COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS ANNUAL ACCOUNTS OF THE EUROPEAN DEVELOPMENT FUND 2017
Date: 2018-06-27
Institutions: Directorate-General for Budget, European Commission
Subjects: European Development Fund, activity report, balance sheet, closing of accounts, consolidated account, implementation of the budget

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 27.6.2018 COM(2018) 519 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS ANNUAL ACCOUNTS OF THE EUROPEAN DEVELOPMENT FUND 2017  
 
 
Annual accounts of the  

European Development 

Fund 2017 

 
 
 
 
 
Annual accounts of the European Development Fund 2017 

CONTENTS 

CERTIFICATION OF THE ACCOUNTS .................................................................... 3 

IMPLEMENTING AND ACCOUNTING FOR THE EDF RESOURCES ................................ 4 

FUNDS MANAGED BY THE EUROPEAN COMMISSION .............................................. 7 

FINANCIAL STATEMENTS OF THE EDF .............................................................. 9 

NOTES TO THE FINANCIAL STATEMENTS OF THE EDF ....................................... 18 

FINANCIAL STATEMENTS OF THE EU TRUST FUNDS CONSOLIDATED IN EDF ........ 47 

ANNUAL ACCOUNTS OF THE BÊKOU EU TRUST FUND 2017 ....................... 48 

ANNUAL ACCOUNTS OF THE EUTF FOR AFRICA 2017 ................................ 56 

CONSOLIDATED FINANCIAL STATEMENTS OF THE EDF AND                               
THE EU TRUST FUNDS .................................................................................. 64 

EDF REPORT ON FINANCIAL IMPLEMENTATION ................................................ 69 

ANNUAL REPORT ON IMPLEMENTATION - FUNDS MANAGED BY THE EUROPEAN 
INVESTMENT BANK ......................................................................................... 93 

2 

 
 
 
 
Annual accounts of the European Development Fund 2017 

CERTIFICATION OF THE ACCOUNTS 

The  annual  accounts  of  the  European  Development  Fund  for  the  year  2017  have  been  prepared  in 
accordance with Title IX of the Financial Regulation of the 11th European Development Fund and with the 
accounting principles, rules and methods set out in the notes to the financial statements. 

I  acknowledge  my  responsibility  for  the  preparation  and  presentation  of  the  annual  accounts  of  the 
European  Development  Fund  in  accordance  with  Article  20  of  the  Financial  Regulation  of  the  11th 
European Development Fund. 

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

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

[signed] 

Rosa ALDEA BUSQUETS 

Accounting Officer 

June 2018

3 

 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

IMPLEMENTING AND ACCOUNTING FOR 
THE EDF RESOURCES 

1.  BACKGROUND 

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

- 
- 
- 

The EU budget; 
The European Development Fund; 
The European Investment Bank. 

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

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

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

The  Internal  Agreement  establishing  the  11th  EDF  was  signed  by  the  participating  Member  States, 
meeting  within  the  Council,  in  June  20131.  It  came  into  force  on  1  March  2015.  In  order  to  assure 
continuity  between  the  end  of  the  10th  EDF  and  the  entry  into  force  of  the  11th  EDF,  the  Commission 
proposed transitional measures, known as the Bridging Facility (BF)2. The BF is presented under the 11th 
EDF. 

At  the  same  time  the  10th  EDF  Financial  Regulation3  was  amended  and  the  new  Financial  Regulation 
applicable  to  the  transition  period  was  adopted4.  They  entered  into  force  on  30  May  2014.  On  2  March 
2015  the  Council  adopted  the  11th  EDF  Financial  Regulation5  and  the  Implementation  Rules6.  They 
entered into force on 6 March 2015. 

1 OJ L 210, 6.8.2013, p. 1. 
2  The  creation  of  the  Bridging  Facility  had  been  first  proposed  as  an  article  of  the  11th  EDF  Implementation  Regulation 
(COM(2013)445). The Commission however has proposed, as an alternative, the creation of the Bridging Facility by a specific Council 
decision  (Proposal  for  a  Council  decision  regarding  transitional  EDF  management  measures  from  1  January  2014  until  the  entry  into 
force of the 11th EDF European Development Fund, COM(2013)663). 
3 Council Regulation (EC) No 215/2008 of 18 February 2008 on the Financial Regulation applicable to the 10th EDF. OJ L 78, 19.2.2008, 
p.1. 
4 Council Regulation (EU) No 567/2014 of 26 May 2014 amending Regulation (EC) No 215/2008 on the Financial Regulation applicable 
to the 10th EDF as regards the application of the transition period between the 10th EDF and the 11th EDF until the entry into force of 
the 11th EDF Internal Agreement. OJ L 157, 27.5.2014, p. 52. 
5 Council Regulation (EU) 2015/323 of 2 March 2015 on the financial regulation applicable to the 11th European Development Fund. OJ 
L 58, 3.3.2015, p. 17–38. 
6  Council  Regulation  (EU)  2015/322  of  2  March  2015  on  the  implementation  of  the  11th  European  Development  Fund.  OJ  L  58, 
3.3.2015, p. 1–16. 

4 

 
 
                                                 
 
Annual accounts of the European Development Fund 2017 

Within  the  framework  of  the  ACP-EU  Partnership  Agreement,  the  Investment  Facility  was  established. 
This Investment Facility is managed by the EIB and is used to support private sector development in the 
ACP States by financing essentially  – but not exclusively  – private investments. The Facility is designed 
as a renewable fund, so that loan repayments can be reinvested in other operations, thus resulting in a 
self-renewing  and  financially  independent  facility.  As  the  Investment  Facility  is  not  managed  by  the 
Commission,  it  is  not  consolidated  in  the  first  part  of  the  annual  accounts  –  the  financial  statements  of 
the EDF and the related report on financial implementation.  The financial  statements of  the Investment 
Facility  are  included  as  a  separate  part  of  the  annual  accounts  (part  II)  to  provide  a  full  picture  of  the 
development aid of the EDF7. 

2.  HOW IS THE EDF FUNDED? 

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

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

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

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

3. 

YEAR-END REPORTING 

3.1.  ANNUAL ACCOUNTS 

In accordance with Article 46 of the EDF Financial Regulation, the EDF financial statements are prepared 
on the basis of accrual-based accounting rules that themselves are based on International Public Sector 
Accounting  Standards  (IPSAS).  The  accounting  rules  adopted  by  the  Accounting  Officer  of  the 
Commission are applied by all the Institutions and bodies of the EU in order to establish a uniform set of 
rules for accounting, valuation and presentation of the accounts with a view to harmonising the process 
for drawing up the financial statements and consolidation, as required by Article 152 of the EU Financial 
Regulation.  These  rules  EU  accounting  rules  are  also  applied  to  the  EDF  while  taking  into  account  the 
specific nature of its activities.  

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

The annual accounts are presented as follows: 

Part I: Funds managed by the Commission 

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

5 

 
 
                                                 
 
Annual accounts of the European Development Fund 2017 

(i)  Financial statements and explanatory notes of the EDF 

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

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

(iv)  Report on financial implementation of the EDF 

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

(i)  Financial statements of the Investment Facility 

The  part  'Financial  statements  of  the  European  trust  funds  consolidated  in  the  EDF'  includes  financial 
statements  of  the  two  trust  funds  created  under  the  EDF:  The  Bêkou  EU  Trust  Fund  (see  section 
'Financial  statements  of  the  Bêkou  EU  Trust  Fund')  and  The  EU  Trust  Fund  for  Africa  (see  section 
'Financial  statements  of  EU  Trust  Fund  for  Africa').  The  trust  funds  individual  financial  statements  are 
prepared under the responsibility of the EC Accounting Officer and subject to external audit carried out by 
a  private  auditor.  The  trust  funds'  figures  included  in  these  annual  accounts  are  final,  i.e.  after  the 
necessary audit adjustments, but the accounts have not yet been formally signed-off.  

The annual accounts must be adopted by the Commission not later than 31 July of the subsequent year 
and presented to the European Parliament and to the Council for discharge. 

4.  AUDIT AND DISCHARGE 

4.1.  AUDIT 

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

4.2.  DISCHARGE 

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

6 

 
 
Annual accounts of the European Development Fund 2017 

EUROPEAN DEVELOPMENT FUND 
FINANCIAL YEAR 2017 

FUNDS MANAGED BY THE EUROPEAN 
COMMISSION 

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

7 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

CONTENTS 

FINANCIAL STATEMENTS OF THE EDF .............................................................. 9 

EDF BALANCE SHEET ................................................................................ 10 

EDF STATEMENT OF FINANCIAL PERFORMANCE ............................................ 11 

EDF CASHFLOW STATEMENT ...................................................................... 12 

EDF STATEMENT OF CHANGES IN NET ASSETS ............................................. 13 

BALANCE SHEET BY EDF ............................................................................ 14 

STATEMENT OF FINANCIAL PERFORMANCE BY EDF ....................................... 15 

STATEMENT OF CHANGES IN NET ASSETS BY EDF ........................................ 16 

NOTES TO THE FINANCIAL STATEMENTS OF THE EDF .................................... 18 

FINANCIAL STATEMENTS OF THE EU TRUST FUNDS CONSOLIDATED IN EDF ........ 47 

ANNUAL ACCOUNTS OF THE BÊKOU EU TRUST FUND 2017 ............................... 48 

BACKGROUND INFORMATION ON THE BÊKOU EU TRUST FUND ....................... 49 

BALANCE SHEET ....................................................................................... 52 

STATEMENT OF FINANCIAL PERFORMANCE .................................................. 53 

CASHFLOW STATEMENT ............................................................................ 54 

STATEMENT OF CHANGES IN NET ASSETS ................................................... 55 

ANNUAL ACCOUNTS OF THE EUTF FOR AFRICA 2017 ........................................ 56 

BACKGROUND INFORMATION ON THE EUTF FOR AFRICA ............................... 57 

BALANCE SHEET ....................................................................................... 60 

STATEMENT OF FINANCIAL PERFORMANCE .................................................. 61 

CASHFLOW STATEMENT ............................................................................ 62 

STATEMENT OF CHANGES IN NET ASSETS ................................................... 63 

CONSOLIDATED FINANCIAL STATEMENTS OF THE EDF                                     
AND THE EU TRUST FUNDS ........................................................................... 64 

CONSOLIDATED BALANCE SHEET ............................................................... 65 

CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE ........................... 66 

CONSOLIDATED CASH FLOW STATEMENT .................................................... 67 

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS ............................ 68 

EDF REPORT ON FINANCIAL IMPLEMENTATION ................................................ 69 

8 

 
 
 
 
Annual accounts of the European Development Fund 2017 

FINANCIAL STATEMENTS OF THE EDF 

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

9 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

EDF BALANCE SHEET 

NON-CURRENT ASSETS 
Pre-financing 
Trust Fund contributions 

CURRENT ASSETS 
Pre-financing 
Exchange receivables and non-exchange recoverables 
Cash and cash equivalents  

TOTAL ASSETS 

NON-CURRENT LIABILITIES 
Provisions 
Financial liabilities 

CURRENT LIABILITIES 
Payables 
Accrued charges and deferred income 

TOTAL LIABILITIES 

NET ASSETS 

FUNDS & RESERVES 
Called fund capital - active EDFs 
Called fund capital from closed EDFs carried forward 
Called fund capital transfers between active EDFs 
Economic result carried forward from previous years 
Economic result of the year 
NET ASSETS 

Note 

31.12.2017 

31.12.2016 

 EUR millions 

2.1 
2.2 

2.1 
2.3 
2.4 

2.5 
2.6 

2.7 
2.8 

2.9 
2.9 
2.9 

 582 
 163 

 745 

1 518 
 92 
 347 

1 958 
2 703 

 (4) 
 (14) 

 (18) 

 (563) 
 (733) 

(1 296) 
(1 314) 

 409 
 98 

 507 

1 372 
 132 
 680 

2 184 
2 691 

 (4) 
 (6) 

 (10) 

 (549) 
 (776) 

(1 324) 
(1 334) 

1 389 

1 357 

46 173 
2 252 
– 
(43 219) 
(3 818) 
1 389 

42 323 
2 252 
– 
(40 146) 
(3 073) 
1 357 

10 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

EDF STATEMENT OF FINANCIAL PERFORMANCE 

REVENUE 
Revenue from non-exchange transactions 
Recovery activities 

Revenue from exchange transactions 
Financial revenue 
Other revenue 

Total Revenue 

EXPENSES 
Aid instruments 
Co-financing expenses 
Finance costs 
Other expenses 

Total Expenses 

Note 

3.1 

3.2 

3.3 
3.4 
3.6 
3.7 

2017 

EUR millions 

2016 

 61 

 61 

 4 
 22 

 25 

 87 

(3 700) 
 (42) 
 (8) 
 (154) 

(3 904) 

