# EDGAR Filing Document

**Accession Number:** 0000311670
**File Stem:** 0001193125-26-208674
**Filing Date:** 2026-5
**Character Count:** 204525
**Document Hash:** e31d21d6fa088a449a3750da25107d32
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-208674.hdr.sgml**: 20260506

**ACCESSION NUMBER**: 0001193125-26-208674

**CONFORMED SUBMISSION TYPE**: QRTLYRPT

**PUBLIC DOCUMENT COUNT**: 6

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260506

**DATE AS OF CHANGE**: 20260506

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** INTER-AMERICAN DEVELOPMENT BANK
- **CENTRAL INDEX KEY:** 0000311670
- **STANDARD INDUSTRIAL CLASSIFICATION:** COMMERCIAL BANKS, NEC [6029]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 526040854

**FILING VALUES:**
- **FORM TYPE:** QRTLYRPT
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 083-00001
- **FILM NUMBER:** 26947846

**BUSINESS ADDRESS:**
- **STREET 1:** 1300 NEW YORK AVE., NW
- **CITY:** WASHINGTON
- **STATE:** DC
- **ZIP:** 20577
- **BUSINESS PHONE:** 202-623-2682

**MAIL ADDRESS:**
- **STREET 1:** 1300 NEW YORK AVE., NW
- **CITY:** WASHINGTON
- **STATE:** DC
- **ZIP:** 20577

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** INTER AMERICAN DEVELOPMENT BANK/
- **DATE OF NAME CHANGE:** 20001025

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** IADB
- **DATE OF NAME CHANGE:** 20000101

##### [**Table of Contents**](#toc)
File No. 83-1

Regulation IA

Rule 2 (a)

<u>UNITED STATES</u> 

<u>SECURITIES AND EXCHANGE COMMISSION</u> 

100 F Street, NE

Washington, D.C. 20549

<u>PERIODIC REPORT</u> 

The following information is filed in accordance with Regulation IA, Rule 2(a), adopted pursuant to Section 11(a) of the Inter-American Development Bank Act.

**For the fiscal quarter ended March 31, 2026** 

**INTER-AMERICAN DEVELOPMENT BANK (the "Bank")** 

**Washington, D.C. 20577** 

(1) Information as to any purchases or sales by the Bank of its primary obligations during such quarter.

Attached hereto as Annex A is a table which lists sales by the Bank of its primary obligations, all of which were of the Bank's ordinary capital. There were no purchases by the Bank of its primary obligations.

(2) Copies of the Bank's regular quarterly financial statements.

Attached hereto as Annex B are the financial statements, as of March 31, 2026, of the Bank's ordinary capital.

(3) Copies of any material modifications or amendments during such quarter of any exhibit (other than
(i) constituent documents defining the rights of holders of securities of other issuers guaranteed by the Bank, and (ii) loans and guaranty agreements to which the Bank is a party) previously filed with the Commission under any statute.

Not applicable: there have been no modifications or amendments of any exhibits previously filed with the Commission.

------

##### [**Table of Contents**](#toc)
**Annex A** 

**Sales by the Inter-American Development Bank** 

**of its Ordinary Capital Primary Obligations** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Borrowing**<br> **Currency** | **Borrowing<br>Amount** | **Coupon**<br>**(%)** | **Issue**<br>**Price (%)** | **Issue Date** | **Maturity Date** |
|  GBP | 1000000000 | 4.00 | 99.761 | 16-Jan-2026 | 31-July-2031 |
|  USD | 30000000 | 4.42 Multi-Callable | 100.00 | 20-Jan-2026 | 20-Jan-2036 |
|  AUD | 1000000000 | 4.60 | 99.765 | 21-Jan-2026 | 21-July-2031 |
|  INR | 6000000000 | 6.75 | 98.942 | 22-Jan-2026 | 22-Jan-2036 |
|  USD | 3000000000 | 4.125 | 99.046 | 23-Jan-2026 | 23-Jan-2036 |
|  USD | 51000000 | 4.46 | 100.00 | 26-Jan-2026 | 26-Jan-2036 |
|  BRL | 450000000 | 12.00 | 100.00 | 27-Jan-2026 | 27-Jan-2031 |
|  CHF | 185000000 | 0.8025 | 100.00 | 29-Jan-2026 | 29-Jan-2036 |
|  HKD | 350000000 | 2.64 | 100.00 | 29-Jan-2026 | 29-Jan-2028 |
|  USD | 20000000 | 3.652 | 100.00 | 29-Jan-2026 | 15-Dec-2028 |
|  USD | 100000000 | Floating Rate | 100.653 | 30-Jan-2026 | 13-Mar-2030 |
|  INR | 9500000000 | 6.85 | 100.00 | 30-Jan-2026 | 30-July-2038 |
|  USD | 50000000 | 3.89 | 100.00 | 30-Jan-2026 | 30-Jan-2031 |
|  HKD | 750000000 | 3.01 | 100.00 | 4-Feb-2026 | 4-May-2031 |
|  BRL | 200000000 | 11.90 | 100.00 | 9-Feb-2026 | 9-Feb-2033 |
|  USD | 25000000 | 4.47 Multi-Callable | 100.00 | 11-Feb-2026 | 11-Feb-2036 |
|  GBP | 100000000 | 3.875 | 99.985 | 12-Feb-2026 | 15-Feb-2029 |
|  USD | 25000000 | 4.48 Multi-Callable | 100.00 | 13-Feb-2026 | 13-Feb-2036 |
|  USD | 50000000 | 5.28 Multi-Callable | 100.00 | 18-Feb-2026 | 18-Feb-2056 |
|  INR | 36250000000 | 6.85 | 100.00 | 18-Feb-2026 | 18-Feb-2036 |
|  USD | 750000000 | Floating Rate | 100.00 | 18-Feb-2026 | 18-Feb-2031 |
|  USD | 70000000 | 4.56 Multi-Callable | 100.00 | 24-Feb-2026 | 24-Feb-2036 |
|  USD | 50000000 | 4.52 Multi-Callable | 100.00 | 24-Feb-2026 | 24-Feb-2036 |
|  USD | 70000000 | 4.535 Multi-Callable | 100.00 | 24-Feb-2026 | 24-Feb-2036 |
|  USD | 25000000 | 4.43 Multi-Callable | 100.00 | 24-Feb-2026 | 24-Feb-2036 |
|  USD | 50000000 | 5.26 Multi-Callable | 100.00 | 24-Feb-2026 | 24-Feb-2056 |
|  USD | 100000000 | 4.52 Multi-Callable | 100.00 | 25-Feb-2026 | 25-Feb-2036 |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  USD | 50000000.0 | 5.20 Multi-Callable | 100.0 | 25-Feb-2026 | 25-Feb-2056 |
|  USD | 100000000.0 | Floating Rate | 100.641 | 27-Feb-2026 | 13-Mar-2030 |
|  MXN | 3000000000.0 | Zero Coupon | 16.827 | 6-Mar-2026 | 6-Mar-2046 |
|  USD | 50000000.0 | 4.33 Multi-Callable | 100.0 | 18-Mar-2026 | 18-Mar-2036 |
|  USD | 25000000.0 | 4.37 Multi-Callable | 100.0 | 19-Mar-2026 | 19-Mar-2036 |
|  USD | 25000000.0 | 4.38 Multi-Callable | 100.0 | 20-Mar-2026 | 20-Mar-2036 |
|  USD | 25000000.0 | 4.35 Multi-Callable | 100.0 | 24-Mar-2026 | 24-Mar-2036 |
|  USD | 81000000.0 | 4.45 Multi-Callable | 100.0 | 25-Mar-2026 | 25-Mar-2036 |
|  USD | 20000000.0 | 4.95 Multi-Callable | 100.0 | 25-Mar-2026 | 25-Mar-2046 |
|  USD | 50000000.0 | 4.48 Multi-Callable | 100.0 | 26-Mar-2026 | 26-Mar-2036 |
|  HKD | 1000000000.0 | 2.595 | 100.0 | 27-Mar-2026 | 27-Dec-2029 |
|  USD | 300000000.0 | Floating Rate | 99.969 | 27-Mar-2026 | 27-Mar-2033 |
|  USD | 50000000.0 | 4.50 Multi-Callable | 100.0 | 31-Mar-2026 | 31-Mar-2036 |

---

------

##### [**Table of Contents**](#toc)
**Annex B** 

**Inter-American Development Bank** 

**Ordinary Capital**![LOGO](g99006g16i18.jpg)

**Management's Discussion and Analysis** 

**and** 

**Condensed Quarterly Financial Statements** 

**March 31, 2026** 

**(Unaudited)** 

------

##### [**Table of Contents**](#toc)
**TABLE OF CONTENTS** 

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [INTRODUCTION](#tx99006_1) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [FINANCIAL STATEMENT REPORTING](#tx99006_2) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Recent market updates](#tx99006_3) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Progress in the implementation of the Bank's institutional strategy](#tx99006_4) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Accounting Developments](#tx99006_5) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [FINANCIAL HIGHLIGHTS](#tx99006_6) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Developmental Assets](#tx99006_7) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Investments operations](#tx99006_8) | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Capacity Building, Asset Management and Advisory (CAsA) program](#tx99006_9) | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Borrowing operations](#tx99006_10) | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Financial Results](#tx99006_11) | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CAPITAL ADEQUACY](#tx99006_12) | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CONDENSED BALANCE SHEET](#tx99006_13) | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Developmental assets](#tx99006_14) | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Investment Portfolio](#tx99006_15) | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Borrowing Portfolio](#tx99006_16) | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Equity](#tx99006_17) | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [LIQUIDITY MANAGEMENT](#tx99006_18) | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [COMMERCIAL CREDIT RISK](#tx99006_19) | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SUBSEQUENT AND OTHER DEVELOPMENTS](#tx99006_20) | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Cybersecurity Highlights](#tx99006_21) | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Funded Status of Pension and Postretirement Benefit Plans (Plans)](#tx99006_22) | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Management Changes](#tx99006_23) | 17 |
|  **[CONDENSED QUARTERLY FINANCIAL STATEMENTS (UNAUDITED)](#tx99006_24)** | **18** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Balance Sheet](#tx99006_25) | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Statement of Income and Retained Earnings](#tx99006_26) | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Statement of Comprehensive Income (loss)](#tx99006_27) | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condensed Statement of Cash Flows](#tx99006_28) | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Notes to the Condensed Quarterly Financial Statements](#tx99006_29) | 23 |

---

------

##### [**Table of Contents**](#toc)
    <u>Management's Discussion and Analysis</u>   <u> 3 </u>

**MANAGEMENT'S DISCUSSION AND ANALYSIS** 

March 31, 2026

**INTRODUCTION** 

The primary activities of the Inter-American Development Bank (Bank or IDB) are conducted through the Ordinary Capital and the IDB Grant Facility (GRF). Unless otherwise stated, all financial information provided in these Condensed Quarterly Financial Statements refers to the Bank's Ordinary Capital. Management believes that the Condensed Quarterly Financial Statements reflect all adjustments necessary for a fair presentation of the Ordinary Capital's financial position and results of operations in accordance with U.S. generally accepted accounting principles (GAAP). The results of operations for the three months of the current year are not necessarily indicative of the results that may be expected for the full year.

This document should be read in conjunction with the Bank's Information Statement dated February 18, 2026, which includes the Ordinary Capital financial statements for the year ended December 31, 2025. The Bank undertakes no obligation to update any forward-looking statements.

**FINANCIAL STATEMENT REPORTING** 

The financial statements are prepared in accordance with U.S. GAAP. The preparation of such financial statements requires Management to make estimates and assumptions that affect the reported results. Management believes that some of the more significant estimates it uses to present the financial results in accordance with GAAP include: the valuation of certain financial instruments carried at fair value, the determination of the adequacy of the allowances for credit losses on developmental assets, and the determination of the benefit obligations of the pension and postretirement benefit plans, the fair value of plan assets, and net periodic benefit cost associated with these plans. These estimates involve a relatively high degree of judgment and complexity and relate to matters that are inherently uncertain.

Most of the Bank's borrowings and all swaps, including interest rate and foreign currency, are measured at fair value through income. The reported income volatility resulting from these non-trading financial instruments is not fully representative of the underlying economics of the transactions as the Bank intends to hold them to maturity. Accordingly, the Bank excludes the impact of the fair value adjustments associated with these financial instruments from Operating income<sup>(1)</sup>. Therefore, Net fair value adjustments on non-trading portfolios and foreign currency transactions, if any, are reported separately in the Condensed Statement of Income and Retained Earnings.

**Recent market updates** 

According to the International Monetary Fund's (IMF) April 2026 World Economic Outlook, Latin America and the Caribbean (LAC) is projected to grow by 2.3% in 2026, broadly in line with the 2.4% growth recorded in 2025. Growth remains close to the region's historical average, underscoring its resilience amid heightened global uncertainty.

Looking ahead, global output is expected to expand by 3.1% in 2026 and 3.2% in 2027. In LAC, growth is projected at 2.3% in 2026 before rising modestly to 2.7% in 2027. Inflation has largely returned to central bank targets, supporting financial stability, although fiscal vulnerabilities persist. This stabilization, however, could be challenged by the ongoing Middle East conflict, which has pushed oil prices higher and may reignite inflationary pressure while keeping interest rates elevated for longer. Higher interest payments, reflecting both elevated debt levels and interest rates, are increasingly weighing on fiscal positions and external balances.

<sup>(1)</sup> Reference to captions in the financial statements and related notes are identified by the name of the caption beginning with a capital letter every time they appear in this Management's Discussion and Analysis.

------

##### [**Table of Contents**](#toc)
    <u>Management's Discussion and Analysis</u>   <u> 4 </u>

Central banks in advanced economies began easing monetary policy in late 2024. After a prolonged pause, the U.S. Federal Reserve resumed rate cuts in September 2025, ending the year with a cumulative reduction of 75 basis points and bringing the target range to 3.5%-3.75%. The European Central Bank lowered rates by a cumulative 100 basis points in the first half of 2025 and then held them steady at 2% for the remainder of the year. Many LAC central banks acted earlier, initiating rate cuts in 2024 as inflation declined, and proceeded more gradually in 2025 as inflation converged toward target.

Ongoing uncertainty surrounding inflationary pressures, particularly those stemming from the Middle East conflict, suggests that central banks are likely to remain cautious in assessing further rate cuts.

Despite policy rate reductions in 2025, long-term yields, such as the 10-year U.S. Treasury yield, have remained elevated or increased, reflecting higher risk premia amid persistent macroeconomic uncertainty and concerns about fiscal sustainability.

Geopolitical tensions remain a key downside risk. The conflict in the Middle East has disrupted global energy supply and pushed oil prices higher, while broader concerns include shifts in trade relations, particularly through new tariff regimes and potential supply chain disruptions, as well as uncertainty around the path of global interest rates and Inflation expectations. Although the region has demonstrated resilience, sustained volatility in energy prices, trade dynamics, and fiscal conditions could weigh on growth prospects, especially if these factors exacerbate existing structural constraints.

The Bank remains the primary source of multilateral lending to countries in Latin America and the Caribbean and is committed to supporting its clients during periods of global stress. The Bank's approvals envelope for the biennial period 2025—2026 is approximately $32 billion.

From a financial standpoint, Bank policies require Management to balance projected equity accumulation and growth of (risk-weighted) assets through a long-term financial planning process, which is run every year. The Bank has built capital buffers to absorb downward shocks stemming from rating downgrades and market volatility and it regularly assesses financial resiliency through stress testing. Capital and liquidity metrics remained within their respective policy ranges.

**Progress in the implementation of the Bank's institutional strategy** 

In March 2026, during the annual meeting of the Board of Governors, the Governors reviewed progress in implementing the Bank's institutional strategy and discussed new key initiatives aimed at translating increased financing capacity into stronger development outcomes. These include IDB LAC Minerals, which promotes safe, value-added regional supply chains through policy and regulatory support, investment mobilization, financing for processing, and value-chain infrastructure; LAC Crece, which supports private sector-led growth by financing sequenced priorities and aligning public action with private investment; and Procure+, which modernizes procurement across IDB-financed operations to strengthen value for money, competition, quality, and transparency safeguards.

**Accounting Developments** 

For a description of new accounting developments, see Note B – Summary of Significant Accounting Policies under "Notes to the Condensed Quarterly Financial Statements" section.

------

##### [**Table of Contents**](#toc)
    <u>Management's Discussion and Analysis</u>   <u> 5 </u>

**FINANCIAL HIGHLIGHTS** 

Box 1 presents selected financial data for the three months ended March 31, 2026 and 2025, as well as for the year ended December 31, 2025.

**BOX 1: SELECTED FINANCIAL DATA** 

*(Amounts expressed in millions of United States dollars)* 

---

| | | | |
|:---|:---|:---|:---|
|  | **Three months ended** | **Three months ended** | |
|  | **March 31,** | **March 31,** | Year ended<br>December 31, |
|  | **2026** | 2025 | 2025 |
|  **Operational Highlights** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Approved developmental assets | $**829** | $2182 | $17424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Undisbursed portion of approved developmental assets | **34687** | 32475 | 36552 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross disbursements of developmental assets | **2093** | 1284 | 10955 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net (collections) disbursements of developmental assets<sup>(1)</sup> | **178** | (522) | 291 |
|  **Balance Sheet Data** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments, after swaps<sup>(2)</sup> | $**42976** | $37777 | $37178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Developmental Assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans outstanding<sup>(3)</sup> | **118086** | 116013 | 117830 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | **500** | 624 | 494 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | **924** | 822 | 905 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | **166485** | 158581 | 160961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings outstanding, after swaps<sup>(4)</sup> | **123633** | 118605 | 118642 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity | **41680** | 40674 | 41655 |
|  **Income Statement Data** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating income (loss)<sup>(5)</sup> | $**318** | $343 | $967 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net fair value adjustments on non-trading portfolios and foreign currency transactions<sup>(6)</sup> | **(223)** | 134 | 617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other components of net pension benefit costs | **39** | 55 | 221 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Board of Governors approved transfers | **(199)** | (164) | (164) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | **(65)** | 368 | 1641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comprehensive income (loss) | **57** | 281 | 1247 |
|  **Ratios** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total debt<sup>(7)</sup> to equity<sup>(8)</sup> ratio | **3.1** | 3.1 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets to equity<sup>(8)</sup> ratio | **4.1** | 4.1 | 4.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and investments as a percentage of borrowings outstanding, after swaps | **33.8%** | 31.7% | 31.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost to income ratio<sup>(9)</sup> | **37.3%** | 39.2% | 43.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost to development assets <sup>(10)</sup> | **0.75%** | 0.73% | 0.75% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return on equity ratio<sup>(11)</sup> | **2.3%** | 2.5% | 2.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return on assets ratio<sup>(12)</sup> | **0.6%** | 0.6% | 0.6% |

---

(1) Includes gross loan disbursements, less loan principal repayments (and prepayments) and collection of debt
securities.

(2) See Table 10 for a breakdown of investments, after swaps.

(3) Includes $83 million of Deferred loan origination fees and costs, net (March 31, 2025 -
$78 million, December 31, 2025 - $83 million). Excludes interest rate and foreign currency swaps in a net asset position of $1,665 million as of March 31, 2026 (March 31, 2025 -
$2,831 million net asset position, December 31, 2025 - $1,828 million net asset position).

(4) Includes interest rate and foreign currency swaps in a net liability position of $2,329 million
(March 31, 2025 - $3,604 million in a net liability position, December 31, 2025 - $1,526 million in a net liability position)

(5) See page 9 for a full discussion of Operating income.

(6) Unrealized gains or losses in the net fair value adjustments on non-trading portfolios gradually tend to zero as the related financial instrument's maturity approaches and their fair values converge with their amortized costs. See page **12** for a full
discussion.

(7) Borrowings (after swaps) and guarantee exposure.

(8) See page **14**, sources of funds section, for a definition of "Total Equity".

(9) Four-year rolling average of Administrative expenses, divided by the four-year rolling average of Total income
(Interest revenue plus non-interest revenue), net of Borrowing expenses.

(10) Four-year rolling average of Administrative expenses, divided by the four-year rolling average of Developmental
Assets and the resources administered on behalf of donors.

