | | | | | | | |
| Regular MS Contributions | | | | | | | | | | |
| Allocations | | | | | | | | | | |
| A Envelope — National Allocations | 41 | 41 | 41 | 100 % | 26 | 26 | 63 % | 7 | 7 | 27 % |
| SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS | 41 | 41 | 41 | 100 % | 26 | 26 | 63 % | 7 | 7 | 27 % |
| Bridging facility | 0 | | | | | | | | | |
| SUB TOTAL: BRIDGING FACILITY | 0 | | | | | | | | | |
| Studies/Technical assistance OCT | 3 | 3 | 0 | 100 % | 3 | 2 | 90 % | 1 | 1 | 53 % |
| SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES | 3 | 3 | 0 | 100 % | 3 | 2 | 90 % | 1 | 1 | 53 % |
| Mobilisable reserves | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| NIP/RIP reserve | 316 | | | | | | | | | |
| SUB TOTAL: NIP/RIP RESERVE | 316 | | | | | | | | | |
| Non-mobilisable reserve | | | | | | | | | | |
| Reserves | | | | | | | | | | |
| Non-mobilisable reserve | 3 | | | | | | | | | |
| SUB TOTAL: NON-MOBILISABLE RESERVE | 3 | | | | | | | | | |
| TOTAL: ACP+OCT (INCL. RESERVES) | 29 430 | 13 220 | 6 688 | 45 % | 7 769 | 3 745 | 59 % | 3 435 | 1 816 | 44 % |

(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

15 115

7 931

4 643

52 %

3 751

2 268

47 %

1 517

844

40 %

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

15 115

15 115

7 931

7 931

4 643

4 643

52 %

52 %

3 751

3 751

2 268

2 268

47 %

47 %

1 517

1 517

844

844

40 %

40 %

B Envelope — National Allocations

648

Emergency aid

499

336

331

219

66 %

237

152

72 %

Other chocs with budgetary impact

109

109

9

9

8 %

5

5

59 %

SUB TOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

SUB TOTAL: B ENVELOPE — NATIONAL ALLOCATIONS

648

648

608

608

444

444

94 %

94 %

340

340

228

228

56 %

56 %

243

243

157

157

71 %

71 %

Bridging facility

0

SUB TOTAL: BRIDGING FACILITY

SUB TOTAL: BRIDGING FACILITY

0

0

Implementation costs

1 053

374

137

36 %

329

127

88 %

302

111

92 %

Interests and other receipts

16

8

2

52 %

6

1

70 %

6

3

96 %

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

1 068

1 068

382

382

139

139

36 %

36 %

335

335

127

127

88 %

88 %

308

308

114

114

92 %

92 %

Institutional and support expenditure

246

106

5

43 %

78

21

73 %

60

20

77 %

Other Intra-ACP allocations

2 241

359

68

16 %

251

35

70 %

206

206

82 %

Peace facility

900

900

0

100 %

878

279

98 %

731

215

83 %

SUB TOTAL: INTRA-ACP ALLOCATIONS

SUB TOTAL: INTRA-ACP ALLOCATIONS

3 387

3 387

1 365

1 365

73

73

40 %

40 %

1 206

1 206

335

335

88 %

88 %

997

997

441

441

83 %

83 %

Regional allocations

5 181

2 886

1 344

56 %

2 106

759

73 %

362

252

17 %

SUB TOTAL: REGIONAL ALLOCATIONS

SUB TOTAL: REGIONAL ALLOCATIONS

5 181

5 181

2 886

2 886

1 344

1 344

56 %

56 %

2 106

2 106

759

759

73 %

73 %

362

362

252

252

17 %

17 %

Co-financing

Co-financing

Allocations

Allocations

A Envelope — National Allocations

3

3

3

100 %

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

3

3

3

3

3

3

100 %

100 %

Implementation costs

0

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

0

0

Peace facility

1

1

100 %

1

100 %

SUB TOTAL: INTRA-ACP ALLOCATIONS

SUB TOTAL: INTRA-ACP ALLOCATIONS

1

1

1

1

100 %

100 %

1

1

100 %

100 %

Mobilisable reserves

Mobilisable reserves

Reserves

Reserves

B Envelope reserve

0

SUB TOTAL: COUNTRY RESERVE

SUB TOTAL: COUNTRY RESERVE

0

0

Intra-ACP Reserve

203

SUB TOTAL: INTRA-ACP RESERVE

SUB TOTAL: INTRA-ACP RESERVE

203

203

National allocations Reserve A Envelope STABEX

0

SUB TOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX

SUB TOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX

0

0

NIP/RIP reserve

3 428

SUB TOTAL: NIP/RIP RESERVE

SUB TOTAL: NIP/RIP RESERVE

3 428

3 428

Non-mobilisable reserve

Non-mobilisable reserve

Reserves

Reserves

Non-mobilisable reserve

31

SUB TOTAL: NON-MOBILISABLE RESERVE

SUB TOTAL: NON-MOBILISABLE RESERVE

31

31

EC Internal SLA

EC Internal SLA

Reserves

Reserves

A Envelope — National Allocations

1

1

71 %

1

100 %

1

73 %

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

1

1

1

1

71 %

71 %

1

1

100 %

100 %

1

1

73 %

73 %

OCT

OCT

Regular MS Contributions

Regular MS Contributions

Allocations

Allocations

A Envelope — National Allocations

41

41

41

100 %

26

26

63 %

7

7

27 %

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

SUB TOTAL: A ENVELOPE — NATIONAL ALLOCATIONS

41

41

41

41

41

41

100 %

100 %

26

26

26

26

63 %

63 %

7

7

7

7

27 %

27 %

Bridging facility

0

SUB TOTAL: BRIDGING FACILITY

SUB TOTAL: BRIDGING FACILITY

0

0

Studies/Technical assistance OCT

3

3

0

100 %

3

2

90 %

1

1

53 %

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES

3

3

3

3

0

0

100 %

100 %

3

3

2

2

90 %

90 %

1

1

1

1

53 %

53 %

Mobilisable reserves

Mobilisable reserves

Reserves

Reserves

NIP/RIP reserve

316

SUB TOTAL: NIP/RIP RESERVE

SUB TOTAL: NIP/RIP RESERVE

316

316

Non-mobilisable reserve

Non-mobilisable reserve

Reserves

Reserves

Non-mobilisable reserve

3

SUB TOTAL: NON-MOBILISABLE RESERVE

SUB TOTAL: NON-MOBILISABLE RESERVE

3

3

TOTAL: ACP+OCT (INCL. RESERVES)

TOTAL: ACP+OCT (INCL. RESERVES)

29 430

29 430

13 220

13 220

6 688

6 688

45 %

45 %

7 769

7 769

3 745

3 745

59 %

59 %

3 435

3 435

1 816

1 816

44 %

44 %

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

| EUROPEAN INVESTMENT BANK | CA/501/17


  9 March 2017 |
| --- | --- |
| | Document 17/098 |
| BOARD OF DIRECTORS |
| INVESTMENT FACILITY


  FINANCIAL STATEMENTS


  AS AT 31 DECEMBER 2016 |
| — | Statement of financial position |

EUROPEAN INVESTMENT BANK

EUROPEAN INVESTMENT BANK

CA/501/17

CA/501/17

9 March 2017

Document 17/098

Document 17/098

BOARD OF DIRECTORS

BOARD OF DIRECTORS

INVESTMENT FACILITY

INVESTMENT FACILITY

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

AS AT 31 DECEMBER 2016

AS AT 31 DECEMBER 2016

—

Statement of financial position

| — | Statement of profit or loss and other comprehensive income |
| --- | --- |

—

Statement of profit or loss and other comprehensive income

| — | Statement of changes in contributors’ resources |
| --- | --- |

—

Statement of changes in contributors’ resources

| — | Statement of cash flows |
| --- | --- |

—

Statement of cash flows

| — | Notes to the financial statements |
| --- | --- |

—

Notes to the financial statements

| — | Independent auditor’s report |
| --- | --- |

—

Independent auditor’s report

STATEMENT OF FINANCIAL POSITION

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2016

AS AT 31 DECEMBER 2016

| (In EUR’000) |
| --- |
| | Notes | 31.12.2016 | 31.12.2015 |
| ASSETS | | | |
| Cash and cash equivalents | 5 | 360 817 | 448 995 |
| Amounts receivable from contributors | 9/16 | 86 395 | — |
| Held-to-maturity financial assets | 10 | 169 398 | 228 521 |
| Derivative financial instruments | 6 | 6 920 | 311 |
| Loans and receivables | 7 | 1 729 380 | 1 460 057 |
| Available-for-sale financial assets | 8 | 516 884 | 419 353 |
| Other assets | 11 | 345 | 27 |
| Total assets | | 2 870 139 | 2 557 264 |
| LIABILITIES AND CONTRIBUTORS’ RESOURCES | | | |
| LIABILITIES | | | |
| Derivative financial instruments | 6 | 25 189 | 8 219 |
| Deferred income | 12 | 26 283 | 29 325 |
| Provisions for guarantees issued | 13 | 625 | — |
| Amounts owed to third parties | 14 | 116 114 | 101 202 |
| Other liabilities | 15 | 2 546 | 2 364 |
| Total liabilities | | 170 757 | 141 110 |
| CONTRIBUTORS’ RESOURCES | | | |
| Member States Contribution called | 16 | 2 377 000 | 2 157 000 |
| Fair value reserve | | 142 884 | 163 993 |
| Retained earnings | | 179 498 | 95 161 |
| Total contributors’ resources | | 2 699 382 | 2 416 154 |
| Total liabilities and contributors’ resources | | 2 870 139 | 2 557 264 |

(In EUR’000)

Notes

31.12.2016

31.12.2015

ASSETS

ASSETS

Cash and cash equivalents

5

360 817

448 995

Amounts receivable from contributors

9/16

86 395

—

Held-to-maturity financial assets

10

169 398

228 521

Derivative financial instruments

6

6 920

311

Loans and receivables

7

1 729 380

1 460 057

Available-for-sale financial assets

8

516 884

419 353

Other assets

11

345

27

Total assets

Total assets

2 870 139

2 870 139

2 557 264

2 557 264

LIABILITIES AND CONTRIBUTORS’ RESOURCES

LIABILITIES AND CONTRIBUTORS’ RESOURCES

LIABILITIES

LIABILITIES

Derivative financial instruments

6

25 189

8 219

Deferred income

12

26 283

29 325

Provisions for guarantees issued

13

625

—

Amounts owed to third parties

14

116 114

101 202

Other liabilities

15

2 546

2 364

Total liabilities

Total liabilities

170 757

170 757

141 110

141 110

CONTRIBUTORS’ RESOURCES

CONTRIBUTORS’ RESOURCES

Member States Contribution called

16

2 377 000

2 157 000

Fair value reserve

142 884

163 993

Retained earnings

179 498

95 161

Total contributors’ resources

Total contributors’ resources

2 699 382

2 699 382

2 416 154

2 416 154

Total liabilities and contributors’ resources

Total liabilities and contributors’ resources

2 870 139

2 870 139

2 557 264

2 557 264

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2016

FOR THE YEAR ENDED 31 DECEMBER 2016

| (In EUR’000) |
| --- |
| | Notes | From 01.01.2016 | From 01.01.2015 |
| to 31.12.2016 | to 31.12.2015 |
| Interest and similar income | 18 | 106 698 | 90 385 |
| Interest and similar expenses | 18 | -2 307 | -1 556 |
| Net interest and similar income | | 104 391 | 88 829 |
| Fee and commission income | 19 | 699 | 932 |
| Fee and commission expenses | 19 | -48 | -63 |
| Net fee and commission income | | 651 | 869 |
| Fair value change of derivative financial instruments | | -10 361 | 6 276 |
| Net realised gains on available-for-sale financial assets | 20 | 6 504 | 33 878 |
| Net foreign exchange loss | | -14 995 | -52 483 |
| Net result on financial operations | | -18 852 | -12 329 |
| Change in impairment on loans and receivables, net of reversal | 7 | 44 365 | -33 988 |
| Change in provisions for guarantees | 13 | -242 | — |
| Impairment on available-for-sale financial assets | 8 | -2 493 | -3 646 |
| General administrative expenses | 21 | -43 483 | -43 045 |
| Profit/loss for the year | | 84 337 | -3 310 |
| Other comprehensive income: | | | |
| Items that are or may be reclassified to profit or loss: | | | |
| Available-for-sale financial assets — Fair value reserve | 8 | | |
| 1. | Net change in fair value of available-for-sale financial assets |

(In EUR’000)

Notes

From 01.01.2016

From 01.01.2015

to 31.12.2016

to 31.12.2015

Interest and similar income

18

106 698

90 385

Interest and similar expenses

18

-2 307

-1 556

Net interest and similar income

Net interest and similar income

104 391

104 391

88 829

88 829

Fee and commission income

19

699

932

Fee and commission expenses

19

-48

-63

Net fee and commission income

Net fee and commission income

651

651

869

869

Fair value change of derivative financial instruments

-10 361

6 276

Net realised gains on available-for-sale financial assets

20

6 504

33 878

Net foreign exchange loss

-14 995

-52 483

Net result on financial operations

Net result on financial operations

-18 852

-18 852

-12 329

-12 329

Change in impairment on loans and receivables, net of reversal

7

44 365

-33 988

Change in provisions for guarantees

13

-242

—

Impairment on available-for-sale financial assets

8

-2 493

-3 646

General administrative expenses

21

-43 483

-43 045

Profit/loss for the year

Profit/loss for the year

84 337

84 337

-3 310

-3 310

Other comprehensive income:

Other comprehensive income:

Items that are or may be reclassified to profit or loss:

Items that are or may be reclassified to profit or loss:

Available-for-sale financial assets — Fair value reserve

8

1.

Net change in fair value of available-for-sale financial assets

-14 624

43 394

| 2. | Net amount transferred to profit or loss |
| --- | --- |

2.

Net amount transferred to profit or loss

-6 485

-35 523

Total available-for-sale financial assets

Total available-for-sale financial assets

-21 109

-21 109

7 871

7 871

Total other comprehensive income

Total other comprehensive income

-21 109

-21 109

7 871

7 871

Total comprehensive income for the year

Total comprehensive income for the year

63 228

63 228

4 561

4 561

STATEMENT OF CHANGES IN CONTRIBUTORS’ RESOURCES

STATEMENT OF CHANGES IN CONTRIBUTORS’ RESOURCES

FOR THE YEAR ENDED 31 DECEMBER 2016

FOR THE YEAR ENDED 31 DECEMBER 2016

| (In EUR’000) |
| --- |
| | Notes | Contribution called | Fair value reserve | Retained earnings | Total |
| At 1 January 2016 | | 2 157 000 | 163 993 | 95 161 | 2 416 154 |
| Member States contribution called during the year | 16 | 220 000 | — | — | 220 000 |
| Profit for the year 2016 | | — | — | 84 337 | 84 337 |
| Total other comprehensive income for the year | | — | -21 109 | — | -21 109 |
| Changes in contributors’ resources | | 220 000 | -21 109 | 84 337 | 283 228 |
| At 31 December 2016 | | 2 377 000 | 142 884 | 179 498 | 2 699 382 |
| At 1 January 2015 | | 2 057 000 | 156 122 | 98 471 | 2 311 593 |
| Member States contribution called during the year | 16 | 100 000 | — | — | 100 000 |
| Loss for the year 2015 | | — | — | -3 310 | -3 310 |
| Total other comprehensive income for the year | | — | 7 871 | — | 7 871 |
| Changes in contributors’ resources | | 100 000 | 7 871 | -3 310 | 104 561 |
| At 31 December 2015 | | 2 157 000 | 163 993 | 95 161 | 2 416 154 |

(In EUR’000)