 8 

 8 

 3 
 62 

 66 

 73 

(2 970) 
 15 
 4 
 (196) 

(3 146) 

ECONOMIC RESULT OF THE YEAR 

(3 818) 

(3 073) 

11 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

EDF CASHFLOW STATEMENT 

Note 

2017 
 (3 818) 

EUR millions 

2016 
 (3 073) 

3 850 
 (66) 
 (319) 
 40 

 8 
 14 
 (42) 

 (333) 

 (333) 

  680 
  347 

3 450 
 (64) 
 (120) 
  39 

 (4) 
 28 
  (80) 

 177 

 177 

  504 
  680 

Economic result of the year 
Operating activities 
Capital increase – contributions (net) 
(Increase)/decrease in trust funds contributions 
(Increase)/decrease in pre-financing 
(Increase)/decrease in exchange receivables and     
non-exchange recoverables 
Increase/(decrease) in financial liabilities 
Increase/(decrease) in payables 
Increase/(decrease) in accrued charges and deferred 
income 

NET CASHFLOW 

Net increase/(decrease) in cash and cash 
equivalents 
Cash and cash equivalents at the beginning of the year 
Cash and cash equivalents at year-end 

2.4 
2.4 

12 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EDF STATEMENT OF CHANGES IN NET ASSETS 

  Annual accounts of the European Development Fund 2017 

Fund capital 
- active EDFs 
(A) 

Uncalled 
funds - 
active EDFs 
(B) 

73 464 

73 464 

 (200) 

34 590 
(3 450) 

31 140 
(4 050) 

73 264 

27 090 

Called fund 
capital - 
active EDFs 
(C) = (A)-
(B) 
38 873 
3 450 
– 
42 323 
4 050 
 (200) 
– 
46 173 

Cumulative 
Reserves (D) 

(40 146) 

(3 073) 
(43 219) 

(3 818) 
(47 037) 

Called fund 
capital from 
closed EDFs 
carried forward 
(E) 
2 252 

2 252 

2 252 

EUR millions 
Total Net Assets 
(C)+(D)+(E) 

 980 
3 450 
(3 073) 
1 357 
4 050 
 (200) 
(3 818) 
1 389 

BALANCE AS AT 31.12.2015 
Capital increase -  contributions 
Economic result of the year 
BALANCE AS AT 31.12.2016 
Capital increase - contributions 
Refund to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2017 

13 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Annual accounts of the European Development Fund 2017 

BALANCE SHEET BY EDF 

31.12.2017 

31.12.2016 

 EUR millions 

Note 

Eighth EDF 

Ninth EDF 

10th EDF 

11th EDF 

Eighth EDF 

Ninth EDF 

10th EDF 

11th EDF 

NON-CURRENT ASSETS 
Pre-financing 
Trust Fund contributions 

CURRENT ASSETS 
Pre-financing 
Exchange receivables and 
non-exchange recoverables 
Liaison accounts 
Cash and cash equivalents 

TOTAL ASSETS * 

NON-CURRENT 
LIABILITIES 
Provisions 
Financial liabilities 

CURRENT LIABILITIES 
Payables 
Liaison accounts 
Accrued charges and deferred 
income 

TOTAL LIABILITIES * 

NET ASSETS * 

FUNDS & RESERVES 
Called fund capital - active 
EDFs 
Called fund capital from 
closed EDFs carried forward 
Called fund capital transfers 
between active EDFs 
Economic result carried 
forward from previous years 
Economic result of the year 
NET ASSETS 

2.1 
2.2 

2.1 
2.3 

2.3 
2.4 

2.5 
2.6 

2.7 
2.3 
2.8 

2.9 

2.9 

2.9 

– 
– 
– 

 1 
 0 

 189 
– 
 190 
 190 

– 
– 
– 

 (0) 
– 
 (0) 

 (0) 
 (0) 

 32 
 86 
 118 

 40 
 64 

 88 
– 
 193 
 311 

– 
– 
– 

 (13) 
– 
 (76) 

 (89) 
 (89) 

 221 
– 
 221 

 867 
 17 

3 555 
– 
4 439 
4 660 

– 
 (7) 
 (7) 

 (133) 
– 
 (517) 

 (650) 
 (657) 

 330 
 77 
 407 

 610 
 11 

– 
 347 
 968 
1 375 

 (4) 
 (7) 
 (11) 

 (417) 
(3 833) 
 (140) 

(4 389) 
(4 401) 

– 
– 
– 

 1 
 1 

 196 
– 
 198 
 198 

– 
– 
– 

 (0) 
– 
 (1) 

 (1) 
 (1) 

 32 
– 
 32 

 50 
 71 

 424 
– 
 544 
 577 

– 
– 
– 

 (12) 
– 
 (93) 

 (104) 
 (104) 

 242 
– 
 242 

 909 
 59 

3 424 
– 
4 391 
4 633 

– 
 (6) 
 (6) 

 (438) 
– 
 (567) 

(1 005) 
(1 011) 

 135 
 98 
 232 

 412 
 2 

– 
 680 
1 094 
1 327 

 (4) 
– 
 (4) 

 (99) 
(4 043) 
 (115) 

(4 257) 
(4 261) 

 190 

 222 

4 003 

(3 025) 

 197 

 472 

3 622 

(2 934) 

12 164 

10 773 

20 960 

2 277 

12 164 

10 973 

19 187 

 627 

(2 503) 

1 625 

2 177 

– 

 120 

– 

 206 

 627 

(2 496) 

1 625 

2 214 

– 

 247 

– 

– 

 35 

(10 098) 

(14 339) 

(15 812) 

(2 969) 

(10 100) 

(14 248) 

(14 415) 

(1 382) 

 0 
 190 

 (13) 
 222 

(1 266) 
4 003 

(2 539) 
(3 025) 

 2 
 197 

 (91) 
 472 

(1 397) 
3 622 

(1 587) 
(2 934) 

 * From total assets, liabilities and net assets, liaison accounts should be deducted in order to reconcile them to the totals in the EDF Balance sheet 

14 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENT OF FINANCIAL PERFORMANCE BY EDF 

  Annual accounts of the European Development Fund 2017 

2017 

2016 

EUR millions 

Note 

Eighth EDF  Ninth EDF 

10th EDF 

11th EDF 

Eighth EDF 

Ninth EDF 

10th EDF 

11th EDF 

REVENUE 
Revenue from non-exchange 
transactions 
Recovery activities 

Revenue from exchange 
transactions 
Financial revenue 
Other revenue 

Total revenue 
EXPENSES 
Aid instruments 
Co-financing expenses 
Finance costs 
Other expenses 
Total expenses 

ECONOMIC RESULT OF THE 
YEAR 

3.1 

3.2 

3.3 
3.4 
3.6 
3.7 

 0 
 0 

 (0) 
 1 
 1 
 1 

 (0) 
– 
 1 
 (2) 
 (1) 

5 
 5 

(1) 
5 
 4 
 9 

 49 
 49 

 4 
 13 
 17 
 66 

 7 
 7 

 (0) 
 4 
 4 
 11 

 (14) 
– 
 1 
 (9) 
 (22) 

(1 251) 
 (42) 
 (10) 
 (29) 
(1 332) 

(2 435) 
 (1) 
 (0) 
 (114) 
(2 549) 

 1 
 1 

 (0) 
 2 
 2 
 3 

 2 
– 
 (0) 
 (3) 
 (1) 

 5 
 5 

 2 
 17 
 19 
 23 

 (2) 
 (2) 

 2 
 40 
 43 
 41 

 4 
 4 

 (1) 
 3 
 2 
 7 

 (95) 
– 
 (0) 
 (19) 
 (114) 

(1 411) 
 15 
 4 
 (46) 
(1 437) 

(1 465) 
– 
 (0) 
 (129) 
(1 594) 

 0 

 (13) 

(1 266) 

(2 539) 

 2 

 (91) 

(1 397) 

(1 587) 

15 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENT OF CHANGES IN NET ASSETS BY EDF 

  Annual accounts of the European Development Fund 2017 

Eighth EDF 

BALANCE AS AT 31.12.2015 
Transfers to/from the 10th EDF 
Transfers to/from the 11th EDF 
Economic result of the year 
BALANCE AS AT 31.12.2016 
Transfers to/from the 10th EDF 
Transfers to/from the 11th EDF 
Economic result of the year 
BALANCE AS AT 31.12.2017 

Ninth EDF 

BALANCE AS AT 31.12.2015 
Transfers to/from the 10th EDF 
Economic result of the year 
BALANCE AS AT 31.12.2016 
Refund to Member States 
Transfers to/from the 10th EDF 
Transfers to/from the 11th EDF 
Economic result of the year 
BALANCE AS AT 31.12.2017 

Fund 
capital 
- active 
EDFs 
(A) 

12 164 

12 164 

12 164 

Fund 
capital 
- active 
EDFs 
(A) 

10 973 

10 973 
 (200) 

10 773 

Uncalled 
funds - 
active EDFs 
(B) 

Called fund 
capital - 
active EDFs 
(C) = (A)-(B) 

Cumulative 
Reserves 
(D) 

Called fund 
capital from 
closed EDFs 
carried forward 
(E) 

– 

– 

– 

12 164 
– 
– 
– 
12 164 
– 
– 
– 
12 164 

(10 100) 

 627 

 2 
(10 098) 

 0 
(10 098) 

 627 

 627 

Uncalled 
funds - 
active EDFs 
(B) 

Called fund 
capital - 
active EDFs 
(C) = (A)-(B) 

Cumulative 
Reserves 
(D) 

Called fund 
capital from 
closed EDFs 
carried forward 
(E) 

(14 249) 

1 625 

 (91) 
(14 339) 

 (13) 
(14 352) 

1 625 

1 625 

– 

– 

– 

10 973 
– 
– 
10 973 
 (200) 
– 
– 
– 
10 773 

16 

Called fund 
capital 
transfers 
between 
active EDFs 
(F) 
(2 476) 
 (20) 
– 

(2 496) 
 (7) 
– 
– 
(2 503) 

Called fund 
capital 
transfers 
between 
active EDFs 
(F) 
2 376 
 (163) 

2 214 

 (37) 
– 
– 
2 177 

EUR millions 
Total Net 
Assets 
(C)+(D)+(E)
+(F) 

 214 
 (20) 
– 
 2 
 197 
 (7) 
– 
 0 
 190 

EUR millions 
Total Net 
Assets 
(C)+(D)+(E)
+(F) 

 726 
 (163) 
 (91) 
 472 
 (200) 
 (37) 
– 
 (13) 
 222 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Annual accounts of the European Development Fund 2017 

Uncalled 
funds - 
active EDFs 
(B) 

Called fund 
capital -  
active EDFs 
(C) = (A)-(B) 

Cumulative 
Reserves 
(D) 

Called fund 
capital from 
closed EDFs 
carried forward 
(E) 

15 737 
3 450 
– 

– 
– 
19 187 
1 773 
– 

– 
– 
20 960 

(14 415) 

(1 397) 
(15 812) 

(1 266) 
(17 078) 

– 

– 

– 

Fund 
capital 
- active 
EDFs 
(A) 

20 960 

5 223 
(3 450) 

20 960 

1 773 
(1 773) 

20 960 

– 

10th EDF 

BALANCE AS AT 31.12.2015 
Capital increase - contributions 
Transfers to/from the Eighth and 
Ninth EDF 
Transfers to/from the 11th EDF 
Economic result of the year 
BALANCE AS AT 31.12.2016 
Capital increase - contributions 
Transfers to/from the Eighth and 
Ninth EDF 
Transfers to/from the 11th EDF 
Economic result of the year 
BALANCE AS AT 31.12.2017 

11th EDF 

Fund 
capital 
- active 
EDFs 
(A) 

Uncalled 
funds - 
active EDFs 
(B) 

Called fund 
capital -  
active EDFs 
(C) = (A)-(B) 

Cumulative 
Reserves 
(D) 

Called fund 
capital from 
closed EDFs 
carried forward 
(E) 

BALANCE AS AT 31.12.2015 
Transfers to/from the Eighth, Ninth 
and 10th EDF 
Economic result of the year 
BALANCE AS AT 31.12.2016 
Capital increase - contributions 
Transfers to/from the Eighth, Ninth 
and 10th EDF 
Economic result of the year 
BALANCE AS AT 31.12.2017 

29 367 

29 367 

29 367 

29 367 
(2 277) 

29 367 

27 090 

(1 382) 

(1 587) 
(2 969) 

(2 539) 
(5 508) 

– 
– 

– 
– 
2 277 
– 

– 
2 277 

17 

– 
– 

– 

– 

Called fund 
capital 
transfers 
between 
active EDFs 
(F) 
 35 

 182 

 30 

 247 
– 
 44 

 (171) 
– 
 120 

Called fund 
capital 
transfers 
between 
active EDFs 
(F) 
 65 
 (30) 

– 
 35 
 171 
– 

– 
 206 

EUR millions 
Total Net 
Assets 
(C)+(D)+(E)
+(F) 

1 357 
3 450 
 182 

 30 
(1 397) 
3 622 
1 773 
 44 

 (171) 
(1 266) 
4 003 

EUR millions 
Total Net 
Assets 
(C)+(D)+(E)
+(F) 

(1 317) 
 (30) 

(1 587) 
(2 934) 
2 448 
– 

(2 539) 
(3 025) 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

NOTES TO THE FINANCIAL STATEMENTS 
OF THE EDF 

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

18 

 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

1. 