(11) Twelve months rolling Operating income divided by average equity.

(12) Twelve months rolling Operating income divided by average total assets.

------

##### [**Table of Contents**](#toc)
    <u>Management's Discussion and Analysis</u>   <u> 6 </u>

**Developmental Assets** 

Developmental assets include loans, guarantees, and debt securities. As of March 31, 2026 and December 31, 2025 approximately 97% of the outstanding developmental assets are sovereign-guaranteed (SG).

For 2026, the approved lending spread and credit commission for the Bank's non-concessional sovereign-guaranteed loans is 0.80% and 0.50%, same as in 2025. No supervision and inspection fees have been applied for the said periods.

**Table 1** presents a summary of the developmental assets approved for the three months ended March 31, 2026 and 2025.

**TABLE 1: DEVELOPMENTAL ASSETS APPROVALS** 

*(Amounts expressed in millions of United States dollars)* 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended,** | **Three months ended,** | **Three months ended,** | **Three months ended,** |
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** | **March 31, 2025** |
|  | **Number** | **Amount** | Number | Amount |
|  **Sovereign-guaranteed** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sovereign-guaranteed Loans | **7** | $**829** | 8 | $2182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sovereign-guaranteed-concessional Loans | **—** | **—** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantees | **—** | **—** |  |  |
|  | **7** | **829** | 8 | 2182 |
|  **Non-sovereign-guaranteed** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SEP<sup>(1)</sup> Loans | **—** | **—** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SFP<sup>(2)</sup> Loans | **—** | **—** |  |  |
|  | **—** | **—** |  |  |
|  Total | **7** | $**829** | 8 | $2182 |

---

1) Social Entrepreneurship Program (SEP) resources deployed from 2023 to 2025 have been discontinued.

2) Sub-Sovereign Finance Program (SFP)

**Table 2**presents the undisbursed portion of approved developmental assets as of March 31, 2026 and December 31, 2025.

------

##### [**Table of Contents**](#toc)
    <u>Management's Discussion and Analysis</u>   <u> 7 </u>

**TABLE 2: UNDISBURSED PORTION OF APPROVED DEVELOPMENTAL ASSETS** 

*(Expressed in millions of United States dollars)* 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | December 31, 2025 | December 31, 2025 |
|  | **Total** | **Signed** | Total | Signed |
|  Sovereign-guaranteed Loans | $**34311** | $**25966** | $36168 | $24575 |
|  Sovereign-guaranteed-concessional Loans | **278** | **278** | 285 | 253 |
|  Non-Sovereign-guaranteed Loans<sup>(1)</sup> | **98** | **50** | 99 | 52 |
|  Total | $**34687** | $**26294** | $36552 | $24880 |

---

1) Total includes $18 million for SEP and $41 million for SFP (December 31, 2025 - $20 million and $40 million, respectively). 

2) Signed includes $11 million for SEP and none for SFP (December 31, 2025 - $13 million and none, respectively). 

**Table 3** presents the Sovereign-guaranteed and Non-sovereign-guaranteed (NSG) portfolios as of March <u>31, 2026 and December</u> <u>31, 2025.</u>

**TABLE 3: OUTSTANDING DEVELOPMENTAL ASSETS** 

*(Expressed in millions of United States dollars)* 

---

| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | December 31,<br>2025 |
|  Sovereign-guaranteed Loans | $**115500** | $115155 |
|  Sovereign Guarantees | **1563** | 1567 |
|  Sovereign-guaranteed Portfolio | **117063** | 116722 |
|  Non-sovereign-guaranteed Loans | **2503** | 2592 |
|  Non-sovereign Guarantees | **67** | 71 |
|  Debt Securities | **500** | 494 |
|  Non-sovereign-guaranteed Portfolio | **3070** | 3157 |
|  Total Developmental Assets Outstanding | $**120133** | $119879 |

---

***Allowance for credit losses on developmental assets and guarantees outstanding:*** The allowance for credit losses on developmental assets and guarantees outstanding amounted to $956 million at March 31, 2026, compared to $938 million at December 31, 2025. The increase of $18 million was mainly due to an increase in the individually assessed allowance of the NSG portfolio.

**Table 4** presents the activity of the allowance for credits losses for the sovereign and non-sovereign-guaranteed portfolios as of March <u>31, 2026.</u>

**TABLE 4: ALLOWANCE FOR CREDIT LOSSES** 

*(Expressed in millions of United States dollars)* 

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **SG** | **NSG** | **Total** |
|  Balance, beginning of year<sup>(1)</sup> | $**761** | $**177** | $**938** |
|  Provision (credit) for expected credit losses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collective allowance for loans outstanding | (3) | (3) | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collective allowance for loan commitments and guarantees<sup>(1)</sup> |  | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collective allowance for debt securities |  | 6 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total collective allowance | (3) | 2 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Individually assessed loans | 4 | 15 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total provision (credit) for expected credit losses | 1 | 17 | 18 |
|  Write-offs |  |  |  |
|  Recoveries |  |  |  |
|  Balance, end of period <sup>(1)</sup> | $**762** | $**194** | $**956** |

---

1) Allowance for loan commitments and guarantees of $32 million (December 31, 2025 - $33 million) is reported under Other liabilities in the Condensed balance sheet. 

***Allowance for credit losses on individually assessed SG loans:*** As of March 31, 2026, the total amount in arrears for principal and interest of Venezuela's sovereign guaranteed portfolio amounted to $2,194 million, from which $2,055 million corresponds to arrearages of more than 180 days. Since 2018, all loans to Venezuela amounting to $2,011 million (unchanged from 2018), were placed in nonaccrual status. Interest and fee income not recognized amounted to $26 million during the first three months of 2026

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    <u>Management's Discussion and Analysis</u>   <u> 8 </u>

(March 31, 2025 – $28 million), and the related individually assessed allowance for credit losses was $629 million as of March 31, 2026 (December 31, 2025 – $625 million). There were no other sovereign-guaranteed loans over 180 days past due, or in nonaccrual status as of March 31, 2026 or December 31, 2025.

Under the IDB's guidelines on arrears, the Bank cannot undertake any lending activities in Venezuela until its arrears are cleared. As a matter of policy, the Bank does not renegotiate nor reschedule its SG loans. Venezuela, a founding shareholder of the IDB, has reiterated, through its representative at the IDB Board of Directors, its commitment to the Bank and its intention to undertake payments. The Bank expects to collect all amounts due, including interest at the contractual interest rate for the period of delay. As a result, the allowance recorded represents the estimated loss from the expected delay in debt service payments. The assessment and estimation of credit loss is inherently judgmental and reflects Management's best estimate based upon the information currently available. Management will continue to monitor its credit exposure periodically and reassess the credit loss estimate accordingly.

***Allowance for credit losses on individually assessed NSG loans:*** The Bank had individually assessed NSG loans with outstanding balances of $167 million at March 31, 2026, compared to $165 million at December 31, 2025. As of March 31, 2026, the allowance for credit losses on individually assessed NSG loans was $78 million, compared to $63 million at December 31, 2025. The percentage of the NSG allowance for credit losses on individually assessed loans was 47% as of March 31, 2026 (December 31, 2025 – 38%).

**Investments operations** 

Approximately 91% of the Bank's investments are held in high quality securities rated AA or the equivalent short term ratings.

In 2026, the trading investments portfolio experienced net mark-to-market losses of $22 million, compared to gains of $22 million in 2025, mainly due to the mark-to-market impact of wider credit spreads and higher interest rates.

**Capacity Building, Asset Management and Advisory (CAsA) program** 

The Bank's CAsA program aims to help build or strengthen the institutional capacity of central banks and official institutions in the borrowing member countries. To this end, CAsA provides a range of services that includes managing a portion of the institution's assets along with technical missions, fellowships, and other training opportunities. Fees are based on the average value of the portfolio managed and are used to provide the entire range of services under the program. As of March 31, 2026 total assets managed under the CAsA program amounted to $1,258 million (March 31, 2025 – $634 million).

In 2025, the Board of Executive Directors approved transitioning the pilot program into a formal Institutional program. With a strengthened mandate, CAsA will (i) expand beyond central banks to engage other public institutions such as Ministries of Finance, other governmental institutions, state-owned entities at the national and subnational levels, and among others, and (ii) prioritize participant needs by broadening advisory and capacity-building engagements across the capital markets arena beyond strictly reserves management functions.

**Borrowing operations** 

During the first three months of 2026, the Bank issued bonds for a total face amount of $8,623 million (March 31, 2025 – $9,058 million) that generated proceeds of $8,624 million (March 31, 2025 – $9,057 million). The average life of new issues was 7.1 years in 2026 (March 31, 2025 – 4.7 years)<u>.</u>

During 2026, the Bank continues to be rated Triple-A by the major credit rating agencies, and its outlook remains stable.

**Financial Results** 

***Operating income:*** Operating income includes the net interest income on earning assets, other loan income, net investment gains (losses), the provision (credit) for developmental assets credit losses and net non-interest expense.

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    <u>Management's Discussion and Analysis</u>   <u> 9 </u>

**Table 5** shows a breakdown of Operating income for 2026 and 2025.

For the three months ended March 31, 2026, Operating income was $318 million, compared to $343 million for the same period last year. The decrease in operating income was mainly due to (i) net investment losses and (ii) an increase in net non-interest expense; partially offset by an increase in net interest income.

**TABLE 5: OPERATING INCOME** 

*(Expressed in millions of United States dollars)* 

---

| | | | |
|:---|:---|:---|:---|
|  | **Three months ended March 31,** | **Three months ended March 31,** | **Three months ended March 31,** |
|  | **2026** | **2025** | 2026 vs<br>2025 |
|  Interest on developmental assets<sup>(1)</sup> | $**1365** | $1476 | $(111) |
|  Interest on investments<sup>(1)</sup> | **412** | 432 | (20) |
|  Interest on other assets/liabilities management derivatives | **(14)** | (43) | 29 |
|  | **1763** | 1865 | (102) |
|  Less: |  |  |  |
|  Borrowing expenses<sup>(1)</sup> | **1236** | 1381 | (145) |
|  **Net interest income** | **527** | 484 | 43 |
|  Other loan income | **31** | 28 | 3 |
|  Net investment gains (losses) | **(22)** | 22 | (44) |
|  **Other expenses:** |  |  |  |
|  Provision for developmental assets credit losses | **18** | 17 | 1 |
|  Net non-interest expense | **200** | 174 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | **218** | 191 | 27 |
|  **Operating income** | $**318** | $343 | $(25) |

---

(1) Amounts on an after swap basis.

***Net interest income:*** The Bank's net interest income (NII) is driven primarily by two sources: the lending spread the Bank charges on all its SG loans and the income earned on its equity-funded assets. The SG lending spread on the Bank's non-concessional operations is reviewed and determined annually by the Board of Directors as part of the Bank's long-term financial planning exercise. If a change is approved, the new SG lending spread applies to the entire outstanding balance of non-concessional SG loans. Net interest income earned from equity-funded assets is the result of an Asset Liability Management (ALM) strategy. The ALM strategy seeks to achieve stable net interest income and preserve the economic value of its equity. The Bank uses derivatives to manage interest rate risk on its Balance Sheet and, in particular, the repricing and maturity profile of the Bank's equity-funded assets in accordance with the ALM policy. The Bank systematically uses interest rate swaps to modify the characteristics of equity-funded assets to minimize volatility of net interest income driven by changes in USD interest rates.

Sensitivity to foreign exchange rates is negligible as the Bank economically hedges substantially all exposures with foreign currency swaps.

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    <u>Management's Discussion and Analysis</u>   <u> 10 </u>

<u>Figure 1 below shows the Bank's net interest income during the first three months of the last three years.</u> 

**FIGURE 1: FINANCIAL RESULTS – NET INTEREST INCOME** 

**For the quarters ended March 31, 2024 through March 31, 2026** 

*(Expressed in millions of United States dollars)*![LOGO](g99006g14g01.jpg)

The Bank's NII reached $527 million during the first three months of 2026, compared to $484 million for the same period last year, mainly due to the impact of the continued implementation of the ALM hedge strategy and a larger loan portfolio.

Figure 2 below shows the Bank's net interest margin compared with SOFR.

**FIGURE 2: NET INTEREST MARGIN AND SOFR** 

**For the quarters ended March 31, 2025 through March 31, 2026**![LOGO](g99006g14g02.jpg)

Despite decreases in the average SOFR, the volatility of the Bank's net interest margin is mitigated by the model implemented as part of the ALM strategy.

The average interest-earning asset and interest-bearing liability portfolios, after swaps, and the respective returns and costs for the three months ended March 31, 2026 and 2025, and the year ended December 31, 2025 are shown in **Table 6.**

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    <u>Management's Discussion and Analysis</u>   <u> 11 </u>

**TABLE 6: ASSET/LIABILITY PORTFOLIOS AND RETURNS/COSTS** 

*(Amounts expressed in millions of United States dollars)* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three months ended<br>March 31, 2026** | **Three months ended<br>March 31, 2026** | Three months ended<br>March 31, 2025 | Three months ended<br>March 31, 2025 | Year ended<br>December 31, 2025 | Year ended<br>December 31, 2025 |
|  | **Average<br>Balance** | **Return/<br>Cost %** | Average<br>Balance | Return/<br>Cost % | Average<br>Balance | Return/<br>Cost % |
|  Loans<sup>(1)</sup> | $**118839** | **4.62** | $117854 | 5.03 | $117894 | 4.89<sup>(6)</sup> |
|  Liquid investments<sup>(2)(3)</sup> | **40262** | **4.00** | 36275 | 5.13 | 38562 | 4.97 |
|  Total earning assets | $**159101** | **4.46** | $154128 | 5.05 | $156456 | 4.91 |
|  Borrowings | $**120871** | **4.15** | $117347 | 4.77 | $118531 | 4.73 |
|  Net interest margin<sup>(4)</sup> |  | **1.34** |  | 1.27 |  | 1.21<sup>(6)</sup> |
|  SOFR<sup>(5)</sup> |  | **3.65** |  | 4.33 |  | 3.79 |

---

(1) Excludes loan fees.

(2) Geometrically-linked time-weighted returns.

(3) Includes realized / unrealized gains and losses.

(4) Represents net interest income as a percentage of average earnings assets, after swaps.

(5) Average Secured Overnight Financing Rate Data

(6) The Bank offers currency and interest rates hedges through financial derivatives ("loan
conversions"). In 2025, the unwinding of certain loan conversions resulted in a one-time $125 million reduction in net interest income. Excluding this impact, net interest margin and return on loans
would have been 1.29% and 4.99% respectively.

***Net investments gains (losses):*** Net mark-to-market investment losses amounted $22 million, compared to gains of $22 million for the same period in 2025, mainly due to the mark-to-market impact of wider credit spreads and higher interest rates. ****

***Provision for developmental assets credit losses:*** The provision for developmental assets credit losses was $18 million in 2026, compared to $17 million for the same period in 2025. The increase was mainly in the individually assessed allowance of the NSG portfolio.

***Net Non-interest Expense*** Net non-interest expense amounted to $200 million, compared to $174 million for the same period in 2025. The increase was mainly due to an increase in staff costs and a decrease in other income. The main components of net non-interest expense are presented in **Table 7**. ****

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    <u>Management's Discussion and Analysis</u>   <u> 12 </u>

**TABLE 7: NET NON-INTEREST EXPENSE** 

*(Amounts expressed in millions of United States dollars)* 

---

| | | | |
|:---|:---|:---|:---|
|  | **Three months ended March 31,** | **Three months ended March 31,** | **Three months ended March 31,** |
|  | **2026** |<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | 2026 vs<br>2025 |
|  **Administrative expenses** |  |  |  |
|  Staff costs | $**119** | $104 | $15 |
|  Pension service costs | **31** | 28 | 3 |
|  Consultant fees | **30** | 29 | 1 |
|  Travel expenses | **6** | 5 | 1 |
|  Other expenses <sup>(1)</sup> | **45** | 42 | 3 |
|  **Total administrative expenses** | **231** | 208 | 23 |
|  Service fee revenues <sup>(1)</sup> | **(29)** | (18) | (11) |
|  Strategic development programs | **10** | 12 | (2) |
|  Trust funds administration fees | **(4)** | (3) | (1) |
|  Other income <sup>(1)</sup> | **(8)** | (25) | 17 |
|  Net non-interest expense | $**200** | $174 | $26 |

---

(1) The Bank and IDB Invest entered into service level agreements for certain administrative and overhead services
that include human resources and information technology support provided by the Bank, as well as NSG loan execution, and monitoring services provided to the Bank. The total fees for the services provided by the Bank to IDB Invest, and those provided
by IDB Invest to the Bank are $7 million and $5 million, respectively, for the quarter ended March 31, 2026 (March 31, 2025- $5 million and $6 million).

**Net Income (loss)** 

Net losses amounted to $65 million during the first three months of 2026, compared to a net income of $368 million for the same period in 2025. The decrease of $433 million was mainly due to losses in Net fair value adjustments on non-trading portfolios and foreign currency transactions.

**TABLE 8: NET INCOME (LOSS)** 

*(Amounts expressed in millions of United States dollars)* 

---

| | | | |
|:---|:---|:---|:---|
|  | **Three months ended<br>March 31,** | **Three months ended<br>March 31,** | **Three months ended<br>March 31,** |
|  | **2026** | 2025 | 2026 vs<br>2025 |
|  **Operating income** | $**318** | $343 | $(25) |
|  Net fair value adjustments on non-trading portfolios and foreign currency transactions | **(223)** | 134 | (357) |
|  Other components of net pension benefit costs | **39** | 55 | (16) |
|  Board of Governors approved transfers | **(199)** | (164) | (35) |
|  Net income (loss) | $**(65)** | $368 | $(433) |

---

***Net fair value adjustments on non-trading portfolios and foreign currency transactions:*** Net fair value adjustments are mainly a result of the different accounting treatment between loans, which are carried at amortized cost, and the interest rate and foreign currency swaps on loans, which are carried at fair value. Changes in the fair value of the interest rate and foreign currency swaps on loans are reflected in earnings, while the changes in the fair value of loans are not, as they are carried at amortized cost. In contrast, changes in the fair value of borrowings largely offset the changes in interest rate and foreign currency swaps on borrowings, as the majority of borrowings are carried at fair value. Mainly due to an increase in the short and medium term SOFR curve, the Bank had net fair value losses on non-trading portfolios and foreign currency transactions of $223 million for the three months ended March 31, 2026, compared to $134 million gains for the same period in 2025. Unrealized gains or losses in the net fair value adjustments on non-trading portfolios gradually tend to zero as the related financial instruments maturity approaches and their fair values converge with their amortized costs. ****

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    <u>Management's Discussion and Analysis</u>   <u> 13 </u>

***Transfers to the IDB Grant Facility:*** Income transfers from the Ordinary Capital to the GRF are subject to the requirements of the Agreement and other applicable financial policies, and they will be considered based on actual disbursements and fund balance of the GRF. In March 2026, the Board of Governors approved income transfers from the Bank to the GRF amounting to $199 million (2025 – $164 million). Since 2011, the GRF has received income transfers totaling $2,087 million (2025 - $1,888 million). ****

**CAPITAL ADEQUACY** 

The Bank's Capital Adequacy Policy (CAP) consists of a Capital Adequacy Policy mandate (Mandate) and regulations that determine capital requirements for credit and market risk in both its lending and treasury operations. The CAP also includes capital requirements for pension and operational risks. The Mandate, approved by the Board of Governors, requires the Bank to maintain its Triple-A foreign currency long-term issuer rating, and the establishment of capital buffers, specifically to assume financial risks in times of stress, while preserving the Bank's lending capacity.

The CAP allows the Bank to measure the inherent risk in its developmental assets portfolio due to the credit quality of its borrowers and the concentration of its loans. Specific risk limits in terms of capital requirements for investments and derivatives are included that enable Management to achieve more efficient funding and investment strategies following the risk tolerance established by the Board of Executive Directors. The Bank is operating within its policy limits.

**CONDENSED BALANCE SHEET** 

**Developmental assets** 

***Loans:*** The loan portfolio is the Bank's principal earning asset. As of March 31, 2026, the total volume of outstanding loans was $118,003 million, of which $4,883 million was under concessional terms, compared with $117,747 million and $4,908 million, respectively, as of December 31, 2025.