Notes

Contribution called

Fair value reserve

Retained earnings

Total

At 1 January 2016

At 1 January 2016

2 157 000

2 157 000

163 993

163 993

95 161

95 161

2 416 154

2 416 154

Member States contribution called during the year

16

220 000

—

—

220 000

Profit for the year 2016

—

—

84 337

84 337

Total other comprehensive income for the year

—

-21 109

—

-21 109

Changes in contributors’ resources

Changes in contributors’ resources

220 000

220 000

-21 109

-21 109

84 337

84 337

283 228

283 228

At 31 December 2016

At 31 December 2016

2 377 000

2 377 000

142 884

142 884

179 498

179 498

2 699 382

2 699 382

At 1 January 2015

At 1 January 2015

2 057 000

2 057 000

156 122

156 122

98 471

98 471

2 311 593

2 311 593

Member States contribution called during the year

16

100 000

—

—

100 000

Loss for the year 2015

—

—

-3 310

-3 310

Total other comprehensive income for the year

—

7 871

—

7 871

Changes in contributors’ resources

Changes in contributors’ resources

100 000

100 000

7 871

7 871

-3 310

-3 310

104 561

104 561

At 31 December 2015

At 31 December 2015

2 157 000

2 157 000

163 993

163 993

95 161

95 161

2 416 154

2 416 154

STATEMENT OF CASH FLOWS

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 december 2016

FOR THE YEAR ENDED 31 december 2016

| (In EUR’000) |
| --- |
| | Notes | From 01.01.2016 to 31.12.2016 | From 01.01.2015 to 31.12.2015 |
| OPERATING ACTIVITIES | | | |
| Profit/(loss) for the financial year | | 84 337 | -3 310 |
| Adjustments made for: | | | |
| Impairment on available-for-sale financial assets | 8 | 2 493 | 3 646 |
| Net change in impairment on loans and receivables | 7 | -44 365 | 33 988 |
| Interest capitalised on loans and receivables | 7 | -7 183 | -13 262 |
| Change in accrued interest and amortised cost on loans and receivables | | -5 843 | 1 594 |
| Net change in provisions for guarantees issued | 13 | 625 | — |
| Change in accrued interest and amortised cost on held-to-maturity financial assets | 10 | -1 126 | 12 |
| Change in deferred income | | -3 042 | -1 985 |
| Effect of exchange rate changes on loans | 7 | -35 025 | -73 447 |
| Effect of exchange rate changes on available-for-sale financial assets | | -5 125 | -9 385 |
| Effect of exchange rate changes on cash held | | -1 106 | -12 216 |
| Loss on operating activities before changes in operating assets and liabilities | | -15 360 | -74 365 |
| Loan disbursements | 7 | - 528 376 | - 282 784 |
| Repayments of loans | 7 | 351 468 | 205 772 |
| Change in accrued interest on cash and cash equivalent | 5 | 2 | 4 |
| Fair value changes on derivatives | | 10 361 | -6 276 |
| Increase in held-to-maturity financial assets | 10 | -1 159 704 | -1 545 550 |
| Maturities of held-to-maturity financial assets | 10 | 1 219 953 | 1 417 005 |
| Increase in available-for-sale financial assets | 8 | - 153 986 | -67 449 |
| Repayments/sales of available-for-sale financial assets | 8 | 37 978 | 64 791 |
| (Increase)/decrease in other assets | | -318 | 5 495 |
| Increase/(decrease) in other liabilities | | 182 | -227 |
| Increase in amounts payable to the European Investment Bank | | 423 | 4 668 |
| Net cash flows used in operating activities | | - 237 377 | - 278 916 |
| FINANCING ACTIVITIES | | | |
| Contribution received from Member States | 16 | 133 605 | 100 000 |
| Amounts received from Member States with regard to interest subsidies and technical assistance | | 30 000 | 92 590 |
| Amounts paid on behalf of Member States with regard to interest subsidies and technical assistance | | -15 510 | -22 290 |
| Net cash flows from financing activities | | 148 095 | 170 300 |
| Net decrease in cash and cash equivalents | | -89 282 | - 108 616 |
| Summary statement of cash flows: | | | |
| Cash and cash equivalents at the beginning of financial year | | 448 998 | 545 398 |
| Net cash from: | | | |
| Operating activities | | - 237 377 | - 278 916 |
| Financing activities | | 148 095 | 170 300 |
| Effects of exchange rate changes on cash and cash equivalents | | 1 106 | 12 216 |
| Cash and cash equivalents at the end of financial year | | 360 822 | 448 998 |
| Cash and cash equivalents are composed of: | | | |
| Cash in hand | 5 | 51 462 | 71 405 |
| Term deposits (excluding accrued interest) | | 259 342 | 290 576 |
| Commercial papers | 5 | 50 018 | 87 017 |
| | | 360 822 | 448 998 |

(In EUR’000)

Notes

From 01.01.2016 to 31.12.2016

From 01.01.2015 to 31.12.2015

OPERATING ACTIVITIES

OPERATING ACTIVITIES

Profit/(loss) for the financial year

84 337

-3 310

Adjustments made for:

Impairment on available-for-sale financial assets

8

2 493

3 646

Net change in impairment on loans and receivables

7

-44 365

33 988

Interest capitalised on loans and receivables

7

-7 183

-13 262

Change in accrued interest and amortised cost on loans and receivables

-5 843

1 594

Net change in provisions for guarantees issued

13

625

—

Change in accrued interest and amortised cost on held-to-maturity financial assets

10

-1 126

12

Change in deferred income

-3 042

-1 985

Effect of exchange rate changes on loans

7

-35 025

-73 447

Effect of exchange rate changes on available-for-sale financial assets

-5 125

-9 385

Effect of exchange rate changes on cash held

-1 106

-12 216

Loss on operating activities before changes in operating assets and liabilities

Loss on operating activities before changes in operating assets and liabilities

-15 360

-15 360

-74 365

-74 365

Loan disbursements

7

- 528 376

- 282 784

Repayments of loans

7

351 468

205 772

Change in accrued interest on cash and cash equivalent

5

2

4

Fair value changes on derivatives

10 361

-6 276

Increase in held-to-maturity financial assets

10

-1 159 704

-1 545 550

Maturities of held-to-maturity financial assets

10

1 219 953

1 417 005

Increase in available-for-sale financial assets

8

- 153 986

-67 449

Repayments/sales of available-for-sale financial assets

8

37 978

64 791

(Increase)/decrease in other assets

-318

5 495

Increase/(decrease) in other liabilities

182

-227

Increase in amounts payable to the European Investment Bank

423

4 668

Net cash flows used in operating activities

Net cash flows used in operating activities

- 237 377

- 237 377

- 278 916

- 278 916

FINANCING ACTIVITIES

FINANCING ACTIVITIES

Contribution received from Member States

16

133 605

100 000

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

30 000

92 590

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

-15 510

-22 290

Net cash flows from financing activities

Net cash flows from financing activities

148 095

148 095

170 300

170 300

Net decrease in cash and cash equivalents

Net decrease in cash and cash equivalents

-89 282

-89 282

- 108 616

- 108 616

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

448 998

448 998

545 398

545 398

Net cash from:

Operating activities

- 237 377

- 278 916

Financing activities

148 095

170 300

Effects of exchange rate changes on cash and cash equivalents

1 106

12 216

Cash and cash equivalents at the end of financial year

Cash and cash equivalents at the end of financial year

360 822

360 822

448 998

448 998

Cash and cash equivalents are composed of:

Cash and cash equivalents are composed of:

Cash in hand

5

51 462

71 405

Term deposits (excluding accrued interest)

259 342

290 576

Commercial papers

5

50 018

87 017

360 822

360 822

448 998

448 998

Notes to the financial statements as at 31 December 2016

Notes to the financial statements as at 31 December 2016

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 cooperation 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:

th

th

th

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

—

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

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

The present financial statements cover the period from 1 January 2016 to 31 December 2016.

On a proposal from the Management Committee of EIB, the Board of Directors of EIB adopted the Financial Statements on 9 March 2017, and authorised their submission to the Board of Governors for approval by 25 April 2017.

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 European Investment 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 values of financial instruments

Measurement of fair values of financial instruments

Fair values of financial assets and financial liabilities 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 2.4.3 and 4.

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 has an established control framework with respect to the measurement of fair values. This framework includes the EIB’s Investment Bank’s Risk Management and Market Data Management functions. These functions are independent of front office management and are responsible for verifying significant fair value measurements. Specific controls include:

| — | Verification of observable pricing; |
| --- | --- |

—

Verification of observable pricing;

| — | A review and approval process for new valuation models and changes to existing models; |
| --- | --- |

—

A review and approval process for new valuation models and changes to existing models;

| — | Calibration and back testing of models against observed market transactions; |
| --- | --- |

—

Calibration and back testing of models against observed market transactions;

| — | Analysis and investigation of significant valuation movements; |
| --- | --- |

—

Analysis and investigation of significant valuation movements;

| — | Review of significant unobservable inputs and valuation adjustments. |
| --- | --- |

—

Review of significant unobservable inputs and valuation adjustments.

Where third-party information such as broker quotes or pricing services are used to measure fair value, the Facility verifies that such valuations meet the requirements of IFRS. This includes the following:

| — | Determining where broker quote or pricing service pricing is appropriate; |
| --- | --- |

—

Determining where broker quote or pricing service pricing is appropriate;

| — | Assessing whether a particular broker quote or pricing service is reliable; |
| --- | --- |

—

Assessing whether a particular broker quote or pricing service is reliable;

| — | Understanding how the fair value has been arrived at and the extent to which it represents actual market transactions; |
| --- | --- |

—

Understanding how the fair value has been arrived at and the extent to which it represents actual market transactions;

| — | When prices for similar instruments are used to measure fair value, how these prices have been adjusted to reflect the characteristics of the instrument subject to measurement. |
| --- | --- |

—

When prices for similar instruments are used to measure fair value, how these prices have been adjusted to reflect the characteristics of the instrument subject to measurement.

Impairment losses on loans and receivables

Impairment losses on loans and receivables

The Facility reviews its loans and receivables at each reporting date to assess whether an allowance for impairment should be recorded in the statement of profit or loss and other comprehensive income. In particular, judgment by the European Investment Bank’s Management is required in the estimation of the amount and timing of future cash flows when determining the level of allowance required. Such estimates are based on assumptions about a number of factors and actual results may differ, resulting in future changes to the allowance. In addition to specific allowances against individually significant loans and receivables, the Facility may also book a collective impairment allowance against exposures which have not been individually identified as impaired and have a greater risk of default than when originally granted.

In principle, a loan is considered as impaired when payment of interest and principal are past due by 90 days or more and, at the same time, the European Investment Bank’s Management considers that there is an objective indication of impairment.

Provisions on financial guarantees

Provisions on financial guarantees

The Facility reviews its guarantee contracts at each reporting date to assess whether a provision should be recorded in the statement of profit or loss and other comprehensive income. For determining the provision particular judgement is required in making estimates and assumptions about a number of factors, such as:

| — | amount and timing of future cash flows; |
| --- | --- |

—

amount and timing of future cash flows;

| — | utilisation level of the guarantees; |
| --- | --- |

—

utilisation level of the guarantees;

| — | discount factors applied on the estimated cash flows. |
| --- | --- |

—

discount factors applied on the estimated cash flows.

Valuation of unquoted available-for-sale equity investments

Valuation of unquoted available-for-sale equity investments

Valuation of unquoted available-for-sale 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 available-for-sale 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.

Impairment of available-for-sale financial assets

Impairment of available-for-sale financial assets

The Facility treats available-for-sale equity investments as impaired when there has been a significant or prolonged decline in the fair value below its cost or where other objective evidence of impairment exists. The determination of what is ‘significant’ or ‘prolonged’ requires judgment. The Facility treats ‘significant’ generally as 30 % or more and ‘prolonged’ greater than 12 months. In addition, the Facility evaluates other factors, including normal volatility in share price for quoted equities and the future cash flows and the discount factors for unquoted equities.

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 standards, amendments to standards and interpretations were adopted in the preparation of these financial statements:

| — | Amendments to IAS 1 ‘Presentation of financial statements’ — Disclosure initiative; |
| --- | --- |

—

Amendments to IAS 1 ‘Presentation of financial statements’ — Disclosure initiative;

| — | Annual Improvements to IFRSs 2012–2014 Cycle — various standards. |
| --- | --- |

—

Annual Improvements to IFRSs 2012–2014 Cycle — various standards.

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

Standards issued but not yet effective

Standards issued but not yet effective

The following standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2016, and have not been applied in preparing these financial statements. Those of which may be relevant for the Facility are set out below.

IFRS 9 Financial instruments

IFRS 9 Financial instruments

The last part of the standard was issued on 24 July 2014 and replaces the existing guidance in IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces a new expected credit loss model for impairment on financial assets and introduces new rules for hedge accounting.

IFRS 9 contains a new classification and measurement approach for financial assets that reflects the business model in which assets are managed and their cash flow characteristics. IFRS 9 contains three principal classification categories for financial assets: measured at amortised cost, fair value through other comprehensive income (‘FVOCI’) and fair value through profit or loss (‘FVTPL’). The standard eliminates the existing IAS 39 categories of held to maturity, loans and receivables and available for sale. Under IFRS 9, derivatives embedded in contracts where the host is a financial asset in the scope of the standard are never bifurcated. Instead, the hybrid financial instrument as a whole is assessed for classification.

IFRS 9 largely retains the existing requirements in IAS 39 for the classification of financial liabilities. However, under IAS 39 all fair value changes of liabilities designated as at FVTPL are recognised in profit or loss, whereas under IFRS 9 these fair value changes are generally presented as follows:

| — | the amount of change in the fair value that is attributable to changes in the credit risk of the liability is presented in other comprehensive income (‘OCI’); and |
| --- | --- |

—

the amount of change in the fair value that is attributable to changes in the credit risk of the liability is presented in other comprehensive income (‘OCI’); and

| — | the remaining amount of change in the fair value is presented in profit or loss. |
| --- | --- |

—

the remaining amount of change in the fair value is presented in profit or loss.

IFRS 9 replaces the ‘incurred loss’ model in IAS 39 with a forward-looking ‘expected credit loss’ (‘ECL’) model. This will require considerable judgement as to how changes in economic factors affect ECLs, which will be determined on a probability-weighted basis. The new impairment model will apply to financial assets measured at amortised cost or FVOCI, except for investments in equity instruments, and to contract assets.

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

| — | 12-month ECLs. These are ECLs that result from possible default events within the 12 month after the reporting date; and |
| --- | --- |

—

12-month ECLs. These are ECLs that result from possible default events within the 12 month after the reporting date; and

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

—

lifetime ECLs. These are ECLs that result from all possible default events over the expected life of a financial instrument.

Lifetime ECL measurement applies if the credit risk of a financial asset at the reporting date has increased significantly since initial recognition and 12-month ECL measurement applies if it has not. An entity may determine that a financial asset’s credit risk has not increased significantly if the asset has low credit risk at the reporting date.

While the Facility has not yet undertaken a detailed assessment of the impairment methodologies that it will apply under IFRS 9, it may result in an earlier recognition of credit losses with higher volatility.

IFRS 9 will require extensive new disclosures, in particular about credit risk and expected credit losses. The Facility’s preliminary assessment included an analysis to identify data gaps against current processes and the Facility plans to implement the system and controls changes that it believes will be necessary to capture the required data.

IFRS 9 has been endorsed by the EU on 22 November 2016 and is effective for annual reporting periods beginning on or after 1 January 2018, with early adoption permitted. The Facility does not intend to adopt the standard earlier than its effective date.

The Facility is currently performing a detailed assessment of the impact resulting from the application of IFRS 9.

IFRS 15 Revenue from Contracts with Customers

IFRS 15 Revenue from Contracts with Customers

IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including IAS 18 Revenue, IAS 11 Construction Contracts and IFRIC 13 Customer Loyalty Programmes. IFRS 15 standard has been endorsed by the EU is on 22 September 2016 and is effective for annual reporting periods beginning on or after 1 January 2018, with early adoption permitted. The Facility has not yet determined the extent of the impact of this standard.

Amendment to IAS 7 ‘Cash flow statements’ — Disclosure initiative

Amendment to IAS 7 ‘Cash flow statements’ — Disclosure initiative

The amendments require disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flow and non-cash changes. Amendments are effective for annual reporting periods beginning on or after 1 January 2017, with early adoption permitted. Amendments are expected to be endorsed by the EU by the end of the year. The Facility does not plan to adopt this standard early and does not expect it to cause any material 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.

The elements of the statement of profit or loss and other comprehensive income are translated into Euro on the basis of the exchange rates prevailing at the date of the transaction.

2.4.2.   
  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.

2.4.3.   
  Financial assets other than derivatives

Financial assets other than derivatives

Financial assets are accounted for using the settlement date basis.

Fair value of financial instruments

Fair value 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.

The EIB 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.

Held-to-maturity financial assets

Held-to-maturity financial assets

Held-to-maturity financial assets comprise quoted bonds with the intention of holding them to maturity, and commercial papers with original maturities of more than three months.

Those bonds and commercial papers are initially recorded at their 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.

The Facility assesses at each statement of financial position date whether there is any objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred ‘loss event’) and that loss event (or event) has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Impairment loss is recognised in the statement of profit and loss and the amount of the loss is measured as the difference between the carrying value and the present value of estimated future cash flows discounted at the instrument’s original effective interest rate.

Loans

Loans

Loans originated by the Facility are recognised in the assets of the Facility when cash is advanced to borrowers. They are initially recorded at cost (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 amortised cost, using the effective yield method, less any provision for impairment or uncollectability.

Available-for-sale financial assets

Available-for-sale financial assets

Available-for-sale financial assets are those which are designated as such or do not qualify to be classified as designated at fair value through profit or loss, held-to-maturity or loans and receivables. They include direct equity investments and investments in venture capital funds and are initially recorded at fair value plus transaction costs.

After initial measurement, available-for-sale financial assets are subsequently carried at fair value. Note the following details for the fair value measurement of equity investments, which cannot be derived from active markets:

a.   Venture capital funds

The fair value of each venture capital fund is based on the latest available Net Asset Value (NAV), reported by the fund, if calculated based on international valuation guidelines recognised to be in line with IFRS (for example: the International Private Equity and Venture Capital Valuation guidelines, IPEV Guidelines, as published by the European Venture Capital Association). The Facility may however decide to adjust the NAV reported by the fund if there are issues that may affect the valuation.

b.   Direct equity investments

The fair value of the investment is based on the latest set of financial statements available, re-using, if applicable, the same model as the one used at the acquisition of the participation.