SIGNIFICANT ACCOUNTING POLICIES 

1.1.  ACCOUNTING PRINCIPLES 

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

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

1.2.  BASIS OF PREPARATION 

1.2.1.  Reporting period 

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

1.2.2.  Currency and basis for conversion 

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

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

Euro exchange rates 
Currency 
BGN 
CZK 
DKK 
GBP 
HRK 
HUF 

31.12.2017 
1.9558 
25.5350 
7.4449 
0.8872 
7.4400 
310.3300 

31.12.2016 
1.9558 
27.0210 
7.4344 
0.8562 
7.5597 
309.8300 

Currency 
PLN 
RON 
SEK 
CHF 
JPY 
USD 

31.12.2017 
4.177 
4.6585 
9.8438 
1.1702 
135.01 
1.1993 

31.12.2016 
4.4103 
4.5390 
9.5525 
1.0739 
123.4000 
1.0541 

1.2.3.  Use of estimates 

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

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

19 

 
 
Annual accounts of the European Development Fund 2017 

1.3.  BALANCE SHEET 

1.3.1. 

Financial assets 

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

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

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

(ii)  Loans and receivables 

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

(iii)  Held-to-maturity investments 

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

(iv)  Available for sale financial assets 

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

Initial recognition and measurement 

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

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

Subsequent measurement 

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

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

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

20 

 
 
Annual accounts of the European Development Fund 2017 

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

1.3.2. 

Pre-financing amounts 

Pre-financing is a payment intended to provide the beneficiary with a cash advance, i.e. a float. It may be 
split into a number of payments over a period defined in the particular contract, decision, agreement or 
basic legal act. The float or advance is either used for the purpose for which it was provided during the 
period defined in the agreement or it is repaid. If the beneficiary does not incur eligible expenditure, he 
has the obligation to return the pre-financing advance to the entity. The amount of the pre-financing may 
be reduced (wholly or partially) by the acceptance of eligible costs (which are recognised as expenses). 

Pre-financing is, on subsequent balance sheet dates, measured at the amount initially recognised on the 
balance sheet less eligible expenses (including estimated amounts where necessary) incurred during the 
period. 

1.3.3.  Receivables and recoverables 

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

Receivables  from  exchange  transactions  meet  the  definition  of  financial  instruments  and  are  thus 
classified as loans and receivables and measured accordingly (see 1.3.1 above). 

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

1.3.4.  Cash and cash equivalents 

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

1.3.5. 

Provisions 

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

1.3.6. 

Payables 

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

21 

 
 
Annual accounts of the European Development Fund 2017 

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

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

1.3.7.  Accrued and deferred revenue and charges 

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

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

1.4.  STATEMENT OF FINANCIAL PERFORMANCE 

1.4.1.  Revenue 

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

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

(i)  Revenue from non-exchange transactions 

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

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

(ii)  Revenue from exchange transactions 

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

22 

 
 
 
 
 
Annual accounts of the European Development Fund 2017 

1.4.2.  Expenses 

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

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

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

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

1.5.  CONTINGENT ASSETS AND LIABILITIES 

1.5.1.  Contingent assets  

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

1.5.2.  Contingent liabilities  

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

1.6.  CO-FINANCING 

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

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

23 

 
 
 
 
 
Annual accounts of the European Development Fund 2017 

2.  NOTES TO THE BALANCE SHEET 

ASSETS 

2.1.  PRE-FINANCING 

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

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

Non-current pre-financing 
Current pre-financing 
Total 

Note 

2.1.1 
2.1.2 

Eighth 
EDF 
– 
 1 
 1 

Ninth 
EDF 
 32 
 40 
 72 

10th 
EDF 
 221 
 867 
1 088 

11th 
EDF 
 330 
 610 
 939 

31.12.2017 

31.12.2016 

 582 
1 518 
2 100 

 409 
1 372 
1 781 

EUR millions 

The increase in overall pre-financing is explained by the very high level of payments in 2017. The overall 
level of net payments in 2017 increased by 24 % compared to 2016 (see table 2.1 in the EDF Report on 
Financial  Implementation).  The  level  of  "gross"  payments,  i.e.  payments  without  inflows  from  recovery 
orders, increased in 2017 by 25 %.  

This increase is in line with the lifecycle of the EDF. The 11th EDF started in 2015 and 2017 was thus the 
third  year  of  its  existence.  The  11th  EDF  has  reached  its  maturity  and  peak  with  regards  to  the 
implementation of adopted actions. The number of open contracts in the 11th EDF increased from 1.3k in 
2016 to 1.6k in 2017. In 2017 the value of the average contracted amount increased by 51 % compared 
to  2016.  Therefore  the  level  of  net  payments  in  the  11th  EDF  increased  in  2017  by  52  %  compared  to 
2016  (see  table  2.1  in  the  EDF  Report  on  Financial  Implementation).  As  the  ratio  between  payments 
relating to invoices and the pre-financing is stable (42 %-44 %), the increase in payments resulted in the 
higher level of pre-financing.  

The  increase  in  the  overall  pre-financing  is  in  line  with  the  decrease  in  cash  and  cash  equivalents  (see 
note 2.4). 

2.1.1.  Non-current pre-financing 

Direct Management 
Implemented by: 
Commission 
EU executive agencies 
EU delegations 

Indirect Management 
Implemented by : 

EIB and EIF 
International organisations 
Private law bodies with a public service mission 
Public law bodies 
Third countries 

Total 

24 

31.12.2017 
 159 

EUR millions 
31.12.2016 
 71 

 105 
 6 
 48 
 423 

 166 
 189 
 11 
 37 
 20 
 582 

 39 
 4 
 29 
 338 

 180 
 87 
 25 
 13 
 34 
 409 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

2.1.2.  Current pre-financing 

Pre-financing (gross) 
Cleared via cut-off 
Total 

Eighth EDF  Ninth EDF 
 158 
 (118) 
 40 

 2 
 (1) 
 1 

10th EDF 
2 722 
(1 855) 
 867 

Direct Management 
Implemented by: 
Commission 
EU executive agencies 
EU delegations 

Indirect Management 
Implemented by : 

EIB and EIF 
International organisations 
Private law bodies with a public service mission 
Public law bodies 
Third countries 

Total 

2.1.3.  Guarantees received in respect of pre-financing 

EUR millions 

11th EDF  31.12.2017  31.12.2016 
5 288 
(3 770) 
1 518 

4 745 
(3 373) 
1 372 

2 406 
(1 796) 
 610 

31.12.2017 
 256 

EUR millions 
31.12.2016 
 246 

 86 
 10 
 161 
1 262 

 345 
 563 
 59 
 108 
 186 
1 518 

 115 
 10 
 122 
1 125 

 372 
 432 
 121 
 53 
 148 
1 372 

Guarantees are held to secure pre-financing and are released when the final claim under a project is paid. 
At  31  December  2017  the  guarantees  received  by  the  EDF  in  respect  of  pre-financing  amounted  to 
EUR 54 million (2016 EUR 53 million). 

The majority of pre-financing is paid under the indirect management mode. In this case the beneficiary of 
the guarantee is not the EDF but the contracting authority. Even though the EDF is not the beneficiary, 
those guarantees secure its assets. In 2017 those guarantees amounted to EUR 577 million.  

2.2.  TRUST FUND CONTRIBUTIONS 

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

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

Trust Funds 

Africa 
Bêkou 
Total 

Net 
contribution 
at 
31.12.2016 
 72 
 26 
 98 

Contributions 
paid in 2017 

 180 
– 
 180 

Allocation of 
TF's net 
expenses  
2017 

 (104) 
 (10) 
 (114) 

EUR millions 
Net 
contribution 
at 
31.12.2017 
 148 
 16 
 163 

The  activities  of  EUTF  Africa  increased  in  2017  after  the  start-up  year  2016.  Its  expenses  in  2017 
increased almost 5 times compared to 2016. Its payments doubled compared to the previous year. 

25 

 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

2.3.  NON-EXCHANGE RECOVERABLES AND EXCHANGE 

RECEIVABLES 

Recoverables from non-exchange transactions 
Receivables from exchange transactions 
Total 

Note 
2.3.1 
2.3.2 

31.12.2017 
 19 
 73 
 92 

EUR millions 

31.12.2016 
 62 
 70 
 132 

2.3.1.  Recoverables from non-exchange transactions 

Member States 
Customers 
Public bodies 
Third states 
Write down 
Liaison accounts 
with EU 
institutions 
Total 

Eighth EDF 

– 
 2 
– 
 0 
 (2) 

– 

 0 

Ninth EDF 
– 
 7 
 10 
 1 
 (16) 

– 

 2 

10th EDF 
– 
 9 
 8 
 4 
 (15) 

11th EDF 
 7 
 1 
 2 
 0 
 (1) 

31.12.2017 
 7 
 19 
 20 
 6 
 (34) 

EUR millions 
31.12.2016 
 40 
 18 
 23 
 4 
 (25) 

– 

 6 

 2 

 11 

 2 

 19 

 2 

 62 

The overall decrease of the recoverables from non-exchange transactions is mainly due to a decrease in 
recoverables  from  Member  States.    At  31  December  2016  this  included  ordinary  contributions  and 
amounts  to  be  received  as  a  consequence  of  Bridging  Facility  adjustments  that  were  compensated 
against Member States contributions in 2017. 

At  31  December  2017  Member  States'  recoverables  include  the  outstanding  financial  adjustment 
implemented against the first instalment of fund capital to be called in 2018 (see note 2.9.1). 

Member States 
Czech Republic 
Romania 
Hungary 
Ireland 
Greece 
Other 
Total 

EUR millions 
31.12.2017 
 2 
 1 
 1 
 1 
 1 
 1 
7 

2.3.2.  Receivables from exchange transactions 

Accrued income 
Liaison accounts 
between EDFs 
Total 

Eighth EDF 

– 

 189 

 189 

Ninth EDF 
 63 

10th EDF 
 11 

11th EDF 
– 

31.12.2017 
 74 

EUR millions 
31.12.2016 
 70 

 88 

 151 

3 555 

(3 833) 

3 566 

(3 833) 

 (0) 

 73 

 (0) 

 70 

Included  under  accrued  income  are  primarily  amounts  of  accrued  interest  on  pre-financing  related  to 
projects (EUR 63 million) and on pre-financing related to the EU-Africa Trust Fund (EUR 11 million). 

26 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

For efficiency reasons, the single treasury covering all the EDFs is allocated to the 11th EDF8; this leads 
to  operations  between  the  various  EDFs,  which  are  balanced  out  in  the  liaison  accounts  between  the 
various EDF balance sheets.  

Liaison accounts are presented only in the individual EDFs. The total of liaison accounts is nil. 

2.4.  CASH AND CASH EQUIVALENTS9 

Special accounts:  
Financial institutions of 
Member States 
Current accounts:  
Commercial banks 
Total 

Eighth 
EDF 

Ninth 
EDF 

10th 
EDF 

– 

– 
– 

– 

– 
– 

– 

– 
– 

11th 
EDF 

 105 

 242 
 347 

EUR millions 

31.12.2017 

31.12.2016 

 105 

 292 

 242 
 347 

 389 
 680 

The overall decrease in cash and cash equivalents is mainly explained by the exceptionally high level of 
payments in 2017. The overall level of net payments in 2017 increased by 24 % compared to 2016 (see 
table 2.1 in the EDF Report on Financial Implementation). The level of "gross" payments, i.e. payments 
without inflows from recovery orders, increased in 2017 by 25 %. 

This increase of payments is in line with the lifecycle of the EDF. The 11th EDF started in 2015 and 2017 
was  the  third  year  of  its  existence.  The  11th  EDF  has  reached  its  maturity  and  a  peak  in  the 
implementation of adopted actions. The number of open contracts in the 11th EDF increased from 1.3k in 
2016 to 1.6k in 2017. In 2017 the level of net payments in the 11th EDF increased by 52 % compared to 
2016 (see table 2.1 in the EDF Report on Financial Implementation). 

With  the  aim  of  improving  the  presentation  in  the  2017  annual  accounts,  the  classification  of  financial 
institutions and banks has been reviewed. The comparative figures for 2016 are disclosed accordingly.  