The Bank makes loans and guarantees to the governments, as well as governmental entities, enterprises, and development institutions of its borrowing member countries to help meet their development needs. In the case of loans and guarantees to borrowers other than national governments or central banks, the Bank follows the policy of requiring a joint and several guarantees engaging the full faith and credit of the national government. The Bank also offers sovereign-guaranteed concessional lending through a blending of regular and concessional financing.

***Debt securities:*** Debt securities related to development investments are classified as held-to-maturity given the Bank has the intent and ability to hold these securities to maturity. For debt securities where the Bank does not have the intent to hold the securities to maturity, the Bank elects the fair value option. As of March 31, 2026, debt securities outstanding amounted to $500 million (December 31, 2025 – $494 million).

**Investment Portfolio** 

The Bank's investment portfolio is comprised of highly-rated securities and bank deposits. Its volume is maintained at a level sufficient to ensure that adequate resources are available to meet future cash flow needs as determined in the Bank's liquidity policy.

**Borrowing Portfolio** 

The portfolio of borrowings is mostly comprised of medium- and long-term debt raised directly in capital markets. Borrowings outstanding, after swaps, at March 31, 2026 increased by $4,991 million compared with December 31, 2025, primarily due to a larger amount of new Medium-and-long borrowings ($8,624 million), than maturities ($3,574 million).

**Capital distribution to the MIF** 

In March 2024, the Board of Governors and the Donors Committee of Multilateral Investment Fund (MIF) approved a capitalization plan for MIF in connection with the third replenishment of the MIF (MIF IV). This

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    <u>Management's Discussion and Analysis</u>   <u> 14 </u>

plan includes the distribution of IDB capital to applicable IDB shareholders and the subsequent transfer of such distributions, on behalf of those shareholders, to the MIF. Distributions and transfers of IDB capital on behalf of applicable donors are capped at $200 million or as directed by the shareholder and are expected to be disbursed to the MIF in annual installments over a seven-year period from 2026 through 2032. These capital distributions were conditional upon annual Board of Governors' approval, which took into account the continued maintenance of the Bank's Triple-A long term foreign currency credit rating, the Capital Adequacy Policy (CAP), the preservation of the sovereign-guaranteed lending envelope consistent with IDB-9, and the construction of the buffers in accordance with the CAP, as well as other applicable financial policies of the Bank.

In March 2026, the Board of Governors approved the first of seven installments in the amount of $29 million to the shareholders of the Bank for a concurrent capital contribution to the MIF on behalf of the Bank's shareholders, that was recorded as Distributions on behalf of shareholders in the Condensed Statement of Income and Retained Earnings.

**Equity** 

Equity at March 31, 2026 was $41,680 million compared to $41,655 million at December 31, 2025. The increase of $25 million was mainly due to a $125 million gain related to the Net fair value adjustments on borrowings attributable to changes in instrument-specific credit risk; partially offset by Net losses of $65 million for the first three months of the year, a $29 million capital distribution to the Bank's shareholders for concurrent capital contribution to the MIF on behalf of the Bank's shareholders, and $3 million amortization of net actuarial losses and prior service credit on retirement benefit plans.

The Debt-to-Equity ratio uses gross debt, as opposed to net debt, to facilitate its comparability with other MDBs. "Total Equity" (utilized as the denominator within the Debt-to-Equity ratio) is defined as Paid-in capital stock and Additional paid-in capital, net of Capital subscriptions receivable, less Receivable from members, plus Retained earnings, minus borrowing countries' local currency cash balances, and accumulated other comprehensive income. The Debt-to-Equity ratio has a maximum policy limit, whereby the Bank cannot exceed 4.5x of equity and a 0.5x operational buffer. **Table 9** presents the composition of the Debt-to-Equity ratio as of March 31, 2026 and December 31, 2025.

**TABLE 9: TOTAL DEBT-TO-EQUITY RATIO** 

*(Amounts expressed in millions of United States dollars)* 

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | December 31, 2025 |
|  **Borrowings outstanding after swaps and guarantee exposure** | $**125419** | $120465 |
|  **Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid-in capital stock | **11854** | 11854 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Receivable from members | **815** | 812 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General reserve<sup>(1)</sup> | **28076** | 28048 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Special reserve <sup>(1)</sup> | **2565** | 2565 |
|  | **41680** | 41655 |
|  **Minus:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowing countries' local currency cash balances | **107** | 124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income | **1364** | 1242 |
|  **Total Equity** | $**40209** | $40289 |
|  **Total Debt-to-Equity Ratio** | **3.1** | 3.0 |

---

(1) Includes Accumulated other comprehensive income.

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    <u>Management's Discussion and Analysis</u>   <u> 15 </u>

**LIQUIDITY MANAGEMENT** 

**Table 10** shows a breakdown of the trading investments portfolio at March 31, 2026 and December 31, 2025, by major security class and its contractual maturity, on securities held at the end of the period.

**TABLE 10: TRADING INVESTMENTS PORTFOLIO BY MAJOR SECURITY CLASS AND MATURITY DATES** 

*(Expressed in millions of United States dollars)* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| **Security Class** | **Maturity in<br>one year<br>or less** | **one year<br>to five years** | **after five<br>years<br>to ten years** | **after ten<br>years** | **Grand<br>Total<sup>(1)</sup>** |
|  Obligations of the United States Government | $**2093** | $**814** | $**—** | $**—** | $**2907** |
|  Obligations of non-U.S. governments | **7407** | **522** | **—** | **—** | **7929** |
|  Obligations of non-U.S. agencies | **4321** | **8533** | **144** | **—** | **12998** |
|  Obligations of non-U.S. sub-sovereigns | **534** | **1568** | **—** | **—** | **2102** |
|  Obligations of supranationals | **644** | **2808** | **—** | **—** | **3452** |
|  Bank obligations | **6921** | **3405** | **75** | **—** | **10401** |
|  Corporate securities | **1347** | **1549** | **—** | **—** | **2896** |
|  Asset-backed securities (ABS) | **—** | **—** | **—** | **3** | **3** |
|  Total investments - trading | **23267** | **19199** | **219** | **3** | **42688** |
|  Currency and interest rate swaps - investments-trading | **235** | **51** | **2** | **—** | **288** |
|  Total | $**23502** | $**19250** | $**221** | $**3** | $**42976** |

---

(1) Represents the fair value of the referred assets, including their accrued interest.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| Security Class | Maturity in<br>one year<br>or less | one year<br>to five years | after five<br>years<br>to ten years | after ten<br>years | Grand<br>Total<sup>(1)</sup> |
|  Obligations of the United States Government | $1273 | $812 | $— | $— | $2085 |
|  Obligations of non-U.S. governments | 7095 | 322 |  |  | 7417 |
|  Obligations of non-U.S. agencies | 2435 | 8032 | 73 |  | 10540 |
|  Obligations of non-U.S. sub-sovereigns | 508 | 1452 |  |  | 1960 |
|  Obligations of supranationals | 570 | 2832 |  |  | 3402 |
|  Bank obligations | 6244 | 3312 |  |  | 9556 |
|  Corporate securities | 501 | 1395 |  |  | 1896 |
|  Asset-backed securities |  |  |  | 3 | 3 |
|  Total investments - trading | 18626 | 18157 | 73 | 3 | 36859 |
|  Currency and interest rate swaps - investments-trading | 296 | 26 | (3) |  | 319 |
|  Total | $18922 | $18183 | $70 | $3 | $37178 |

---

(1) Represents the fair value of the referred assets, including their accrued interest.

**COMMERCIAL CREDIT RISK** 

Commercial credit risk is the exposure to losses that could result from the default of one of the Bank's investment, trading, or derivatives counterparties. The primary objective in the management of the liquid assets is the maintenance of a conservative exposure to credit, market, and liquidity risks. Consequently, the Bank invests only in high quality debt instruments issued by sovereign and sub-sovereign governments, agencies, supranationals, banks and corporate entities, including asset-backed and mortgage-backed securities.

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##### [**Table of Contents**](#toc)
    <u>Management's Discussion and Analysis</u>   <u> 16 </u>

**Table 11** provides details of the estimated current credit exposure of the Bank's investment and swap portfolios, net of collateral held, by counterparty rating category. As of March 31, 2026, the credit exposure amounted to $42,767 million, compared to $36,924 million as of December 31, 2025. The credit quality of the portfolios continues to be high, as 79.4% of the counterparties are rated AAA and AA, 11.7% or equivalent short-term ratings (A1+ and A1), 7.8% are rated A, and 1.1% are rated BBB or below, compared to 82%, 5.4%, 11.9% and 0.7%, respectively, at December 31, 2025.

**TABLE 11: CURRENT CREDIT EXPOSURE, NET OF COLLATERAL HELD, BY COUNTERPARTY RATING CATEGORY<sup>(1)</sup>** 

*(Amounts expressed in millions of United States dollars)* 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Investments** | **Investments** | **Investments** | **Investments** | | | |
| **Counterparty rating** | **Governments<br>and Agencies** | **Banks** | **Corporates** | **ABS** |<br>**Net Derivatives<br>Exposure** | **Total<br>Exposure**<br>**on**<br>**Investments<br>and Swaps** |<br>**% of<br>Total** |
|  A1+ | $**3231** | $**571** | $**860** | $**—** | $**—** | $**4662** | **11.0** |
|  A1 | **—** | **301** | **—** | **—** | **—** | **301** | **0.7** |
|  AAA | **12273** | **1708** | **36** | **—** | **—** | **14017** | **32.8** |
|  AA | **10949** | **6922** | **2000** | **—** | **57** | **19928** | **46.6** |
|  A | **2418** | **899** | **—** | **—** | **22** | **3339** | **7.8** |
|  BBB | **23** | **—** | **—** | **—** | **—** | **23** | **0.1** |
|  BB | **494** | **—** | **—** | **—** | **—** | **494** | **1.0** |
|  B | **—** | **—** | **—** | **—** | **—** | **—** | **—** |
|  CCC | **—** | **—** | **—** | **—** | **—** | **—** | **—** |
|  CC and below<sup>(2)</sup> | **—** | **—** | **—** | **3** | **—** | **3** | **—** |
|  **Total** | $**29388** | $**10401** | $**2896** | $**3** | $**79** | $**42767** | **100.0** |

---

(1) Letter ratings refer to the average ratings from major rating agencies and to the entire range in that rating
category including numeric (i.e., 1-3), symbolic (i.e., +/-), or similar qualifications used by eligible rating agencies. The group A1+ refers to the highest short-term rating.

(2) Includes assets not currently rated.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
|  | | | | | | Total Exposure | |
|  | Investments | Investments | Investments | Investments |  | on | |
| Counterparty<br>rating | Governments<br>and Agencies | Banks | Corporates | ABS | Net Derivatives<br>Exposure | Investments<br>and Swaps | % of<br>Total |
|  A1+ | $1278 | $477 | $— | $— | $— | $1755 | 4.8 |
|  A1 |  | 253 |  |  |  | 253 | 0.7 |
|  AAA | 11934 | 1486 | 36 |  |  | 13456 | 36.4 |
|  AA | 8746 | 6197 | 1860 |  | 22 | 16825 | 45.5 |
|  A | 3204 | 1143 |  |  | 43 | 4390 | 11.9 |
|  BBB | 19 |  |  |  |  | 19 | 0.1 |
|  BB | 223 |  |  |  |  | 223 | 0.6 |
|  B |  |  |  |  |  |  |  |
|  CCC |  |  |  |  |  |  |  |
|  CC and below<sup>(2)</sup> |  |  |  | 3 |  | 3 |  |
|  Total | $25404 | $9556 | $1896 | $3 | $65 | $36924 | 100.0 |

---

(1) Letter ratings refer to the average ratings from major rating agencies and to the entire range in that rating
category including numeric (i.e., 1-3), symbolic (i.e., +/-), or similar qualifications used by eligible rating agencies. The group A1+ refers to the highest short-term rating.

(2) Includes assets not currently rated.

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##### [**Table of Contents**](#toc)
    <u>Management's Discussion and Analysis</u>   <u> 17 </u>

**SUBSEQUENT AND OTHER DEVELOPMENTS** 

**Cybersecurity Highlights** 

In 2026, rapid developments in artificial intelligence continue to reshape the cybersecurity landscape across the industry, creating new risks and increasing the importance of stronger governance, controls, operational resilience, and third-party risk management. As AI capabilities expand and institutions become more interconnected, financial organizations must adapt their security frameworks to address emerging threats while enabling innovation responsibly.

In this context, the Bank is strengthening its cybersecurity capabilities through a continuous improvement strategy. During the period, progress was made on key initiatives including data loss prevention, zero trust network architecture, identity security and access management, and enhanced third-party risk oversight. These capabilities reinforce the Bank's overall security posture and provide a strong foundation for the secure adoption of AI technologies.

**Funded Status of Pension and Postretirement Benefit Plans (Plans)** 

The volatility in the equity and credit markets, as well as changes in interest and inflation rates, affect the funded status of the Plans. As of March 31, 2026, the overall increase in the funded status of the Plans to 118% (December 31, 2025 - 117%) was mainly attributable to a decrease in the Plans liabilities primarily driven by an increase in the discount rate; which was partially offset by a decrease in the fair value of Plan assets due to current market conditions.. The Bank recognizes actuarial gains and losses on its Plans through comprehensive income at the end of each calendar year, when the Plans' liabilities are remeasured, as required by U.S. GAAP. Therefore, the pension benefit obligation used to calculate the funded status as of March 31, 2026 is an estimated amount that will not be remeasured until the end of the year.

**IDB's New Miami Office** 

The IDB has opened a new office in Miami, its first U.S. presence outside the Washington, D.C. area to strengthen engagement with investors and partners and to accelerate private-sector-led development in Latin America and the Caribbean. Located in a major financial and corporate hub, the office is intended to support the origination and structuring of projects, deepen co-financing and mobilization, and expand business development for IDB Invest and IDB Lab.

**Management Changes** 

On February 27, 2026, Ms. María Ríos was appointed as Executive Auditor (a.i.), effective March 1, 2026.

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<u> 18 </u>   <u>Condensed Quarterly Financial Statements</u>    

**Condensed Quarterly Financial Statements** 

**(Unaudited)** 

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##### [**Table of Contents**](#toc)
    <u>Condensed Quarterly Financial Statements</u>   <u> 19 </u>

ORDINARY CAPITAL

INTER-AMERICAN DEVELOPMENT BANK

**CONDENSED BALANCE SHEET** 

*(Expressed in millions of United States dollars)* 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31,** | **March 31,** | December 31, | December 31, |
|  | **2026** | **2026** | 2025 | 2025 |
|  | **(Unaudited)** | **(Unaudited)** | (Unaudited) | (Unaudited) |
|  **ASSETS** |  |  |  |  |
|  **Cash and investments** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash - Note K | $**374** |  | $778 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments - Trading (including securities transferred under repurchase agreements of $99 million; 2025 - none) - Notes C, J and K | **42688** | $**43062** | 36859 | $37637 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under resale agreements - Note H |  | **700** |  | 500 |
|  **Developmental assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans outstanding - Notes D, F and K | **118003** |  | 117747 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | **(891)** |  | (878) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred loan origination fees and costs, net | **83** | **117195** | 83 | 116952 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities - Note E |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Measured at fair value - Note G | **36** |  | 38 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Measured at amortized cost | **464** |  | 456 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | **(33)** | **467** | (27) | 467 |
|  **Derivative assets, net - Notes I, J, K and L** |  | **1024** |  | 1486 |
|  **Accrued interest and other charges** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On loans | **1287** |  | 1267 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On others | **1** | **1288** | 6 | 1273 |
|  **Assets under retirement benefit plans - Note P** |  | **1203** |  | 1173 |
|  **Other assets** |  | **1546** |  | 1473 |
|  **Total assets** |  | $**166485** |  | $160961 |
|  **LIABILITIES AND EQUITY** |  |  |  |  |
|  **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings - Notes G, I, J, K and L |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term | $**1655** |  | $1594 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medium- and long-term: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Measured at fair value | **92285** |  | 87804 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Measured at amortized cost | **27265** | $**121205** | 27718 | $117116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold under repurchase agreements and payable for cash collateral<br>received - Notes H and L |  | **99** |  |  |
|  **Derivative liabilities, net - Notes I, J, K and L** |  | **759** |  | 463 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable for investment securities purchased |  | **1038** |  | 116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due to IDB Grant Facility - Note M |  | **271** |  | 101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest on borrowings at amortized cost |  | **156** |  | 185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Undisbursed strategic development programs |  | **259** |  | 279 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities - Note D |  | **1018** |  | 1046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities** |  | **124805** |  | 119306 |
|  **Equity** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital stock - Note N |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subscribed (14,170,108 shares) | **170940** |  | 170940 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less callable portion | **(164901)** |  | (164901) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | **5815** |  | 5815 |  |
|  | **11854** |  | 11854 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from members - Note O | **(815)** |  | (812) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | **29277** |  | 29371 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income | **1364** | **41680** | 1242 | 41655 |
|  **Total liabilities and equity** |  | $**166485** |  | $160961 |

---

*The accompanying notes are an integral part of these condensed quarterly financial statements.* 

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##### [**Table of Contents**](#toc)
<u> 20 </u>   <u>Condensed Quarterly Financial Statements</u>    

ORDINARY CAPITAL

INTER-AMERICAN DEVELOPMENT BANK

**CONDENSED STATEMENT OF INCOME AND RETAINED EARNINGS** 

*(Expressed in millions of United States dollars)* 

---

| | | |
|:---|:---|:---|
|  | **Three months ended** | **Three months ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | 2025 |
|  | **(Unaudited)** | **(Unaudited)** |
|  **Interest Revenue** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on developmental assets, after swaps - Notes D, I and L | $**1365** | $1476 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on investments | **412** | 432 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on other asset/liability management derivatives | **(14)** | (43) |
|  | **1763** | 1865 |
|  **Borrowing Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on borrowings, after swaps - Notes G, I and J | **(1229)** | (1374) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other borrowing costs | **(7)** | (7) |
|  | **(1236)** | (1381) |
|  **Interest revenue, net of borrowing expenses** | **527** | 484 |
|  **Net investments gains (losses) - Notes C and I** | **(22)** | 22 |
| **(Provision) credit for developmental assets credit losses - Note F** | **(18)** | (17) |
|  **Non-interest revenue** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other loan income | **31** | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income | **41** | 46 |
|  | **72** | 74 |
|  **Non-interest expense** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Administrative expenses | **(231)** | (208) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Strategic development programs | **(10)** | (12) |
|  | **(241)** | (220) |
|  **Operating Income (loss)** | **318** | 343 |
|  Net fair value adjustments on non-trading portfolios and foreign currency transactions - Notes O and I | **(223)** | 134 |
|  Other components of net pension benefit credit (cost) - Note P | **39** | 55 |
|  Board of Governors approved transfers - Note M | **(199)** | (164) |
|  **Net income (loss)** | **(65)** | 368 |
|  **Retained earnings, beginning of period** | **29371** | 27730 |
|  Distributions on behalf of shareholders - Note T | (29) |  |
|  **Retained earnings, end of period** | $**29277** | $28098 |

---

*The accompanying notes are an integral part of these condensed quarterly financial statements.* 

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    <u>Condensed Quarterly Financial Statements</u>   <u> 21 </u>

**CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)** 

*(Expressed in millions of United States dollars)* 

---

| | | |
|:---|:---|:---|
|  | **Three months ended** | **Three months ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | 2025 |
|  | **(Unaudited)** | **(Unaudited)** |
|  **Net income (loss)** | $**(65)** | $368 |
|  **Other comprehensive income (loss)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reclassification to income - amortization of net actuarial losses and prior service credit on retirement benefits<br>plans - Note P | **(3)** | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net fair value adjustments on borrowings attributable to changes in instrument-specific credit risk | **125** | (72) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other comprehensive income (loss) | **122** | (87) |
|  **Comprehensive income (loss)** | $**57** | $281 |

---

*The accompanying notes are an integral part of these condensed quarterly financial statements.* 

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##### [**Table of Contents**](#toc)
<u> 22 </u>   <u>Condensed Quarterly Financial Statements</u>    

ORDINARY CAPITAL

INTER-AMERICAN DEVELOPMENT BANK

**CONDENSED STATEMENT OF CASH FLOWS** 

*(Expressed in millions of United States dollars)* 

---

| | | |
|:---|:---|:---|
|  | **Three months ended** | **Three months ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | 2025 |
| **Cash flows from developmental and investing activities** | **(Unaudited)** | **(Unaudited)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Developmental activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan disbursements | $**(2093)** | $(1284) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan collections | **1907** | 1769 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collection of debt securities | **8** | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) developmental activities | **(178)** | 522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of property, net | **(6)** | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous assets and liabilities, net | **(33)** | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) developmental and investing activities | **(217)** | 489 |
|  **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medium- and long-term borrowings: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance | **8624** | 9057 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayments | **(3574)** | (7609) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance | **10821** | 17472 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayments | **(10661)** | (17420) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash collateral received (returned) | **(106)** | (93) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions paid on behalf of shareholders | **(28)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities | **5076** | 1407 |
|  **Cash flows from operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross purchases of trading investments | **(22315)** | (15497) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross proceeds from sale or maturity of trading investments | **17357** | 14132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities purchased under resale agreements | **(200)** | **(200)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Developmental assets income collections, after swaps | **1375** | 1432 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and other costs of borrowings, after swaps | **(1583)** | (1878) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from investments | **443** | 460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on other asset/liability management derivatives | **(90)** | (149) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income | **31** | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Administrative expenses | **(223)** | (206) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers to the IDB Grant Facility | **(29)** | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Strategic development programs | **(30)** | (26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities | **(5264)** | (1903) |
|  **Effect of exchange rate fluctuations on Cash** | **1** | (1) |
|  **Net increase (decrease) in Cash** | **(404)** | (8) |
|  **Cash, beginning of period** | **778** | 836 |
|  **Cash, end of period** | $**374** | $828 |

---

*The accompanying notes are an integral part of these condensed quarterly financial statements.* 

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##### [**Table of Contents**](#toc)
    <u>Condensed Quarterly Financial Statements</u>   <u> 23 </u>

ORDINARY CAPITAL

INTER-AMERICAN DEVELOPMENT BANK

**NOTES TO THE CONDENSED QUARTERLY FINANCIAL STATEMENTS** 

**NOTE A – FINANCIAL INFORMATION** 

The primary activities of the Inter-American Development Bank (the Bank or IDB) are conducted through the Ordinary Capital, and the IDB Grant Facility (GRF). Unless otherwise indicated, all financial information provided in these Condensed Quarterly Financial Statements refers to the Ordinary Capital. The Condensed Quarterly Financial Statements should be read in conjunction with the December 31, 2025 financial statements and notes therein included in the Bank's Information Statement dated February 18, 2026.

**NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** 

The financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP). The preparation of these financial statements requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period.

Significant judgments have been made in the valuation of certain financial instruments carried at fair value, the determination of the adequacy of the allowances for credit losses on developmental assets, and the determination of the benefit obligations for pension and postretirement benefit plans, the fair value of plan assets, and the net periodic benefit cost associated with these plans.

Actual results could differ from these estimates. The results of operations for the first three months of the current year are not necessarily indicative of the results that may be expected for the full year. Certain reclassifications of the prior years' information have been made to conform to the current year's presentation.

**Accounting developments**

In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Topic 220), which requires disaggregated disclosure of income statement expenses for all public business entities. The ASU requires disaggregation of certain expense captions into specified categories within the notes to the financial statements, without changing the current presentation requirements of expenses on the face of the income statement. In January 2025, FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. For the Bank, this ASU is effective for annual reporting periods ending on or after December 31, 2027, and for interim periods within subsequent annual reporting periods. The Bank is currently evaluating the impact of this standard on its financial statements.

In September 2025, the FASB issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606), which (i) granted a scope exception to the application of derivative accounting to contracts with features based on the operations or activities of one of the parties to the contract, and (ii) clarified the application of Topic 606 guidance when share-based noncash consideration is received from a customer for the transfer of goods or services. For the Bank, this ASU is effective for annual reporting periods ending on or after December 31, 2027, and for interim periods within those annual periods. Early adoption is permitted. The Bank early adopted this ASU effective January 1, 2026, and there was no effect on its financial statements.

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##### [**Table of Contents**](#toc)
<u> 24 </u>   <u>Condensed Quarterly Financial Statements</u>    

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270), which clarifies when interim disclosure guidance applies, improves the navigability of required interim disclosures, and provides additional direction on what disclosures should be included in interim reporting periods. For the Bank, this ASU is effective from the quarter ending March 31, 2028. The Bank is currently evaluating the impact of ASU 2025-11 and does not expect it to have a material effect on its financial statements.

**NOTE C – INVESTMENTS** 

As part of its overall portfolio management strategy, the Bank invests in sovereign and sub-sovereign governments, agencies, supranationals, bank and corporate entities, including asset-backed and mortgage-backed securities, and related financial derivative instruments, primarily currency and interest rate swaps.

The Bank invests in obligations: (i) issued or unconditionally guaranteed by sovereign governments of the member country whose currency is being invested, or other sovereign obligations with a minimum credit quality equivalent to AA-; (ii) issued or unconditionally guaranteed by sub-sovereign governments and agencies, including asset-backed and mortgage-backed securities, with a minimum credit quality equivalent to AA-; and (iii) issued by supranational organizations with a credit quality equivalent to a AAA rating. In addition, the Bank invests in senior bank obligations with a minimum credit quality equivalent to A, and in corporate entities with a minimum credit quality equivalent to a AA- rating (private asset-backed and mortgage-backed securities require a credit quality equivalent to a AAA rating). The Bank also invests in short-term securities of the eligible investment asset classes mentioned above, if they carry equivalent short-term credit ratings.

Net unrealized gains (losses) on trading portfolio instruments held at March 31, 2026 of $(27) million (2025 – $(7) million) were included in Income from Net investments gains (losses).

A summary of the trading portfolio instruments at March 31, 2026 and December 31, 2025 is shown in Note J – Fair Value Measurements.

**NOTE D – DEVELOPMENTAL ASSETS – LOANS AND GUARANTEES** 

**Loans** 

Since January 1, 2012, the Flexible Financing Facility or FFF is the financial product platform for the approval of all sovereign-guaranteed loans. With FFF loans, borrowers can tailor financial terms at approval or during the life of a loan, subject to market availability and operational considerations. The FFF platform allows borrowers to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. manage currency, interest rate and other types of market risk exposures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. address project changing needs by customizing loan repayment terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. execute hedges with the Bank at a loan portfolio level;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. manage risk exposures to commodity price volatility through embedded options;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. through the Principal Payment Option (PPO), defer principal payments for 2 years following an eligible natural
disaster through a one-time option, by modifying the loan's amortization schedule;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. originate, price, and approve loans denominated in Local Currency terms, and;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. manage risk exposure and loan cash flows to catastrophes.

FFF loans have maturities of up to 25 years, and have an interest rate primarily based on SOFR plus a funding margin, plus the Bank's lending spread.

The Bank offers concessional lending through a blending of regular and concessional financing. The concessional portion of blended loans have a grace period and maturity of 40 years, and a 0.25% fixed interest rate. The regular financing portion has a maximum 25-year maturity.

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##### [**Table of Contents**](#toc)
    <u>Condensed Quarterly Financial Statements</u>   <u> 25 </u>

Since January 1, 2023, the Bank no longer co-finances new private sector projects and continues to outsource portfolio management of its legacy NSG developmental assets to IDB Invest.

Loans are carried at amortized cost on the Balance Sheet. Direct loan origination costs for sovereign-guaranteed loans are deferred and amortized using the interest method over the weighted-average life of the applicable loan portfolio. Front-end and other fees are deferred and amortized based on a straight-line base over the contractual terms of the loans, which approximates the interest method.

Loans outstanding as of March 31, 2026 and December 31, 2025 were as follows (in millions):

---

| | | |
|:---|:---|:---|
| **Developmental Assets** | **March 31,<br>2026** | December 31,<br>2025 |
|  Loans outstanding | $**118003** | $117747 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | **(891)** | (878) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred loan origination fees and costs, net | **83** | 83 |
|  Total | $**117195** | $116952 |

---

**Guarantees** 

The Bank may issue political risk and partial credit guarantees backed by a sovereign counter-guarantee from member country. Since January 1, 2023, the Bank no longer issues guarantees without a sovereign counter-guarantee under its NSG portfolio, except for those under the Sub-Sovereign Finance Program (SFP).

Guarantees are considered outstanding when issued and the borrower incurs the underlying financial obligation. A guarantee is considered called when a guaranteed party demands payment. The outstanding amount represents the maximum potential exposure if guaranteed payments are not made.

Outstanding guarantees have remaining maturities ranging from 1 year to 19 years. As of March 31, 2026 and December 31, 2025, guarantees of $1,630 million and $1,638 million, respectively, were outstanding and subject to call, and were classified as follows (in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | December 31, 2025 | December 31, 2025 | December 31, 2025 |
|  | **NSG <sup>(1)</sup>** | **SG<sup>(2)</sup>** | **Total** | NSG <sup>(1)</sup> | SG<sup>(2)</sup> | Total |
|  a+ to a- | $**10** | $**—** | $**10** | $14 | $— | $14 |
|  bbb+ to bbb- | **—** | **—** | **—** | **—** |  |  |
|  bb+ to bb- | **57** | **—** | **57** | 57 | **—** | 57 |
|  b+ to b- | **—** | **1563** | **1563** | **—** | 1567 | 1567 |
|  ccc+ to cc | **—** | **—** | **—** | **—** | **—** | **—** |
|  Total | $**67** | $**1563** | $**1630** | $71 | $1567 | $1638 |

---

(1) NSG guarantees' ratings are represented by the Bank's internal credit risk classification, which
maps to S&P's rating scale.

(2) SG guarantees' rating is assigned to each borrower country by S&P.

As of March 31, 2026, the current carrying amount of the liability for the guarantee obligations totaled $128 million (December 31, 2025 - $129 million) and is reported under Other liabilities in the Condensed Balance Sheet.

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##### [**Table of Contents**](#toc)
<u> 26 </u>   <u>Condensed Quarterly Financial Statements</u>    

**Development Finance Institutions (DFIs) Exposure Exchange Agreements** 

To minimize concentration in its SG loan portfolio, the Bank participates in a Master Exposure Exchange Agreement (EEA) jointly with other Development Finance Institutions (DFIs) and executes bilateral transactions. The EEA conceptually reduces portfolio concentration by exchanging coverage for potential nonaccrual events (i.e., interest and principal non-payment) between DFIs in countries where one DFI is concentrated, for coverage in countries where it has little or no exposure. EEAs are accounted for and disclosed as guarantees under the Bank's financial statements.

Under an EEA, loan assets are not directly exchanged, and all aspects of the client relationship remain with the originating DFI. One DFI assumes credit risk on a specified EEA amount for certain borrowing countries (the EEA seller of protection, or EEA Seller) in exchange for passing on equivalent credit risk for other countries to another DFI (the EEA buyer of protection, or EEA Buyer). If a nonaccrual event occurs for a country included in the EEA, the EEA Seller compensates the EEA Buyer at an agreed rate. EEAs allow exchanges with maturities of 10 to 30 years, and each DFI must retain at least 50% of its total exposure to each country in the EEA. If no nonaccrual events occur during the term, the EEA expires at the end of the agreed period.

The Bank executed EEA transactions with other DFIs as follows (in millions) as of March 31, 2026:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **EEAs with DFIs** | **EEAs with DFIs** | **EEAs with DFIs** | **EEAs with DFIs** | **EEAs with DFIs** |
| **DFIs** | **Effective Date** | **Amount** | **Amount** | **Maturity Date** |
| **DFIs** | **Effective Date** | **EEA Seller** | **EEA Buyer** | **Maturity Date** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; International Bank for Reconstruction and Development | December 2015 | $**2021** | $**2021** | December 2030 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asian Development Bank | December 2020 | **1000** | **1000** | December 2035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asian Development Bank | December 2022 | **1500** | **1500** | December 2037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OPEC Fund for International Development | March 2024 | **500** | **650** | March 2039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asian Development Bank | October 2024 | **1500** | **1500** | October 2039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; African Development Bank | April 2025 | **3200** **<sup>(1)</sup>** | **3200** **<sup>(1)</sup>** | April 2040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Council of Europe Development Bank | July 2025 | **578** **<sup>(2)</sup>** | **578** **<sup>(2)</sup>** | July 2040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  | $**10299** | $**10449** |  |

---

(1) The EEA signed in 2015, totaling $2,880 million, was extinguished and replaced with a new exposure amount
of $3,200 million.

(2) The transaction is denominated in Euros, and the original amount was EUR 500 million.

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##### [**Table of Contents**](#toc)
    <u>Condensed Quarterly Financial Statements</u>   <u> 27 </u>

Each EEA transaction was accounted for as an exchange of two separate financial guarantees (given and received). As of March 31, 2026 and December 31, 2025, the Bank is the EEA Buyer (receives a financial guarantee from other DFIs) and the EEA Seller (provides a financial guarantee to other DFIs) for the following countries and exposure amounts (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **EEA Seller** | **EEA Seller** | **EEA Seller** | **EEA Seller** | **EEA Seller** |
|  | **As of March 31, 2026** | **As of March 31, 2026** | As of December 31, 2025 | As of December 31, 2025 |
| **Country** | **Amount** | **S&P Rating <sup>(1)</sup>** | Amount | S&P Rating |
|  Angola | $**135** | **B-** | $135 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B- |
|  Armenia | **118** | **BB-** | 118 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB- |
|  Bangladesh | **1385** | **B+** | 1385 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B+ |
|  Bosnia & Herzegovina | **122** | **B+** | 123 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B+ |
|  Cameroon | **275** | **B-** | 275 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B- |
|  Congo | **60** | **CCC+** | 60 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CCC+ |
|  Egypt | **680** | **B** | 680 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B |
|  Georgia | **97** | **BB** | 97 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB |
|  India | **630** | **BBB** | 630 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BBB |
|  Indonesia | **885** | **BBB** | 885 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BBB |
|  Jordan | **144** | **BB-** | 144 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB- |
|  Kenya | **510** | **B** | 510 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B |
|  Macedonia | **130** | **BB-** | 130 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB- |
|  Moldova | **14** | **BB-** | 14 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB- |
|  Mongolia | **107** | **BB-** | 107 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB- |
|  Montenegro | **116** | **B+** | 116 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B+ |
|  Morocco | **676** | **BBB-** | 676 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BBB- |
|  Nigeria | **430** | **B-** | 430 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B- |
|  Oman | **21** | **BBB-** | 21 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BBB- |
|  Pakistan | **1673** | **B-** | 1673 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B- |
|  Romania | **23** | **BBB-** | 24 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BBB- |
|  Serbia | **308** | **BBB-** | 310 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BBB- |
|  Sri Lanka | **48** | **CCC+** | 48 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CCC+ |
|  Tanzania | **21** | **B-** | 21 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B- |
|  Tunisia | **600** | **B-** | 600 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B- |
|  Türkiye | **716** | **BB-** | 722 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB- |
|  Uzbekistan | **172** | **BB** | 172 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB |
|  Vietnam | **203** | **BB+** | 203 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB+ |
|  Total | $**10299** |  | $10309 |  |

---

(1) Based on the foreign currency credit rating assigned by S&P, or an assumed rating where an S&P rating
is not available.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **EEA Buyer** | **EEA Buyer** | **EEA Buyer** | **EEA Buyer** | **EEA Buyer** |
|  | **As of March 31, 2026** | **As of March 31, 2026** | As of December 31, 2025 | As of December 31, 2025 |
| **Country** | **Amount** | **S&P Rating <sup>(1)</sup>** | Amount | S&P Rating |
|  Argentina | $**1302** | **CCC+** | $1303 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CCC+ |
|  Bolivia | **182** | **CCC+** | 182 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CCC- |
|  Brazil | **3302** | **BB** | 3309 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB |
|  Chile | **66** | **A** | 66 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A |
|  Colombia | **1075** | **BB** | 1076 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB |
|  Costa Rica | **43** | **BB** | 43 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB |
|  Dominican Republic | **480** | **BB** | 480 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB |
|  Ecuador | **1747** | **B-** | 1747 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B- |
|  El Salvador | **225** | **B-** | 225 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B- |
|  Mexico | **1553** | **BBB** | 1554 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BBB |
|  Panama | **274** | **BBB-** | 274 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BBB- |
|  Trinidad and Tobago | **200** | **BBB-** | 200 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BBB- |
|  Total | $**10449** |  | $10459 |  |

---

The trigger event requiring the EEA Seller to make interest payments to the EEA Buyer is defined as a payment delay of 180 days (i.e., a nonaccrual event) for one or more covered countries. The trigger event requiring the EEA Seller to make principal payments to the EEA Buyer occurs when the EEA Buyer writes off part or all of the sovereign-guaranteed loans to a country covered under the EEA. Any principal payment reduces the EEA amount and coverage for that country.

Following a trigger event, the EEA Seller pays compensation to the EEA Buyer based on the EEA amount for the country in nonaccrual at the agreed interest rate, currently USD six-month SOFR plus 1.25%. Interest payments are semi-annual and cannot exceed contractual payments on past-due loans.

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<u> 28 </u>   <u>Condensed Quarterly Financial Statements</u>    

The EEA Seller relies on the EEA Buyer to recover amounts owed from the borrowing country in nonaccrual status. Recoveries are shared pari-passu between Buyer and Seller. At the end of the nonaccrual event, the EEA Seller recovers all amounts paid to the EEA Buyer if no write-offs occurred.

As of March 31, 2026 and December 31, 2025, there were no nonaccrual events under the guarantees given or received. The carrying amount under the guarantees given or received amounted to $643 million as of March 31, 2026 (December 31, 2025 - $659 million) and are recorded in Other liabilities and Other assets in the Condensed Balance Sheet, respectively.

**NOTE E – DEVELOPMENTAL ASSETS – DEBT SECURITIES** 

The Bank invests in debt securities to support its developmental objectives. Since January 1, 2023, the Bank no longer co-finances debt securities with IDB Invest but continues to outsource the portfolio management of its debt securities to IDB Invest.

In general, debt securities related to development investments are classified as held-to-maturity as the Bank has both the intent and ability to hold them until maturity. These securities classified as held to maturity and reported at amortized cost on the Condensed Balance Sheet. For debt securities not intended to be held to maturity, the Bank elects the fair value option.

Debt securities classified as held to maturity were $431 million and $429 million as of March 31, 2026 and December 31, 2025, respectively. The net carrying amount was summarized below (in millions):

---

| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | December 31,<br>2025 |
|  Securities measured at amortized cost | $**464** | $456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | **(33)** | (27) |
|  Net carrying amount | $**431** | $429 |

---

The net carrying amount, fair value, and maturity for the debt securities classified as held to maturity were presented as follows (in millions):

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| **Segments** | **Net carrying amount** | **Fair value <sup>(1)</sup>** | **Maturity (in years)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Institutions | $**8** | $**8** | **Within 1 year** |
|  | **205** | **214** | **1 year to 5 years** |
|  | **47** | **49** | **6 years to 10 years** |
|  | **260** | **271** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Project Finance | **171** | **171** | **11 years to 15 years** |
|  Total | $**431** | $**442** |  |

---

(1) Includes $1 million of accrued interest and $22 million of unrecognized holding losses.

---

| | | | |
|:---|:---|:---|:---|
|  | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| Segments | Net carrying amount | Fair value <sup>(1)</sup> | Maturity (in years) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Institutions | 214 | 223 | 1 year to 5 years |
|  | 47 | 51 | 6 years to 10 years |
|  | 261 | 274 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Project Finance | 168 | 168 | 11 years to 15 years |
|  Total | $429 | $442 |  |

---

(1) Includes $6 million of accrued interest and $21 million of unrecognized holding losses.

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##### [**Table of Contents**](#toc)
    <u>Condensed Quarterly Financial Statements</u>   <u> 29 </u>

The fair value and net carrying amount of the debt securities in the Project Finance segment elected under the fair value option was $36 million, as of March 31, 2026 (December 31, 2025 – $38 million for fair value and net carrying amount), and matures after 11 years through 15 years (2025 – after 11 years through 15 years).