Unrealised gains or losses on venture capital funds and direct equity investments are reported in contributors’ resources until such investments are sold, collected or disposed of, or until such investments are determined to be impaired. If an available-for-sale investment is determined to be impaired, the cumulative unrealised gain or loss previously recognised in equity is transferred to the statement of profit or loss and other comprehensive income.

For unquoted investment, the fair value is determined by applying recognised valuation techniques (for example adjusted net assets, discounted cash flows or multiple). These investments are accounted for at cost when the fair value cannot be reliably measured. To be noted that in the first 2 years of the investments, they are recognised at cost.

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.

Guarantees

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) and are accounted for under IAS 39 Financial Instruments: Recognition and Measurement, either as ‘Derivatives’ or as ‘Financial Guarantees’, depending on their features and characteristics as defined by IAS 39.

The accounting policy for derivatives is disclosed under Note 2.4.5.

At initial recognition, the financial guarantees are recognised at fair value corresponding to the Net Present Value (NPV) of expected premium inflows and initial expected loss. This calculation is performed at the starting date of each transaction and is recognised on the statement of financial position as ‘Financial guarantees’ under ‘other assets’ and ‘other liabilities’.

Subsequent to initial recognition, the Facility’s liabilities under such guarantees are measured at the higher of:

| — | the amount initially recognised less, where appropriate, cumulative amortisation recognised in accordance with IAS 18 Revenue and |
| --- | --- |

—

the amount initially recognised less, where appropriate, cumulative amortisation recognised in accordance with IAS 18 Revenue and

| — | the best estimate of expenditure required to settle any present financial obligation arising as a result of the guarantee, in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. |
| --- | --- |

—

the best estimate of expenditure required to settle any present financial obligation arising as a result of the guarantee, in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

The best estimate of expenditure is determined in accordance with IAS 37. Financial guarantee provisions correspond to the cost of settling the obligation, which is the expected loss, estimated on the basis of all relevant factors and information existing at the statement of financial position date.

When a financial guarantee operation measured under IAS 39 is derecognised and treated under IAS 37, its value previously recorded under ‘Other liabilities’ is transferred to the caption ‘Provisions for guarantees issued’ on the statement of financial position.

The provision for financial guarantees (as measured per IAS 37) is recognised in the statement of profit or loss and other comprehensive income under ‘Change in provisions for guarantees, net of reversals’.

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 IAS 18 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.   
  Impairment of financial assets

Impairment of financial assets

The Facility assesses at each statement of financial position date whether there is any objective evidence that a financial asset is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred ‘loss event’) and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that the borrower or a group of borrowers is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter into bankruptcy or other financial reorganisation and where observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.

For the loans outstanding at the end of the financial year and carried at amortised cost, impairments are made when presenting objective evidence of risks of non-recovery of all or part of their amounts according to the original contractual terms or the equivalent value. If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference between the assets carrying amount and the present value of estimated future cash flows. The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognised in the statement of profit or loss and other comprehensive income. Interest income continues to be accrued on the reduced carrying amount based on the effective interest rate of the asset. Loans together with the associated allowance are written off when there is no realistic prospect of future recovery. If, in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognised, the previously recognised impairment loss is increased or reduced by adjusting the allowance account.

The Facility conducts the credit risk assessments based on each individual operation and does not consider a collective impairment.

For the available-for-sale financial assets, the Facility assesses at each statement of financial position date whether there is objective evidence that an investment is impaired. Objective evidence would include a significant or prolonged decline in the fair value of the investment below its costs. Where there is evidence of impairment, the cumulative loss (measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that investment previously recognised in the statement of profit or loss and other comprehensive income) is removed from contributors’ resources and recognised in the statement of profit or loss and other comprehensive income. Impairment losses on available-for-sale financial assets are not reversed through the statement of profit or loss and other comprehensive income; increases in their fair value after impairment are recognised directly in contributors’ resources.

The European Investment Bank’s Risk Management reviews financial assets for impairment at least once a year. Resulting adjustments include the unwinding of the discount in the statement of profit or loss and other comprehensive income over the life of the asset, and any adjustments required in respect of a reassessment of the initial impairment.

2.4.5.   
  Derivative financial instruments

Derivative financial instruments

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

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.

The Facility does not use any of the hedge possibilities under IAS 39. All derivatives are measured at fair value through the profit or loss 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’.

Derivatives are initially recognised using the trade date basis.

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.

2.4.7.   
  Interest income on loans

Interest income on loans

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 on the statement of financial position (‘Loans and receivables’) 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.

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 available-for-sale financial assets are recognised when received and presented in the statement of profit or loss and other comprehensive income within net realised gains on available-for-sale financial assets.

2.5.   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 European Investment Bank adapts its risk management on an ongoing basis.

The Risk Management 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 is independent of the Front Offices. 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 European Investment Bank’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.

| Maximum exposure (in EUR’000) | 31.12.2016 | 31.12.2015 |
| --- | --- | --- |
| ASSETS | | |
| Cash and cash equivalents | 360 817 | 448 995 |
| Derivative financial instruments | 6 920 | 311 |
| Loans and receivables | 1 729 380 | 1 460 057 |
| Amounts receivable from contributors | 86 395 | — |
| Held-to-maturity financial assets | 169 398 | 228 521 |
| Other assets | 345 | 27 |
| Total assets | 2 353 255 | 2 137 911 |
| OFF BALANCE SHEET | | |
| Contingent liabilities | | |
| — | Signed non-issued guarantees |

Maximum exposure (in EUR’000)

31.12.2016

31.12.2015

ASSETS

ASSETS

Cash and cash equivalents

360 817

448 995

Derivative financial instruments

6 920

311

Loans and receivables

1 729 380

1 460 057

Amounts receivable from contributors

86 395

—

Held-to-maturity financial assets

169 398

228 521

Other assets

345

27

Total assets

Total assets

2 353 255

2 353 255

2 137 911

2 137 911

OFF BALANCE SHEET

OFF BALANCE SHEET

Contingent liabilities

—

Signed non-issued guarantees

35 337

10 000

Commitments

| — | Un-disbursed loans |
| --- | --- |

—

Un-disbursed loans

901 899

1 189 564

| — | Issued guarantees |
| --- | --- |

—

Issued guarantees

8 627

798

Total off balance sheet

Total off balance sheet

945 863

945 863

1 200 362

1 200 362

Total credit exposure

Total credit exposure

3 299 118

3 299 118

3 338 273

3 338 273

3.2.3.   
  Credit risk on loans and receivables

Credit risk on loans and receivables

3.2.3.1.   Credit risk measurement for loans and receivables

Credit risk measurement for loans and receivables

Each and every loan 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 23), 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 (LG) 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 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 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 contractual framework: a sound contractual framework will add to the loan’s quality and enhance its internal grading. |
| --- | --- |

iv)

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

| v) | The loan’s duration: all else being equal, the longer the loan, the higher the risk of incurring difficulties in the servicing of the loan. |
| --- | --- |

v)

The loan’s duration: 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: there are three sub-categories. A comprises all EU sovereign risks, i.e. loans granted to or fully, explicitly and unconditionally guaranteed by Member States, where no repayment difficulties are expected and for which an unexpected loss of 0 % is allocated. A+ denotes loans granted to (or guaranteed by) entities other than Member States, with no expectation of deterioration over their duration. A- includes those lending operations where there is some doubt about the maintenance of their current status (for instance because of a long maturity, or for the high volatility of the future price of an otherwise excellent collateral), but where any downside is expected to be quite limited. |
| --- | --- |

A

Prime quality loans: there are three sub-categories. A comprises all EU sovereign risks, i.e. loans granted to or fully, explicitly and unconditionally guaranteed by Member States, where no repayment difficulties are expected and for which an unexpected loss of 0 % is allocated. A+ denotes loans granted to (or guaranteed by) entities other than Member States, with no expectation of deterioration over their duration. A- includes those lending operations where there is some doubt about the maintenance of their current status (for instance because of a long maturity, or for the high volatility of the future price of an otherwise excellent collateral), but where any downside is expected to be quite 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 to credit risk on loans signed and disbursed by nature of borrower taking into account guarantees provided by guarantors:

| In EUR’000 |
| --- |
| At 31.12.2016 | Guaranteed | Other credit enhancements | Not guaranteed | Total | % of Total |
| Banks | 22 691 | 34 597 | 933 609 | 990 897 | 57 % |
| Corporates | 110 849 | 97 213 | 320 406 | 528 468 | 31 % |
| Public institutions | 38 330 | — | — | 38 330 | 2 % |
| States | — | 3 764 | 167 921 | 171 685 | 10 % |
| Total disbursed | 171 870 | 135 574 | 1 421 936 | 1 729 380 | 100 % |
| Signed not disbursed | 94 976 | — | 806 923 | 901 899 | |

In EUR’000

At 31.12.2016

Guaranteed

Other credit enhancements

Not guaranteed

Total

% of Total

Banks

22 691

34 597

933 609

990 897

990 897

57 %

57 %

Corporates

110 849

97 213

320 406

528 468

528 468

31 %

31 %

Public institutions

38 330

—

—

38 330

38 330

2 %

2 %

States

—

3 764

167 921

171 685

171 685

10 %

10 %

Total disbursed

Total disbursed

171 870

171 870

135 574

135 574

1 421 936

1 421 936

1 729 380

1 729 380

100 %

100 %

Signed not disbursed

Signed not disbursed

94 976

94 976

—

—

806 923

806 923

901 899

901 899

| In EUR’000 |
| --- |
| At 31.12.2015 | Guaranteed | Other credit enhancements | Not guaranteed | Total | % of Total |
| Banks | 18 964 | 73 670 | 758 412 | 851 046 | 58 % |
| Corporates | 37 431 | 89 170 | 272 186 | 398 787 | 27 % |
| Public institutions | 37 112 | — | 14 | 37 126 | 3 % |
| States | — | 4 295 | 168 803 | 173 098 | 12 % |
| Total disbursed | 93 507 | 167 135 | 1 199 415 | 1 460 057 | 100 % |
| Signed not disbursed | 135 821 | — | 1 053 743 | 1 189 564 | |

In EUR’000

At 31.12.2015

Guaranteed

Other credit enhancements

Not guaranteed

Total

% of Total

Banks

18 964

73 670

758 412

851 046

851 046

58 %

58 %

Corporates

37 431

89 170

272 186

398 787

398 787

27 %

27 %

Public institutions

37 112

—

14

37 126

37 126

3 %

3 %

States

—

4 295

168 803

173 098

173 098

12 %

12 %

Total disbursed

Total disbursed

93 507

93 507

167 135

167 135

1 199 415

1 199 415

1 460 057

1 460 057

100 %

100 %

Signed not disbursed

Signed not disbursed

135 821

135 821

—

—

1 053 743

1 053 743

1 189 564

1 189 564

Transaction Management and Restructuring 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 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 2016 and 31 December 2015 by the Loan Grading applications, based on the exposure signed (disbursed and un-disbursed):

| In EUR’000 |
| --- |
| At 31.12.2016 | High Grade | Standard Grade | Min. Accept. Risk | High Risk | No grading | Total | % of Total |
| A to B- | C | D+ | D- and below |
| Borrower | Banks | 94 081 | 53 970 | 315 524 | 1 038 705 | 126 951 | 1 629 231 | 62 % |
| Corporates | 125 810 | — | 19 389 | 393 877 | 152 355 | 691 431 | 26 % |
| Public institutions | — | — | 38 330 | — | — | 38 330 | 1 % |
| States | — | — | 18 131 | 254 156 | — | 272 287 | 11 % |
| Total | 219 891 | 53 970 | 391 374 | 1 686 738 | 279 306 | 2 631 279 | 100 % |

In EUR’000

At 31.12.2016

High Grade

Standard Grade

Min. Accept. Risk

High Risk

No grading

Total

% of Total

A to B-

C

D+

D- and below

Borrower

Banks

94 081

53 970

315 524

1 038 705

126 951

1 629 231

1 629 231

62 %

62 %

Corporates

125 810

—

19 389

393 877

152 355

691 431

691 431

26 %

26 %

Public institutions

—

—

38 330

—

—

38 330

38 330

1 %

1 %

States

—

—

18 131

254 156

—

272 287

272 287

11 %

11 %

Total

Total

219 891

219 891

53 970

53 970

391 374

391 374

1 686 738

1 686 738

279 306

279 306

2 631 279

2 631 279

100 %

100 %

| In EUR’000 |
| --- |
| At 31.12.2015 | High Grade | Standard Grade | Min. Accept. Risk | High Risk | No grading | Total | % of Total |
| A to B- | C | D+ | D- and below |
| Borrower | Banks | 92 260 | 31 558 | 326 635 | 990 971 | 245 160 | 1 686 584 | 64 % |
| Corporates | 125 963 | — | 12 493 | 450 045 | — | 588 501 | 22 % |
| Public institutions | — | — | 37 112 | 40 014 | — | 77 126 | 3 % |
| States | — | — | 9 277 | 288 133 | — | 297 410 | 11 % |
| Total | 218 223 | 31 558 | 385 517 | 1 769 163 | 245 160 | 2 649 621 | 100 % |

In EUR’000

At 31.12.2015

High Grade

Standard Grade

Min. Accept. Risk

High Risk

No grading

Total

% of Total

A to B-

C

D+

D- and below

Borrower

Banks

92 260

31 558

326 635

990 971

245 160

1 686 584

1 686 584

64 %

64 %

Corporates

125 963

—

12 493

450 045

—

588 501

588 501

22 %

22 %

Public institutions

—

—

37 112

40 014

—

77 126

77 126

3 %

3 %

States

—

—

9 277

288 133

—

297 410

297 410

11 %

11 %

Total

Total

218 223

218 223

31 558

31 558

385 517

385 517

1 769 163

1 769 163

245 160

245 160

2 649 621

2 649 621

100 %

100 %

3.2.3.4.   Risk concentrations of loans and receivables

Risk concentrations of loans and receivables

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 | 31.12.2016 | 31.12.2015 |
| --- | --- | --- |
| Kenya | 341 805 | 192 945 |
| Nigeria | 241 547 | 195 290 |
| Uganda | 175 424 | 178 515 |
| Tanzania | 115 239 | 56 367 |
| Jamaica | 90 237 | 85 278 |
| Burundi | 87 373 | 40 |
| Mauritania | 85 008 | 94 123 |
| Dominican Republic | 81 230 | 72 474 |
| Togo | 64 605 | 75 387 |
| Ethiopia | 59 837 | 67 589 |
| Congo (Democratic Republic) | 47 122 | 39 766 |
| Ghana | 45 715 | 40 439 |
| Cameroon | 41 255 | 51 930 |
| Mauritius | 31 518 | 18 882 |
| Rwanda | 29 918 | 20 466 |
| Cape Verde | 23 029 | 24 623 |
| Mozambique | 22 389 | 25 124 |
| French Polynesia | 21 387 | 22 095 |
| Senegal | 18 544 | 10 991 |
| Regional-ACP | 15 640 | 111 103 |
| Malawi | 11 493 | 13 030 |
| Cayman Islands | 11 221 | — |
| Zambia | 11 079 | 8 733 |
| Botswana | 7 889 | 6 605 |
| Haiti | 6 879 | 7 071 |
| Barbados | 6 809 | — |
| Samoa | 6 356 | 6 267 |
| Mali | 6 159 | 6 688 |
| Burkina Faso | 4 480 | 5 967 |
| Congo | 3 460 | 5 189 |
| Vanuatu | 2 470 | 2 772 |
| New Caledonia | 2 191 | 2 705 |
| Seychelles | 2 058 | 468 |
| Palau | 1 929 | 2 197 |
| Liberia | 1 759 | 921 |
| South Africa | 1 336 | — |
| Micronesia | 1 088 | 1 169 |
| Trinidad and Tobago | 528 | 1 010 |
| Niger | 523 | 1 372 |
| Saint Lucia | 392 | 2 671 |
| Bahamas | 392 | — |
| Tonga | 46 | 54 |
| Angola | 19 | — |
| Sint Maarten | 2 | 6 |
| Grenada | — | 1 735 |
| Total | 1 729 380 | 1 460 057 |

Country of borrower

31.12.2016

31.12.2015

Kenya

341 805

192 945

Nigeria

241 547

195 290

Uganda

175 424

178 515

Tanzania

115 239

56 367

Jamaica

90 237

85 278

Burundi

87 373

40

Mauritania

85 008

94 123

Dominican Republic

81 230

72 474

Togo

64 605

75 387

Ethiopia

59 837

67 589

Congo (Democratic Republic)