LIABILITIES 

2.5.  PROVISIONS 

Provisions 
Total 

Eighth 
EDF 
– 
– 

Ninth 
EDF 
– 
– 

10th 
EDF 
– 
– 

11th 
EDF 
 4 
 4 

EUR millions 

31.12.2017 

31.12.2016 

 4 
 4 

 4 
 4 

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

The  amount  includes  court  cases  (EUR  1.2  million)  raised  against  the  CDE  and  the  remaining  expected 
cost of the passive phase (e.g. residual administrative tasks, other residual litigations, archive, etc.) that 
started  on  31  December  2016  (see  note  4.2.2).  No  expenses  regarding  the  passive  phase  have  been 
incurred so far. 

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

9  In  accordance  with  Article  59  of  the  Financial  Regulation  applicable  to  the  11th  European  Development  Fund,  the  treasury  is 
presented  in  the  balance  sheet  of  the  11th  EDF.  The  nature  of  the  various  bank  accounts  is  outlined  in  chapter  5,  Financial  Risk 
Management. 

27 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
Annual accounts of the European Development Fund 2017 

2.6.  FINANCIAL LIABILITIES 

Co-financing - payables 
Total 

– 
– 

– 
– 

Eighth EDF  Ninth EDF 

10th EDF 
 7 
 7 

11th EDF  31.12.2017  31.12.2016 

 7 
 7 

 14 
 14 

 6 
 6 

EUR millions 

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

2.7.  PAYABLES 

Current payables 
Sundry payables 
Total 

Note 

2.7.1 
2.7.2 

Eighth 
EDF 

 0 
– 
 0 

Ninth 
EDF 
 13 
 (0) 
 13 

10th 
EDF 
 114 
 20 
 133 

11th 
EDF 
 235 
 182 
 417 

31.12.2017 

31.12.2016 

 361 
 202 
 563 

 222 
 327 
 549 

EUR millions 

2.7.1. 

 Current payables 

Suppliers 
Member States 
Third states 
Public bodies 
Other current payables 
Total 

Eighth 
EDF 
 0 
– 
 0 
– 
 0 
 0 

Ninth 
EDF 
 9 
– 
 (0) 
 3 
 1 
 13 

10th 
EDF 
 85 
 0 
 15 
 10 
 4 
 114 

11th 
EDF 
 40 
 12 
 131 
 70 
 (18) 
 235 

EUR millions 

31.12.2017 

31.12.2016 

 133 
 12 
 146 
 83 
 (13) 
 361 

 98 
 0 
 91 
 32 
 1 
 222 

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

Member  States  payables  represent  the  outstanding  financial  adjustment  to  be  deducted  from  the  first 
instalment of fund capital to be called in 2018 (see note 2.9.1). This heading includes the amounts due 
to France (EUR 10 million), the Netherlands (EUR 1 million) and Austria (EUR 1 million). 

2.7.2.  Sundry payables 

Co-financing payables 
Deferred fund capital 
contributions 
Other sundry payables 
Total 

Note 

2.7.2.1 
2.7.2.2 

Eighth 
EDF 

– 
– 

– 
– 

Ninth 
EDF 
– 
– 

– 
– 

10th 
EDF 
 22 
– 

– 
 22 

11th 
EDF 
 6 
 173 

 1 
 179 

EUR millions 

31.12.2017 

31.12.2016 

 28 
 173 

 1 
 202 

 64 
 261 

 2 
 327 

28 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

2.7.2.1.  Co-financing payables 

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

Eighth EDF  Ninth EDF 

10th EDF 

11th EDF  31.12.2017  31.12.2016 

EUR millions 

Non-current co-
financing 
Belgium 
Denmark 
France 
Germany 
Sweden 
United Kingdom 
Canada 
Australia 
USAID 

Current co-
financing 
Belgium 
Denmark 
France 
Germany 
Netherlands 
Spain 
Sweden 
United Kingdom 
Canada 
USAID 

Total 

– 
– 
– 
– 
– 
– 
– 
– 
– 
– 

– 
– 
– 
– 
– 
– 
– 
– 
– 
– 
– 
– 

– 
– 
– 
– 
– 
– 
– 
– 
– 
– 

– 
– 
– 
– 
– 
– 
– 
– 
– 
– 
– 
– 

 0 
– 
 4 
– 
 1 
 1 
– 
 0 
– 
 7 

 4 
 (1) 
 12 
 0 
 0 
 1 
 5 
 1 
 0 
– 
 22 
 29 

 1 
 0 
– 
– 
 2 
– 
– 
– 
 4 
 7 

 (1) 
 1 
– 
– 
– 
– 
 0 
 3 
– 
 2 
 6 
 13 

 2 
 0 
 4 
– 
 3 
 1 
– 
 0 
 4 
 14 

 3 
 (0) 
 12 
 0 
 0 
 1 
 5 
 4 
 0 
 2 
 28 
 42 

 2 
 0 
– 
 0 
 2 
 1 
 0 
– 
– 
 6 

 4 
 1 
 37 
 1 
 1 
 3 
 7 
 11 
 0 
– 
 64 
 70 

The  total  non-current  and  current  co-financing  payables  decreased  by  EUR  28  million  compared  to  the 
previous reporting period.  

During  2017,  new  co-financing  contributions  were  received  from  USAID  (EUR  7  million),  the  United 
Kingdom (EUR 5 million) and Sweden (EUR 2 million).   

The  total  co-financing  payables  were  decreased  by  EUR  42  million  in  order  to  recognise  revenue  and 
expenses related to co-financed projects (see notes 3.1.1 and 3.4).  

2.7.2.2.  Deferred fund capital contributions 

United Kingdom 
Lithuania 
Hungary 
Total 

Eighth EDF  Ninth EDF 
– 
– 
– 
– 

– 
– 
– 
– 

10th EDF 
– 
– 
– 
– 

11th EDF  31.12.2017  31.12.2016 

EUR millions 

 170 
 2 
– 
 173 

 170 
 2 
– 
 173 

 252 
– 
 9 
 261 

This heading completely relates to Member States' 2018 contributions paid in advance. 

29 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

2.8.  ACCRUED CHARGES AND DEFERRED INCOME 

Eighth EDF  Ninth EDF 
 76 

 0 

10th EDF 
 517 

Accrued charges 
Other accruals and 
deferrals 
Total 

– 

 0 

– 

 76 

11th EDF  31.12.2017  31.12.2016 

EUR millions 

 137 

 3 

– 

 517 

 140 

 730 

 3 

 733 

 770 

 6 

 776 

Accrued  charges  comprise  estimated  operating  expenses  for  on-going  or  ended  contracts  without 
validated cost claims where the 2017  eligible expenses incurred by  beneficiaries of  EDF were estimated 
using  the  best  available  information  about  the  existing  contracts.  The  portion  of  the  estimated  accrued 
charges  which  relates  to  pre-financing  paid  has  been  recorded  as  a  reduction  of  the  pre-financing 
amounts (see note 2.1). 

NET ASSETS 

2.9.  FUND CAPITAL 

2.9.1.  Called fund capital – active EDFs 

Fund capital 
Uncalled fund capital 
Called fund capital 
31.12.2016 

Fund capital 
Uncalled fund capital 
Called fund capital 
31.12.2017 

Eighth 
EDF 
12 164 
– 
12 164 

Ninth 
EDF 
10 973 
 - 
10 973 

10th 
EDF 
20 960 
(1 773) 
19 187 

11th 
EDF 
29 367 
(29 367) 
– 

EUR millions 
Total 

73 464 
(31 140) 
42 323 

12 164 
– 
12 164 

10 773 
 - 
10 773 

20 960 
 - 
20 960 

29 367 
(27 090) 
2 277 

73 264 
(27 090) 
46 173 

The  fund  capital  represents  the  total  amount  of  contributions  from  Member  States  for  the  relevant  EDF 
fund as laid down in each of the Internal Agreements. The uncalled funds represent the initial allocation 
not yet called up from Member States. 

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

By means of Council Decision (EU) 2017/120610 the Member States' contributions set out in the Internal 
Agreements of the Eighth and Ninth EDF are to be reduced accordingly for an amount of EUR 200 million 
from funds decommitted under the Eighth and the Ninth EDF. As the funds decommitted under the Eighth 
EDF have been already almost entirely transferred to the other EDFs, EUR 200 million was deducted from 
the capital of the Ninth EDF. 

Refunds  arising  from  this  reduction  have  been  compensated  against  additional  call  for  funds  under  the 
11th EDF.  It  resulted in  the financial adjustment.  The financial  adjustment  can be  implemented against 
the  third  instalment  2017  and/or  the  first  instalment  2018.  The  outstanding  financial  adjustment  has 
been disclosed either as receivables or payables from/to Member States (see notes 2.3.1 and 2.7.1) 

10 L 173/15 

30 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
Annual accounts of the European Development Fund 2017 

2.9.2.  Called and uncalled fund capital by Member State 

Contributions 10th EDF 

Austria 
Belgium 
Bulgaria 
Cyprus 
Czech Republic 
Denmark 
Estonia 
Finland 
France 
Germany 
Greece 
Hungary 
Ireland 
Italy 
Latvia 
Lithuania 
Luxemburg 
Malta 
Netherlands 
Poland 
Portugal 
Romania 
Slovakia 
Slovenia 
Spain 
Sweden 
United Kingdom 
Total 

% 

2.41 
3.53 
0.14 
0.09 
0.51 
2.00 
0.05 
1.47 
19.55 
20.50 
1.47 
0.55 
0.91 
12.86 
0.07 
0.12 
0.27 
0.03 
4.85 
1.30 
1.15 
0.37 
0.21 
0.18 
7.85 
2.74 
14.82 
100.00 

Uncalled capital 
31.12.2016 
 43 
 63 
 2 
 2 
 9 
 35 
 1 
 26 
 347 
 364 
 26 
 10 
 16 
 228 
 1 
 2 
 5 
 1 
 86 
 23 
 20 
 7 
 4 
 3 
 139 
 49 
 263 
1 773 

Capital called 
in 2017 
 (43) 
 (63) 
 (2) 
 (2) 
 (9) 
 (35) 
 (1) 
 (26) 
 (347) 
 (364) 
 (26) 
 (10) 
 (16) 
 (228) 
 (1) 
 (2) 
 (5) 
 (1) 
 (86) 
 (23) 
 (20) 
 (7) 
 (4) 
 (3) 
 (139) 
 (49) 
 (263) 
(1 773) 

EUR millions 
Uncalled capital 
31.12.2017 
– 
– 
 – 
– 
 – 
– 
– 
– 
 – 
 – 
– 
– 
 – 
 – 
 – 
– 
– 
 – 
– 
– 
– 
 – 
 – 
– 
– 
– 
 – 
 – 

31 

 
 
 
 
 
 
 
 
 
Contributions 11th EDF 

Austria 
Belgium 
Bulgaria 
Croatia 
Cyprus 
Czech Republic 
Denmark 
Estonia 
Finland 
France 
Germany 
Greece 
Hungary 
Ireland 
Italy 
Latvia 
Lithuania 
Luxemburg 
Malta 
Netherlands 
Poland 
Portugal 
Romania 
Slovakia 
Slovenia 
Spain 
Sweden 
United Kingdom 
Total 

Annual accounts of the European Development Fund 2017 

% 

2.40 
3.25 
0.22 
0.23 
0.11 
0.80 
1.98 
0.09 
1.51 
17.81 
20.58 
1.51 
0.61 
0.94 
12.53 
0.12 
0.18 
0.26 
0.04 
4.78 
2.01 
1.20 
0.72 
0.38 
0.22 
7.93 
2.94 
14.68 
100.00 

Uncalled capital 
31.12.2016 
 704 
 954 
 64 
 66 
 33 
 234 
 582 
 25 
 443 
5 231 
6 044 
 443 
 180 
 276 
3 680 
 34 
 53 
 75 
 11 
1 403 
 589 
 351 
 211 
 110 
 66 
2 330 
 863 
4 311 
29 367 

Capital called 
in 2017 
 (55) 
 (74) 
 (5) 
 (5) 
 (3) 
 (18) 
 (45) 
 (2) 
 (34) 
 (406) 
 (469) 
 (34) 
 (14) 
 (21) 
 (285) 
 (3) 
 (4) 
 (6) 
 (1) 
 (109) 
 (46) 
 (27) 
 (16) 
 (9) 
 (5) 
 (181) 
 (67) 
 (334) 
(2 277) 

EUR millions 
Uncalled capital 
31.12.2017 
 650 
 880 
 59 
 61 
 30 
 216 
 537 
 23 
 409 
4 826 
5 575 
 408 
 166 
 255 
3 394 
 31 
 49 
 69 
 10 
1 294 
 544 
 324 
 195 
 102 
 61 
2 149 
 796 
3 976 
27 090 

In 2017 EUR 1 773 million has been called from the 10th EDF and EUR 2 277 million EUR from the 11th 
EDF. At 31 December 2017 the capital of the Eighth, Ninth and 10th EDF has been called up and received 
in its entirety.    