**NOTE F – CREDIT RISK FROM DEVELOPMENTAL ASSETS AND RELATED OFF-BALANCE-SHEET EXPOSURES** 

The credit risk in the developmental assets portfolios is the risk that the Bank may not receive repayment of principal and/or interest on these assets according to the contractual terms. It is determined by the credit quality of, and exposure to, each borrower and directly related to the Bank's core business. The Bank has multiple measures in place to manage this credit risk, including an overall lending and investing limitation, a comprehensive capital adequacy framework (designed to ensure that the Bank always holds sufficient equity at all times given the quality and concentration of its portfolio), a policy for the treatment of non-performing instruments, and a policy for the maintenance of a credit loss allowance.

The Bank manages two principal sources of credit risk from its development financing activities: SG (loans and guarantees) and NSG instruments (loans, guarantees and debt securities). As of March 31, 2026 and December 31, 2025, approximately 97% of the outstanding developmental assets are sovereign-guaranteed. The Bank develops and maintains separate methodologies for the allowance for credit losses on SG and NSG exposures due to the distinct sources of credit risk.

For the performing SG and NSG portfolio (i.e., developmental assets that are not in nonaccrual status), the allowance and liability for expected credit losses for off-balance-sheet credit exposures is mainly a function of the estimated exposure at default (EAD), probability of default (PD) and loss given default (LGD). Qualitative adjustments are also applied as necessary based on Management judgment to address information lags, data limitations, significant changes in portfolio composition or lending operations, and uncertainties in economic and business conditions.

The EAD of the Bank's developmental assets represents the unpaid principal or outstanding balance, which approximates their amortized cost as: (i) loans and debt securities are originated at face value without premiums or discounts; (ii) net origination fees and costs are immaterial; and (iii) foreign exchange adjustments on non-USD assets are reflected in the outstanding balance through revaluation at each reporting date.

The Bank does not expect recurring material prepayments in its SG portfolio and therefore excludes prepayment estimates from the EAD.

For the NSG portfolio, expected credit losses are estimated over the contractual term adjusted for expected prepayments based on historical data. The contractual term excludes expected extensions, renewals, and modifications unless these are included in the original or modified contract at the reporting date and are solely at the borrower's option and outside of the Bank's control.

For off-balance-sheet credit exposures, EAD is estimated based on projected disbursements for unfunded commitments considering historical experience and projected repayments under contractual amortization schedules or disbursement profiles of proxy portfolios as applicable.

The macroeconomic performance and credit ratings of IDB's borrowing member countries are affected by factors such as geopolitical risks and shifts in monetary and fiscal policies. Accordingly, the Bank considers all available information when calculating the allowance for credit losses.

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<u> 30 </u>   <u>Condensed Quarterly Financial Statements</u>    

CREDIT QUALITY BY PORTFOLIO

**Sovereign-guaranteed Loans** 

When the Bank lends to public sector borrowers, it requires a sovereign guarantee from the borrowing member state. In extending credit to sovereign entities, the Bank is exposed to country risk which includes potential losses arising from a country's inability or unwillingness to service its obligations to the Bank. Therefore, the Bank monitors and assesses its credit risk in the sovereign-guaranteed portfolio by sovereign borrower. The Bank expects that each of its sovereign-guaranteed loans will be repaid, consistent with its historical experience. As a policy, the Bank does not reschedule SG loans and has not written off any SG loans. The Bank monitors the credit quality, nature, and extent of its SG exposure by country and considers loans to the same sovereign borrower as sharing common risk characteristics.

As a multilateral development financial institution, the Bank benefits from preferential treatment, including priority in repayment over commercial lenders when a sovereign borrower experiences financial stress. This preferred creditor status is reflected in the Bank's allowance for credit losses through the PD and LGD estimates.

PD represents the likelihood of default over the credit exposures' contractual period and is based on each borrower country's long-term foreign currency credit rating from Standard & Poor's (S&P), adjusted for probabilities of default specific to the Bank. These adjustments incorporate historical sovereign default events, current conditions, and R&S economic forecasts that may affect a country's ability to meet its obligations. Macroeconomic factors considered in the three-year R&S forecast include the borrower's gross domestic product (GDP) growth, current account balance as a percentage of GDP, and changes in reserves. For periods beyond the R&S forecast, the Bank reverts to historical loss information on a straight-line basis over a two-year period.

In addition to the PD, the Bank's loss experience differs from commercial lenders in sovereign default events, as evidenced in the level of loss from its historical nonaccrual events. All past sovereign defaults were resolved with the Bank recovering all contractual principal and interest amounts. Historical losses were limited to interest on interest as the Bank does not charge interest on overdue interest during the arrears period. The Bank maintains its expectation of full collection of contractually due principal and interest amounts in any ongoing or future sovereign defaults. Consequently, LGD reflects only the estimated loss from payment delays.

SG loans in nonaccrual status exhibit credit deterioration and do not share risk characteristics with performing loans. These loans are individually assessed at the borrower level. The allowance for such loans is calculated using a discounted cash flow method, which estimates credit loss as the difference between the loan's amortized cost and the present value of expected cash flows, discounted at the loan's contractual effective interest rate. Expected cash flows incorporate assumptions based on Management's best estimates given the specific facts and circumstances of the nonaccrual event.

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##### [**Table of Contents**](#toc)
    <u>Condensed Quarterly Financial Statements</u>   <u> 31 </u>

The credit quality of the SG loan portfolio based on the foreign currency credit rating by year of origination as of March 31, 2026 and December 31, 2025 was as follows (in millions):

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Credit**<br>**Rating <sup>(3)</sup>** | **Year of origination<sup>(1)</sup>** | **Year of origination<sup>(1)</sup>** | **Year of origination<sup>(1)</sup>** | **Year of origination<sup>(1)</sup>** | **Year of origination<sup>(1)</sup>** | **Year of origination<sup>(1)</sup>** | **March 31,<br>2026** | **December 31,<br>2025** |
| **Country** | **Credit**<br>**Rating <sup>(3)</sup>** | **2026** | **2025** | **2024** | **2023** | **2022** | **Prior** | **March 31,<br>2026** | **December 31,<br>2025** |
|  Argentina | **CCC+** | $**—** | $2070 | $1968 | $1201 | $1520 | $12161 | $**18920** | $19210 |
|  Bahamas | **BB-** |  | 174 |  | 160 |  | 714 | **1048** | 1054 |
|  Barbados | **B+** |  | 118 | 107 | 204 |  | 532 | **961** | 953 |
|  Belize | **B-** |  |  | 3 | 18 | 3 | 141 | **165** | 165 |
|  Bolivia | **CCC+** |  |  | 6 | 369 | 148 | 3838 | **4361** | 4388 |
|  Brazil | **BB** |  | 1012 | 58 | 1681 | 250 | 12655 | **15656** | 15276 |
|  Chile | **A** |  | 352 | 179 | 123 | 642 | 1870 | **3166** | 3178 |
|  Colombia | **BB** |  | 598 | 85 | 1109 | 498 | 8842 | **11132** | 11263 |
|  Costa Rica | **BB** |  |  | 8 |  |  | 2488 | **2496** | 2477 |
|  Dominican Republic | **BB** |  | 1 |  | 327 | 441 | 3361 | **4130** | 4094 |
|  Ecuador | **B-** |  | 639 | 1018 | 707 | 650 | 5842 | **8856** | 8895 |
|  El Salvador | **B-** |  | 560 | 29 | 50 | 210 | 1982 | **2831** | 2850 |
|  Guatemala | **BB+** |  |  | 16 |  |  | 1565 | **1581** | 1640 |
|  Guyana | **B-** |  | 350 | 1 | 142 | 130 | 629 | **1252** | 1253 |
|  Haiti | **B-** |  |  |  |  |  |  | **—** |  |
|  Honduras | **BB-** |  |  | 32 | 169 | 196 | 2817 | **3214** | 3228 |
|  Jamaica | **BB** |  |  |  |  | 99 | 1224 | **1323** | 1358 |
|  Mexico | **BBB** |  | 1150 | 700 | 1200 | 510 | 9174 | **12734** | 12389 |
|  Nicaragua | **B+** |  |  |  |  | 10 | 2164 | **2174** | 2180 |
|  Panama | **BBB-** |  | 650 | 32 | 184 | 229 | 3211 | **4306** | 4418 |
|  Paraguay | **BBB-** |  | 1 | 407 | 35 | 666 | 2611 | **3720** | 3734 |
|  Peru | **BBB-** | 550 | 23 | 300 | 459 | 24 | 2782 | **4138** | 3668 |
|  Suriname | **CCC+** |  | 1 | 164 | 164 | 238 | 431 | **998** | 1001 |
|  Trinidad and Tobago | **BBB-** |  |  | 2 | 52 |  | 565 | **619** | 635 |
|  Uruguay | **BBB+** |  | 203 | 28 | 611 | 59 | 2807 | **3708** | 3837 |
|  Venezuela<sup>(2)</sup> | **SD** |  |  |  |  |  | 2011 | **2011** | 2011 |
|  Total |  | $550 | $7902 | $5143 | $8965 | $6523 | $86417 | $**115500** | $115155 |

---

(1) Amounts exclude accrued interest.

(2) The loans to Venezuela have been placed in nonaccrual status since May 2018.

(3) Based on the foreign currency credit rating assigned by S&P, or an assumed rating where an S&P rating
is not available.

The country credit ratings presented above are as of March 31, 2026.

There were no gross write-offs for SG loans for the origination periods presented above during the quarter ended March <u>31, 2026.</u>

**Non-sovereign-guaranteed Loans** 

The Bank does not benefit from sovereign guarantees when lending to NSG borrowers. Risk and expected performance for these loans are evaluated by scoring the individual risk factors separately for the borrower and the transaction through credit risk scorecards developed based on S&P models. For co-financed NSG loans, the Bank and IDB Invest maintain separate legal and economic interests in their respective shares of the loan principal balance, interest, and other elements of the lending arrangement.

The NSG portfolio consists of loans and debt security investments classified into four sectors – corporates, financial institutions, project finance, and sub-sovereign governments – for credit monitoring and portfolio management purposes. The Bank's internal NSG risk rating system maps transactions one-to-one to the S&P foreign currency credit rating using a point-in-time term structure developed with S&P models and customized to reflect the Bank's business and portfolio track record. This system uses sector-specific scorecards to determine borrower risk ratings.

The major credit risk factors considered in the rating scorecards for corporate loans are country and industry risks, business and market risks, an assessment of the borrower's management, and a qualitative

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##### [**Table of Contents**](#toc)
<u> 32 </u>   <u>Condensed Quarterly Financial Statements</u>    

and quantitative assessment of financial risks. Extraordinary support from shareholders or from the government may be considered if applicable.

The credit risk evaluation for loans to financial institutions considers country and industry risks and functions as an anchor for the risk assessment. These risks include regulatory, competition, government support and macro-economic factors. Additionally, the rating scorecard assesses institution-specific factors such as capital adequacy, funding and liquidity, earnings, business position, quality of management, and potential government or shareholder support.

The primary factors considered in the scorecards for a project finance loan are mainly grouped into the following categories: political risks, commercial or project risks, and financial risks. Political risks can be defined as the risks to a project's financing emanating from governmental sources, either from a legal or regulatory perspective. Commercial or project risks are the operational risks associated with construction or completion of a project and its economic or financial viability. Financial risks consider the project's exposures to cash flow generation, interest rate, foreign currency volatility and inflation.

In certain cases, the sovereign rating may serve as a ceiling for the final borrower rating at certain rating levels, given the close link between a country's creditworthiness and that of its institutions.

The expected credit loss methodology incorporates current market conditions, macroeconomic forecasts, and their impact to the allowance on credit losses in term structure PDs and LGDs. To determine the Point in Time (PIT) term structure of PDs, the Bank uses Moody's Impairment Studio models to convert borrower risk ratings into PIT PDs that vary by industry and the state of the credit cycle. For LGD, the Bank applies an S&P-developed decision-tree scorecard model that captures exposure-specific factors such as seniority, collateral, industry, guarantees, and jurisdiction at the facility-level that may not be shared across different exposures of the same borrower. Macroeconomic forecasts include multiple scenarios, with variables such as GDP, equity indices, and oil prices incorporated depending on the country of exposure. Management currently considers the R&S period to be three years. For each scenario, lifetime loss rates are calculated for each loan using the appropriate PD and LGD for every quarter over the asset's remaining life and multiplying by the EAD. When multiple scenarios are used, the results are weighted based on Management's judgment. After the R&S period, the model reverts to historical PDs for similarly rated credits and long-term LGDs from S&P on a straight-line basis over a two-year period.

For developmental assets that do not share common risk characteristics with the rest of the portfolio, including assets in nonaccrual status, the allowance for credit losses is individually assessed based on Management's best judgment of the borrower's creditworthiness. This estimate considers all available evidence, including the present value of expected future cash flows discounted at the asset's contractual effective rate, the fair value of collateral less disposal costs, and other market data.

Partial or full write-offs of NSG developmental assets occur when a loss is realized through either a legal agreement or final bankruptcy settlement, or when the Bank determines with reasonable certainty that the amount will not be collected. Write-offs reduce the asset balance and related allowance for credit losses and are partially offset by recoveries, if any, from previously written-off assets.

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##### [**Table of Contents**](#toc)
    <u>Condensed Quarterly Financial Statements</u>   <u> 33 </u>

The credit quality of the NSG loan portfolio by year of origination, including loans to other development institutions, as represented by the internal credit risk classification as of March 31, 2026 and December 31, 2025, was as follows (in millions):

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year of origination<sup>(2)</sup>** | **Year of origination<sup>(2)</sup>** | **Year of origination<sup>(2)</sup>** | **Year of origination<sup>(2)</sup>** | **Year of origination<sup>(2)</sup>** | **Year of origination<sup>(2)</sup>** | **Year of origination<sup>(2)</sup>** | **Year of origination<sup>(2)</sup>** | **March 31,** | **December 31,** |
| **Internal Credit<br>Risk Classification<sup>(1)</sup>** | **2026** | 2025<sup>(4)</sup> | 2024<sup>(3)</sup> | 2023 | 2022 | Prior | Revolving<br>loans | Revolving<br>loans<br>converted<br>to term<br>loans | **2026** | 2025 |
|  Corporates |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; aa+ to aa- | $**—** | $— | $— | $— | $— | $— | $— | $— | $**—** | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a+ to a- | **—** |  |  |  |  |  |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; bbb+ to bbb- | **—** |  |  |  | 40 | 67 |  |  | **107** | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; bb+ to bb- | **—** |  |  | 193 | 82 | 227 |  |  | **502** | 432 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b+ to b- | **—** | 4 | 11 | 21 |  | 157 |  |  | **193** | 318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ccc+ to d | **—** |  |  |  |  | 14 |  |  | **14** | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal | **—** | 4 | 11 | 214 | 122 | 465 |  |  | **816** | 817 |
|  Financial Institutions |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; aa+ to aa- | **—** |  |  |  |  | 124 |  |  | **124** | 176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a+ to a- | **—** |  |  |  | 100 | 83 |  |  | **183** | 132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; bbb+ to bbb- | **—** |  |  |  | 17 | 32 |  |  | **49** | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; bb+ to bb- | **—** |  |  | 10 | 26 | 84 |  |  | **120** | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b+ to b- | **—** | 6 | 5 | 4 | 4 | 9 | 5 |  | **33** | 144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ccc+ to d | **—** |  |  |  |  | 40 |  |  | **40** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal | **—** | 6 | 5 | 14 | 147 | 372 | 5 |  | **549** | 556 |
|  Project Finance |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; aa+ to aa- | **—** |  |  |  |  |  |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a+ to a- | **—** |  |  |  |  |  |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; bbb+ to bbb- | **—** |  |  |  |  | 183 |  |  | **183** | 178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; bb+ to bb- | **—** |  |  |  | 24 | 218 |  |  | **242** | 91 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b+ to b- | **—** |  |  |  | 241 | 260 |  |  | **501** | 863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ccc+ to d | **—** |  |  | 6 |  | 206 |  |  | **212** | 87 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal | **—** |  |  | 6 | 265 | 867 |  |  | **1138** | 1219 |
|  Total | $**—** | $10 | $16 | $234 | $534 | $1704 | $5 | $— | $**2503** | $2592 |

---

(1) NSG portfolio ratings are represented by the Bank's internal credit risk classification which maps to
S&P's rating scale on a one to one basis, and is aligned with the likelihood of loss represented by the corresponding S&P ratings.

(2) Amounts exclude accrued interest.

(3) Represents loans that were approved before December 31, 2022, and signed on or after
January 1, 2023.

(4) Represents Social Entrepreneurship Program (SEP).

There were no gross write-offs for NSG loans for the origination periods presented above during the quarter ended March 31, 2026<u>.</u> 

**Debt Securities** 

The Bank monitors the credit quality of its investment in debt securities from corporates, financial institutions, and project finance, utilizing the same methodology as it does for its NSG loans. Expected credit losses for debt securities are also estimated as a function of the EAD, PD and LGD using the internal credit risk classification system.

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##### [**Table of Contents**](#toc)
<u> 34 </u>   <u>Condensed Quarterly Financial Statements</u>    

The credit quality of the developmental assets held to maturity debt securities reported at amortized cost by year of origination, as represented by the internal credit risk classification as of March 31, 2026 and December 31, 2025, was as follows (in millions):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year of origination<sup>(2)</sup>** | **Year of origination<sup>(2)</sup>** | **Year of origination<sup>(2)</sup>** | **Year of origination<sup>(2)</sup>** | **Year of origination<sup>(2)</sup>** | **Year of origination<sup>(2)</sup>** | **March 31,** | **December 31,** |
| **Internal Credit<br>Risk Classification<sup>(1)</sup>** | **2026** | 2025 | 2024 | 2023<sup>(3)</sup> | 2022 | Prior | **2026** | 2025 |
|  Corporates |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; aa+ to aa- | $**—** | $— | $— | $— | $— | $— | $**—** | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a+ to a- | **—** |  |  |  |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; bbb+ to bbb- | **—** |  |  |  |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; bb+ to bb- | **—** |  |  |  |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b+ to b- | **—** |  |  |  |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ccc+ to d | **—** |  |  |  |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal | **—** |  |  |  |  |  | **—** |  |
|  Financial Institutions |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; aa+ to aa- | **—** |  |  |  |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a+ to a- | **—** |  |  |  |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; bbb+ to bbb- | **—** |  |  |  |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; bb+ to bb- | **—** |  |  | 50 | 94 | 99 | **243** | 237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b+ to b- | **—** |  |  | 14 |  | 8 | **22** | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ccc+ to d | **—** |  |  |  |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal | **—** |  |  | 64 | 94 | 107 | **265** | 266 |
|  Project Finance |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; aa+ to aa- | **—** |  |  |  |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a+ to a- | **—** |  |  |  |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; bbb+ to bbb- | **—** |  |  |  |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; bb+ to bb- | **—** |  |  |  | 199 |  | **199** | 190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b+ to b- | **—** |  |  |  |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ccc+ to d | **—** |  |  |  |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal | **—** |  |  |  | 199 |  | **199** | 190 |
|  Total | $**—** | $— | $— | $64 | $293 | $107 | $**464** | $456 |

---

(1) The ratings are represented by the Bank's internal credit risk classification which maps to
S&P's rating scale on a one to one basis and is aligned with the likelihood of loss represented by the corresponding S&P ratings.

(2) Amounts exclude accrued interest.

(3) Represents loans that were approved before December 31, 2022, and signed on or after
January 1, 2023.

The internal credit risk classifications for NSG loan portfolio and debt securities are as of March 31, 2026.

There were no gross write-offs for debt securities for the origination periods presented above during the quarter ended March 31, 2026.