47 122

39 766

Ghana

45 715

40 439

Cameroon

41 255

51 930

Mauritius

31 518

18 882

Rwanda

29 918

20 466

Cape Verde

23 029

24 623

Mozambique

22 389

25 124

French Polynesia

21 387

22 095

Senegal

18 544

10 991

Regional-ACP

15 640

111 103

Malawi

11 493

13 030

Cayman Islands

11 221

—

Zambia

11 079

8 733

Botswana

7 889

6 605

Haiti

6 879

7 071

Barbados

6 809

—

Samoa

6 356

6 267

Mali

6 159

6 688

Burkina Faso

4 480

5 967

Congo

3 460

5 189

Vanuatu

2 470

2 772

New Caledonia

2 191

2 705

Seychelles

2 058

468

Palau

1 929

2 197

Liberia

1 759

921

South Africa

1 336

—

Micronesia

1 088

1 169

Trinidad and Tobago

528

1 010

Niger

523

1 372

Saint Lucia

392

2 671

Bahamas

392

—

Tonga

46

54

Angola

19

—

Sint Maarten

2

6

Grenada

—

1 735

Total

Total

1 729 380

1 729 380

1 460 057

1 460 057

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 global loans (in EUR’000):

| Industry sector of borrower | 31.12.2016 | 31.12.2015 |
| --- | --- | --- |
| Global loans and agency agreements | 987 242 | 658 098 |
| Electricity, coal and others | 277 524 | 197 547 |
| Urban development, renovation and transport | 203 094 | 207 773 |
| Basic material and mining | 78 849 | 88 615 |
| Tertiary and other | 67 590 | 201 361 |
| Roads and motorways | 48 600 | 48 165 |
| Airports and air traffic management systems | 38 330 | 37 126 |
| Food chain | 13 178 | 7 643 |
| Waste recuperation | 7 988 | 4 |
| Materials processing, construction | 6 964 | 13 719 |
| Telecommunications | 21 | 6 |
| Total | 1 729 380 | 1 460 057 |

Industry sector of borrower

31.12.2016

31.12.2016

31.12.2015

31.12.2015

Global loans and agency agreements

987 242

658 098

Electricity, coal and others

277 524

197 547

Urban development, renovation and transport

203 094

207 773

Basic material and mining

78 849

88 615

Tertiary and other

67 590

201 361

Roads and motorways

48 600

48 165

Airports and air traffic management systems

38 330

37 126

Food chain

13 178

7 643

Waste recuperation

7 988

4

Materials processing, construction

6 964

13 719

Telecommunications

21

6

Total

Total

1 729 380

1 729 380

1 460 057

1 460 057

3.2.3.5.   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 receivables | Loans and receivables |
| --- | --- | --- | --- |
| Notes | 31.12.2016 | 31.12.2015 |
| Carrying amount | | 1 729 380 | 1 460 057 |
| Individually impaired | | | |
| Gross amount | | 119 381 | 214 232 |
| Allowance for impairment | 7 | - 117 640 | - 191 046 |
| Carrying amount individually impaired | | 1 741 | 23 186 |
| Collectively impaired | | | |
| Gross amount | | — | — |
| Allowance for impairment | | — | — |
| Carrying amount collectively impaired | | — | — |
| Past due but not impaired | | | |
| Past due comprises | | | |
| 0-30 days | | 1 620 | 1 521 |
| 30-60 days | | 30 | 15 |
| 60-90 days | | — | — |
| 90-180 days | | — | — |
| more 180 days | | 1 | 13 |
| Carrying amount past due but not impaired | | 1 651 | 1 549 |
| Carrying amount neither past due nor impaired | | 1 725 988 | 1 435 322 |
| Total carrying amount loans and receivables | | 1 729 380 | 1 460 057 |

Loans and receivables

Loans and receivables

Notes

31.12.2016

31.12.2015

Carrying amount

Carrying amount

1 729 380

1 729 380

1 460 057

1 460 057

Individually impaired

Individually impaired

Gross amount

119 381

214 232

Allowance for impairment

7

- 117 640

- 191 046

Carrying amount individually impaired

Carrying amount individually impaired

1 741

1 741

23 186

23 186

Collectively impaired

Collectively impaired

Gross amount

—

—

Allowance for impairment

—

—

Carrying amount collectively impaired

Carrying amount collectively impaired

—

—

Past due but not impaired

Past due but not impaired

Past due comprises

Past due comprises

0-30 days

1 620

1 521

30-60 days

30

15

60-90 days

—

—

90-180 days

—

—

more 180 days

1

13

Carrying amount past due but not impaired

Carrying amount past due but not impaired

1 651

1 651

1 549

1 549

Carrying amount neither past due nor impaired

Carrying amount neither past due nor impaired

1 725 988

1 725 988

1 435 322

1 435 322

Total carrying amount loans and receivables

Total carrying amount loans and receivables

1 729 380

1 729 380

1 460 057

1 460 057

3.2.3.6.   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 Facility’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.

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 |
| --- |
| | 31.12.2016 | 31.12.2015 |
| Number of operations subject to forbearance practices | 22 | 16 |
| Carrying values | 171 135 | 225 631 |
| of which impaired | 124 250 | 204 711 |
| Impairment recognised | 113 052 | 188 197 |
| Interest income in respect of forborn operations | 19 877 | 14 262 |
| Exposures written off (following the termination/sale of the operation) | 31 298 | — |

In EUR’000

31.12.2016

31.12.2016

31.12.2015

31.12.2015

Number of operations subject to forbearance practices

22

16

Carrying values

171 135

225 631

of which impaired

124 250

204 711

Impairment recognised

113 052

188 197

Interest income in respect of forborn operations

19 877

14 262

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

31 298

—

| In EUR’000 |
| --- |
| | Forbearance measures |
| 31.12.2015 | Extension of maturities | Deferral of capital only | Deferral of capital and interest | Other | Contractual repayment and termination (19) | 31.12.2016 |
| Banks | 17 891 | — | — | 12 150 | 8 062 | -827 | 37 276 |
| Corporates | 207 740 | — | — | — | 26 203 | - 100 084 | 133 859 |
| Total | 225 631 | — | — | 12 150 | 34 265 | - 100 911 | 171 135 |

In EUR’000

Forbearance measures

31.12.2015

Extension of maturities

Deferral of capital only

Deferral of capital and interest

Other

Contractual repayment and termination (19)

19

31.12.2016

Banks

17 891

—

—

12 150

8 062

-827

37 276

Corporates

207 740

—

—

—

26 203

- 100 084

133 859

Total

Total

225 631

225 631

—

—

—

—

12 150

12 150

34 265

34 265

- 100 911

- 100 911

171 135

171 135

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 2016 and 31 December 2015, investments were in the form of bank deposits, certificates of deposit and commercial papers.

The authorized entities have a rating similar to the short-term and long-term ratings required for the EIB’s own treasury placements. The minimum short term rating required for authorised entities is P-1/A-1/F1 (Moody’s, S&P, Fitch). In case of different ratings being granted by more than one credit rating agency, the lowest rating governs. The maximum authorized 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 2016 and 31 December 2015 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 and up to the credit exposure limit. As at 31 December 2016 and 31 December 2015 all term deposits, commercial papers and cash in hand held by the treasury portfolio of the Facility had a minimum rating of P-1 (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 | 31.12.2016 | 31.12.2015 |
| --- | --- | --- | --- |
| (Moody’s term) | (Moody’s term) |
| P-1 | Aaa | 37 949 | 10 % | 49 999 | 11 % |
| P-1 | Aa2 | 46 963 | 13 % | 26 | 0 % |
| P-1 | Aa3 | 40 436 | 11 % | — | 0 % |
| P-1 | A1 | 100 012 | 28 % | 115 705 | 26 % |
| P-1 | A2 | 135 457 | 38 % | 283 265 | 63 % |
| Total | 360 817 | 100 % | 448 995 | 100 % |

Minimum short-term rating

Minimum long-term rating

31.12.2016

31.12.2015

(Moody’s term)

(Moody’s term)

P-1

Aaa

37 949

10 %

49 999

11 %

P-1

Aa2

46 963

13 %

26

0 %

P-1

Aa3

40 436

11 %

—

0 %

P-1

A1

100 012

28 %

115 705

26 %

P-1

A2

135 457

38 %

283 265

63 %

Total

Total

360 817

360 817

100 %

100 %

448 995

448 995

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 European Investment Bank with an external counterpart. The swaps are arranged by the same Master Swap Agreements and Credit Support Annexes signed between the European Investment Bank and its external counterparts.

3.2.5.2.   Credit risk measurement for derivatives

Credit risk measurement for derivatives

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

The European Investment Bank 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 at 31.12.2016 | less than | 1 year | 5 years | more than | Total 2016 |
| 1 year | to 5 years | to 10 years | to 10 years |
| Notional amount | — | 7 430 | — | — | 7 430 |
| Fair Value (i.e. net discounted value) | — | -3 051 | — | — | -3 051 |

—

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 at 31.12.2016

less than

1 year

5 years

more than

Total 2016

1 year

to 5 years

to 10 years

to 10 years

Notional amount

—

7 430

—

—

7 430

7 430

Fair Value (i.e. net discounted value)

—

-3 051

—

—

-3 051

-3 051

| In EUR’000 |
| --- |
| Swap contracts at 31.12.2015 | less than | 1 year | 5 years | more than | Total 2015 |
| 1 year | to 5 years | to 10 years | to 10 years |
| Notional amount | — | 9 589 | — | — | 9 589 |
| Fair Value (i.e. net discounted value) | — | -3 835 | — | — | -3 835 |

In EUR’000

Swap contracts at 31.12.2015

less than

1 year

5 years

more than

Total 2015

1 year

to 5 years

to 10 years

to 10 years

Notional amount

—

9 589

—

—

9 589

9 589

Fair Value (i.e. net discounted value)

—

-3 835

—

—

-3 835

-3 835

| — | 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 1 611,0 million at 31 December 2016 against EUR 1 400,0 million at 31 December 2015. The fair value of FX swaps amounts to EUR -15,3 million at 31 December 2016 against EUR -3,7 million at 31 December 2015. |
| --- | --- |

—

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 1 611,0 million at 31 December 2016 against EUR 1 400,0 million at 31 December 2015. The fair value of FX swaps amounts to EUR -15,3 million at 31 December 2016 against EUR -3,7 million at 31 December 2015.

| — | The Facility enters into interest rate swap contracts in order to hedge the interest rate risk on loans disbursed. As at 31 December 2016 there are two interest rate swaps outstanding with a notional amount of EUR 41,2 million (2015: EUR 44,9 million) and a fair value of EUR 0,1 million (2015: EUR -0,3 million). |
| --- | --- |

—

The Facility enters into interest rate swap contracts in order to hedge the interest rate risk on loans disbursed. As at 31 December 2016 there are two interest rate swaps outstanding with a notional amount of EUR 41,2 million (2015: EUR 44,9 million) and a fair value of EUR 0,1 million (2015: EUR -0,3 million).

3.2.6.   
  Credit risk on held-to-maturity financial assets

Credit risk on held-to-maturity financial assets

The following table shows the situation of the held-to-maturity portfolio entirely composed of treasury bills issued by Italy, Portugal and Spain with remaining maturities of less than three months. EU Member States are eligible issuers. The maximum authorized 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 | 31.12.2016 | 31.12.2015 |
| --- | --- | --- | --- |
| (Moody’s term) | (Moody’s term) |
| P-1 | Aa2 | 18 012 | 10 % | — | 0 % |
| P-1 | A1 | 30 002 | 18 % | 10 000 | 4 % |
| P-1 | A2 | — | 0 % | 69 502 | 31 % |
| P-2 | Baa2 | — | 0 % | 50 007 | 22 % |
| P-2 | Non-Rated | 20 025 | 12 % | — | 0 % |
| P-3 | Baa3 | — | 0 % | 50 012 | 22 % |
| NP | Ba1 | 50 005 | 30 % | 49 000 | 21 % |
| Non-Rated | Baa2 | 51 354 | 30 % | — | 0 % |
| Total | 169 398 | 100 % | 228 521 | 100 % |

Minimum short-term rating

Minimum long-term rating

31.12.2016

31.12.2016

31.12.2015

31.12.2015

(Moody’s term)

(Moody’s term)

P-1

Aa2

18 012

10 %

—

0 %

P-1

A1

30 002

18 %

10 000

4 %

P-1

A2

—

0 %

69 502

31 %

P-2

Baa2

—

0 %

50 007

22 %

P-2

Non-Rated

20 025

12 %

—

0 %

P-3

Baa3

—

0 %

50 012

22 %

NP

Ba1

50 005

30 %

49 000

21 %

Non-Rated

Baa2

51 354

30 %

—

0 %

Total

Total

169 398

169 398

100 %

100 %

228 521

228 521

100 %

100 %

3.3.   Liquidity risk

Liquidity risk

Liquidity risk refers to an enitity’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 of 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 minimize 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 un-disbursed portions of the credit under signed loan agreements, of un-disbursed 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 subsidized 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 un-disbursed 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 un-disbursed 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.

| 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 |
| --- | --- | --- | --- | --- | --- | --- |
| In EUR’000 as at 31.12.2016 |
| Outflows for committed but un-disbursed loans | 82 405 | — | — | — | 819 494 | 901 899 |
| Outflows for committed investment funds and share subscription | 4 592 | — | — | — | 239 458 | 244 050 |
| Others (signed non-issued guarantees, issued guarantees) | — | — | — | — | 43 964 | 43 964 |
| Outflows for committed interest subsidies | — | — | — | — | 275 917 | 275 917 |
| Outflows for committed TA | 2 671 | — | — | — | 24 807 | 27 478 |
| Total | 89 668 | — | — | — | 1 403 640 | 1 493 308 |

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

In EUR’000 as at 31.12.2016

Outflows for committed but un-disbursed loans

82 405

—

—

—

819 494

901 899

Outflows for committed investment funds and share subscription

4 592

—

—

—

239 458

244 050

Others (signed non-issued guarantees, issued guarantees)

—

—

—

—

43 964

43 964

Outflows for committed interest subsidies

—

—

—

—

275 917

275 917

Outflows for committed TA

2 671

—

—

—

24 807

27 478

Total

Total

89 668

89 668

—

—

—

1 403 640

1 403 640

1 493 308

1 493 308

| 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 |
| --- | --- | --- | --- | --- | --- | --- |
| In EUR’000 as at 31.12.2015 |
| Outflows for committed but un-disbursed loans | 41 028 | — | — | — | 1 148 536 | 1 189 564 |
| Outflows for committed investment funds and share subscription | 23 371 | — | — | — | 274 984 | 298 355 |
| Others (signed non-issued guarantees, issued guarantees) | — | — | — | — | 10 798 | 10 798 |
| Outflows for committed interest subsidies | — | — | — | — | 281 682 | 281 682 |
| Outflows for committed TA | 811 | — | — | — | 28 072 | 28 883 |
| Total | 65 210 | — | — | — | 1 744 072 | 1 809 282 |

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

In EUR’000 as at 31.12.2015

Outflows for committed but un-disbursed loans

41 028

—

—

—

1 148 536

1 189 564

Outflows for committed investment funds and share subscription

23 371

—

—

—

274 984

298 355

Others (signed non-issued guarantees, issued guarantees)

—

—

—

—

10 798

10 798

Outflows for committed interest subsidies

—

—

—

—

281 682

281 682

Outflows for committed TA

811

—

—

—

28 072

28 883

Total

Total

65 210

65 210

—

—

—

1 744 072

1 744 072

1 809 282

1 809 282

| 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 |
| --- | --- | --- | --- | --- | --- |
| In EUR’000 as at 31.12.2016 |
| CCS and CCIRS — Inflows | 3 | 2 409 | 5 222 | — | 7 634 |
| CCS and CCIRS — Outflows | — | -3 688 | -7 377 | — | -11 065 |
| Short term currency swaps — Inflows | 1 611 000 | — | — | — | 1 611 000 |
| Short term currency swaps — Outflows | -1 636 001 | — | — | — | -1 636 001 |
| Interest Rate Swaps — Inflows | 411 | 1 234 | 5 529 | 1 550 | 8 724 |
| Interest Rate Swaps — Outflows | — | -1 962 | -5 316 | -1 329 | -8 607 |
| Total | -24 587 | -2 007 | -1 942 | 221 | -28 315 |

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

In EUR’000 as at 31.12.2016

CCS and CCIRS — Inflows

3

2 409

5 222

—

7 634

CCS and CCIRS — Outflows

—

-3 688

-7 377

—

-11 065

Short term currency swaps — Inflows

1 611 000

—

—

—

1 611 000

Short term currency swaps — Outflows

-1 636 001

—

—

—

-1 636 001

Interest Rate Swaps — Inflows

411

1 234

5 529

1 550

8 724

Interest Rate Swaps — Outflows

—

-1 962

-5 316

-1 329

-8 607

Total

Total

-24 587

-24 587

-2 007

-2 007

-1 942

-1 942

221

221

-28 315

-28 315

| 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 |
| --- | --- | --- | --- | --- | --- |
| In EUR’000 as at 31.12.2015 |
| CCS and CCIRS — Inflows | 5 | 2 307 | 7 671 | — | 9 983 |
| CCS and CCIRS — Outflows | — | -3 571 | -10 714 | — | -14 285 |
| Short term currency swaps — Inflows | 1 400 000 | — | — | — | 1 400 000 |
| Short term currency swaps — Outflows | -1 407 763 | — | — | — | -1 407 763 |
| Interest Rate Swaps — Inflows | 383 | 1 269 | 6 059 | 2 524 | 10 235 |
| Interest Rate Swaps — Outflows | — | -2 145 | -6 127 | -2 206 | -10 478 |
| Total | -7 375 | -2 140 | -3 111 | 318 | -12 308 |