2.9.3.  Called fund capital from closed EDFs carried forward 

Funds transferred from 
closed EDFs 

Eighth 
EDF 
 627 

Ninth 
EDF 
1 625 

10th 
EDF 
– 

11th 
EDF 
– 

31.12.2017 

31.12.2016 

2 252 

2 252 

EUR millions 

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

32 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

2.9.4.  Called fund capital transfers between active EDFs 

Balance at 31.12.2015 
Transfer of decommitted 
amounts to the 10th EDF 
performance reserve from 
previous EDFs 
Transfer of decommitted 
amounts to the 11th EDF 
performance reserve from 
previous EDFs 
Transfer from the 11th 
performance reserve to the 
African Peace Facility (10th EDF) 
Balance at 31.12.2016 
Transfer of decommitted 
amounts to the 10th EDF 
performance reserve from 
previous EDFs 
Transfer of decommitted 
amounts to the 11th EDF 
performance reserve from 
previous EDFs 
Balance at 31.12.2017 

Eighth 
EDF 
(2 476) 
 (20) 

Ninth 
EDF 
2 376 
 (163) 

10th 
EDF 
 35 
 182 

11th 
EDF 
 65 
– 

– 

– 

– 

 (356) 

 356 

– 

 386 

 (386) 

(2 496) 
 (7) 

2 214 
 (37) 

 247 
 44 

 35 
– 

– 

– 

 (171) 

 171 

(2 503) 

2 177 

 120 

 206 

EUR millions 
Total 

– 
– 

– 

– 

– 
– 

– 

– 

This heading includes the resources transferred between the active EDFs. 

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

33 

 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

3.  NOTES  TO  THE  STATEMENT  OF  FINANCIAL 

PERFORMANCE 

REVENUE 

Revenue from non-exchange transactions 
Revenue from exchange transactions 
Total 

Note 
3.1 
3.2 

2017 
 61 
 25 
 87 

EUR millions 

2016 
 8 
 66 
 73 

3.1.  REVENUE FROM NON-EXCHANGE TRANSACTIONS 

Recovery of expenses 
Recovery of STABEX funds 
Co-financing revenue 
Total 

Note 

3.1.1 

Eighth 
EDF 
 0 
– 
– 
 0 

Ninth 
EDF 
 5 
– 
– 
 5 

10th 
EDF 
 7 
– 
 42 
 49 

11th 
EDF 
 7 
 0 
 1 
 7 

EUR millions 

2017 

2016 

 19 
 0 
 42 
 61 

 23 
 1 
 (15) 
 8 

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

Direct Management 
Implemented by: 
Commission 
EU delegations 

Indirect Management 
Implemented by : 

Third countries 
International organisations 
Public law bodies 
Private law bodies with a public service mission 

Total 

3.1.1.  Co-financing revenue 

2017 
 5 

 1 
 4 
 56 

 55 
 2 
 0 
 (1) 
 61 

EUR millions 
2016 
 6 

 1 
 5 
 2 

 (0) 
 2 
 0 
 0 
 8 

The  co-financing  contributions  received  fulfil  the  criteria  of  revenues  from  non-exchange  transactions 
under  conditions  and  as  such  should  not  affect  the  statement  of  financial  performance.  The  received 
contributions  remain  under  liabilities  (see  note  2.7.2.1)  until  the  conditions  attached  to  the  donated 
funds  are  met,  i.e.  eligible  expenses  are  incurred  (see  note  3.4).  The  corresponding  amount  is  then 
recognised as non-exchange revenue from co-financing. Consequently the effect on the economic result 
of the year is nil. 

3.2.  REVENUE FROM EXCHANGE TRANSACTIONS 

Financial revenue 
Other revenue 
Total 

Eighth 
EDF 
 (0) 
 1 
 1 

Ninth 
EDF 
 (1) 
 5 
 4 

10th 
EDF 
 4 
 13 
 17 

11th EDF 

2017 

EUR millions 
2016 

 (0) 
 4 
 4 

 4 
 22 
 25 

 3 
 62 
 66 

The financial revenue comprises interest from the Trust Fund and interest on pre-financing. 

34 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

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

EXPENSES 

3.3.  AID INSTRUMENTS 

Programmable aid 
Macro-economic support 
Sectoral policy 
Intra ACP projects 
Interest rate subsidies 
Emergency aid 
Other aid programmes 
related to former EDFs 
Institutional support 
Compensation export 
receipts 
Contributions to Trust Funds 
Total 

Eighth 
EDF 
 1 
– 
 (0) 
– 
– 
– 
– 

– 
 (0) 

– 
 0 

Ninth 
EDF 
 3 
 21 
 (9) 
 0 
– 
 (1) 
 (1) 

– 
 (1) 

– 
 14 

10th 
EDF 
 805 
– 
– 
 417 
– 
 26 
– 

 3 
– 

11th 
EDF 
1 341 
– 
– 
 694 
– 
 264 
– 

 21 
– 

2017 

2 150 
 21 
 (9) 
1 112 
– 
 289 
 (1) 

 23 
 (1) 

EUR millions 
2016 

1 751 
 39 
 18 
 693 
 (3) 
 398 
 1 

 38 
 0 

– 
1 251 

 114 
2 435 

 114 
3 700 

 35 
2 970 

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

The increase in overall expenses on aid instruments is in line with the lifecycle of the EDF. The 11th EDF 
started in 2015 and 2017 was thus the third year of its existence. The 11th EDF has reached its maturity 
and  peak  with  regards  to  the  implementation  of  adopted  actions.  The  number  of  open  contracts  in  the 
11th EDF increased from 1.3k in 2016 to 1.6k in 2017. In 2017 the value of average contracted amount 
increased by 51 % compared to 2016. 

The  sectoral  policy  expenses  were  negative  in  2017  due  to  reversal  of  an  invoice  that  was  incorrectly 
recorded in 2016. 

3.4.  CO-FINANCING EXPENSES 

Co-financing 

Eighth 
EDF 
– 

Ninth 
EDF 
– 

10th 
EDF 
 42 

11th 
EDF 
 1 

2017 

EUR millions 
2016 

 42 

 (15) 

Included  under  this  heading  are  the  expenses  incurred  on  co-financing  projects  in  2017.    It  should  be 
noted  that  the  expenses  incurred  include  estimated  amounts  related  to  the  cut-off  exercise  (and 
consequently reversals of the estimated amounts related to last year). Because the reversals of the 2015 
estimated expenses (EUR 50 million) exceeded the expenses incurred in 2016 (EUR 35 million), the co-
financing expenses were negative for 2016. 

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

35 

 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

3.5.  AID INSTRUMENTS AND CO-FINANCING EXPENSES BY 

MANAGEMENT TYPE 

Direct Management 
Implemented by: 
Commission 
EU executive agencies 
Trust Funds 
EU delegations 

Indirect Management 

Implemented by: 

EIB and EIF 
International organisations 
Private law bodies with a public service mission 
Public law bodies 
Third countries 
Private law bodies implementing Public Private 
Partnership 

Total 

3.6.  FINANCE COSTS 

2017 
1 447 

 122 
 26 
 89 
1 209 
2 295 

 48 
1 171 
 (20) 
 356 
 739 
 0 

3 742 

EUR millions 
2016 
1 173 

 140 
 10 
 36 
 987 
1 781 

 5 
 821 
 143 
 57 
 756 
 (1) 

2 954 

Write-down of receivables 
Other financial expenses 
Total 

Eighth 
EDF 
 (1) 
– 
 (1) 

Ninth 
EDF 
 (1) 
– 
 (1) 

10th 
EDF 
 10 
– 
 10 

11th 
EDF 
 1 
 (1) 
 0 

2017 

 9 
 (1) 
 8 

EUR millions 
2016 

 (4) 
 0 
 (4) 

The  heading  write-down  of  receivables  comprises  the  closure  estimate  of  expenses  on  irrecoverable 
receivables.  The 2017 estimated expenses reflect the increase of the overall write down on receivables 
from EUR 25 milllion to EUR 34 million (see note 2.3.1). Because the estimate also includes reversals of 
the the previous year's estimation, the overall expenses were negative in 2016 (from EUR 29 million in 
2015 to EUR 25 million in 2016).  

3.7.  OTHER EXPENSES 

Administrative and IT 
expenses 
Provision for risks and 
charges 
Realised losses on trade 
debtors 
Exchange loses 
Total 

Eighth 
EDF 
 (0) 

Ninth 
EDF 
 0 

– 

 1 

 1 
 2 

– 

 1 

 7 
 9 

10th 
EDF 
 1 

– 

 1 

 28 
 29 

11th EDF 

2017 

EUR millions 
2016 

 106 

 107 

 129 

– 

– 

– 

 3 

 8 
 114 

 44 
 154 

– 

 0 

 66 
 196 

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

36 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

4. 

CONTINGENT  ASSETS  &  LIABILITIES  AND 
OTHER SIGNIFICANT DISCLOSURES 

4.1. 

 CONTINGENT ASSETS 

Eighth EDF  Ninth EDF 

10th EDF 

11th EDF  31.12.2017  31.12.2016 

EUR millions 

Performance 
guarantees 
Retention guarantees 
Total 

 - 

 - 
 - 

 4 

 4 
 8 

 6 

 4 
 10 

 0 

– 
 0 

 10 

 8 
 18 

 9 

 7 
 16 

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

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

For contracts managed under the indirect mode, the guarantees belong to a contracting authority other 
than  the  EDF  and  they  are  therefore  not  recorded  by  the  EDF.  In  2017  those  guarantees  amounted  to 
EUR 644 million. 

4.2.  OTHER SIGNIFICANT DISCLOSURES 

4.2.1.  Outstanding commitments not yet expensed 

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

Eighth EDF  Ninth EDF 

10th EDF 

11th EDF  31.12.2017  31.12.2016 

EUR millions 

Outstanding 
commitments not yet 
expensed 
Total 

 0 

 0 

 88 

 88 

1 659 

6 760 

8 508 

6 746 

1 659 

6 760 

8 508 

6 746 

At 31 December 2017 the budgetary RAL totalled EUR 9 745 million (2016: EUR 7 665 million). 

4.2.2.  Centre for the Development of Enterprise 

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

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

37 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

The  Curator  submitted  to  the  CDE  Executive  Board  at  the  end  of  June  2015  a  definitive  strategic  plan, 
with  a  budget  and  work-plan,  which  reflected  the  outcome  of  the  social  dialogue.  The  budget  of  the 
definitive  strategic  plan,  approved  by  the  CDE  Executive  Board,  was  the  basis  for  the  Commission's 
proposal  for  a  Financing  Decision  that  was  adopted  by  the  EC  in  2015  for  a  total  amount  of 
EUR 18.2 million.  Subsequent  to  the  adoption  of  the  above  Financing  Decision,  a  grant  agreement  was 
concluded  in  December  2015  between  the  CDE  and  the  European  Commission  providing  the  necessary 
financing for the realization of CDE's assets and settlement of its liabilities. This grant agreement started 
on 1 January 2016 and lasted until 31 December 2017.  

4.2.3. 

The United Kingdom's withdrawal from the European Union 

Background 

On  23  June  2016  a  majority  of  the  citizens  of  the  United  Kingdom  who  voted  in  the  referendum  on 
membership  of  the  European  Union  voted  to  leave  the  EU.  On  29  March  2017  the  United  Kingdom 
formally  notified the European Council  of  its intention  to leave the EU  and the European Atomic Energy 
Community (Euratom). 

With regard to the  EDF 

On  19  March  2018  the  Commission  published  a  draft  of  the  Withdrawal  Agreement  that  outlined  the 
progress made in the negotiations with the UK. 

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

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

As at 31 December 2017, there is no financial impact to be reported in the EDF financial statement. The 
negotiations  on  the  United  Kingdom's  withdrawal  from  the  European  Union  are  still  ongoing  and, 
therefore, the final form of the agreement is not confirmed at this time. 

38 

 
 
Annual accounts of the European Development Fund 2017 

5. 

FINANCIAL RISK MANAGEMENT 

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

5.1.  RISK MANAGEMENT POLICIES AND HEDGING 

ACTIVITIES 

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

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

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

  EDF contributions are paid by Member States in EUR, while the EDF's payments are denominated in 

EUR and in other currencies, including less well-known ones. 