**PAST DUE, NONACCRUAL AND INDIVIDUALLY ASSESSED LOANS** 

Interest on loans is recognized on an accrual basis. A loan is considered past due when scheduled principal or interest payments are not received on the contractual due date The Bank places on nonaccrual status all loans made to, or guaranteed by, a member if principal, interest, or other charges are overdue by more than 180 days, unless collection of all amounts in arrears is expected in the immediate future. When a member's loans are placed on nonaccrual status, unpaid interest and other charges accrued are reversed from current period income. Interest and other charges on nonaccruing loans are recognized only when payments are actually received. When a member pays all overdue amounts, its loans return to accrual status, eligibility for new loans is restored, and all overdue charges (including those from prior years) are recognized as income in the current period.

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##### [**Table of Contents**](#toc)
    <u>Condensed Quarterly Financial Statements</u>   <u> 35 </u>

The Bank places NSG loans on nonaccrual status when principal, interest or other charges are past due by more than 90 days, or earlier if Management has doubts about their future collectability. Uncollected accrued interest is reversed from income, and interest is recorded on a cash basis until the loan is current and collectability concerns are resolved. If collectability risk remains high after arrears clearance, the loans may remain on nonaccrual status.

Cash payments received on nonaccrual loans are generally applied first to interest income and then to loan principal, in accordance with loan agreements.

**Sovereign-guaranteed Loans** 

As of March 31, 2026, sovereign-guaranteed loans made to or guaranteed by Venezuela have been in arrears for over 180 days, for an aggregate amount of principal payments in arrears of $1,378 million. The entire outstanding loan balance made to or guaranteed by Venezuela of $2,011 million (unchanged since 2018) has been placed in nonaccrual status since May 2018. An individual assessment was performed to estimate expected credit losses for this exposure.

As a result of the assessment, an allowance for individually assessed loans of $629 million as of March 31, 2026, is included in the allowance for credit losses (December 31, 2025 - $625 million). This represents the estimated loss from the expected delay in debt service payments over an estimated length of nonaccrual period. The Bank expects to collect all amounts due, including interest accrued at the contractual interest rate for the period of delay, when the balances in arrears are restored to accrual basis. The assessment and estimation of expected credit losses is inherently judgmental and reflects Management's best estimate based upon the information currently available. Management will continue to monitor its credit exposure periodically and reassess significant assumptions, such as the length of the nonaccrual period, accordingly.

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##### [**Table of Contents**](#toc)
<u> 36 </u>   <u>Condensed Quarterly Financial Statements</u>    

The aging analysis of loans in the SG portfolio as of March 31, 2026 was as follows (in millions):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Not greater<br>than 90 days** | **91 - 180<br>days** | **Greater than<br>180 days** | **Total<br>past due** | **Current** | **Total** |
|  Argentina | $— | $— | $— | $— | $18920 | $18920 |
|  Bahamas |  |  |  |  | 1048 | 1048 |
|  Barbados |  |  |  |  | 961 | 961 |
|  Belize |  |  |  |  | 165 | 165 |
|  Bolivia |  |  |  |  | 4361 | 4361 |
|  Brazil |  |  |  |  | 15656 | 15656 |
|  Chile |  |  |  |  | 3166 | 3166 |
|  Colombia |  |  |  |  | 11132 | 11132 |
|  Costa Rica |  |  |  |  | 2496 | 2496 |
|  Dominican Republic |  |  |  |  | 4130 | 4130 |
|  Ecuador |  |  |  |  | 8856 | 8856 |
|  El Salvador |  |  |  |  | 2831 | 2831 |
|  Guatemala |  |  |  |  | 1581 | 1581 |
|  Guyana |  |  |  |  | 1252 | 1252 |
|  Haiti |  |  |  |  |  |  |
|  Honduras |  |  |  |  | 3214 | 3214 |
|  Jamaica |  |  |  |  | 1323 | 1323 |
|  Mexico |  |  |  |  | 12734 | 12734 |
|  Nicaragua |  |  |  |  | 2174 | 2174 |
|  Panama |  |  |  |  | 4306 | 4306 |
|  Paraguay |  |  |  |  | 3720 | 3720 |
|  Peru |  |  |  |  | 4138 | 4138 |
|  Suriname |  |  |  |  | 998 | 998 |
|  Trinidad and Tobago |  |  |  |  | 619 | 619 |
|  Uruguay |  |  |  |  | 3708 | 3708 |
|  Venezuela | 4 | 79 | 1378 | 1461 | 550<sup>(1)</sup> | 2011 |
|  Total | $4 | $79 | $1378 | $1461 | $114039 | $115500 |

---

(1) Represents the principal amount not yet contractually due as of March 31, 2026. Contractual
interest is greater than 180 days past due on all $2,011 million of loans presented.

There were no other sovereign-guaranteed loans over 180 days or more past due or in nonaccrual status as of March 31, 2026 and 2025.

A summary of financial information related to nonaccrual loans to Venezuela affecting the results of operations for the three months ended March 31, 2026 and 2025 was as follows (in millions):

---

| | | |
|:---|:---|:---|
|  | **Three months ended<br>March 31,** | **Three months ended<br>March 31,** |
|  | **2026** | **2025** |
|  Loans in nonaccrual status as of the beginning of the period | $**2011** | $2011 |
|  Loans in nonaccrual status as of the end of the period | **2011** | 2011 |
|  Interest income recognized on cash basis for loans in nonaccrual status | **—** |  |
|  Loans past due for more than 90 days not in nonaccrual status <sup>(1)</sup> | **—** |  |

---

**Non-sovereign-guaranteed Loans** 

As of March 31, 2026 NSG loans 90 or more days past due amounted to $14 million (December 31, 2025 - $3 million). NSG loans with outstanding balances of $167 million as of March 31, 2026 were in nonaccrual status (December 31, 2025 - $165 million), including $3 million whose maturity was accelerated (December 31, 2025 - $3 million). These loans were individually assessed to estimate expected credit losses and have a total allowance for credit losses of $78 million as of March 31, 2026 (December 31, 2025 - $63 million).

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##### [**Table of Contents**](#toc)
    <u>Condensed Quarterly Financial Statements</u>   <u> 37 </u>

A summary of financial information related to NSG loans in nonaccrual status affecting the results of operations for the three months ended March 31, 2026 and 2025 was as follows (in millions):

---

| | | |
|:---|:---|:---|
|  | **Three months ended<br>March 31,** | **Three months ended<br>March 31,** |
|  | **2026** | 2025 |
|  **Loans in nonaccrual status as of the beginning of the period** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporates | $**6** | $3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Institutions | **40** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Project Finance | **119** | 98 |
|  Total | $**165** | $102 |
|  **Loans in nonaccrual status as of the end of the period** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporates | $**6** | $3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Institutions | **40** | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Project Finance | **121** | 100 |
|  Total | $**167** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;144 |
|  **Interest income recognized on cash basis for loans in nonaccrual status** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporates | $**—** | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Institutions | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Project Finance | **—** |  |
|  Total | $**—** | $— |
|  **Loans past due for more than 90 days not in nonaccrual status** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporates | $**—** | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Institutions | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Project Finance | **—** |  |
|  Total | $**—** | $— |

---

The aging analysis of loans in the NSG portfolio as of March 31, 2026 was as follows (in millions):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Not greater<br>than 30 days** | **31 -60<br>days** | **61 -90<br>days** | **Greater than<br>90 days** | **Total<br>past due** | **Current** | **Total** |
|  Corporates | $– $|  | $– $| 3 | $3 | $813 | $816 |
|  Financial Institutions | – |  | – | 11 | 11 | 538 | 549 |
|  Project Finance | – |  | – |  |  | 1138 | 1138 |
|  Total | $– $|  | $– $| 14 | $14 | $2489 | $2503 |

---

**Debt securities** 

Consistent with its policy for NSG loans, it is the general policy of the Bank to place debt securities in nonaccrual status when interest or other charges are past due by more than 90 days, or earlier when Management has doubts about their future collectability. Income on nonaccrual debt securities is recognized on a cash basis until the security becomes current and Management no longer has doubts about collectability.

There were no debt securities past due or in nonaccrual status as of March 31, 2026 and 2025.

**ALLOWANCE FOR DEVELOPMENTAL ASSETS CREDIT LOSSES** 

**Sovereign-guaranteed Loans and Guarantees** 

Upon initial recognition of each developmental asset, including loans and debt securities, the Bank records an allowance for expected credit losses based on its current estimate of collectability risk over the asset's contractual life. Expected credit losses are evaluated at the aggregated borrower level as the

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<u> 38 </u>   <u>Condensed Quarterly Financial Statements</u>    

Bank considers loans to the same sovereign borrower share common risk characteristics. Historically, virtually all the sovereign-guaranteed loan portfolio has been fully performing. However, in the past the Bank has experienced delays in the receipt of debt service payments, sometimes for more than six months upon which time all loans made to, or guaranteed by, the sovereign borrowers are placed in nonaccrual status. Since the Bank does not charge interest on missed interest payments for these loans, such delay in debt service payments is viewed as a potential credit loss as the timing of the cash flows may not be met in accordance with the terms of the loan contract. SG loans in nonaccrual status are evaluated on an individual basis at the aggregated borrower level given these loans do not share the same risk characteristics as the Bank's performing SG loans.

The changes in the allowance for expected credit losses related to the SG loan and guarantee portfolio for the periods ended March 31, 2026, and December 31, 2025 were as follows (in millions):

---

| | | |
|:---|:---|:---|
| **Collective allowance for loans outstanding** | **2026** | **2025** |
|  Balance, beginning of year | $108 | $84 |
|  Provision (credit) for expected credit losses | (3) | 24 |
|  Write-offs |  |  |
|  Recoveries |  |  |
|  Balance, end of year | $105 | $108 |
| **Collective allowance for loan commitments and guarantees** | **2026** | **2025** |
|  Balance, beginning of year | $**28** | $23 |
|  Provision (credit) for expected credit losses | **—** | 5 |
|  Write-offs | **—** |  |
|  Recoveries | **—** |  |
|  Balance, end of year <sup>(1)</sup> | $**28** | $28 |
| **Individually assessed loans** | **2026** | **2025** |
|  Balance, beginning of year | $**625** | $539 |
|  Provision (credit) for expected credit losses | **4** | 86 |
|  Write-offs | **—** |  |
|  Recoveries | **—** |  |
|  Balance, end of year | $**629** | $625 |

---

(1) Includes the allowance for guarantees of $12 million for the period ended March 31, 2026
(December 31, 2025 - $14 million).

Summary of accrued interest receivable on SG loans outstanding and accrued interest receivables reversed in the SG portfolio was as follows (in millions):

---

| | | |
|:---|:---|:---|
| **SG loans** | **March 31, 2026** | **December 31, 2025** |
|  Accrued interest receivable on SG loans outstanding<sup>(1)</sup> as of | $**1234** | $1224 |
|  Accrued interest receivable reversed, for the periods ended | **—** |  |

---

(1) No allowance for expected credit losses was recognized on the accrued interest receivables for performing SG
loans in any of the reporting periods.

**Non-sovereign-guaranteed Loans and Guarantees** 

For NSG loans and guarantees, a collective loss allowance is determined based on the Bank's credit risk classification system that maps transactions on a one-to-one basis to the S&P foreign currency credit rating with a point in time term structure. The expected credit loss methodology also incorporates forward-looking conditioning such as current market conditions, macroeconomic forecasts, and their corresponding impact on the likelihood of default and the severity of loss given a default. The macroeconomic forecasts in the expected credit losses model include various scenarios, where each scenario represents a different state of the economy in the reasonable and supportable period. For each scenario, a lifetime loss rate for each instrument is calculated using the appropriate PD and LGD for the remaining life of the instrument every quarter. The Bank individually assesses allowance on NSG loans that do not share common risk characteristics with the rest of the portfolio, including loans in nonaccrual status.

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    <u>Condensed Quarterly Financial Statements</u>   <u> 39 </u>

The changes in the allowance for expected credit losses related to NSG loan and guarantee portfolio for the periods ended March 31, 2026, and December 31, 2025 were as follows (in millions):

---

| | | |
|:---|:---|:---|
| **Collective allowance for loans outstanding** | **2026** | **2025** |
|  Balance, beginning of year | $**82** | $124 |
|  Provision (credit) for expected credit losses | **(3)** | (42) |
|  Write-offs | **—** |  |
|  Recoveries | **—** |  |
|  Balance, end of year | $**79** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;82 |
| **Collective allowance for loan commitments and guarantees** | **2026** | **2025** |
|  Balance, beginning of year | $**5** | $8 |
|  Provision (credit) for expected credit losses | **(1)** | (3) |
|  Write-offs | **—** |  |
|  Recoveries | **—** |  |
|  Balance, end of year <sup>(1)</sup> | $**4** | $5 |
| **Individually assessed loans** | **2026** | **2025** |
|  Balance, beginning of year | $**63** | $37 |
|  Provision (credit) for expected credit losses | **15** | 33 |
|  Write-offs | **—** | (7) |
|  Recoveries | **—** |  |
|  Balance, end of year | $**78** | $63 |

---

(1) Includes the allowance for guarantees of $1 million for the period ended March 31, 2026 and
December 31, 2025.

Summary of accrued interest receivable on NSG loans outstanding and accrued interest receivables reversed in the NSG portfolio was as follows (in millions):

---

| | | |
|:---|:---|:---|
| **NSG loans** | **March 31, 2026** | **December 31, 2025** |
|  Accrued interest receivable on NSG loans outstanding <sup>(1)</sup> as of | $**27** | $19 |
|  Accrued interest receivable reversed <sup>(2)</sup> for the periods ended | **—** | 2 |

---

(1) No allowance for expected credit losses was recognized on the accrued interest receivables in any of the
reporting periods.

(2) Of the total interest income reversed, none was written-off as
uncollectible in any of the reporting periods.

**Debt securities** 

The changes in the total allowance for expected credit losses related to the debt security portfolio for the periods ended March 31, 2026 and December 31, 2025 were as follows (in millions):

---

| | | |
|:---|:---|:---|
|  | **2026** | **2025** |
|  Balance, beginning of year | $**27** | $19 |
|  Provision (credit) for expected credit losses | **6** | 8 |
|  Write-offs | **—** |  |
|  Recoveries | **—** |  |
|  Balance, end of year | $**33** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27 |

---

Accrued interest receivable on debt securities outstanding amounted to $1 million as of March 31, 2026 (December 31, 2025 - $6 million). No accrued interest receivable was reversed or written-off in any of the reporting periods.

**Modifications for borrowers experiencing financial difficulties** 

The Bank does not renegotiate or reschedule its sovereign-guaranteed loans outside of the options allowed under the FFF. The Bank may modify NSG developmental assets when the borrower is experiencing financial difficulties. The effect of most modifications made to NSG borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the measurement

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<u> 40 </u>   <u>Condensed Quarterly Financial Statements</u>    

methodologies used to estimate the allowance. Therefore, a change to the allowance for credit losses is generally not recorded upon modification. The modifications and the borrower's subsequent performance are factored into the estimate of allowance for credit losses by incorporating the modified terms of the loan and by adjusting the credit risk factors as necessary.

As of March 31, 2026 and December 31, 2025, the Bank does not have any commitments to lend additional funds to borrowers experiencing financial difficulties with outstanding balances on modified loans.

During the three months ended March 31, 2026 and 2025, no developmental assets were modified for borrowers experiencing financial difficulties, and no payment defaults occurred on prior modifications.

**NOTE G – FAIR VALUE OPTION** 

The Bank has elected the fair value option under GAAP for most of its medium- and long-term borrowings to mitigate the income volatility resulting from recording interest rate swaps used for economic hedging at fair value, while otherwise recognizing remaining borrowings at amortized cost. From time to time, the Bank may elect the fair value option for Developmental assets - debt securities, which the Bank does not intend to hold to maturity. Individual borrowings and debt securities are elected for fair value reporting on an instrument-by-instrument basis and the election is made upon their initial recognition and may not be revoked once an election is made. The Bank takes into consideration all its non-trading financial instruments (i.e., borrowings, developmental assets, and derivatives) in determining its fair value option elections to mitigate income volatility.

The changes in fair value for borrowings and developmental assets elected under the fair value option were recorded in the Condensed Statement of Income and Retained Earnings for the three months ended March <u>31, 2026 and 2025, as follows (in millions):</u>

---

| | | |
|:---|:---|:---|
| **Condensed Statement of Income and** | **Three months ended March 31,** | **Three months ended March 31,** |
| **Retained Earnings location:** | **2026** | 2025 |
|  Interest on Borrowings, after swaps | $**(781)** | $(639) |
|  Interest on developmental assets, after swaps | **—** | 1 |
|  Net fair value adjustments on non-trading portfolios and foreign currency transactions | **853** | (1507) |
|  Total changes in fair value included in Net income (loss) | $**72** | $(2145) |

---

Net fair value adjustments on borrowings attributable to changes in instrument-specific credit risk are reported in the Statement of Comprehensive Income (Loss). These adjustments are determined by comparing each borrowing's fair value adjustments with and without consideration to changes in the Bank's credit spread as of each reporting date. The amount of the change of fair value that was attributable to changes in instrument-specific credit risk during the three months ended March 31, 2026 and cumulatively, amounted to a gain of $125 million and a loss of $500 million, respectively (2025 – a loss of $72 million and $238 million, respectively).

The changes in fair value of borrowings attributable to changes in instrument-specific credit risk reclassified from Other comprehensive income (loss) to Net fair value adjustments on non-trading portfolios and foreign currency transactions in the Condensed Statement of Income and Retained Earnings, amounted to a loss of $0.14 million for the period ended March 31, 2026 (2025 – a loss of $2 million).

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    <u>Condensed Quarterly Financial Statements</u>   <u> 41 </u>

The difference between the fair value amount and the unpaid principal outstanding of borrowings measured at fair value as of March 31, 2026 and December 31, 2025, was as follows (in millions):

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
|  Fair value | $**92285** **<sup>(1)</sup>** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;87804<sup>(1)</sup> |
|  Unpaid principal outstanding | **93217** | 87770 |
|  Fair value over unpaid principal outstanding | $**(932)** | $34 |

---

(1) Includes accrued interest of $885 million at March 31, 2026 (December 31, 2025
– $1,043 million).

For Developmental assets - debt securities elected under the fair value option, the difference between the fair value amount and the unpaid principal outstanding measured at fair value as of March 31, 2026 and December 31, 2025, was as follows (in millions):

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
|  Fair value | $**36** **<sup>(1)</sup>** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38<sup>(1)</sup> |
|  Unpaid principal outstanding | **38** | 39 |
|  Fair value over unpaid principal outstanding | $**(2)** | $(1) |

---

(1) There was no accrued interest at March 31, 2026 (December 31, 2025 - $1 million).

**NOTE H – REPURCHASE AND RESALE AGREEMENTS** 

In a repurchase, or repo, agreement, the Bank transfers securities to a repo counterparty in exchange for cash and concurrently agrees to repurchase those securities at a future date for an amount equal to the cash exchanged plus a stipulated interest factor. In a resale, or reverse repo agreement, the Bank buys securities with an agreement to resell them to the counterparty at a stated price plus interest at a specified date. The Bank enters into short-term repurchase and resale agreements as money market instruments for the Bank's liquid asset investment portfolio and for the management of liquidity in general.

All repurchase and resale transactions are executed with approved eligible counterparties under enforceable global master repurchase agreements and are subject to enforceable master netting agreements. All contracts have a maximum maturity of three months. The Bank receives financial instruments purchased under resale agreements and makes delivery of financial instruments sold under repurchase agreements to custody accounts at an approved third-party custodian. The securities purchased or sold in resale and repurchase agreements are limited to U.S. Treasury securities with maturities of up to 5.5 years. In the case of resale agreements, the Bank receives collateral in the form of liquid securities. As of March 31, 2026, securities received as collateral from resale agreements were not further leveraged.

Repurchase and resale agreements expose the Bank primarily to credit risk that arises if a counterparty is unable to meet its obligations under the agreements. Other risks include refinancing, reinvestment, and operational risks. Such risks are managed through a comprehensive risk management framework to ensure global exposures are within acceptable parameters, including counterparty and maturity limits, and the appropriate size and type of acceptable collateral. Furthermore, the value of collateral pledged is monitored daily against acceptable thresholds and levels are adjusted when appropriate.