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

In EUR’000 as at 31.12.2015

CCS and CCIRS — Inflows

5

2 307

7 671

—

9 983

CCS and CCIRS — Outflows

—

-3 571

-10 714

—

-14 285

Short term currency swaps — Inflows

1 400 000

—

—

—

1 400 000

Short term currency swaps — Outflows

-1 407 763

—

—

—

-1 407 763

Interest Rate Swaps — Inflows

383

1 269

6 059

2 524

10 235

Interest Rate Swaps — Outflows

—

-2 145

-6 127

-2 206

-10 478

Total

Total

-7 375

-7 375

-2 140

-2 140

-3 111

-3 111

318

318

-12 308

-12 308

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 |
| --- |
| | 31.12.2016 | 31.12.2015 |
| Financial assets: | | |
| Loans and receivables | 1 692 867 | 1 423 368 |
| Available-for-sale financial assets | 516 884 | 419 353 |
| Other assets | 141 | — |
| Total | 2 209 892 | 1 842 721 |
| Financial liabilities: | | |
| Provisions for guarantees issued | 497 | — |
| Amount owed to third parties | 69 960 | 57 346 |
| Total | 70 457 | 57 346 |

In EUR’000

31.12.2016

31.12.2016

31.12.2015

31.12.2015

Financial assets:

Financial assets:

Loans and receivables

1 692 867

1 423 368

Available-for-sale financial assets

516 884

419 353

Other assets

141

—

Total

Total

2 209 892

2 209 892

1 842 721

1 842 721

Financial liabilities:

Financial liabilities:

Provisions for guarantees issued

497

—

Amount owed to third parties

69 960

57 346

Total

Total

70 457

70 457

57 346

57 346

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 2016 would decrease by EUR 516k (as at 31 December 2015: decrease by EUR 532k) if all relevant interest rates curves are simultaneously shifted upwards in parallel by 1 basis point.

| Basis point value | Money | Very Short | Short | Medium | Long | Extra Long | Total |
| --- | --- | --- | --- | --- | --- | --- | --- |
| In EUR’000 | Market |
| As at 31.12.2016 | 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 | -46 | -101 | -164 | -175 | -30 | — | -516 |

Basis point value

Money

Very Short

Short

Medium

Long

Extra Long

Total

In EUR’000

Market

As at 31.12.2016

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

-46

-101

-164

-175

-30

—

-516

| Basis point value | Money | Very Short | Short | Medium | Long | Extra Long | Total |
| --- | --- | --- | --- | --- | --- | --- | --- |
| In EUR’000 | Market |
| As at 31.12.2015 | 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 | -37 | -72 | -252 | -139 | -32 | — | -532 |

Basis point value

Money

Very Short

Short

Medium

Long

Extra Long

Total

In EUR’000

Market

As at 31.12.2015

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

-37

-72

-252

-139

-32

—

-532

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 either in 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 authorized 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 USD/EUR 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 hedging 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. |
| --- | --- |

—

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. |
| --- | --- |

—

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 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)’. |
| --- | --- |

—

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 so as to ensure that the earnings will only be converted into the reporting currency (EUR) when received.

The unrealised gains/losses and impairment on available-for-sale financial assets are included in the FX position as per Risk Policies, as well as impairments on loans and receivables. 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, is presented as ‘FX position excluded from Risk Policies’.

| At 31 December 2016 | 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 | - 258 496 | 7 578 | - 250 918 | 282 991 |
| Local currencies


  (under synthetic hedge)
   (*2) | | | | |
| KES | 117 881 | 3 869 | 121 751 | — |
| TZS | 97 116 | 1 931 | 99 046 | — |
| DOP | 52 553 | 2 013 | 54 566 | — |
| UGX | 36 776 | 1 077 | 37 854 | — |
| RWF | 22 258 | 194 | 22 452 | — |
| Local currencies


  (not under synthetic hedge)
   (*2) | | | | |
| HTG, MUR, MZN, XOF, ZMW, BWP | 22 534 | 252 | 22 786 | 246 |
| Total non-EUR currencies | 90 622 | 16 914 | 107 537 | 283 237 |
| EUR | — | 2 591 845 | 2 591 845 | 1 241 229 |
| Total EUR and non-EUR | 90 622 | 2 608 759 | 2 699 382 | 1 524 466 |

At 31 December 2016

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

- 258 496

7 578

- 250 918

282 991

Local currencies

Local currencies

(under synthetic hedge)
   (*2)

(under synthetic hedge)

*2

KES

KES

117 881

3 869

121 751

—

TZS

TZS

97 116

1 931

99 046

—

DOP

DOP

52 553

2 013

54 566

—

UGX

UGX

36 776

1 077

37 854

—

RWF

RWF

22 258

194

22 452

—

Local currencies

Local currencies

(not under synthetic hedge)
   (*2)

(not under synthetic hedge)

*2

HTG, MUR, MZN, XOF, ZMW, BWP

HTG, MUR, MZN, XOF, ZMW, BWP

22 534

252

22 786

246

Total non-EUR currencies

Total non-EUR currencies

90 622

90 622

16 914

16 914

107 537

107 537

283 237

283 237

EUR

EUR

—

2 591 845

2 591 845

2 591 845

2 591 845

1 241 229

1 241 229

Total EUR and non-EUR

Total EUR and non-EUR

90 622

90 622

2 608 759

2 608 759

2 699 382

2 699 382

1 524 466

1 524 466

| At 31 December 2015 | 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 | - 207 050 | 5 023 | - 202 027 | 270 236 |
| Local currencies


  (under synthetic hedge)
   (*3) | | | | |
| KES | 129 862 | 3 101 | 132 963 | — |
| TZS | 46 246 | 780 | 47 025 | — |
| DOP | 40 799 | 1 274 | 42 073 | — |
| UGX | 30 182 | 565 | 30 747 | — |
| RWF | 11 979 | 164 | 12 143 | — |
| Local currencies


  (not under synthetic hedge)
   (*3) | | | | |
| HTG, MUR, MZN, XOF, ZMW | 15 474 | 201 | 15 675 | 798 |
| Total non-EUR currencies | 67 492 | 11 108 | 78 599 | 271 034 |
| EUR | — | 2 337 555 | 2 337 555 | 1 579 719 |
| Total EUR and non-EUR | 67 492 | 2 348 663 | 2 416 154 | 1 850 753 |

At 31 December 2015

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

- 207 050

5 023

- 202 027

270 236

Local currencies

Local currencies

(under synthetic hedge)
   (*3)

(under synthetic hedge)

*3

KES

KES

129 862

3 101

132 963

—

TZS

TZS

46 246

780

47 025

—

DOP

DOP

40 799

1 274

42 073

—

UGX

UGX

30 182

565

30 747

—

RWF

RWF

11 979

164

12 143

—

Local currencies

Local currencies

(not under synthetic hedge)
   (*3)

(not under synthetic hedge)

*3

HTG, MUR, MZN, XOF, ZMW

HTG, MUR, MZN, XOF, ZMW

15 474

201

15 675

798

Total non-EUR currencies

Total non-EUR currencies

67 492

67 492

11 108

11 108

78 599

78 599

271 034

271 034

EUR

EUR

—

2 337 555

2 337 555

2 337 555

2 337 555

1 579 719

1 579 719

Total EUR and non-EUR

Total EUR and non-EUR

67 492

67 492

2 348 663

2 348 663

2 416 154

2 416 154

1 850 753

1 850 753

3.4.2.3.   Foreign exchange sensitivity analysis

Foreign exchange sensitivity analysis

As at 31 December 2016 a 10 percent depreciation of EUR versus all non EUR currencies would result in an increase of the contributors’ resources amounting to EUR 12,0 million (31 December 2015: EUR 8,7 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 9,9 million (31 December 2015: EUR 7,1 million).

3.4.2.4.   Conversion rates

Conversion rates

The following conversion rates were used for establishing the balance sheet at 31 December 2016 and 31 December 2015:

| | 31 December 2016 | 31 December 2015 |
| --- | --- | --- |
| Non-EU currencies | | |
| Botswana Pula (BWP) | 11,2657 | 11,9451 |
| Dominican Republic Pesos (DOP) | 48,7476 | 49,0144 |
| Haitian Gourde (HTG) | 68,78 | 61,19 |
| Kenya Shillings (KES) | 108,06 | 111,3 |
| Mauritania Ouguiyas (MRO) | 375,79 | 326,46 |
| Mauritius Rupees (MUR) | 37,85 | 38,85 |
| Mozambican Metical (MZN) | 75,25 | 50,59 |
| Rwanda Francs (RWF) | 856,8 | 806,36 |
| Tanzania Shillings (TZS) | 2 296,99 | 2 344,42 |
| Uganda Shillings (UGX) | 3 805,00 | 3 665,00 |
| United States Dollars (USD) | 1,0541 | 1,0887 |
| Franc CFA Francs (XAF/XOF) | 655,957 | 655,957 |
| South Africa Rand (ZAR) | 14,457 | 16,953 |
| Zambia Kvacha (ZMW) | 10,4653 | 11,9571 |

31 December 2016

31 December 2015

Non-EU currencies

Non-EU currencies

Botswana Pula (BWP)

11,2657

11,9451

Dominican Republic Pesos (DOP)

48,7476

49,0144

Haitian Gourde (HTG)

68,78

61,19

Kenya Shillings (KES)

108,06

111,3

Mauritania Ouguiyas (MRO)

375,79

326,46

Mauritius Rupees (MUR)

37,85

38,85

Mozambican Metical (MZN)

75,25

50,59

Rwanda Francs (RWF)

856,8

806,36

Tanzania Shillings (TZS)

2 296,99

2 344,42

Uganda Shillings (UGX)

3 805,00

3 665,00

United States Dollars (USD)

1,0541

1,0887

Franc CFA Francs (XAF/XOF)

655,957

655,957

South Africa Rand (ZAR)

14,457

16,953

Zambia Kvacha (ZMW)

10,4653

11,9571

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 effects on the Facility’s contributors’ resources (as a result of a change in the fair value of the available-for-sale equity 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 51,7 million respectively EUR -51,7 million as at 31 December 2016 (EUR 41,9 million respectively EUR -41,9 million as at 31 December 2015).

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.

| At 31 December 2016 | Carrying amount | Fair value |
| --- | --- | --- |
| In EUR’000 | Held for trading | Available-for-sale | Cash, loans and receivables | Held to maturity | Other financial liabilities | Total | Level 1 | Level 2 | Level 3 | Total |
| Financial assets carried at fair value: | | | | | | | | | | |
| Derivative financial instruments | 6 920 | — | — | — | — | 6 920 | — | 6 920 | — | 6 920 |
| Venture Capital Funds | — | 437 788 | — | — | — | 437 788 | — | — | 437 788 | 437 788 |
| Direct Equity Investments | — | 79 096 | — | — | — | 79 096 | 22 880 | — | 56 216 | 79 096 |
| Total | 6 920 | 516 884 | — | — | — | 523 804 | 22 880 | 6 920 | 494 004 | 523 804 |
| Financial assets not carried at fair value: | | | | | | | | | | |
| Cash and cash equivalents | — | — | 360 817 | — | — | 360 817 | | | | |
| Loans and receivables | — | — | 1 729 380 | — | — | 1 729 380 | — | 1 951 786 | — | 1 951 786 |
| Amounts receivable from contributors | — | — | 86 395 | — | — | 86 395 | | | | |
| Bonds | — | — | — | 169 398 | — | 169 398 | 120 123 | 48 031 | — | 168 154 |
| Other assets | — | — | 345 | — | — | 345 | | | | |
| Total | — | — | 2 176 937 | 169 398 | — | 2 346 335 | 120 123 | 1 999 817 | — | 2 119 940 |
| Total financial assets | 6 920 | 516 884 | 2 176 937 | 169 398 | — | 2 870 139 | | | | |
| Financial liabilities carried at fair value: | | | | | | | | | | |
| Derivative financial instruments | -25 189 | — | — | — | — | -25 189 | — | -25 189 | — | -25 189 |
| Total | -25 189 | — | — | — | — | -25 189 | — | -25 189 | — | -25 189 |
| Financial liabilities not carried at fair value: | | | | | | | | | | |
| Provisions for guarantees issued | — | — | — | — | -625 | -625 | | | | |
| Amounts owed to third parties | — | — | — | — | - 116 114 | - 116 114 | | | | |
| Other liabilities | — | — | — | — | -2 546 | -2 546 | | | | |
| Total | — | — | — | — | - 119 285 | - 119 285 | | | | |
| Total financial liabilities | -25 189 | — | — | — | - 119 285 | - 144 474 | | | | |

At 31 December 2016

Carrying amount

Fair value

In EUR’000

In EUR’000

Held for trading

Available-for-sale

Cash, loans and receivables

Held to maturity

Other financial liabilities

Total

Level 1

Level 2

Level 3

Total

Financial assets carried at fair value:

Financial assets carried at fair value:

Derivative financial instruments

6 920

—

—

—

—

6 920

—

6 920

—

6 920

Venture Capital Funds

—

437 788

—

—

—

437 788

—

—

437 788

437 788

Direct Equity Investments

—

79 096

—

—

—

79 096

22 880

—

56 216

79 096

Total

Total

6 920

6 920

516 884

516 884

—

—

—

523 804

523 804

22 880

22 880

6 920

6 920

494 004

494 004

523 804

523 804

Financial assets not carried at fair value:

Financial assets not carried at fair value:

Cash and cash equivalents

—

—

360 817

—

—

360 817

Loans and receivables

—

—

1 729 380

—

—

1 729 380

—

1 951 786

—

1 951 786

Amounts receivable from contributors

—

—

86 395

—

—

86 395

Bonds

—

—

—

169 398

—

169 398

120 123

48 031

—

168 154

Other assets

—

—

345

—

—

345

Total

Total

—

—

2 176 937

2 176 937

169 398

169 398

—

2 346 335

2 346 335

120 123

120 123

1 999 817

1 999 817

—

2 119 940

2 119 940

Total financial assets

Total financial assets

6 920

6 920

516 884

516 884

2 176 937

2 176 937

169 398

169 398

—

2 870 139

2 870 139

Financial liabilities carried at fair value:

Financial liabilities carried at fair value:

Derivative financial instruments

-25 189

—

—

—

—

-25 189

—

-25 189

—

-25 189

Total

Total

-25 189

-25 189

—

—

—

—

-25 189

-25 189

—

-25 189

-25 189

—

-25 189

-25 189

Financial liabilities not carried at fair value:

Financial liabilities not carried at fair value:

Provisions for guarantees issued

—

—

—

—

-625

-625

Amounts owed to third parties

—

—

—

—

- 116 114

- 116 114

Other liabilities

—

—

—

—

-2 546

-2 546

Total

Total

—

—

—

—

- 119 285

- 119 285

- 119 285

- 119 285

Total financial liabilities

Total financial liabilities

-25 189

-25 189

—

—

—

- 119 285

- 119 285

- 144 474

- 144 474

| At 31 December 2015 | Carrying amount | Fair value |
| --- | --- | --- |
| In EUR’000 | Held for trading | Available-for-sale | Cash, loans and receivables | Held to maturity | Other financial liabilities | Total | Level 1 | Level 2 | Level 3 | Total |
| Financial assets carried at fair value: | | | | | | | | | | |
| Derivative financial instruments | 311 | — | — | — | — | 311 | — | 311 | — | 311 |
| Venture Capital Funds | — | 396 203 | — | — | — | 396 203 | — | — | 396 203 | 396 203 |
| Direct Equity Investments | — | 23 150 | — | — | — | 23 150 | 178 | — | 22 972 | 23 150 |
| Total | 311 | 419 353 | — | — | — | 419 664 | 178 | 311 | 419 175 | 419 664 |
| Financial assets not carried at fair value: | | | | | | | | | | |
| Cash and cash equivalents | — | — | 448 995 | — | — | 448 995 | | | | |
| Loans and receivables | — | — | 1 460 057 | — | — | 1 460 057 | — | 1 649 401 | — | 1 649 401 |
| Bonds | — | — | — | 228 521 | — | 228 521 | 124 009 | 104 520 | — | 228 529 |
| Other assets | — | — | 27 | — | — | 27 | — | — | — | — |
| Total | — | — | 1 909 079 | 228 521 | — | 2 137 600 | 124 009 | 1 753 921 | — | 1 877 930 |
| Total financial assets | 311 | 419 353 | 1 909 079 | 228 521 | — | 2 557 264 | | | | |
| Financial liabilities carried at fair value: | | | | | | | | | | |
| Derivative financial instruments | -8 219 | — | — | — | — | -8 219 | — | -8 219 | — | -8 219 |
| Total | -8 219 | — | — | — | — | -8 219 | — | -8 219 | — | -8 219 |
| Financial liabilities not carried at fair value: | | | | | | | | | | |
| Provisions for guarantees issued | — | — | — | — | — | — | | | | |
| Amounts owed to third parties | — | — | — | — | - 101 202 | - 101 202 | | | | |
| Other liabilities | — | — | — | — | -2 364 | -2 364 | | | | |
| Total | — | — | — | — | - 103 566 | - 103 566 | | | | |
| Total financial liabilities | -8 219 | — | — | — | - 103 566 | - 111 785 | | | | |