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

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

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

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

39 

 
 
 
5.2.  CURRENCY RISK 

  Annual accounts of the European Development Fund 2017 

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

USD 

GBP 

DKK 

SEK 

EUR 

Other 

Total 

USD 

GBP 

DKK 

SEK 

EUR 

Other 

Total 

31.12.2017 

31.12.2016 

EUR millions 

Financial assets 
Receivables and 
recoverables 
Cash and cash equivalents 
Total 
Financial liabilities 
Non-current financial 
liabilities 
Payables 
Total 
Total 

 64 

 4 

 68 

– 

 (0) 

 (0) 

 68 

– 

 0 

 0 

– 

– 

– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 26 

 344 

 370 

 (14) 

 (533) 

 (547) 

 (177) 

 2 

– 

 2 

– 

 (30) 

 (30) 

 (28) 

 92 

 347 

 439 

 (14) 

 (563) 

 (577) 

 (138) 

 0 

 2 

 2 

– 

 0 

 0 

 2 

– 

 0 
 0 

– 

– 
– 

 0 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

 129 

 678 

 807 

 (6) 

 (495) 

 (501) 

 306 

 3 

– 

 3 

– 

 (54) 

 (54) 

 (51) 

 132 

 680 

 812 

 (6) 

 (549) 

 (555) 

 257 

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

40 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

5.3.  INTEREST RATE RISK 

The EDF does not borrow money and as a consequence it is not exposed to interest rate risk. 

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

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

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

5.4.  CREDIT RISK (COUNTERPARTY RISK) 

Financial assets that are neither past due nor impaired: 

Total 

 92 

 92 
 132 

 132 

Neither 
past due 
nor 
impaired 

 92 

 92 
 93 

 93 

EUR millions 

Past due but not impaired 

< 1 year 
 0 

1-5 years 
– 

> 5 years 
– 

 0 
 36 

 36 

– 
 4 

 4 

– 
– 

– 

Exchange receivables and non-
exchange recoverables 
Total at 31.12.2017 
Exchange receivables and non-
exchange recoverables 
Total at 31.12.2016 

Financial assets by risk category: 

Counterparties with external credit 
rating 
Prime and high grade 
Upper medium grade 
Lower medium grade 
Non- investment grade 
Total 
Counterparties without external credit 
rating 
Group 1 (debtors without defaults in 
the past) 
Group 2 (debtors with defaults in the 
past) 
Total 
Total 

31.12.2017 

EUR millions 

31.12.2016 

Receivables 

Cash 

Total 

Receivables 

Cash 

Total 

 3 
 0 
 3 
 1 
 7 

 86 

– 

 86 
 92 

 103 
 240 
 4 
 0 
 347 

 0 

– 

 0 
 347 

 106 
 240 
 7 
 2 
 354 

 86 

– 

 86 
 440 

 34 
 3 
 2 
 1 
 40 

 92 

– 

 284 
 371 
 16 
 9 
 680 

 0 

– 

 92 
 132 

 0 
 680 

 318 
 374 
 18 
 10 
 720 

 92 

– 

 92 
 812 

Funds  in  the  categories  non-investment  grade  and  lower  medium  grade  relate  mainly  to  Member  State 
contributions to the EDF paid to the special accounts opened by Member States in accordance with Article 
22(3) of the EDF FR. According to this regulation the amount of such contributions must remain in those 
special accounts until the payments need to be made.  

41 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

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

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

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

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

5.5.  LIQUIDITY RISK 

Maturity analysis of financial liabilities by remaining contractual maturity 

Financial liabilities 
Total at 31.12.2017 
Financial liabilities 
Total at 31.12.2016 

< 1 year 
 563 
 563 
 549 
 549 

1-5 years 
 13 
 13 
 6 
 6 

> 5 years 
 1 
 1 
– 
– 

EUR millions 
Total 
 577 
 577 
 555 
 555 

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

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

In order to ensure that treasury resources are always sufficient to cover the payments to be executed in 
any given month, information on the treasury situation is regularly exchanged between the Commission' 
treasury and the relevant spending departments in order to ensure that payments executed in any given 
period do not exceed the available treasury resources. 

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

42 

 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

6.  RELATED PARTY DISCLOSURES 

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

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

43 

 
 
Annual accounts of the European Development Fund 2017 

7. 

EVENTS AFTER THE BALANCE SHEET DATE 

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

44 

 
 
 
Annual accounts of the European Development Fund 2017 

8.  RECONCILIATION  OF  ECONOMIC  RESULT  AND 

BUDGET RESULT 

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

ECONOMIC RESULT OF THE YEAR 

Revenue 
Entitlements not affecting the budget result 
Entitlements established in current year but not yet 
collected 
Entitlements established in previous years and collected in 
current year 
Net effect of pre-financing 
Accrued revenue (net) 
Other 
Expenses 
Expenses of the current year not yet paid 
Expenses of previous years paid in the current year 
Net effect of pre-financing 
Accrued expenses (net) 

2017 
(3 818) 

EUR millions 
2016 
(3 073) 

 (7) 
 (3) 

 29 

 57 
 (62) 
 (2) 

 19 
 (60) 
 (685) 
 373 

 (2) 
 (7) 

 16 

 41 
 8 
 (5) 

 22 
 (88) 
 (459) 
 256 

BUDGET RESULT OF THE YEAR  

(4 158) 

(3 291) 

8.1.  RECONCILING ITEMS - REVENUE 

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

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

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

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

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

8.2.  RECONCILING ITEMS – EXPENDITURE 

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

45 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

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

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

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

46 

 
 
Annual accounts of the European Development Fund 2017 

FINANCIAL STATEMENTS OF THE EU 
TRUST FUNDS CONSOLIDATED IN EDF 

47 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

ANNUAL ACCOUNTS OF THE BÊKOU EU 
TRUST FUND 2017 

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

48 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

BACKGROUND INFORMATION ON THE BÊKOU EU TRUST 
FUND 

General background on Union Trust Funds 

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

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

The European  Commission  submits the draft decision  to establish an EUTF to the competent committee 
defined in the basic act governing the instrument that provides the EU's financial contribution to the new 
Trust Fund.  The consultation  of  the Committees  ensures an adequate  involvement of  the Council in  the 
establishment of any EUTF. The proposal for the revision of the Financial Regulation addresses the need 
for  greater  involvement  of  the  European  Parliament  in  the  creation  of  EUTFs  (Article  227(1))  and 
reporting on their activities (Article 244). 

After the adoption of the establishment and financing decisions, the constitutive act of the EUTF is signed 
by the European Commission and the donors. The constitutive act details the main features of the EUTF, 
such as its specific objectives, the rules for the composition and the internal rules of its board, as well as 
the duration. EUTFs are created for a limited duration, which is, together with its objectives, defined by 
the constitutive act of each trust fund. In accordance with Article 187 of the EU FR, the EUTF has specific 
governance arrangements and contributions are placed outside the EU budget.  

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

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

The  European  Parliament  and/or  the  Council  may  request  the  Commission  to  discontinue  the 
appropriations for the Trust Fund or revise the constitutive act with a view to liquidate it. 

Current EU Trust Funds 

 To date, the Commission has set up four EUTFs: 

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

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

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

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

49 

 
 
 
 
Annual accounts of the European Development Fund 2017 

Further information is available on the websites of individual EUTFs: 

Bekou -  http://ec.europa.eu/europeaid/bekou-trust-fund-introduction_en 

Madad -  http://ec.europa.eu/enlargement/neighbourhood/countries/syria/madad/index_en.htm 

Africa -  http://ec.europa.eu/europeaid/regions/africa/eu-emergency-trust-fund-africa_en 

Colombia -http://ec.europa.eu/europeaid/eu-trust-fund-colombia_en  

The Bêkou Trust Fund 

The  first  multi-donor  EU  Trust  Fund  called  Bêkou,  which means  'hope'  in  Sango,  was  established  on 15 
July  2014,  by  the  Commission  (represented  by  DGs  DEVCO  and  ECHO,  and  the  EEAS)  and  three  of  its 
Member States (Germany, France and the Netherlands), with the aim of promoting the stabilisation and 
reconstruction of the Central African Republic (CAR). It has been established for a maximum duration of 
60 months. The trust fund is managed from Brussels. 

The  Trust  Fund  Board  and  the  Operational  Committee  of  the  Bêkou  EU  Trust  Fund  are  composed  of 
representatives of the donors, of the Commission and observers.  

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

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

Annual accounts of the Bêkou Trust Fund 

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

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

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

50 

 
 
 
 
Annual accounts of the European Development Fund 2017 

Highlights of the year 

The EU launched its first ever Trust Fund, named Bêkou, in July 2014 to help the Central Africa Republic 
and  its  population  overcome  the  consequences  of  the  crisis  in  ensuring  access  to  basic  services,  in  re-
launching economic recovery and job creation, and in supporting reconciliation.  

In 2017, the Bêkou EUTF adopted its operational strategy for the period 2017-2019, which focuses on: (i) 
rural  development;  (ii)  support  to  the  health  sector;  (iii)  redeployment  of  public  services  and  (iv) 
reconciliation. Priorities have been aligned with the "Plan national de Relèvement et de Consolidation de 
la Paix" (RCPCA) and the National Indicative Programme (NIP) for the Central African Republic (signed in 
June  2017)  and  ownership  by  national  authorities  will  be  enhanced.  In  2017,  The  Bêkou  EUTF  has 
adopted actions for a total amount of EUR 52.3 million in the sectors of rural resilience and job creation, 
health,  support  to  the  return  of  internally  displaced  people  (IDPs)  and  refugees,  light  infrastructure, 
water  and  sanitation.  The  indicated  amount  covers  newly  adopted  programmes,  as  well  as  several 
revisions of already adopted actions. 

The Bêkou EUTF encompasses 15 programmes since its creation. In terms of contracts, the Bêkou EUTF 
signed  15  new  contracts  in  2017  for  a  total  amount  of  nearly  EUR  20  million,  which  contribute  to  the 
implementation  of  its  programmes  in  the  sectors  of  health,  food  security,  gender  empowerment  and 
wildlife  conservation.  Moreover,  amounts  committed  to  some  spending  areas  have  increased  to 
implement  the  adopted  programme  revisions;  in  particular,  an  increase  of  EUR  12  million  for  the 
spending area “Basic health care".  

Pledges  by  its  contributors  amounted  to  more  than  EUR  236  million  by  the  end  of  2017.  This  is  an 
increase of EUR 63 million compared to year 2016. However, EUR 56 million out of these EUR 236 million 
remain to be certified. 

Furthermore, more than EUR 18 million was paid on top of payments made during previous years; total 
disbursements have reached over EUR 61 million since the creation of Bêkou EUTF. 

In the financial statements, the most important movements can be found in: 
-  Pre-financing: a decrease of kEUR 7 912 as less contracts have an open pre-financed amount; 
-  Operating  expenses: An  increase of  kEUR  12 486  illustrating the maturity  of the Trust Fund and the 
increased  activities  in  the  fields  of  urban  development  and  basic  and  primary  health  care.

51 

 
 
Annual accounts of the European Development Fund 2017 

BALANCE SHEET 

NON-CURRENT ASSETS 
Pre-financing 

CURRENT ASSETS 
Pre-financing 
Exchange receivables and non-exchange recoverables 
Cash and cash equivalents  

TOTAL ASSETS 

NON-CURRENT LIABILITIES 
Financial liabilities 

CURRENT LIABILITIES 
Payables 
Accrued charges and deferred revenue 

TOTAL LIABILITIES 

NET ASSETS 

FUNDS & RESERVES 
Accumulated surplus 
Economic result of the year 
NET ASSETS 

31.12.2017 

31.12.2016 

 EUR '000 

  686 

  686 

 7 465 
  877 
 39 943 

 48 285 
 48 971 

 (44 720) 

 (44 720) 

  (716) 
 (3 536) 

 (4 252) 
 (48 971) 

– 

– 
– 
– 

 3 604 

 3 604 

 12 458 
 1 455 
 43 036 

 56 949 
 60 554 

 (59 339) 

 (59 339) 

  (0) 
 (1 215) 

 (1 215) 
 (60 554) 

  - 

– 
– 
– 

52 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

STATEMENT OF FINANCIAL PERFORMANCE 

REVENUE 
Revenue from non-exchange transactions 
Revenue from donations 

Revenue from exchange transactions 
Financial revenue 

Total Revenue 

EXPENSES 
Operating expenses 
Other expenses 

Total Expenses 
ECONOMIC RESULT OF THE YEAR 

2017 

EUR '000 

2016 

 29 620 
 29 620 

 17 232 
 17 232 

  1 
  1 

  48 
  48 

 29 621 

 17 280 

 (28 918) 
  (703) 

 (29 621) 
– 

 (16 432) 
  (848) 

 (17 280) 
– 

53 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

CASHFLOW STATEMENT 

Economic result of the year 
Operating activities 
(Increase)/decrease in pre-financing 
(Increase)/decrease in exchange receivables and non-
exchange recoverables 
Increase/(decrease) in financial liabilities 
Increase/(decrease) in payables 
Increase/(decrease) in accrued charges and deferred 
revenue 

NET CASHFLOW 

Net increase/(decrease) in cash and cash equivalents 
Cash and cash equivalents at the beginning of the year 
Cash and cash equivalents at year-end 

2017 
– 

7 912 
 578 

(14 620) 
 716 
2 321 

EUR '000 
2016 
– 

(6 569) 
 (91) 

(3 786) 
  0 
1 021 

(3 092) 

(9 425) 

(3 092) 
 43 036 
 39 943 

(9 425) 
 52 461 
 43 036 

54 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

STATEMENT OF CHANGES IN NET ASSETS 

Accumulated surplus/ 
(deficit) 

Economic result of 
the year 

BALANCE AS AT 31.12.2016 
Economic result of the year 
BALANCE AS AT 31.12.2017 

– 
– 
– 

– 
– 
– 

EUR '000 

Net assets 

– 
– 
– 

55 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

ANNUAL ACCOUNTS OF THE EUTF FOR 
AFRICA 2017 

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

56 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

BACKGROUND INFORMATION ON THE EUTF FOR AFRICA 

General background on Union Trust Funds 

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

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

The  European  Commission  submits  the  draft  decision  to  establish  an  EUTF  to  the  competent 
committee  defined  in  the  basic  act  governing  the  instrument  that  provides  the  EU's  financial 
contribution  to  the  new  Trust  Fund.  The  consultation  of  the  Committees  ensures  an  adequate 
involvement of the Council in the establishment of any EUTF. The proposal for the revision of the 
Financial Regulation addresses the need for greater involvement of the European Parliament in the 
creation of EUTFs (Article 227(1)) and reporting on their activities (Article 244). 