The Bank has made the accounting policy election to present all repurchase and resale agreements on a gross basis on its balance sheet. The interest earned with respect to securities purchased under resale agreements is included in Interest on investments on the Condensed Statement of Income and Retained Earnings. The interest expense pertaining to the securities sold under repurchase agreements is included

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<u> 42 </u>   <u>Condensed Quarterly Financial Statements</u>    

in the Interest on Borrowings, after swaps line in the Condensed Statement of Income and Retained Earnings. Cash flows from the repurchase agreements are included in the Short-term borrowings in the Condensed Statement of Cash Flows.

As of March 31, 2026, the gross carrying amount of U.S. Treasury securities pledged in the repurchase agreements amounted to $99 million (2025 – none). The remaining contractual maturity of the repurchase agreements as of March 31, 2026 is less than 30 days. The related repurchase liabilities as of March 31, 2026 were $99 million (2025 – none). As of March 31, 2026, the gross carrying amount of resale agreements was $700 million (2025 – $500 million).

**NOTE I – DERIVATIVES** 

**Risk management strategy and use of derivatives** 

The Bank's financial risk management strategy consists primarily of designing, implementing, and monitoring the Bank's interrelated set of financial policies and guidelines. To optimize its funding and lending activities, in fulfillment of its development mandate, the Bank utilizes financial instruments that are sensitive to market movements, primarily changes in interest and exchange rates. The Bank mitigates these risks through its integrated asset and liability management framework by which it defines the currency composition, maturity profile, and interest rate sensitivity of the portfolio of assets and liabilities.

The Bank uses derivatives for the following purposes: First, to economically hedge the interest rate and currency exposure in its investment and borrowings portfolio. Second, the Bank mitigates the interest rate risk in its fixed-rate, fixed-base cost rate and local currency loans by economically hedging the interest rate exposure, primarily through use of interest rate swaps. In addition, the Bank supports its borrowers' ability to manage exposures to commodity price volatility by offering derivative instruments, such as commodity options embedded in FFF loan agreements. The Bank simultaneously purchases an option with the same terms from a market counterparty to offset the risk exposure. Finally, the Bank utilizes derivatives to manage the repricing and maturity profile of its equity-funded assets in accordance with the Board-approved Asset Liability Management Policy.

The derivative instruments are used primarily for economic hedging purposes and are not designated as hedging instruments for accounting purposes.

**Accounting for derivatives** 

Derivatives are recognized on the Condensed Balance Sheet at their fair value, netting derivative asset and liability positions and the related cash collateral received from counterparties when a legally enforceable master netting agreement exists, including accrued interest. Depending on whether their fair value is receivable or payable, derivatives are classified as assets or liabilities. No derivatives are designated as hedging instruments for accounting purposes.

The Bank occasionally issues borrowings with embedded derivatives. These hybrid instruments are carried at fair value under the elected fair value option.

Flexible Financing Facility (FFF) loans may include risk management options embedded in the loan contract. When certain derivatives are not clearly and closely related to the host contract, such as commodity options embedded in loans, they are bifurcated from the host contract, and recorded at fair value as Derivative assets, net or Derivative liabilities, net on the Condensed Balance Sheet.

Periodic cash payments or receipts to/from the counterparty under swap contracts are referred to as the "interest component". For swaps economically hedging investment securities, the interest component is presented in Interest on investments in the Condensed Statement of Income and Retained Earnings. Changes in fair value of investment securities and related derivatives are reported in Net investments gains (losses). The interest component for all swaps on loans is included in Interest on developmental assets, after swaps. For swaps economically hedging borrowings and equity-funded assets, the interest

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    <u>Condensed Quarterly Financial Statements</u>   <u> 43 </u>

component is recorded in Interest on borrowings, after swaps and Interest on other asset/liability management derivatives, respectively. Changes in the fair value of interest rate and foreign currency swaps, as well as commodity options, are reported in Net fair value adjustments on non-trading portfolios and foreign currency transactions. Upon termination of a swap or option, realized gains and losses on non-trading derivatives are reclassified from this line item to the respective interest categories noted above.

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<u> 44 </u>   <u>Condensed Quarterly Financial Statements</u>    

**Financial statements presentation** 

The gross and net amounts of the Bank's derivatives and repurchase agreements subject to master netting agreements as of March 31, 2026 and December 31, 2025 are presented In the table below. The Bank's derivative instruments and their related gains and losses are presented in the Condensed Balance Sheet, the Condensed Statement of Income and Retained Earnings and the Condensed Statement of Cash Flows, as follows (in millions):

**Condensed Balance Sheet** 

---

| | | | |
|:---|:---|:---|:---|
| **Derivatives not** | | | |
| **Designated as Hedging** | | **Assets** | **Assets** |
| **Instruments** | **Balance Sheet Location** | **2026** | 2025 |
|  Gross amount |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency swaps | Derivative assets, net | $**2807** | $3194 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest swaps | Derivative assets, net | **3011** | 3231 |
|  Net Amounts Offset in the Balance Sheet |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Instruments |  | **(4661)** | (4701) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash collateral received |  | **(133)** | (238) |
|  Net derivatives amounts presented in the Balance Sheet |  | **1024** | 1486 |
|  Securities collateral received |  | **(884)** | (1399) |
|  Net derivative exposure |  | $**140** | $87 |
| **Resale Agreements** | **Balance Sheet Location** | **2026** | **2025** |
|  Gross amount | Securities purchased under<br>resale agreements | $**700** | $500 |
|  Net Amounts Offset in the Balance Sheet |  | **—** |  |
|  Gross amounts not offset in the Balance Sheet: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Instruments |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateral Pledged | Investments - trading | **—** |  |
|  Net exposure |  | $**700** | $500 |
| **Derivatives not** |  |  |  |
| **Designated as Hedging** |  | **Liabilities** | **Liabilities** |
| **Instruments** | **Balance Sheet Location** | **2026** | **2025** |
|  Gross amount |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency swaps | Derivative liabilities, net | $**(2903)** | $(2647) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest swaps | Derivative liabilities, net | **(2517)** | (2517) |
|  Net Amounts Offset in the Balance Sheet |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Instruments |  | **4661** | 4701 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash collateral pledged |  | **—** |  |
|  Net derivatives amounts presented in the Balance Sheet |  | **(759)** | (463) |
|  Securities collateral pledged |  | **—** |  |
|  Net derivative exposure <sup>(1)</sup> |  | $**(759)** | $(463) |
| **Repurchase Agreements** | **Balance Sheet Location** | **2026** | **2025** |
|  Gross amount | Securities sold under<br>repurchase agreements | $**(99)** |  |
|  Net Amounts Offset in the Balance Sheet |  | **—** |  |
|  Gross amounts not offset in the Balance Sheet: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Instruments |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collateral Pledged | Investments - trading | **99** |  |
|  Net exposure |  | $**—** | $— |

---

(1) Represents the aggregate fair value of all derivative instruments with credit-risk related contingent features
that are in a liability position.

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    <u>Condensed Quarterly Financial Statements</u>   <u> 45 </u>

**Condensed Statement of Income and Retained Earnings** 

---

| | | | |
|:---|:---|:---|:---|
| **Derivatives not** |  | **Three months ended** | **Three months ended** |
| **Designated as** | **Location of Gain or (Loss)** | **March 31,** | **March 31,** |
| **Hedging Instruments** | **from Derivatives** | **2026** | 2025 |
|  **Currency swaps** |  |  |  |
|  | Interest on investments | $**65** | $54 |
|  | Net investments gains (losses) | **4** | (21) |
|  | Interest on developmental assets, after swaps <sup>(1)</sup> | **50** | 66 |
|  | Interest on borrowings, after swaps | **(45)** | (143) |
|  | Net fair value adjustments on non-trading |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp; portfolios and foreign currency transactions | **(797)** | (239) |
|  **Interest rate swaps** |  |  |  |
|  | Interest on investments | **15** | 53 |
|  | Net investments gains (losses) | **81** | (188) |
|  | Interest on developmental assets, after swaps <sup>(1)</sup> | **40** | 53 |
|  | Interest on borrowings, after swaps | **(140)** | (309) |
|  | Interest on other asset/liability management derivatives | **(14)** | (43) |
|  | Net fair value adjustments on non-trading |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp; portfolios and foreign currency transactions | **(378)** | 1031 |
|  **Futures** | Net investments gains (losses) | **—** | (1) |
|  Total |  | $**(1119)** | $313 |

---

**Condensed Statement of Cash Flows** 

---

| | | |
|:---|:---|:---|
|  | **Three months ended** | **Three months ended** |
|  | **March 31,** | **March 31,** |
| **Location of inflows (outflows) from Derivatives** | **2026** | 2025 |
|  **Cash flows from lending and investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous assets and liabilities, net | $**16** | $39 |
|  **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medium- and long-term borrowings |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance | **(142)** | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayments | **(139)** | (5) |
|  **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross purchase of trading investments | **(17)** | (39) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross proceeds from sale or maturity of trading investments | **80** | 127 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Developmental assets income, after swaps | **79** | 102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and other cost of borrowings, after swaps | **(188)** | (877) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from investments | **146** | 206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on other asset/liability management derivatives | **(90)** | (149) |
|  Total | $**(255)** | $(589) |

---

The following tables provide information on the contract value/notional amounts of derivative instruments as of March 31, 2026 and December 31, 2025 (in millions). Currency swaps are shown at face value and interest rate swaps are shown at the notional amount of each individual payable or receivable leg. Futures and options are shown at the notional amounts of the underlying contracts.

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<u> 46 </u>   <u>Condensed Quarterly Financial Statements</u>    

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Currency and interest rate swaps** | **Currency and interest rate swaps** | **Futures & Options** |
| **Derivative type/Rate type** | **Receivable** | **Payable** | **Underlying contract** |
|  Currency and interest rate swaps |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed | $**127804** | $**64284** | $**—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating index rate | **67272** | **130409** | **—** |
|  Futures | **—** | **—** | **174** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | December 31, 2025 | December 31, 2025 | December 31, 2025 |
|  | Currency and interest rate swaps | Currency and interest rate swaps | Futures & Options |
| Derivative type/Rate type | Receivable | Payable | Underlying contract |
|  Currency and interest rate swaps |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed | $120667 | $62403 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Floating index rate | 65522 | 123295 |  |
|  Futures |  |  | 43 |

---

The Bank enters into swaps and other over-the-counter derivatives, as well as repos, directly with trading counterparties. These derivatives are entered into under trade relationship documents based on standard forms published by the International Swaps and Derivatives Association (ISDA), in particular an ISDA Master Agreement (the ISDA Agreement).

**Close-out netting provisions** 

The close-out netting provisions of the ISDA Agreements provide for the calculation of a single lump sum amount upon the early termination of transactions following the occurrence of an event of default or termination event. Any lump sum amount calculated following the early termination of transactions payable by the non-defaulting party to the other party may be applied to reduce any amounts that the other party owes the non-defaulting party under other agreements between them. This setoff, if enforceable in the circumstances of a given early termination, effectively reduces the amount payable by the non-defaulting party under the applicable ISDA Agreements.

**Terms of collateral agreements** 

Currently, the Bank is not required to post collateral under its ISDA Agreements. Should the Bank's credit rating be downgraded from the current AAA, the standard swap agreements detail, by swap counterparty, the collateral requirements that the Bank would need to satisfy in this event. If the Bank's credit rating was downgraded by one notch from the current AAA credit rating, it would be required to post collateral in the amount of $294 million at March 31, 2026 ($69 million at December 31, 2025).

The performance of the obligations of the Bank's counterparties may be supported by collateral provided under a credit support annex to collateralize the Bank's mark-to-market exposure to its counterparties in the form of U.S. Dollars and U.S. Treasury Obligations. In certain cases, the Bank may use, invest, commingle, or re-hypothecate as its own property such collateral subject to only the obligation (i) to return such collateral and (ii) to pass on distributions with respect to any non-cash collateral.

If an event of default occurred, the Bank may exercise certain rights and remedies with respect to the collateral. These rights include (i) all rights and remedies available to a secured party; (ii) the right to set off any amounts payable by the counterparty with respect to any obligations against any collateral held by the Bank; and (iii) the right to liquidate any collateral held by the Bank.

The Bank classifies the cash collateral received under Cash flows from financing activities in the Condensed Statement of Cash Flows as this collateral primarily relates to interest rate and foreign currency swaps on borrowings.

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    <u>Condensed Quarterly Financial Statements</u>   <u> 47 </u>

**NOTE J – FAIR VALUE MEASUREMENTS** 

The GAAP framework for measuring fair value establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are as follows:

---

| | |
|:---|:---|
| Level 1 - | Unadjusted quoted prices for identical assets or liabilities in active markets; |
| Level 2 - | Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or pricing models for which all significant inputs are observable, either directly or indirectly, for substantially the full term of the asset or liability; |
| Level 3 - | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. |

---

The Bank's investment instruments valued based on quoted market prices in active markets, a valuation technique consistent with the market approach, may include obligations of the United States and certain other sovereign governments. Such instruments are classified within Level 1 of the fair value hierarchy.

Substantially all other Bank investment instruments are valued based on quoted prices in markets that are not active, external pricing services, where available, solicited broker/dealer prices or prices derived from alternative pricing models, utilizing available observable market inputs and discounted cash flows. These methodologies apply to investments in obligations of governments and agencies, obligations of sub-sovereigns and supranationals, corporate bonds, asset-backed and mortgage-backed securities, bank obligations, related financial derivative instruments (primarily currency and interest rate swaps) and options. These instruments are classified within Level 2 of the fair value hierarchy and are measured at fair value using valuation techniques consistent with the market and income approaches.

The primary methodology of external pricing service providers involves a market approach that requires a predetermined activity volume of market prices to develop a composite price. The market prices utilized are provided by orderly transactions being executed in the relevant market; transactions that are not orderly and outlying market prices are filtered out in the determination of the composite price. Other external price providers utilize evaluated pricing models that vary by asset class and incorporate available market information through benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing to prepare valuations.

A small number of investment securities are also valued with prices obtained from brokers/dealers. Brokers/dealers' prices may be based on a variety of inputs ranging from observed prices to proprietary valuation models. The Bank reviews the reasonability of brokers/dealers' prices via the determination of fair value estimates from internal valuation techniques that use available observable market inputs.

Medium- and long-term borrowings elected under the fair value option, all currency and interest rate swaps and a debt security related to developmental investments under the fair value option are valued using quantitative models, including discounted cash flow models as well as more advanced option modeling techniques, when necessary, depending on the specific structures of the instruments. These models and techniques require the use of multiple market inputs including market yield curves, and/or exchange rates, interest rates, spreads, volatilities and correlations. Significant market inputs are observable during the full term of these instruments. The Bank also considers, consistent with the requirements of the framework for measuring fair value, the impact of its own creditworthiness in the valuation of its liabilities. These instruments are classified within Level 2 of the fair value hierarchy in view of the observability of the significant inputs to the models and are measured at fair value using valuation techniques consistent with the market and income approaches.

Level 3 investments are valued using Management's best estimates utilizing available information including (i) external price providers, where available, or broker/dealer prices; when less liquidity exists, a

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<u> 48 </u>   <u>Condensed Quarterly Financial Statements</u>    

quoted price is out of date or prices among brokers/dealers vary significantly, other valuation techniques may be used (i.e., a combination of the market approach and the income approach) and (ii) market yield curves of other instruments, used as a proxy for the instruments' yield curves, for borrowings and related swaps. These methodologies are valuation techniques consistent with the market and income approaches.

The following tables set forth the Bank's financial assets and liabilities that were accounted for at fair value as of March 31, 2026 and December 31, 2025, by level within the fair value hierarchy (in millions). As required by the framework for measuring fair value, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

As of March 31, 2026 and December 31, 2025, the investment portfolio includes $3 million of securities classified as Level 3. Except for fair value adjustments, there was no activity associated with Level 3 financial assets and financial liabilities for the three months ended March 31, 2026 or 2025. Also, there were no transfers between levels during the first three months of 2026 or 2025, for securities held at the end of those reporting periods.

**Financial assets:** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Assets** | **Fair Value**<br>**Measurements**<br>**March 31, 2026 <sup>(1)</sup>** |<br>**Level 1** |<br>**Level 2** |<br>**Level 3** |
|  Investments - Trading: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligations of the United States Government | $**2907** | $**2907** | $**—** | $**—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligations of non-U.S. governments | **7929** | **2363** | **5566** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligations of non-U.S. agencies | **12998** | **—** | **12998** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligations of non-U.S. sub-sovereigns | **2102** | **—** | **2102** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligations of supranationals | **3452** | **—** | **3452** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank obligations<sup>(2)</sup> | **10401** | **—** | **10401** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate securities | **2896** | **—** | **2896** | **—** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset-backed securities | **3** | **—** | **—** | **3** |
|  Total Investments - Trading | **42688** | **5270** | **37415** | **3** |
|  Currency and interest rate swaps <sup>(3)</sup> | **1157** | **—** | **1157** | **—** |
|  Developmental assets - debt securities | **36** | **—** | **36** | **—** |
|  Total | $**43881** | $**5270** | $**38608** | $**3** |

---

(1) Represents the fair value of the referred assets, including accrued interest.

(2) May include bank notes and bonds, certificates of deposit, commercial paper, and money market deposits.

(3) Excludes $133 million of cash collateral received that was netted in Derivative assets, net, in the
Condensed Balance Sheet.

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##### [**Table of Contents**](#toc)
    <u>Condensed Quarterly Financial Statements</u>   <u> 49 </u>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair Value | | | |
|  | Measurements | | | |
| Assets | December 31, 2025 <sup>(1)</sup> | Level 1 | Level 2 | Level 3 |
|  Investments - Trading: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligations of the United States Government | $2085 | $1609 | $476 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligations of non-U.S. governments | 7417 | 3069 | 4348 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligations of non-U.S. agencies | 10540 |  | 10540 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligations of non-U.S. sub-sovereigns | 1960 |  | 1960 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Obligations of supranationals | 3402 |  | 3402 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank obligations<sup>(2)</sup> | 9556 |  | 9556 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate securities | 1896 |  | 1896 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset-backed securities | 3 |  |  | 3 |
|  Total Investments - Trading | 36859 | 4678 | 32178 | 3 |
|  Currency and interest rate swaps <sup>(3)</sup> | 1724 |  | 1724 |  |
|  Developmental assets - debt securities | 38 |  | 38 |  |
|  Total | $38621 | $4678 | $33940 | $3 |

---

(1) Represents the fair value of the referred assets, including their accrued interest.

(2) May include bank notes and bonds, certificates of deposit, commercial paper, and money market deposits.

(3) Excludes $238 million of cash collateral received that was netted in Derivative assets, net, in the
Condensed Balance Sheet.

**Financial liabilities:** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Liabilities** | **Fair Value**<br>**Measurements**<br>**March 31, 2026 <sup>(1)</sup>** |<br>**Level 1** |<br>**Level 2** |<br>**Level 3** |
|  Borrowings measured at fair value | $**92285** | $**—** | $**92285** | $**—** |
|  Currency and interest rate swaps | **759** | **—** | **759** | **—** |
|  Total | $**93044** | $**—** | $**93044** | $**—** |

---

(1) Represents the fair value of the referred liabilities, including accrued interest.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair Value | | | |
|  | Measurements | | | |
| Liabilities | December 31, 2025 <sup>(1)</sup> | Level 1 | Level 2 | Level 3 |
|  Borrowings measured at fair value | $87804 | $— | $87804 | $— |
|  Currency and interest rate swaps | 463 |  | 463 |  |
|  Total | $88267 | $— | $88267 | $— |

---

(1) Represents the fair value of the referred liabilities, including their accrued interest.

The Bank accounts for its loans and certain borrowings at amortized cost with their corresponding fair value disclosures included in Note K – Fair Value of Financial Instruments.

**NOTE K – FAIR VALUE OF FINANCIAL INSTRUMENTS** 

The following methods and assumptions were used by the Bank in measuring the fair value for its financial instruments, as also discussed in Note J – Fair Value Measurements:

**Cash** 

The carrying amount reported on the Condensed Balance Sheet for cash approximates fair value.

**Repurchase and resale agreements** 

Repurchase and resale agreements are carried at face value, which approximates fair value due to their short-term nature and minimal credit risk.