At 31 December 2015

Carrying amount

Fair value

In EUR’000

In EUR’000

Held for trading

Available-for-sale

Cash, loans and receivables

Held to maturity

Other financial liabilities

Total

Level 1

Level 2

Level 3

Total

Financial assets carried at fair value:

Financial assets carried at fair value:

Derivative financial instruments

311

—

—

—

—

311

—

311

—

311

Venture Capital Funds

—

396 203

—

—

—

396 203

—

—

396 203

396 203

Direct Equity Investments

—

23 150

—

—

—

23 150

178

—

22 972

23 150

Total

Total

311

311

419 353

419 353

—

—

—

419 664

419 664

178

178

311

311

419 175

419 175

419 664

419 664

Financial assets not carried at fair value:

Financial assets not carried at fair value:

Cash and cash equivalents

—

—

448 995

—

—

448 995

Loans and receivables

—

—

1 460 057

—

—

1 460 057

—

1 649 401

—

1 649 401

Bonds

—

—

—

228 521

—

228 521

124 009

104 520

—

228 529

Other assets

—

—

27

—

—

27

—

—

—

—

Total

Total

—

—

1 909 079

1 909 079

228 521

228 521

—

2 137 600

2 137 600

124 009

124 009

1 753 921

1 753 921

—

1 877 930

1 877 930

Total financial assets

Total financial assets

311

311

419 353

419 353

1 909 079

1 909 079

228 521

228 521

—

2 557 264

2 557 264

Financial liabilities carried at fair value:

Financial liabilities carried at fair value:

Derivative financial instruments

-8 219

—

—

—

—

-8 219

—

-8 219

—

-8 219

Total

Total

-8 219

-8 219

—

—

—

—

-8 219

-8 219

—

-8 219

-8 219

—

-8 219

-8 219

Financial liabilities not carried at fair value:

Financial liabilities not carried at fair value:

Provisions for guarantees issued

—

—

—

—

—

—

Amounts owed to third parties

—

—

—

—

- 101 202

- 101 202

Other liabilities

—

—

—

—

-2 364

-2 364

Total

Total

—

—

—

—

- 103 566

- 103 566

- 103 566

- 103 566

Total financial liabilities

Total financial liabilities

-8 219

-8 219

—

—

—

- 103 566

- 103 566

- 111 785

- 111 785

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. | The longer the period between the fair value measurement date and the last reporting date of the investee, the higher the adjustment for time elapsed. |
| | | 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. |
| Financial instruments not carried at fair value | | |
| Loans and receivables | 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 receivables. | Not applicable. | Not applicable. |
| Held-to-maturity financial assets | Discounted cash flows. | Not applicable. | Not applicable. |

Valuation technique

Valuation technique

Significant unobservable inputs

Significant unobservable inputs

Relationship of unobservable inputs to fair value measurement

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.

The longer the period between the fair value measurement date and the last reporting date of the investee, the higher the adjustment for time elapsed.

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.

Financial instruments not carried at fair value

Financial instruments not carried at fair value

Loans and receivables

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 receivables.

Not applicable.

Not applicable.

Held-to-maturity 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 at 31 December 2016 and 2015, namely:

| — | Credit valuation adjustments (CVA), reflecting counterparty credit risk on derivative transactions, amounting to EUR -76,4k as at 31 December 2016 and to EUR - 121,7k as at 31 December 2015. |
| --- | --- |

—

Credit valuation adjustments (CVA), reflecting counterparty credit risk on derivative transactions, amounting to EUR -76,4k as at 31 December 2016 and to EUR - 121,7k as at 31 December 2015.

| — | Debit valuation adjustments (DVA), reflecting own credit risk on derivative transactions, amounting to EUR +42,9k as at 31 December 2016 and EUR +64,4k as at 31 December 2015. |
| --- | --- |

—

Debit valuation adjustments (DVA), reflecting own credit risk on derivative transactions, amounting to EUR +42,9k as at 31 December 2016 and EUR +64,4k as at 31 December 2015.

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 2016 and 2015 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 2016 and 31 December 2015:

| In EUR’000 |
| --- |
| Available-for-sale financial assets |
| Balance at 1 January 2016 | 419 175 |
| Gains or losses included in profit or loss: | |
| — | net realised gains on available-for-sale financial assets |

In EUR’000

Available-for-sale financial assets

Balance at 1 January 2016

Balance at 1 January 2016

419 175

419 175

Gains or losses included in profit or loss:

Gains or losses included in profit or loss:

—

net realised gains on available-for-sale financial assets

-6 504

| — | impairment on available-for-sale financial assets |
| --- | --- |

—

impairment on available-for-sale financial assets

-2 493

Total

Total

-8 997

-8 997

Gains or losses included in other comprehensive income:

Gains or losses included in other comprehensive income:

| — | net change in fair value of available-for-sale financial assets |
| --- | --- |

—

net change in fair value of available-for-sale financial assets

-24 628

Total

Total

-24 628

-24 628

Disbursements

153 986

Repayments

-37 978

Write offs

-7 554

Balance at 31 December 2016

Balance at 31 December 2016

494 004

494 004

| In EUR’000 |
| --- |
| Available-for-sale financial assets |
| Balance at 1 January 2015 | 401 926 |
| Gains or losses included in profit or loss: | |
| — | net realised gains on available-for-sale financial assets |

In EUR’000

Available-for-sale financial assets

Balance at 1 January 2015

Balance at 1 January 2015

401 926

401 926

Gains or losses included in profit or loss:

Gains or losses included in profit or loss:

—

net realised gains on available-for-sale financial assets

-33 878

| — | impairment on available-for-sale financial assets |
| --- | --- |

—

impairment on available-for-sale financial assets

-2 665

Total

Total

-36 543

-36 543

Gains or losses included in other comprehensive income:

Gains or losses included in other comprehensive income:

| — | net change in fair value of available-for-sale financial assets |
| --- | --- |

—

net change in fair value of available-for-sale financial assets

52 365

Total

Total

52 365

52 365

Disbursements

67 449

Repayments

-64 791

Write offs

-1 231

Balance at 31 December 2015

Balance at 31 December 2015

419 175

419 175

In 2016 and 2015 the Facility did not make transfers out or to Level 3 of the fair value hierarchy.

Sensitivity analysis

Sensitivity analysis

A +/- 10 percent change at the reporting date to one of the significant unobservable inputs used to measure the fair values of the Venture Capital Funds and Direct Equity Investments, holding other inputs constant, would have the following effects on the other comprehensive income:

| At 31 December 2016 | Increase | Decrease |
| --- | --- | --- |
| (in EUR’000) |
| Direct Equity Investments | 10 | -10 |
| Total | 10 | -10 |

At 31 December 2016

Increase

Decrease

(in EUR’000)

(in EUR’000)

Direct Equity Investments

10

-10

Total

Total

10

10

-10

-10

| At 31 December 2015 | Increase | Decrease |
| --- | --- | --- |
| (in EUR’000) |
| Direct Equity Investments | 31 | -31 |
| Total | 31 | -31 |

At 31 December 2015

Increase

Decrease

(in EUR’000)

(in EUR’000)

Direct Equity Investments

31

-31

Total

Total

31

31

-31

-31

5.   Cash and cash equivalents (in EUR’000)

Cash and cash equivalents (in EUR’000)

The cash and cash equivalents are composed of:

| | 31.12.2016 | 31.12.2015 |
| --- | --- | --- |
| Cash in hand | 51 462 | 71 405 |
| Term deposits | 259 337 | 290 573 |
| Commercial papers | 50 018 | 87 017 |
| Cash and cash equivalents in the statement of financial position | 360 817 | 448 995 |
| Accrued interest | 5 | 3 |
| Cash and cash equivalents in the cash flow statement | 360 822 | 448 998 |

31.12.2016

31.12.2015

Cash in hand

51 462

71 405

Term deposits

259 337

290 573

Commercial papers

50 018

87 017

Cash and cash equivalents in the statement of financial position

Cash and cash equivalents in the statement of financial position

360 817

360 817

448 995

448 995

Accrued interest

5

3

Cash and cash equivalents in the cash flow statement

Cash and cash equivalents in the cash flow statement

360 822

360 822

448 998

448 998

6.   Derivative financial instruments (in EUR’000)

Derivative financial instruments (in EUR’000)

The main components of derivative financial instruments, classified as held for trading, are as follows:

| At 31 December 2016 | Fair Value | Notional amount |
| --- | --- | --- |
| Assets | Liabilities |
| Cross currency interest rate swaps | — | -3 051 | 7 430 |
| Interest rate swaps | 388 | -335 | 41 233 |
| FX swaps | 6 532 | -21 803 | 1 611 000 |
| Total derivative financial instruments | 6 920 | -25 189 | 1 659 663 |

At 31 December 2016

Fair Value

Notional amount

Assets

Liabilities

Cross currency interest rate swaps

—

-3 051

7 430

Interest rate swaps

388

-335

41 233

FX swaps

6 532

-21 803

1 611 000

Total derivative financial instruments

Total derivative financial instruments

6 920

6 920

-25 189

-25 189

1 659 663

1 659 663

| At 31 December 2015 | Fair Value | Notional amount |
| --- | --- | --- |
| Assets | Liabilities |
| Cross currency interest rate swaps | — | -3 835 | 9 589 |
| Interest rate swaps | 311 | -639 | 44 913 |
| FX swaps | — | -3 745 | 1 400 000 |
| Total derivative financial instruments | 311 | -8 219 | 1 454 502 |

At 31 December 2015

Fair Value

Notional amount

Assets

Liabilities

Cross currency interest rate swaps

—

-3 835

9 589

Interest rate swaps

311

-639

44 913

FX swaps

—

-3 745

1 400 000

Total derivative financial instruments

Total derivative financial instruments

311

311

-8 219

-8 219

1 454 502

1 454 502

7.   Loans and receivables (in EUR’000)

Loans and receivables (in EUR’000)

The main components of loans and receivables are as follows:

| | Global loans (*4) | Senior loans | Subordinated loans | Total |
| --- | --- | --- | --- | --- |
| Nominal as at 1 January 2016 | 661 792 | 818 007 | 160 555 | 1 640 354 |
| Disbursements | 476 685 | 51 691 | — | 528 376 |
| Write offs | — | -109 | -31 189 | -31 298 |
| Repayments | - 178 282 | - 107 259 | -65 927 | - 351 468 |
| Interest capitalised | — | — | 7 183 | 7 183 |
| Foreign exchange rates differences | 34 332 | 2 009 | 941 | 37 282 |
| Nominal as at 31 December 2016 | 994 527 | 764 339 | 71 563 | 1 830 429 |
| Impairment as at 1 January 2016 | -9 403 | -22 445 | - 159 198 | - 191 046 |
| Impairment recorded in statement of profit or loss and other comprehensive income | -8 794 | -11 999 | — | -20 793 |
| Write offs | — | 109 | 31 189 | 31 298 |
| Reversal of impairment | 360 | 6 100 | 58 698 | 65 158 |
| Foreign exchange rates differences | -348 | -59 | -1 850 | -2 257 |
| Impairment as at 31 December 2016 | -18 185 | -28 294 | -71 161 | - 117 640 |
| Amortised Cost | -3 906 | -3 682 | — | -7 588 |
| Interest | 14 807 | 9 371 | 1 | 24 179 |
| Loans and receivables as at 31 December 2016 | 987 243 | 741 734 | 403 | 1 729 380 |

Global loans (*4)

*4

Senior loans

Subordinated loans

Total

Nominal as at 1 January 2016

Nominal as at 1 January 2016

661 792

661 792

818 007

818 007

160 555

160 555

1 640 354

1 640 354

Disbursements

476 685

51 691

—

528 376

Write offs

—

-109

-31 189

-31 298

Repayments

- 178 282

- 107 259

-65 927

- 351 468

Interest capitalised

—

—

7 183

7 183

Foreign exchange rates differences

34 332

2 009

941

37 282

Nominal as at 31 December 2016

Nominal as at 31 December 2016

994 527

994 527

764 339

764 339

71 563

71 563

1 830 429

1 830 429

Impairment as at 1 January 2016

Impairment as at 1 January 2016

-9 403

-9 403

-22 445

-22 445

- 159 198

- 159 198

- 191 046

- 191 046

Impairment recorded in statement of profit or loss and other comprehensive income

-8 794

-11 999

—

-20 793

Write offs

—

109

31 189

31 298

Reversal of impairment

360

6 100

58 698

65 158

Foreign exchange rates differences

-348

-59

-1 850

-2 257

Impairment as at 31 December 2016

Impairment as at 31 December 2016

-18 185

-18 185

-28 294

-28 294

-71 161

-71 161

- 117 640

- 117 640

Amortised Cost

-3 906

-3 682

—

-7 588

Interest

14 807

9 371

1

24 179

Loans and receivables as at 31 December 2016

Loans and receivables as at 31 December 2016

987 243

987 243

741 734

741 734

403

403

1 729 380

1 729 380

| | Global loans (*5) | Senior loans | Subordinated loans | Total |
| --- | --- | --- | --- | --- |
| Nominal as at 1 January 2015 | 542 506 | 782 563 | 146 643 | 1 471 712 |
| Disbursements | 196 607 | 86 177 | — | 282 784 |
| Repayments | - 106 921 | -96 147 | -2 704 | - 205 772 |
| Interest capitalised | — | — | 13 262 | 13 262 |
| Foreign exchange rates differences | 29 600 | 45 414 | 3 354 | 78 368 |
| Nominal as at 31 December 2015 | 661 792 | 818 007 | 160 555 | 1 640 354 |
| Impairment as at 1 January 2015 | -5 751 | -13 491 | - 132 895 | - 152 137 |
| Impairment recorded in statement of profit or loss and other comprehensive income | -3 692 | -7 576 | -24 995 | -36 263 |
| Reversal of impairment | 381 | 57 | 1 837 | 2 275 |
| Foreign exchange rates differences | -341 | -1 435 | -3 145 | -4 921 |
| Impairment as at 31 December 2015 | -9 403 | -22 445 | - 159 198 | - 191 046 |
| Amortised Cost | -3 129 | -5 781 | 284 | -8 626 |
| Interest | 8 838 | 10 533 | 4 | 19 375 |
| Loans and receivables as at 31 December 2015 | 658 098 | 800 314 | 1 645 | 1 460 057 |

Global loans (*5)

*5

Senior loans

Subordinated loans

Total

Nominal as at 1 January 2015

Nominal as at 1 January 2015

542 506

542 506

782 563

782 563

146 643

146 643

1 471 712

1 471 712

Disbursements

196 607

86 177

—

282 784

Repayments

- 106 921

-96 147

-2 704

- 205 772

Interest capitalised

—

—

13 262

13 262

Foreign exchange rates differences

29 600

45 414

3 354

78 368

Nominal as at 31 December 2015

Nominal as at 31 December 2015

661 792

661 792

818 007

818 007

160 555

160 555

1 640 354

1 640 354

Impairment as at 1 January 2015

Impairment as at 1 January 2015

-5 751

-5 751

-13 491

-13 491

- 132 895

- 132 895

- 152 137

- 152 137

Impairment recorded in statement of profit or loss and other comprehensive income

-3 692

-7 576

-24 995

-36 263

Reversal of impairment

381

57

1 837

2 275

Foreign exchange rates differences

-341

-1 435

-3 145

-4 921

Impairment as at 31 December 2015

Impairment as at 31 December 2015

-9 403

-9 403

-22 445

-22 445

- 159 198

- 159 198

- 191 046

- 191 046

Amortised Cost

-3 129

-5 781

284

-8 626

Interest

8 838

10 533

4

19 375

Loans and receivables as at 31 December 2015

Loans and receivables as at 31 December 2015

658 098

658 098

800 314

800 314

1 645

1 645

1 460 057

1 460 057

8.   Available-for-sale financial assets (in EUR’000)

Available-for-sale financial assets (in EUR’000)

The main components of available-for-sale financial assets are as follows:

| | Venture Capital Funds | Direct Equity Investments | Total |
| --- | --- | --- | --- |
| Cost as at 1 January 2016 | 267 331 | 22 979 | 290 310 |
| Disbursements | 101 323 | 52 663 | 153 986 |
| Repayments/sales | -37 948 | -30 | -37 978 |
| Write offs | -4 594 | -2 960 | -7 554 |
| Foreign exchange rates differences on repayments/sales | 5 141 | -16 | 5 125 |
| Cost as at 31 December 2016 | 331 253 | 72 636 | 403 889 |
| Unrealised gains and losses as at 1 January 2016 | 153 901 | 10 092 | 163 993 |
| Net change in unrealised gains and losses | -24 474 | 3 365 | -21 109 |
| Unrealised gains and losses as at 31 December 2016 | 129 427 | 13 457 | 142 884 |
| Impairment as at 1 January 2016 | -25 029 | -9 921 | -34 950 |
| Impairment recorded in statement of profit or loss and other comprehensive income during the year | -2 457 | -36 | -2 493 |
| Write offs | 4 594 | 2 960 | 7 554 |
| Impairment as at 31 December 2016 | -22 892 | -6 997 | -29 889 |
| Available-for-sale financial assets as at 31 December 2016 | 437 788 | 79 096 | 516 884 |