After the adoption of the establishment and financing decisions, the constitutive act of the EUTF is 
signed by the European Commission and the donors. The constitutive act details the main features 
of the EUTF, such as its specific objectives, the rules for the composition and the internal rules of 
its board, as well as the duration. EUTFs are created for a limited duration, which is, together with 
its objectives, defined by the constitutive act of each trust fund. In accordance with Article 187 of 
the  EU  FR,  the  EUTF  has  specific  governance  arrangements  and  contributions  are  placed  outside 
the EU budget.  

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

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

The  European  Parliament  and/or  the  Council  may  request  the  Commission  to  discontinue  the 
appropriations for the Trust Fund or revise the constitutive act with a view to liquidate it. 

Current EU Trust Funds 

 To date, the Commission has set up four EUTFs: 

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

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

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

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

Further information is available on the websites of individual EUTFs: 

57 

 
 
Annual accounts of the European Development Fund 2017 

Bekou -  http://ec.europa.eu/europeaid/bekou-trust-fund-introduction_en 

Madad -  http://ec.europa.eu/enlargement/neighbourhood/countries/syria/madad/index_en.htm 

Africa -  http://ec.europa.eu/europeaid/regions/africa/eu-emergency-trust-fund-africa_en 

Colombia -http://ec.europa.eu/europeaid/eu-trust-fund-colombia_en 

The EUTF for Africa 

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

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

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

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

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

Annual accounts of the EUTF for Africa 

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

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

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

58 

 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

Highlights of the year 

As  of  31  December  2017,  resources  allocated  to  the  EU  Trust  Fund  for  Africa  amount  to 
approximately  EUR  3  330  million:  over  EUR  2  900  million  from  the  European  Development  Fund 
(EDF)  and  EU  financial  instruments  including  DCI,  ENI,  HOME  and  ECHO  funding,  and  EUR  378.8 
million  from  EU  Member  States  and  other  donors  (Switzerland  and  Norway),  of  which  EUR  340.9 
million have been paid as of 31 December 2017. 

In the course of 2017, resources from the EDF and the EU budget have increased by approximately 
EUR 525 million (EUR 245 million from EDF, EUR 230 million from DCI and EUR 50 million from DG 
HOME funding) which represents an increase of almost 22 %. But, more importantly, as a result of 
the  strong  call  for  additional  funding  by  the  Commission  and  the  European  Council,  resources 
pledged by EU Member States and other donors have significantly increased in 2017 by EUR 226.4 
million (148.5 %), going from EUR 152.4 million at the end of December 2016 to EUR 378.8 million 
at  the  end  of  2017.  This  remarkable  increase  of  EU  Member  States  contributions  has  mainly 
focussed on the North of Africa region. 

As of 31 December 2017, a total of 143 projects worth EUR 2 388 million have been approved for 
the Sahel and Lake Chad, the Horn of Africa and the North of Africa regions. Of the total amount 
approved, 210 contracts have been signed with implementing partners for an amount of over EUR 
1 502 million (63 %  of  the approved funding).  In 2017,  the EUTF for  Africa focused on deploying 
activities at country and regional level to address the compelling needs of African partner countries 
while  further  translating  the  Trust  Fund’s  strategic  priorities  into  action.  During  the  year,  40  new 
programmes have been approved in the three regions, bringing the total of approved programmes 
at the end of 2017 to 143 including 3 which operate across several regions. With EUR 900 million 
contracted, the implementation pace of the EUTF for Africa has significantly improved in 2017. An 
overall amount of EUR 1.5 billion has been signed with implementing partners since the inception 
of  the  Trust  Fund.  The  Trust  Fund  for  Africa  has  further  intensified  its  efforts  aimed  at  creating 
economic  and  employment  opportunities,  notably  in  the  countries  of  origin,  and  to  develop 
sustainable  development  opportunities  in  the  countries  of  transit  encouraging  people  to  abandon 
activities linked to illegal migration. It is expected that in total over half a million people will have a 
job, receive vocational training or assistance to develop a business with the assistance of the EUTF 
for Africa. In 2017, the EUTF for Africa has offered protection and assistance to more than 13 000 
migrants  and  the  capacities  of  1  500  governmental  entities  have  been  strengthened  in  order  to 
fight against the smuggling of migrants and trafficking of human beings. 

In the financial statements, the impact of this increased activity is most visible when looking at: 
-  Pre-financing:  an  increase  of  kEUR  134  662  (+117  %).  This  is  comparable  with  the  amounts 

contracted, which increased from EUR 600 million in 2016 to 1 502 million in 2017. 

-  Cash and cash equivalents: an increase of kEUR 147 691 due to the new funds received. 

Expenses: An increase of kEUR 226 956 illustrating the increased activities of the Trust Fund after 
the start-up year 2016. 

59 

 
 
 
 
Annual accounts of the European Development Fund 2017 

BALANCE SHEET 

NON-CURRENT ASSETS 
Pre-financing 

CURRENT ASSETS 
Pre-financing 
Exchange receivables and non-exchange recoverables 
Cash and cash equivalents  

TOTAL ASSETS 

NON-CURRENT LIABILITIES 
Financial liabilities 

CURRENT LIABILITIES 
Payables 
Accrued charges and deferred revenue 

TOTAL LIABILITIES 

NET ASSETS 

FUNDS & RESERVES 
Accumulated surplus 
Economic result of the year 
NET ASSETS 

31.12.2017 

31.12.2016 

 EUR '000 

 52 990 

 52 990 

 197 258 
 3 020 
 162 571 

 362 849 
 415 838 

 44 854 

 44 854 

 70 731 
 9 476 
 14 879 

 95 086 
 139 941 

 (396 713) 

 (138 502) 

 (396 713) 

 (138 502) 

  (526) 
 (18 600) 

 (19 126) 
 (415 838) 

  (702) 
  (736) 

 (1 439) 
 (139 941) 

  - 

– 
– 
– 

– 

– 
– 
– 

60 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

STATEMENT OF FINANCIAL PERFORMANCE 

REVENUE 
Revenue from non-exchange transactions 
Revenue from donations 

Revenue from exchange transactions 
Financial revenue 
Other revenue 

Total Revenue 

EXPENSES 
Operating expenses 
Other expenses 

Total expenses 

ECONOMIC RESULT OF THE YEAR 

2017 

EUR '000 

2016 

 279 027 
 279 027 

 52 246 
 52 246 

  2 
  270 

  271 

  54 
  43 

  97 

 279 299 

 52 343 

 (271 669) 
 (7 630) 

 (279 299) 

– 

 (49 042) 
 (3 301) 

 (52 343) 

– 

61 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

CASHFLOW STATEMENT 

Economic result of the year 
Operating activities 
(Increase)/decrease in pre-financing 
(Increase)/decrease in exchange receivables and non-
exchange recoverables 
Increase/(decrease) in financial liabilities 
Increase/(decrease) in payables 
Increase/(decrease) in accrued charges and deferred 
revenue 

NET CASHFLOW 

Net increase/(decrease) in cash and cash equivalents 
Cash and cash equivalents at the beginning of the year 
Cash and cash equivalents at year-end 

2017 
– 

(134 662) 
6 456 

258 211 
 (177) 
17 864 

EUR '000 
2016 
– 

(115 585) 
(9 476) 

105 860 
 702 
 736 

147 691 

(17 763) 

147 691 
 14 879 
 162 571 

(17 763) 
 32 642 
 14 879 

62 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

STATEMENT OF CHANGES IN NET ASSETS 

Accumulated surplus/ 
(deficit) 

Economic result of 
the year 

BALANCE AS AT 31.12.2016 
Economic result of the year 
BALANCE AS AT 31.12.2017 

– 
– 
– 

– 
– 
– 

EUR '000 

Net assets 

– 
– 
– 

63 

 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

CONSOLIDATED FINANCIAL STATEMENTS 
OF THE EDF AND THE EU TRUST FUNDS 

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

64 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

CONSOLIDATED BALANCE SHEET 

NON-CURRENT ASSETS 
Pre-financing 

CURRENT ASSETS 
Pre-financing 
Exchange receivables and non-exchange recoverables 
Cash and cash equivalents  

TOTAL ASSETS 

NON-CURRENT LIABILITIES 
Provisions 
Financial liabilities 

CURRENT LIABILITIES 
Payables 
Accrued charges and deferred income 

TOTAL LIABILITIES 

NET ASSETS 

FUNDS & RESERVES 
Called fund capital - active EDFs 
Called fund capital from closed EDFs carried forward 
Economic result carried forward from previous years 
Economic result of the year 
NET ASSETS 

31.12.2017 

 EUR millions 
31.12.2016 

 636 
 636 

1 723 
 96 
 550 
2 369 
3 005 

 (4) 
 (292) 
 (296) 

 (564) 
 (755) 
(1 319) 
(1 615) 

 457 
 457 

1 455 
 143 
 738 
2 336 
2 794 

 (4) 
 (106) 
 (110) 

 (549) 
 (778) 
(1 327) 
(1 436) 

1 389 

1 357 

46 173 
2 252 
(43 219) 
(3 818) 
1 389 

42 323 
2 252 
(40 146) 
(3 073) 
1 357 

65 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE 

REVENUE 
Revenue from non-exchange transactions 
Recovery activities 
Revenue from trust funds donations 

Revenue from exchange transactions 
Financial revenue 
Other revenue 

Total Revenue 
EXPENSES 
Aid instruments 
Expenses implemented by trust funds 
Co-financing expenses 
Finance costs 
Other expenses 
Total Expenses 

2017 

 61 
 194 
 255 

 4 
 22 
 26 
 281 

(3 585) 
 (301) 
 (42) 
 (8) 
 (162) 
(4 099) 

EUR millions 
2016 

 8 
 35 
 43 

 4 
 62 
 66 
 108 

(2 935) 
 (65) 
 15 
 4 
 (200) 
(3 181) 

ECONOMIC RESULT OF THE YEAR 

(3 818) 

(3 073) 

66 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

CONSOLIDATED CASH FLOW STATEMENT 

Economic result of the year 
Operating activities 
Capital increase - contributions 
(Increase)/decrease in trust funds contributions 
(Increase)/decrease in pre-financing 
(Increase)/decrease in exchange receivables and non-
exchange recoverables 
Increase/(decrease) in financial liabilities 
Increase/(decrease) in payables 
Increase/(decrease) in accrued charges and deferred 
income 

NET CASHFLOW 

Net increase/(decrease) in cash and cash equivalents 
Cash and cash equivalents at the beginning of the year 
Cash and cash equivalents at year-end 

2017 
 (3 818) 

3 850 
– 
 (446) 
 47 

 186 
 15 
 (22) 

 (188) 

 (188) 
  738 
  550 

EUR milions 
2016 
 (3 073) 

3 450 
 (0) 
 (242) 
  29 

 34 
 29 
  (78) 

 149 

 149 
  589 
  738 

67 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS 

  Annual accounts of the European Development Fund 2017 

Fund capital 
- active EDFs 
(A) 

Uncalled 
funds - 
active EDFs 
(B) 

73 464 

– 
73 464 

 (200) 

34 590 
(3 450) 
– 
31 140 
(4 050) 

73 264 

27 090 

Called fund 
capital - 
active EDFs 
(C) = (A)-
(B) 
38 873 
3 450 
– 
42 323 
4 050 
 (200) 
– 
46 173 

Cumulative 
Reserves (D) 

(40 146) 
– 
(3 073) 
(43 219) 

(3 818) 
(47 037) 

Called fund 
capital from 
closed EDFs 
carried forward 
(E) 
2 252 
– 
– 
2 252 

2 252 

EUR millions 
Total Net Assets 
(C)+(D)+(E) 

 980 
3 450 
(3 073) 
1 357 
4 050 
 (200) 
(3 818) 
1 389 

BALANCE AS AT 31.12.2015 
Capital increase -  contributions 
Economic result of the year 
BALANCE AS AT 31.12.2016 
Capital increase - contributions 
Refund to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2017 

68 

 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

EDF REPORT ON FINANCIAL 
IMPLEMENTATION 

69 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

1. 