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<u> 50 </u>   <u>Condensed Quarterly Financial Statements</u>    

**Investments*:*** 

Fair values for investment securities are based on quoted prices, where available; otherwise, they are based on external pricing services, independent dealer prices, or discounted cash flow models.

**Loans and guarantees:** 

The fair value of the Bank's loan portfolio is estimated using a discounted cash flow method.

**Debt securities:** 

The fair values of debt securities are estimated using a discounted cash flow method.

**Swaps:** 

Fair values for interest rate and currency swaps are based on discounted cash flow or pricing models.

**Borrowings:** 

The fair values of borrowings are based on discounted cash flow or pricing models.

The following table presents the fair value of the financial instruments, along with the respective carrying amounts, as of March 31, 2026 and December 31, 2025 (in millions):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026 <sup>(1)</sup>** | **March 31, 2026 <sup>(1)</sup>** | December 31, 2025 <sup>(1)</sup> | December 31, 2025 <sup>(1)</sup> |
|  | **Carrying<br>Value** | **Fair**<br>**Value** | Carrying<br>Value | Fair Value |
|  Cash | $**374** | $**374** | $778 | $778 |
|  Investments - Trading <sup>(2)</sup> | **42688** | **42688** | 36859 | 36859 |
|  Securities purchased under resale agreements | **700** | **700** | 500 | 500 |
|  Developmental Assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans outstanding, net <sup>(3), (5)</sup> | **118482** | **118881** | 118219 | 118236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Measured at fair value | **36** | **36** | 38 | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Measured at amortized cost, net <sup>(3), (5)</sup> | **432** | **442** | 435 | 442 |
|  Derivative assets, net | **1024** | **1024** | 1486 | 1486 |
|  Other assets <sup>(4), (5)</sup> | **771** | **691** | 762 | 687 |
|  Borrowings |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term | **1655** | **1655** | 1594 | 1594 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medium- and long-term: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Measured at fair value | **92285** | **92285** | 87804 | 87804 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Measured at amortized cost <sup>(5)</sup> | **27421** | **27165** | 27903 | 27669 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities sold under repurchase agreements and payable for cash collateral received | **99** | **99** |  |  |
|  Derivative liabilities, net | **759** | **759** | 463 | 463 |
|  Other liabilities <sup>(4), (5)</sup> | **771** | **691** | 762 | 687 |

---

(1) Includes accrued interest.

(2) Includes money market securities that were valued based on the nominal value, which approximates fair value.

(3) Includes Accrued interest and other charges.

(4) Amounts are related to EEA guarantees received and given, and the non-contingent liability for the obligation under the SG and NSG guarantees.

(5) Fair value of Loans, EEA guarantees received and given, and the non-contingent liability for the obligation under the SG and NSG guarantees are classified within Level 3 of the fair value hierarchy. Debt securities and fair value of Borrowings at amortized cost are
classified within Level 2 of the fair value hierarchy.

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    <u>Condensed Quarterly Financial Statements</u>   <u> 51 </u>

**NOTE L – NET FAIR VALUE ADJUSTMENTS ON NON-TRADING PORTFOLIOS AND FOREIGN CURRENCY TRANSACTIONS** 

Net fair value adjustments on non-trading portfolios and foreign currency transactions gains and losses for the three months ended on March 31, 2026 and 2025 comprise the following (in millions):

---

| | | |
|:---|:---|:---|
|  | **Three months ended March 31,** | **Three months ended March 31,** |
|  | **2026** | 2025 |
|  Fair value adjustment gains (losses): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | $**647** | $(1049) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate and foreign currency swaps on borrowings | **(666)** | 1097 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate and foreign currency swaps on loans funded through borrowings | **(94)** | (185) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate swaps on loans funded through equity | **(102)** | 256 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value adjustment gains (losses) | $**(215)** | $119 |
|  Foreign currency transaction gains (losses): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | $**215** | $(477) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate and foreign currency swaps on borrowings | **(273)** | 391 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate and foreign currency swaps on loans funded through borrowings | **(54)** | (564) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans | **74** | 617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other <sup>(1)</sup> | **30** | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transaction gains (losses) | **(8)** | 15 |
|  Total | $**(223)** | $134 |

---

(1) Includes foreign currency transaction gains (losses) from debt securities amounting to $14 million in 2026
(2025 – $29 million).

Net fair value adjustments are mainly a result of the different accounting treatment between loans, which are carried at amortized cost, and the Interest rate and foreign currency swaps on loans, which are carried at fair value. Changes in the fair value of the Interest rate and foreign currency swaps on loans are reflected in earnings, while the changes in the fair value of loans are not as they are carried at amortized cost. In contrast, changes in the fair value of borrowings largely offset the changes in interest rate and foreign currency swaps on borrowings, as the majority of borrowings are carried at fair value. The Bank had net fair value loss on non-trading portfolios and foreign currency transactions of $223 million for the three months ended March 31, 2026, compared to $134 million gain for the same period in 2025. Unrealized gains or losses in the net fair value adjustments on non-trading portfolios gradually tend to zero as the related financial instrument's maturity approaches and their fair values converge with their amortized costs.

The Bank transacts in multiple currencies. However, assets and liabilities, after swaps, are substantially held in United States dollars. The Bank seeks to minimize exchange rate risk by matching the currencies of its liabilities with those of its assets and by maintaining substantially all its equity in United States dollars. Accordingly, exchange rate fluctuations have a minimum impact on earnings.

**NOTE M – BOARD OF GOVERNORS APPROVED INCOME TRANSFERS** 

The IDB Grant Facility (GRF) is currently funded by income transfers from the Bank's Ordinary Capital to make grants in specific countries or with respect to specific projects.

Income transfers are recognized as an expense when approved by the Board of Governors and are funded in accordance with the GRF funding requirements. The undisbursed portion of approved transfers is presented under Due to IDB Grant Facility on the Condensed Balance Sheet.

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<u> 52 </u>   <u>Condensed Quarterly Financial Statements</u>    

Ordinary Capital income transfers to the GRF are subject to the requirements of the Agreement and other applicable financial policies, and they will be considered based on actual disbursements and fund balance of the GRF. In March 2026, the Board of Governors approved income transfers from the Bank to the GRF amounting to $199 million (2025 - $164 million).

**NOTE N – CAPITAL STOCK** 

There were no changes in subscribed capital during the three months ended March 31, 2026 and the year ended December 31, 2025.

**NOTE O – RECEIVABLE FROM MEMBERS** 

Receivable from members includes non-negotiable, non-interest-bearing demand notes that have been accepted in lieu of the immediate payment of all or any part of a member's contribution quotas, non-negotiable, non-interest-bearing term notes received in payment of Maintenance of Value (MOV) obligations, and other MOV obligations.

The composition of the net receivable from members as of March 31, 2026 and December 31, 2025, was as follows (in millions):

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | December 31, 2025 |
|  Regional developing members | $**702** | $702 |
|  Canada | **56** | 54 |
|  Non-regional members, net | **57** | 56 |
|  Total receivable from members | $**815** | $812 |

---

**NOTE P – PENSION AND POSTRETIREMENT BENEFIT PLANS** 

The Bank has three defined benefit retirement plans (Plans) for providing pension benefits to employees of the Bank and IDB Invest: the Staff Retirement Plan and the Complementary Staff Retirement Plan for international employees of the Bank and IDB Invest, and the Local Retirement Plan for national IDB employees in the country offices. The Bank also provides health care and certain other benefits to retired staff under the Postretirement Benefits Plan (PRBP).

**Contributions** 

All contributions are made in cash during the fourth quarter of the year. As of March 31, 2026, the estimate of contributions expected to be paid to the Plans and the PRBP for the year 2026 is $68 million and $32 million, respectively. Contributions for 2025 were $68 million and $33 million, respectively.

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    <u>Condensed Quarterly Financial Statements</u>   <u> 53 </u>

**Periodic benefit cost** 

The following tables summarize the benefit costs associated with the Plans and the PRBP for the three months ended March 31, 2026 and 2025 (in millions):

---

| | | |
|:---|:---|:---|
|  | **Pension Benefits** | **Pension Benefits** |
|  | **Three months ended<br>March 31,** | **Three months ended<br>March 31,** |
|  | **2026** | 2025 |
|  Service cost <sup>(1)</sup> | $**21** | $20 |
|  Interest cost | **65** | 62 |
|  Expected return on plan assets <sup>(2)</sup> | **(90)** | (87) |
|  Amortization of net actuarial losses | **(3)** | (7) |
|  Net periodic benefit cost | $**(7)** | $(12) |

---

(1) Included in Administrative expenses.

(2) The expected return of plan assets is 6.50% in 2026 and 2025.

---

| | | |
|:---|:---|:---|
|  | **Postretirement Benefits** | **Postretirement Benefits** |
|  | **Three months ended<br>March 31,** | **Three months ended<br>March 31,** |
|  | **2026** | 2025 |
|  Service cost <sup>(1)</sup> | $**10** | $8 |
|  Interest cost | **30** | 24 |
|  Expected return on plan assets <sup>(2)</sup> | **(41)** | (39) |
|  Amortization of prior service credit |  | (8) |
|  Net periodic benefit cost | $**(1)** | $(15) |

---

(1) Included in Administrative expenses.

(2) The expected return of plan assets is 6.50% in 2026 and 2025.

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<u> 54 </u>   <u>Condensed Quarterly Financial Statements</u>    

**NOTE Q – RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES** 

A reconciliation of Net income to Net cash provided by (used in) operating activities, as shown on the Condensed Statement of Cash Flows, is as follows (in millions):

---

| | | |
|:---|:---|:---|
|  | **Three months ended March 31,** | **Three months ended March 31,** |
|  | **2026** | 2025 |
|  Net income (loss) | $**(65)** | $368 |
|  Difference between amounts accrued and amounts paid or collected for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Developmental assets income | **(21)** | (72) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from investments | **27** | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other asset/liability management derivatives | **(76)** | (106) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income | **(10)** | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and other costs of borrowings, after swaps | **(347)** | (497) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Administrative expenses, including depreciation | **8** | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Strategic development programs | **(20)** | (14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers to the IDB Grant Facility | **170** | 156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net fair value adjustments on non-trading portfolios and foreign currency transactions | **223** | (134) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net (increase) decrease in trading investments | **(5159)** | (1565) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized (gains) losses on trading investments | **27** | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other components of net pension benefit credit | **(39)** | (55) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision (credit) for developmental assets credit losses | **18** | 17 |
|  Net cash provided by (used in) operating activities | $**(5264)** | $(1903) |
|  **Supplemental disclosure of noncash activities** |  |  |
|  Increase (decrease) resulting from exchange rate fluctuations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading investments | $**7** | $17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans outstanding | **21** | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities | **14** | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings | **58** | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from members, net | **4** | (4) |

---

**NOTE R – SEGMENT REPORTING AND CONCENTRATIONS** 

Management has determined that the Bank has only one reportable segment since the Bank does not manage its operations by allocating resources based on a determination of the contributions to net income of individual operations. The Bank primarily earns income from one operating and reportable segment, its development financing activities. The Bank does not differentiate between the nature of its development financing products or services provided, the preparation process, or the method for providing the services among individual countries.

The Bank's Chief Operating Decision Maker (CODM) is the President. The CODM uses Operating income and Net income to assess the Bank's financial performance and allocate resources through the annual administrative budget and financial planning processes. The measure of segment assets is reported as total assets on the Balance sheets. As of March 31, 2026, total assets were $166,485 million (December 31, 2025- $160,961 million).

The Bank does not have any intra-entity sales or transfers.

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    <u>Condensed Quarterly Financial Statements</u>   <u> 55 </u>

The following table (in millions) illustrates information about segment income, significant segment expenses, and segment operating profit or loss for the three months ended March 31, 2026 and 2025:

---

| | | |
|:---|:---|:---|
|  | **Three months ended March 31,** | **Three months ended March 31,** |
|  | **2026** | 2025 |
|  **Net interest income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | $**1763** | $1865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowing expenses | **(1236)** | (1381) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest income | **527** | 484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Provision) credit for developmental assets credit losses | **(18)** | (17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-interest income <sup>(1)</sup> | **50** | 96 |
|  | **559** | 563 |
|  **Non interest expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Staff costs <sup>(2)</sup> | **(150)** | (132) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other segment expenses <sup>(3)</sup> | **(91)** | (88) |
|  | **(241)** | (220) |
|  **Operating Income** | **318** | 343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net fair value adjustments on non-trading portfolios and foreign currency transactions <sup>(3)</sup> | **(223)** | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other components of net pension benefit (cost) credit | **39** | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Board of Governors approved transfers <sup>(3)</sup> | **(199)** | (164) |
|  **Net Income** | $**(65)** | $368 |

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(1) Non-interest income includes net investment gains (losses), Other loan
income, and Other income.

(2) Includes pension service cost amounting to $31 million (2025 - $28 million)

(3) Other segment expenses include consultant fees, operational travel, other administrative expenses, and
strategic development programs expenses.

(4) Income volatility resulting from the fair value adjustment on non-trading financial instruments and income transfers to IDB Grant Facility are components included in the net income measure used by the CODM to assess the Bank's financial performance and allocate
resources.

For the three months ended March 31, 2026 and 2025, loans made to or guaranteed by countries individually generated in excess of 10% of loan income, before swaps, as follows (in millions):

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| | | |
|:---|:---|:---|
|  | **Three months ended March 31,** | **Three months ended March 31,** |
|  | **2026** | 2025 |
|  Argentina | $**233** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;232 |
|  Brazil | **226** | 236 |
|  Other countries | **834** | 901 |

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**NOTE S – CONTINGENCIES** 

In the normal course of its business, the Bank is from time to time named as a defendant or co-defendant in various legal actions on different grounds in various jurisdictions. Although there can be no assurances, based on the information currently available, Management does not believe the outcome of any of the various existing legal actions will have a material adverse effect on its financial position, results of operations or cash flows.

The macroeconomic performance and credit ratings of IDB's borrowing member countries are affected by factors such as geopolitical risks and shifts in monetary and fiscal policies. Such uncertainties may impact the fair value of the Bank's investments and the credit worthiness of the Bank's borrowers. The Bank has capital buffers in place to absorb additional stress and credit rating downgrades.

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<u> 56 </u>   <u>Condensed Quarterly Financial Statements</u>    

**NOTE T – RELATED PARTY TRANSACTIONS** 

In 2016, the transfer of operational and administrative functions and non-financial resources associated with NSG activities from the Bank to IDB Invest became effective. NSG activities were originated by IDB Invest and co-financed by the Bank and IDB Invest until December 31, 2022. The Bank no longer co-finances private sector projects with IDB Invest. However, the Bank continues to outsource portfolio management activities of its NSG developmental assets to IDB Invest.

The Bank and IDB Invest entered into one-year, renewable service level agreements for certain administrative and overhead services that mainly include human resources and information technology support provided by the Bank, as well as loan origination, execution and monitoring services provided to the Bank. The total fees for the services provided by the Bank to IDB Invest, and those provided by IDB Invest to the Bank are $7 million and $5 million, respectively, for the three month period ended March 31, 2026 (2025 - $5 million and $6 million, respectively).

In March 2024, the Board of Governors and the Donors Committee of Multilateral Investment Fund (MIF) approved a capitalization plan for MIF in connection with the third replenishment of the MIF (MIF IV). This plan includes the distribution of IDB capital to applicable IDB shareholders and the subsequent transfer of such distributions, on behalf of those shareholders, to the MIF. Distributions and transfers of IDB capital on behalf of applicable donors are capped at $200 million or as directed by the shareholder and are expected to be disbursed to the MIF in annual installments over a seven-year period from 2026 through 2032. These capital distributions were conditional upon annual Board of Governors' approval, which took into account the continued maintenance of the Bank's Triple-A long term foreign currency credit rating, the Capital Adequacy Policy (CAP), the preservation of the sovereign-guaranteed lending envelope consistent with IDB-9, and the construction of the buffers in accordance with the CAP, as well as other applicable financial policies of the Bank.

In March 2026, the Board of Governors approved the first of seven installments in the amount of $29 million to the shareholders of the Bank for a concurrent capital contribution to the MIF on behalf of the Bank's shareholders, that was recorded as Distributions on behalf of shareholders in the Condensed Statement of Income and Retained Earnings.

The Bank charges fees for the administration of the MIF, funds held in trust and managed on behalf of donors, such as member countries, other international organizations, and other entities, for purposes consistent with the Bank's objectives of promoting economic and social development in its regional developing members. These funds are mainly used to co-finance the Bank's lending projects, to provide grants, and to fund technical assistance activities, including project preparation and training. These fees are reported as Other income and are recognized ratably over time as services are provided, or upfront when contributions from donors are received. The total fees for the services provided by the Bank for the funds held in trust and managed on behalf of donors and for the administration of the MIF are $4 million and $2 million, respectively, for the three month period ended March 31, 2026 (2025 - $3 million and $1 million, respectively).

The Bank received deposits from central banks and official institutions in the Bank's member countries totaling $501 million as of March 31, 2026 (December 31, 2025 - $503 million) with maturities of up to 30 days.

The Bank has entered into various guarantee agreements with Sweden, Norway and Denmark, three member countries that each act as a guarantor. The guarantor provides coverage up to a specified guarantee ceiling for eligible lending exposure to guaranteed countries. These agreements allow the Bank to increase lending support for eligible countries. During the term of the guarantee, if sovereign-guaranteed loans made to or guaranteed by a guaranteed country are classified in nonaccrual status (i.e., payment arrears for more than 180 days), the guarantor will compensate the Bank for the loan outstanding principal in nonaccrual status, up to the guarantee ceiling.

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    <u>Condensed Quarterly Financial Statements</u>   <u> 57 </u>

At the end of the nonaccrual event, the Bank will reimburse the guarantor for any principal that is recovered with respect to the nonaccrual event. Details of these agreements are as follows (in millions):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | **Guaranteed Exposure as of** | **Guaranteed Exposure as of** |
| **Year<br>Signed** | <br>**Guarantors** | <br>**Guarantee Ceiling<br>and Guaranteed<br>Country** | <br>**Increased Lending<br>Support and Eligible<br>Countries** | <br>**Term** | **March 31,<br>2026** | **December 31,<br>2025** |
| 2020 | Sweden (through the Swedish International Development Cooperation Agency) | Up to $100 million of eligible lending exposure to Brazil | Up to $300 million for new projects in Bolivia, Colombia, and/or Guatemala | 10 years | $83 | $83 |
| 2024 | Sweden (through the Swedish International Development Cooperation Agency) | Up to $250 million of eligible lending exposure to Brazil, Argentina and Ecuador | Up to $469 million for new projects in Bolivia, Brazil, Colombia, Ecuador, Guyana, Peru, Suriname, and/or Venezuela <sup>(1)</sup> | 22 years | 115 | 107 |
| 2025 | Sweden (through the Swedish International Development Cooperation Agency), Norway (through the Norwegian Agency for Development Cooperation), and Denmark (through Impact Fund Denmark) | Up to $200 million <sup>(2)</sup> of eligible sovereign-guaranteed lending exposure to Brazil, Argentina, and Ecuador | Up to $780 million for new projects in Bolivia, Brazil, Colombia, Ecuador, Guyana, Peru, Suriname, Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, and/or the Dominican Republic | 22 years |  |  |

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(1) Refer to the "Past Due, Nonaccrual and Individually Assessed Loans" section in Note F –
Credit Risk from Developmental Assets and Related Off-Balance-Sheet Exposures

(2) This amount represents the aggregate guarantee ceiling under three separate, substantially similar guarantees.
Sweden and Norway each agreed to guarantee up to $50 million, and Denmark agreed to guarantee up to $100 million of eligible sovereign- guaranteed lending exposure.

There were no nonaccrual events associated with loans made or guaranteed by guaranteed countries under these agreements during the three months ended March 31, 2026 or the year ended December 31, 2025.

Other significant transactions with IDB Invest, GRF and Pension Plans are disclosed in the note to which they relate.

**NOTE U – SUBSEQUENT EVENTS** 

Management has evaluated subsequent events through May 6, 2026, which is the date the financial statements were issued. As a result of this evaluation, there are no subsequent events that require recognition or disclosure in the Bank's Condensed Quarterly Financial Statements as of March 31, 2026.