Venture Capital Funds

Direct Equity Investments

Total

Cost as at 1 January 2016

Cost as at 1 January 2016

267 331

267 331

22 979

22 979

290 310

290 310

Disbursements

101 323

52 663

153 986

Repayments/sales

-37 948

-30

-37 978

Write offs

-4 594

-2 960

-7 554

Foreign exchange rates differences on repayments/sales

5 141

-16

5 125

Cost as at 31 December 2016

Cost as at 31 December 2016

331 253

331 253

72 636

72 636

403 889

403 889

Unrealised gains and losses as at 1 January 2016

Unrealised gains and losses as at 1 January 2016

153 901

153 901

10 092

10 092

163 993

163 993

Net change in unrealised gains and losses

-24 474

3 365

-21 109

Unrealised gains and losses as at 31 December 2016

Unrealised gains and losses as at 31 December 2016

129 427

129 427

13 457

13 457

142 884

142 884

Impairment as at 1 January 2016

Impairment as at 1 January 2016

-25 029

-25 029

-9 921

-9 921

-34 950

-34 950

Impairment recorded in statement of profit or loss and other comprehensive income during the year

-2 457

-36

-2 493

Write offs

4 594

2 960

7 554

Impairment as at 31 December 2016

Impairment as at 31 December 2016

-22 892

-22 892

-6 997

-6 997

-29 889

-29 889

Available-for-sale financial assets as at 31 December 2016

Available-for-sale financial assets as at 31 December 2016

437 788

437 788

79 096

79 096

516 884

516 884

| | Venture Capital Funds | Direct Equity Investments | Total |
| --- | --- | --- | --- |
| Cost as at 1 January 2015 | 259 784 | 19 714 | 279 498 |
| Disbursements | 63 574 | 3 875 | 67 449 |
| Repayments/sales | -64 181 | -610 | -64 791 |
| Write offs | -1 231 | — | -1 231 |
| Foreign exchange rates differences on repayments/sales | 9 385 | — | 9 385 |
| Cost as at 31 December 2015 | 267 331 | 22 979 | 290 310 |
| Unrealised gains and losses as at 1 January 2015 | 149 995 | 6 127 | 156 122 |
| Net change in unrealised gains and losses | 3 906 | 3 965 | 7 871 |
| Unrealised gains and losses as at 31 December 2015 | 153 901 | 10 092 | 163 993 |
| Impairment as at 1 January 2015 | -24 534 | -8 001 | -32 535 |
| Impairment recorded in statement of profit or loss and other comprehensive income during the year | -1 726 | -1 920 | -3 646 |
| Write offs | 1 231 | — | 1 231 |
| Impairment as at 31 December 2015 | -25 029 | -9 921 | -34 950 |
| Available-for-sale financial assets as at 31 December 2015 | 396 203 | 23 150 | 419 353 |

Venture Capital Funds

Direct Equity Investments

Total

Cost as at 1 January 2015

Cost as at 1 January 2015

259 784

259 784

19 714

19 714

279 498

279 498

Disbursements

63 574

3 875

67 449

Repayments/sales

-64 181

-610

-64 791

Write offs

-1 231

—

-1 231

Foreign exchange rates differences on repayments/sales

9 385

—

9 385

Cost as at 31 December 2015

Cost as at 31 December 2015

267 331

267 331

22 979

22 979

290 310

290 310

Unrealised gains and losses as at 1 January 2015

Unrealised gains and losses as at 1 January 2015

149 995

149 995

6 127

6 127

156 122

156 122

Net change in unrealised gains and losses

3 906

3 965

7 871

Unrealised gains and losses as at 31 December 2015

Unrealised gains and losses as at 31 December 2015

153 901

153 901

10 092

10 092

163 993

163 993

Impairment as at 1 January 2015

Impairment as at 1 January 2015

-24 534

-24 534

-8 001

-8 001

-32 535

-32 535

Impairment recorded in statement of profit or loss and other comprehensive income during the year

-1 726

-1 920

-3 646

Write offs

1 231

—

1 231

Impairment as at 31 December 2015

Impairment as at 31 December 2015

-25 029

-25 029

-9 921

-9 921

-34 950

-34 950

Available-for-sale financial assets as at 31 December 2015

Available-for-sale financial assets as at 31 December 2015

396 203

396 203

23 150

23 150

419 353

419 353

9.   Amounts receivable from contributors (in EUR’000)

Amounts receivable from contributors (in EUR’000)

The amounts receivable from contributors are entirely composed of Member States contribution called but not paid.

10.   Held-to-maturity financial assets (in EUR’000)

Held-to-maturity financial assets (in EUR’000)

The held-to-maturity 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 held-to-maturity portfolio:

| Balance as at 1 January 2016 | 228 521 |
| --- | --- |
| Acquisitions | 1 159 704 |
| Maturities | -1 219 953 |
| Change in amortisation of premium/discount | -87 |
| Change in accrued interest | 1 213 |
| Balance as at 31 December 2016 | 169 398 |

Balance as at 1 January 2016

Balance as at 1 January 2016

228 521

228 521

Acquisitions

1 159 704

Maturities

-1 219 953

Change in amortisation of premium/discount

-87

Change in accrued interest

1 213

Balance as at 31 December 2016

Balance as at 31 December 2016

169 398

169 398

| Balance as at 1 January 2015 | 99 988 |
| --- | --- |
| Acquisitions | 1 545 550 |
| Maturities | -1 417 005 |
| Change in amortisation of premium/discount | -12 |
| Balance as at 31 December 2015 | 228 521 |

Balance as at 1 January 2015

Balance as at 1 January 2015

99 988

99 988

Acquisitions

1 545 550

Maturities

-1 417 005

Change in amortisation of premium/discount

-12

Balance as at 31 December 2015

Balance as at 31 December 2015

228 521

228 521

11.   Other assets (in EUR’000)

Other assets (in EUR’000)

The main components of other assets are as follows:

| | 31.12.2016 | 31.12.2015 |
| --- | --- | --- |
| Amount receivable from EIB | 1 | 1 |
| Financial guarantees | 344 | 26 |
| Total other assets | 345 | 27 |

31.12.2016

31.12.2015

Amount receivable from EIB

1

1

Financial guarantees

344

26

Total other assets

Total other assets

345

345

27

27

12   Deferred income (in EUR’000)

Deferred income (in EUR’000)

The main components of deferred income are as follows:

| | 31.12.2016 | 31.12.2015 |
| --- | --- | --- |
| Deferred interest subsidies | 25 884 | 28 683 |
| Deferred commissions on loans and receivables | 399 | 642 |
| Total deferred income | 26 283 | 29 325 |

31.12.2016

31.12.2015

Deferred interest subsidies

25 884

28 683

Deferred commissions on loans and receivables

399

642

Total deferred income

Total deferred income

26 283

26 283

29 325

29 325

13.   Provisions for guarantees issued (in EUR’000)

Provisions for guarantees issued (in EUR’000)

The amount of provisions for guarantees issued is recognised using the best estimate of expenditure required to settle any present financial obligation arising as a result of the guarantees and represents the sum of:

| — | the amounts initially recognised less, where appropriate, cumulative amortisation recognised in accordance with IAS 18 Revenue and |
| --- | --- |

—

the amounts initially recognised less, where appropriate, cumulative amortisation recognised in accordance with IAS 18 Revenue and

| — | the excess over the above amounts, as measured in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. |
| --- | --- |

—

the excess over the above amounts, as measured in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

| | 2016 | 2015 |
| --- | --- | --- |
| Balance at 1 January | — | — |
| Additions recorded in statement of profit or loss and other comprehensive income | 242 | — |
| Utilised | — | — |
| Transfer from ‘Other liabilities’, financial guarantees | 383 | |
| Release of provision | — | — |
| Balance at 31 December | 625 | — |

2016

2015

Balance at 1 January

—

—

Additions recorded in statement of profit or loss and other comprehensive income

242

—

Utilised

—

—

Transfer from ‘Other liabilities’, financial guarantees

383

Release of provision

—

—

Balance at 31 December

Balance at 31 December

625

625

—

—

14.   Amounts owed to third parties (in EUR’000)

Amounts owed to third parties (in EUR’000)

The main components of amounts owed to third parties are as follows:

| | 31.12.2016 | 31.12.2015 |
| --- | --- | --- |
| Net general administrative expenses payable to EIB | 43 483 | 43 045 |
| Other amounts payable to EIB | — | 15 |
| Interest subsidies and TA not yet disbursed owed to Member States | 72 631 | 58 142 |
| Total amounts owed to third parties | 116 114 | 101 202 |

31.12.2016

31.12.2015

Net general administrative expenses payable to EIB

43 483

43 045

Other amounts payable to EIB

—

15

Interest subsidies and TA not yet disbursed owed to Member States

72 631

58 142

Total amounts owed to third parties

Total amounts owed to third parties

116 114

116 114

101 202

101 202

15.   Other liabilities (in EUR’000)

Other liabilities (in EUR’000)

The main components of other liabilities are as follows:

| | 31.12.2016 | 31.12.2015 |
| --- | --- | --- |
| Loan repayments received in advance | 2 081 | 1 826 |
| Deferred income from interest subsidies | 458 | 512 |
| Financial guarantees | 7 | 26 |
| Total other liabilities | 2 546 | 2 364 |

31.12.2016

31.12.2015

Loan repayments received in advance

2 081

1 826

Deferred income from interest subsidies

458

512

Financial guarantees

7

26

Total other liabilities

Total other liabilities

2 546

2 546

2 364

2 364

16.   Member States Contribution called (in EUR’000)

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 |
| --- | --- | --- | --- | --- |
| Austria | 62 223 | 6 941 | 69 164 | 2 410 |
| Belgium | 91 930 | 10 222 | 102 152 | 5 295 |
| Bulgaria | 448 | 182 | 630 | 140 |
| Cyprus | 288 | 117 | 405 | 90 |
| Czech Republic | 1 632 | 663 | 2 295 | 510 |
| Denmark | 50 420 | 5 675 | 56 095 | 2 000 |
| Estonia | 160 | 65 | 225 | 50 |
| Finland | 35 148 | 4 038 | 39 186 | 1 470 |
| France | 562 411 | 60 332 | 622 743 | 19 550 |
| Germany | 546 115 | 60 216 | 606 331 | 20 500 |
| Greece | 30 417 | 3 707 | 34 124 | 1 470 |
| Hungary | 1 760 | 715 | 2 475 | — |
| Ireland | 15 665 | 2 074 | 17 739 | 910 |
| Italy | 299 100 | 34 737 | 333 837 | 12 860 |
| Latvia | 224 | 91 | 315 | 70 |
| Lithuania | 384 | 156 | 540 | 120 |
| Luxembourg | 6 829 | 768 | 7 597 | 270 |
| Malta | 96 | 39 | 135 | 30 |
| Netherlands | 122 895 | 13 805 | 136 700 | 4 850 |
| Poland | 4 160 | 1 690 | 5 850 | 1 300 |
| Portugal | 23 633 | 2 889 | 26 522 | 1 150 |
| Romania | 1 184 | 481 | 1 665 | 370 |
| Slovakia | 672 | 273 | 945 | 210 |
| Slovenia | 576 | 234 | 810 | 180 |
| Spain | 145 249 | 18 596 | 163 845 | 7 850 |
| Sweden | 64 924 | 7 485 | 72 409 | 2 740 |
| United Kingdom | 308 457 | 37 500 | 345 957 | — |
| Total as at 31 December 2016 | 2 377 000 | 273 691 | 2 650 691 | 86 395 |
| Total as at 31 December 2015 | 2 157 000 | 243 691 | 2 400 691 | — |
| On 19 November 2016, the Council fixed the amount of financial contributions to be paid by each Member State by 21 January 2017. As at 31 December 2016 EUR 86 395 were not paid in. |

Member States

Contribution to the Facility

Contribution to interest subsidies and technical assistance

Total contributed

Called and not paid

Austria

62 223

6 941

69 164

2 410

Belgium

91 930

10 222

102 152

5 295

Bulgaria

448

182

630

140

Cyprus

288

117

405

90

Czech Republic

1 632

663

2 295

510

Denmark

50 420

5 675

56 095

2 000

Estonia

160

65

225

50

Finland

35 148

4 038

39 186

1 470

France

562 411

60 332

622 743

19 550

Germany

546 115

60 216

606 331

20 500

Greece

30 417

3 707

34 124

1 470

Hungary

1 760

715

2 475

—

Ireland

15 665

2 074

17 739

910

Italy

299 100

34 737

333 837

12 860

Latvia

224

91

315

70

Lithuania

384

156

540

120

Luxembourg

6 829

768

7 597

270

Malta

96

39

135

30

Netherlands

122 895

13 805

136 700

4 850

Poland

4 160

1 690

5 850

1 300

Portugal

23 633

2 889

26 522

1 150

Romania

1 184

481

1 665

370

Slovakia

672

273

945

210

Slovenia

576

234

810

180

Spain

145 249

18 596

163 845

7 850

Sweden

64 924

7 485

72 409

2 740

United Kingdom

308 457

37 500

345 957

—

Total as at 31 December 2016

Total as at 31 December 2016

2 377 000

2 377 000

273 691

273 691

2 650 691

2 650 691

86 395

86 395

Total as at 31 December 2015

Total as at 31 December 2015

2 157 000

2 157 000

243 691

243 691

2 400 691

2 400 691

—

—

On 19 November 2016, the Council fixed the amount of financial contributions to be paid by each Member State by 21 January 2017. As at 31 December 2016 EUR 86 395 were not paid in.

17.   Contingent liabilities and commitments (in EUR’000)

Contingent liabilities and commitments (in EUR’000)

| | 31.12.2016 | 31.12.2015 |
| --- | --- | --- |
| Commitments | | |
| Un-disbursed loans | 901 899 | 1 189 564 |
| Un-disbursed commitment in respect of available-for-sale financial assets | 244 050 | 298 355 |
| Issued guarantees | 8 627 | 798 |
| Interest subsidies and technical assistance | 334 553 | 352 036 |
| Contingent liabilities | | |
| Signed non-issued guarantees | 35 337 | 10 000 |
| Total contingent liabilities and commitments | 1 524 466 | 1 850 753 |

31.12.2016

31.12.2015

Commitments

Commitments

Un-disbursed loans

901 899

1 189 564

Un-disbursed commitment in respect of available-for-sale financial assets

244 050

298 355

Issued guarantees

8 627

798

Interest subsidies and technical assistance

334 553

352 036

Contingent liabilities

Contingent liabilities

Signed non-issued guarantees

35 337

10 000

Total contingent liabilities and commitments

Total contingent liabilities and commitments

1 524 466

1 524 466

1 850 753

1 850 753

18.   Interest and similar income and expenses (in EUR’000)

Interest and similar income and expenses (in EUR’000)

The main components of interest and similar income are as follows:

| | From 01.01.2016 | From 01.01.2015 |
| --- | --- | --- |
| | to 31.12.2016 | to 31.12.2015 |
| Held-to-maturity financial assets | — | 4 |
| Loans and receivables | 102 580 | 86 305 |
| Interest subsidies | 4 118 | 4 076 |
| Total interest and similar income | 106 698 | 90 385 |

From 01.01.2016

From 01.01.2015

to 31.12.2016

to 31.12.2015

Held-to-maturity financial assets

—

4

Loans and receivables

102 580

86 305

Interest subsidies

4 118

4 076

Total interest and similar income

Total interest and similar income

106 698

106 698

90 385

90 385

Included within the line item of ‘Loans and receivables’ under interest income for the year ended 31 December 2016 is a total of EUR +15 700 relating to impaired financial assets (31 December 2015: EUR +15 869).

The main component of interest and similar expenses is as follows:

| | From 01.01.2016 | From 01.01.2015 |
| --- | --- | --- |
| | to 31.12.2016 | to 31.12.2015 |
| Derivative financial instruments | -1 142 | -1 525 |
| Cash and cash equivalents | -752 | -31 |
| Held-to-maturity financial assets | -413 | — |
| Total interest and similar expenses | -2 307 | -1 556 |

From 01.01.2016

From 01.01.2015

to 31.12.2016

to 31.12.2015

Derivative financial instruments

-1 142

-1 525

Cash and cash equivalents

-752

-31

Held-to-maturity financial assets

-413

—

Total interest and similar expenses

Total interest and similar expenses

-2 307

-2 307

-1 556

-1 556

19.   Fee and commission income and expenses (in EUR’000)

Fee and commission income and expenses (in EUR’000)

The main components of fee and commission income are as follows:

| | From 01.01.2016 | From 01.01.2015 |
| --- | --- | --- |
| | to 31.12.2016 | to 31.12.2015 |
| Fee and commission on loans and receivables | 515 | 890 |
| Fee and commission on financial guarantees | 183 | 42 |
| Other | 1 | — |
| Total fee and commission income | 699 | 932 |

From 01.01.2016

From 01.01.2015

to 31.12.2016

to 31.12.2015

Fee and commission on loans and receivables

515

890

Fee and commission on financial guarantees

183

42

Other

1

—

Total fee and commission income

Total fee and commission income

699

699

932

932

The main component of fee and commission expenses is as follows:

| | From 01.01.2016 | From 01.01.2015 |
| --- | --- | --- |
| | to 31.12.2016 | to 31.12.2015 |
| Commission paid to third parties with regard to available-for-sale financial assets | -48 | -63 |
| Total fee and commission expenses | -48 | -63 |

From 01.01.2016

From 01.01.2015

to 31.12.2016

to 31.12.2015

Commission paid to third parties with regard to available-for-sale financial assets

-48

-63

Total fee and commission expenses

Total fee and commission expenses

-48

-48

-63

-63

20.   Net realised gains on available-for-sale financial assets (in EUR’000)

Net realised gains on available-for-sale financial assets (in EUR’000)

The main components of net realised gains on available-for-sale financial assets are as follows:

| | From 01.01.2016 | From 01.01.2015 |
| --- | --- | --- |
| | to 31.12.2016 | to 31.12.2015 |
| Net proceeds from available-for-sale financial assets | 2 159 | 834 |
| Dividend income | 4 345 | 33 044 |
| Net realised gains on available-for-sale financial assets | 6 504 | 33 878 |

From 01.01.2016

From 01.01.2015

to 31.12.2016

to 31.12.2015

Net proceeds from available-for-sale financial assets

2 159

834

Dividend income

4 345

33 044

Net realised gains on available-for-sale financial assets

Net realised gains on available-for-sale financial assets

6 504

6 504

33 878

33 878

21.   General administrative expenses (in EUR’000)

General administrative expenses (in EUR’000)

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.

| | From 01.01.2016 | From 01.01.2015 |
| --- | --- | --- |
| | to 31.12.2016 | to 31.12.2015 |
| Actual cost incurred by the EIB | -45 858 | -45 506 |
| Income from appraisal fees directly charged to clients of the Facility | 2 375 | 2 461 |
| Total general administrative expenses | -43 483 | -43 045 |

From 01.01.2016

From 01.01.2015

to 31.12.2016

to 31.12.2015

Actual cost incurred by the EIB

-45 858

-45 506

Income from appraisal fees directly charged to clients of the Facility

2 375

2 461

Total general administrative expenses

Total general administrative expenses

-43 483

-43 483

-43 045

-43 045

22.   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 un-disbursed commitments.

| Type of structured entity | Caption | Carrying amount at 31.12.2016 | Carrying amount at 31.12.2015 | Maximum exposure to loss at 31.12.2016 | Maximum exposure to loss at 31.12.2015 |
| --- | --- | --- | --- | --- | --- |
| Venture capital funds | Available-for-sale financial assets | 437 788 | 396 203 | 672 222 | 645 833 |
| Total | | 437 788 | 396 203 | 672 222 | 645 833 |

Type of structured entity

Caption

Carrying amount at 31.12.2016

Carrying amount at 31.12.2015

Maximum exposure to loss at 31.12.2016

Maximum exposure to loss at 31.12.2015

Venture capital funds

Available-for-sale financial assets

437 788

396 203

672 222

645 833

Total

Total

437 788

437 788

396 203

396 203

672 222

672 222

645 833

645 833

23.   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.

th

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 will be 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 will take the form of first loss guarantees (‘first loss pieces’) that will 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 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 will apply 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 will also allow 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 | Carrying amount at 31.12.2016 | Carrying amount at 31.12.2015 | Undisbursed amount at 31.12.2016 | Undisbursed amount at 31.12.2015 |
| --- | --- | --- | --- | --- | --- |
| Social impact equity funds | Available-for-sale financial assets | 5 021 | 2 257 | 19 567 | 16 927 |
| Loans to financial intermediaries | Loans and receivables | 23 702 | — | 46 958 | 10 000 |
| Risk sharing facilitating instruments | Issued guarantees | -288 | — | 33 719 | — |
| Direct financing — equity participations | Available-for-sale financial assets | 39 986 | — | 14 | 40 000 |
| Total | | 68 421 | 2 257 | 100 258 | 66 927 |

Type of IFE investment

Caption

Carrying amount at 31.12.2016

Carrying amount at 31.12.2015

Undisbursed amount at 31.12.2016

Undisbursed amount at 31.12.2015

Social impact equity funds

Available-for-sale financial assets

5 021

2 257

19 567

16 927

Loans to financial intermediaries

Loans and receivables

23 702

—

46 958

10 000

Risk sharing facilitating instruments

Issued guarantees

-288

—

33 719

—

Direct financing — equity participations

Available-for-sale financial assets

39 986

—

14

40 000

Total

Total

68 421

68 421

2 257

2 257

100 258

100 258

66 927

66 927

24.   Subsequent events

Subsequent events

There have been no material post balance sheet events which could require disclosure or adjustment to the 31 December 2016 financial statements.

---

(1)  OJ L 210, 6.8.2013, p. 1.

1

(2)  The creation of the Bridging Facility had been first proposed as an article of the 11th EDF Implementation Regulation (COM(2013)445). The Commission however has proposed, as an alternative, the creation of the Bridging Facility by a specific Council decision (Proposal for a Council decision regarding transitional EDF management measures from 1 January 2014 until the entry into force of the 11th EDF European Development Fund, COM(2013)663).

2

(3)  Council Regulation (EC) No 215/2008 of 18 February 2008 on the Financial Regulation applicable to the 10th EDF. OJ L 78, 19.2.2008, p. 1.

3

(4)  Council Regulation (EU) No 567/2014 of 26 May 2014 amending Regulation (EC) No 215/2008 on the Financial Regulation applicable to the 10th EDF as regards the application of the transition period between the 10th EDF and the 11th EDF until the entry into force of the 11th EDF Internal Agreement. OJ L 157, 27.5.2014, p. 52.

4

(5)  Council Regulation (EU) 2015/323 of 2 March 2015 on the financial regulation applicable to the 11th European Development Fund. OJ L 58, 3.3.2015, p. 17–38.

5

(6)  Council Regulation (EU) 2015/322 of 2 March 2015 on the implementation of the 11th European Development Fund. OJ L 58, 3.3.2015, p. 1–16.

6

(7)  Council Regulation (EU) No 567/2014 of 26 May 2014 amending Regulation (EC) No 215/2008 on the Financial Regulation applicable to the 10th EDF as regards the application of the transition period between the 10th EDF and the 11th EDF until the entry into force of the 11th EDF Internal Agreement. OJ L 157, 27.5.2014, Art. 43.

7

(8)  The 2016 is the first year in which the financial statements of the EUTF for Africa are issued and thus also for the first time included in the EDF annual accounts. The transactions of 2015 are reflected in the comparative figures.

8

(1)  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.

1

(9)  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.

9

(10)  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.

10

(11)  In accordance with Article 59 of the Financial Regulation applicable to the 11th European Development Fund, the treasury is presented in the balance sheet of the 11th EDF.

11

(12)  In accordance with Article 59 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.

12

(*1)  This balance represents the amounts available for the Democratic Republic of the Congo in accordance with the provisions of Council Decision 2003/583/EC7.

*1

(13)  OJ L 156, 29.5.1998, p. 3-106.

13

(2)  Recognised in accordance with the provisions of Article 9(2)(d) of the Financial Regulation applicable to the 11th EDF.

2

(14)  It should be noted that due to the rounding of figures into thousands of euros, some financial data in the tables may appear not to add-up.

14

(15)  It should be noted that due to the rounding of figures into thousands of euros, some financial data in the tables may appear not to add-up.

15

(16)  It should be noted that due to the rounding of figures into thousands of euros, some financial data in the tables may appear not to add-up.

16

(17)  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.

17

(3)  All decreases are decommitments transferred to the non-mobilisable performance reserve of the 10th EDF

3

(4)  All decreases are decommitments transferred to the non-mobilisable performance reserve of the 10th EDF

4

(5)  Following Council Decision 2010/406/EU, 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)

5

(6)  Following Council Decision 2011/315/EU, 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)

6

(7)  Transfer in decommitments from projects of the 9th and previous EDF's to the non mobilisable performance reserve for 377 million less transfer out of reserves to South Sudan for 200 million (to 9th EDF). Year to date the total of the non-mobilisable reserve ACP created was 807 million, of which 350 million has been used (150 million for Sudan, 200 million for South Soudan, both transfered to 9th EDF).

7

(8)  Transfers in/from the 10th EDF reserves

8

(9)  For the cofinancings, the table only presents the commitment appropriations.

9

(18)  Non-mobilisable reserves are the results of transfers (decommitments) from the 10th EDF non-mobilisable performance reserve for 225 million euros which are directly transferred to the Bridging Facility (224,7 million) and to other instruments from 11 EDF (0,8 million).

18

(10)  % of appropriations

10

(19)  Decreases are explained by repayments of capital occurred during the year on operations already considered as forborne as of 31 December 2015 and by termination during the year.

19

(*2)  See section 3.4.2.2.2 for explanations on synthetic hedge.

*2

(*3)  See section 3.4.2.2.2 for explanations on synthetic hedge.

*3

(*4)  including agency agreements

*4

(*5)  including agency agreements

*5

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| 28.9.2017 | EN | Official Journal of the European Union | C 325/139 |
| --- | --- | --- | --- |

28.9.2017

EN

Official Journal of the European Union

C 325/139

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THE COURT’S STATEMENT OF ASSURANCE ON THE 8TH, 9TH, 10TH AND 11TH EDFS TO THE EUROPEAN PARLIAMENT AND THE COUNCIL — INDEPENDENT AUDITOR’S REPORT

(2017/C 325/02)

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 statement of cash flow, the statement of changes in net assets, and the report on financial implementation for the financial year ended 31 December 2016, approved by the Commission on 23 June 2017, and |
| --- | --- | --- |

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 statement of cash flow, the statement of changes in net assets, and the report on financial implementation for the financial year ended 31 December 2016, approved by the Commission on 23 June 2017, and

| (b) | the legality and regularity of the transactions which underlie those accounts and of which financial management falls to the Commission (1), |
| --- | --- |

(b)

the legality and regularity of the transactions which underlie those accounts and of which financial management falls to the Commission (1),

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU) and Article 49 of the Financial Regulation applicable to the 11th EDF, which also applies to previous EDFs.

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 2016 present fairly, in all material respects, the financial position as at 31 December 2016, the results of their operations, their cash flows and the changes in 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.

In our opinion, the annual accounts of the 8th, 9th, 10th and 11th EDFs for the year ended 31 December 2016 present fairly, in all material respects, the financial position as at 31 December 2016, the results of their operations, their cash flows and the changes in 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.

Legality and regularity of the transactions underlying the accounts

Revenue

| Opinion on the legality and regularity of revenue underlying the accounts









  III. | In our opinion, the revenue underlying the accounts for the year ended 31 December 2016 is legal and regular in all material respects. |
| --- | --- |

Opinion on the legality and regularity of revenue underlying the accounts

III.

In our opinion, the revenue underlying the accounts for the year ended 31 December 2016 is legal and regular in all material respects.

Payments

| Adverse opinion on the legality and regularity of payments underlying the accounts









  IV. | In our opinion, because of the significance of the matters described in the basis for adverse opinion on the legality and regularity of payments underlying the accounts paragraph, the payments underlying the accounts for the year ended 31 December 2016 are materially affected by error. |
| --- | --- |

Adverse opinion on the legality and regularity of payments underlying the accounts

IV.

In our opinion, because of the significance of the matters described in the basis for adverse opinion on the legality and regularity of payments underlying the accounts paragraph, the payments underlying the accounts for the year ended 31 December 2016 are materially affected by error.

Basis for opinion

| V. | We 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 those standards are further described in the Auditor’s responsibilities section of our report. We are independent in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| --- | --- |

V.

We 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 those standards are further described in the Auditor’s responsibilities section of our report. We are independent in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Basis for adverse opinion on the legality and regularity of payments underlying the accounts

| VI. | Expenditure recorded in 2016 under the 8th, 9th, 10th and 11th EDFs is materially affected by error. Our estimated level of error for expenditure underlying the accounts is 3,3 %. |
| --- | --- |

VI.

Expenditure recorded in 2016 under the 8th, 9th, 10th and 11th EDFs is materially affected by error. Our estimated level of error for expenditure underlying the accounts is 3,3 %.

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.

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.

Accrued charges

| VIII. | We assessed the accrued charges presented in the accounts (see note 2.9) which are subject to a high degree of estimation. At year-end 2016, the Commission estimated that eligible expenses incurred but not yet reported by beneficiaries amounted to 3 903 million euro (year-end 2015: 3 797 million euro). |
| --- | --- |

VIII.

We assessed the accrued charges presented in the accounts (see note 2.9) which are subject to a high degree of estimation. At year-end 2016, the Commission estimated that eligible expenses incurred but not yet reported by beneficiaries amounted to 3 903 million euro (year-end 2015: 3 797 million euro).

| 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 once the Commission had made all necessary corrections we identified. |
| --- | --- |

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 once the Commission had made all necessary corrections we identified.

Responsibilities of management

| X. | In accordance with Articles 310 to 325 of the TFEU and the 11th EDF Financial Regulation, management is responsible for the preparation and presentation of the annual accounts of the EDFs on the basis of internationally accepted accounting standards for the public sector and for the legality and regularity of the transactions underlying them. This responsibility includes the design, implementation and maintenance of 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 bears the ultimate responsibility for the legality and regularity of the transactions underlying the EDF accounts. |
| --- | --- |

X.

In accordance with Articles 310 to 325 of the TFEU and the 11th EDF Financial Regulation, management is responsible for the preparation and presentation of the annual accounts of the EDFs on the basis of internationally accepted accounting standards for the public sector and for the legality and regularity of the transactions underlying them. This responsibility includes the design, implementation and maintenance of 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 bears the ultimate responsibility for the legality and regularity of the transactions underlying the EDF accounts.

| XI. | In preparing the EDF accounts, the Commission is responsible for assessing the EDFs’ ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so. |
| --- | --- |

XI.

In preparing the EDF accounts, the Commission is responsible for assessing the EDFs’ ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so.

| XII. | The Commission is responsible for overseeing the EDFs’ financial reporting process. |
| --- | --- |

XII.

The Commission is responsible for overseeing the EDFs’ financial reporting process.

Auditor's responsibilities for the audit of the EDF accounts and underlying transactions

| XIII. | Our objectives are to obtain reasonable assurance about whether the EDF accounts are free from material misstatement and the transactions underlying them 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 transactions underlying them. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit will always detect a material misstatement or non-compliance when it exists. These can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these EDF accounts. |
| --- | --- |

XIII.

Our objectives are to obtain reasonable assurance about whether the EDF accounts are free from material misstatement and the transactions underlying them 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 transactions underlying them. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit will always detect a material misstatement or non-compliance when it exists. These can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these EDF accounts.

| XIV. | As part of an audit in accordance with ISAs and ISSAIs, we exercise professional judgment 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, 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. The risk of not detecting a material misstatement or non-compliance resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
| --- | --- | --- |

XIV.

As part of an audit in accordance with ISAs and ISSAIs, we exercise professional judgment 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, 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. The risk of not detecting a material misstatement or non-compliance resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

| — | Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, 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 audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

| — | Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. |
| --- | --- |

—

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

| — | Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the EDFs’ ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the entity to cease to continue as a going concern. |
| --- | --- |

—

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the EDFs’ ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s 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 the disclosures, and whether the annual accounts represent the underlying transactions and events in a manner that achieves fair presentation. |
| --- | --- |

—

Evaluate the overall presentation, structure and content of the annual accounts, including the disclosures, and whether the annual accounts represent the underlying transactions and events in a manner that achieves fair presentation.

| XV. | We communicate with those charged with the management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
| --- | --- |

XV.

We communicate with those charged with the management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

| XVI. | For revenue, we examine all contributions from Member States and a sample of other types of revenue transactions. |
| --- | --- |

XVI.

For revenue, we examine all contributions from Member States and a sample of other types of revenue transactions.

| XVII. | For expenditure, we examine payment transactions when expenditure has been incurred, recorded and accepted. This examination covers all categories of payments (including those made for the purchase of assets) other than advances at the point they are made. Advance payments are examined when the recipient of funds provides justification for their proper use and the Institution or body accepts the justification by clearing the advance payment, whether in the same year or later. |
| --- | --- |

XVII.

For expenditure, we examine payment transactions when expenditure has been incurred, recorded and accepted. This examination covers all categories of payments (including those made for the purchase of assets) other than advances at the point they are made. Advance payments are examined when the recipient of funds provides justification for their proper use and the Institution or body accepts the justification by clearing the advance payment, whether in the same year or later.

| XVIII. | From the matters communicated with the Commission, we determine those matters that were of most significance in the audit of the EDF accounts of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, 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 the public interest benefits of such communication. |
| --- | --- |

XVIII.

From the matters communicated with the Commission, we determine those matters that were of most significance in the audit of the EDF accounts of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, 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 the public interest benefits of such communication.

13 July 2017

Klaus-Heiner LEHNE

President

European Court of Auditors

12, rue Alcide De Gasperi, Luxembourg, 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

---