INTRODUCTORY NOTE 

1.1.  Closed EDFs 

  As  the  sixth  EDF  was  closed  in  2006  and  the  seventh  EDF  was  closed  in  2008,  the  annual 
accounts no longer contain implementation tables for these EDFs. However, implementation of 
the transferred balances can be found in the ninth EDF. 

  As  in  past  years,  to  ensure  transparency  in  the  presentation  of  the  accounts  for  2017,  the 
tables  set  out  separately  for  the  eighth  EDF  the  part  used  for  Lomé  Convention  programming 
and the part used for programming under the Cotonou Agreement. 

 

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

2. 

10th EDF 

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

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

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

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

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

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

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

The  actual  credits  available  (see  table  1.3)  differ  from  the  above  due  to:  decommitments  from 
previous EDFs, interest and co-financing. 

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

70 

 
 
 
 
 
Annual accounts of the European Development Fund 2017 

3. 

11th EDF 

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

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

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

  EUR 364.5 million is allocated to the OCTs in accordance with Article 1.2(a) and Article 3.1 of 

the Internal Agreement, of which 359.5 million is managed by the European Commission; 

  EUR  1  052.5  million  is for  the  Commission  to finance  the  costs  arising  from  the  programming 
and  implementation  of  11th  EDF  resources,  in  accordance  with  Article  1.2(a)  of  the  Internal 
Agreement. 

The  actual  credits  available  (see  table  1.4)  differ  from  the  above  due  to  the  same  reasons  as 
mentioned under the 10th EDF above.  

Remaining funds on non-mobilisable performance reserves at 31 December 2017 

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

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

During  2017,  all  decommitted  funds  from  previous  EDFs  were  transferred  to  the  respective 
reserves.  

In  accordance  with  article  1.4  of  the  11th  EDF  Internal  Agreement  and  the  Council  Decision  of 
2 August  2016  (2016/1337),  an  amount  of  decommitted  funds  from  the  10th  EDF  shall  be 
allocated for the purpose of replenishing the African Peace Facility for the period 2016-2018 up to 
a maximum of EUR 491 million and up to EUR 16 million for support of expenditure.  

In  accordance  with  article  1.4  of  the  11th  EDF  Internal  Agreement  and  the  Council  Decision  of 
4 July 2017 (2017/1206), the shares of Member States' contributions set out in Article 1(2)(a) of 
the Internal Agreements of the Eighth and Ninth EDF shall be reduced accordingly for an amount 
of EUR 200 million from funds decommitted under the Eighth and the Ninth EDF. 

71 

 
 
 
 
Annual accounts of the European Development Fund 2017 

Total available on non-mobilisable performance reserves at 31.12.2017 

EUR millions 

Non-mobilisable reserve from decommitted funds under the eighth, and ninth 
EDF at 31.12.2017 

309.1 

Non-mobilisable  reserve  from  decommitted  funds  under  the  10th  EDF  at 
31.12.2017 

206.0 

Total available on non-mobilisable performance reserves at 31.12.2017 

515.1 

- EDF Co-financings 

Under  the  10th  and  11th  EDFs,  transfer  agreements  for  co-financings  from  Member  States  were 
signed,  and  commitment  appropriations  were  opened  for  a  total  amount  of  EUR  228.5  million, 
while payment appropriations were opened for the cashed amounts totalling EUR 211.2 million.  

The situation of co-financing appropriations at 31.12.2017 is shown in the table below:  

Commitments appropriations  Payment appropriations 

EUR millions 

Co-financing - A Envelope 

208.8 

191.9 

Co-financing - Intra ACP 

13.4 

Co-financing 
expenses 

– 

Administrative 

6.3 

13.4 

5.9 

228.5 

211.2 

The  following  tables,  concerning  the  amounts  decided,  contracted  and  paid,  show  net  figures.  
The tables presenting the situation by instrument are annexed. 

72 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

Table 1.1 

Eight EDF 
EVOLUTION OF APPROPRIATIONS:  31 December 2017 
ANALYSIS OF CREDITS PER INSTRUMENT 

EUR millions 

INSTRUMENT 

INITIAL 
APPROPRIATION 

INCREASES/DECREASES IN CUMULATIVE  
RESOURCES AT 31 DECEMBER 2016 

INCREASE OR DECREASE IN 
RESOURCES IN 2017 

Notes 

CURRENT LEVEL 
APPROPRIATION 

Lomé 

Regular MS Contributions 

       Aid for refugees 

       Emergency aid (Lomé) 

       Heavily indebted poor countries (Lomé) 

       Interest-rate subsidies 

       Risk capital 

       Stabex 

       Structural adjustment 

ACP  

       Sysmin 

       Total indicative programmes 

       Utilisation of interest income 

Cotonou 

Regular MS Contributions 

       A Envelope - National Allocations 

       B Envelope - National Allocations 

       Interests and other receipts 

ACP  

12,967 

120 

140 

0 

370 

1,000 

1,800 

1,400 

575 

7,562 

0 

0 

0 

0 

0 

(3,272) 

(20) 

(4) 

1,060 

(298) 

15 

(1,077) 

97 

(474) 

(2,605) 

35 

650 

417 

233 

0 

(6) 

(3) 

(1) 

(3) 

(1) 

(0) 

(0) 

(1) 

(0) 

(1) 

9,689 

100 

136 

1,060 

69 

1,015 

723 

1,497 

101 

4,954 

35 

650 

417 

233 

0 

SUB TOTAL ACP  

12,967 

(2,621) 

(6) 

10,339 

73 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
  
  
  
  
  
  
Annual accounts of the European Development Fund 2017 

INSTRUMENT 

INITIAL 
APPROPRIATION 

INCREASES/DECREASES IN CUMULATIVE  
RESOURCES AT 31 DECEMBER 2016 

INCREASE OR DECREASE IN 
RESOURCES IN 2017 

Notes 

CURRENT LEVEL 
APPROPRIATION 

Lomé 

Regular MS Contributions 

       Interest-rate subsidies 

       Risk capital 

OCT 

       Stabex 

       Sysmin 

       Total indicative programmes 

OCT 

SUB TOTAL OCT 

0 

0 

0 

0 

0 

0 

0 

46 

1 

6 

1 

2 

36 

46 

TOTAL 8th EDF 

12,967 

(2,575) 

(1) 

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

(1) 

(1) 

(1) 

(1) 

(7) 

46 

1 

6 

1 

2 

35 

46 

10,385 

74 

 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

Table 1.2 

Ninth EDF 
EVOLUTION OF APPROPRIATIONS:  31 December 2017 
ANALYSIS OF CREDITS PER INSTRUMENT 

EUR millions 

INSTRUMENT 

INITIAL 
APPROPRIATION 

INCREASES/DECREASES IN CUMULATIVE  
RESOURCES AT 31 DECEMBER 2016 

INCREASE OR DECREASE IN 
RESOURCES IN 2017 

Notes 

CURRENT LEVEL 
APPROPRIATION 

Lomé 

Regular MS Contributions 

       Transfers from 6th EDF - Lomé 

       Transfers from 7th EDF - Lomé 

Cotonou 

Regular MS Contributions 

       A Envelope - National Allocations 

       B Envelope - National Allocations 

       CDE, CTA and Parliamentary Assembly 

ACP  

       Implementation costs 

       Interests and other receipts 

       Other Intra-ACP allocations 

       Peace facility 

       Regional allocations 

       Special allocation R.D. Congo 

       Special allocation South Sudan 

       Special allocation Sudan 

       Voluntary contribution Peace facility 

ACP  

SUB TOTAL ACP  

0 

0 

0 

8,919 

5,318 

2,108 

164 

125 

0 

300 

0 

904 

0 

0 

0 

0 

8,919 

672 

20 

651 

5,583 

3,319 

(896) 

(10) 

52 

63 

2,314 

354 

(134) 

105 

267 

110 

39 

6,255 

(2) 

(0) 

(1) 

(2) 

(1) 

(34) 

(13) 

(1) 

(2) 

(1) 

(13) 

(1) 

(5) 

(1) 

(3) 

(2) 

669 

20 

649 

14,468 

8,624 

1,210 

154 

177 

63 

2,602 

354 

765 

105 

267 

110 

39 

(36) 

15,138 

75 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
Annual accounts of the European Development Fund 2017 

INSTRUMENT 

INITIAL 
APPROPRIATION 

INCREASES/DECREASES IN CUMULATIVE  
RESOURCES AT 31 DECEMBER 2016 

INCREASE OR DECREASE IN 
RESOURCES IN 2017 

Notes 

CURRENT LEVEL 
APPROPRIATION 

Lomé 

Regular MS Contributions 

       Transfers from 6th EDF - Lomé 

       Transfers from 7th EDF - Lomé 

Cotonou 

OCT 

Regular MS Contributions 

       A Envelope - National Allocations 

       B Envelope - National Allocations 

       Regional allocations 

       Studies / Technical assistance OCT 

OCT 

SUB TOTAL OCT 

0 

0 

0 

0 

0 

0 

0 

0 

0 

3 

0 

3 

290 

237 

4 

48 

1 

293 

TOTAL 9th EDF 

8,919 

6,548 

(1) 

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

3 

0 

3 

289 

237 

4 

47 

1 

292 

15,430 

(1) 

(0) 

(1) 

(1) 

(1) 

(1) 

(37) 

(2) 

Following Council Decision 2010/406/EU, 150 million was added from non-mobilisable performance reserve 10th EDF for Sudan (147 million to special allocation Sudan and 3 million to implementation costs) 

(3) 

Following Council Decision 2011/315/EU, 200 million was added from non-mobilisable performance reserve 10th EDF for Sudan (194 million to special allocation South Sudan and 6 million to implementation costs) 

76 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
Table 1.3 

Annual accounts of the European Development Fund 2017 

10th EDF 
EVOLUTION OF APPROPRIATIONS:  31 December 2017 
ANALYSIS OF CREDITS PER INSTRUMENT 

INSTRUMENT 

INITIAL 
APPROPRIATION 

INCREASES/DECREASES IN CUMULATIVE  
RESOURCES AT 31 DECEMBER 2016 

INCREASE OR DECREASE 
IN RESOURCES IN 2017 

Notes 

CURRENT LEVEL 
APPROPRIATION 

EUR millions 

Regular MS Contributions 

       A Envelope - National Allocations 

       A Envelope reserve 

       B Envelope - National Allocations 

       B Envelope reserve 

       Implementation costs 

       Institutional and support expenditure 

       Interests and other receipts 

       Intra-ACP Reserve 

       National allocations Reserve A Envelope STABEX 

       NIP/RIP reserve 

ACP  

       Non-mobilisable reserve 

       Other Intra-ACP allocations 

       Peace facility 

       Regional allocations 

       Regional allocations reserve 

Co-financing 

       A Envelope - National Allocations 

       Implementation costs 

       Other Intra-ACP allocations 

       Peace facility 

ACP  

SUB TOTAL ACP  

20,896 

0 

13,500 

0 

1,800 

430 

0 

0 

2,700 

0 

683 

0 

0 

0 

0 

1,783 

0 

0 

0 

0 

0 

20,896 

77 

233 

13,244 

(13,500) 

2,015 

(1,800) 

15 

232 

84 

(2,700) 

0 

(683) 

243 

1,889 

1,014 

1,962 

(1,783) 

204 

187 

5 

12 

1 

437 

(120) 

(144) 

(2) 

(11) 

(2) 

(0) 

(2) 

(0) 

(2) 

2 

(2) 

43 

(2) 

(3) 

(2) 

(5) 

(2) 

0 

(3) 

(3) 

(3) 

(3) 

21,009 

13,100 

0 

2,004 

0 

445 

232 

85 

0 

0 

0 

286 

1,886 

1,014 

1,956 

0 

204 

187 

5 

12 

1 

(120) 

21,213 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
Annual accounts of the European Development Fund 2017 

INSTRUMENT 

INITIAL 
APPROPRIATION 

INCREASES/DECREASES IN CUMULATIVE  
RESOURCES AT 31 DECEMBER 2016 

INCREASE OR DECREASE 
IN RESOURCES IN 2017 

Notes 

CURRENT LEVEL 
APPROPRIATION 

Regular MS Contributions 

       A Envelope - National Allocations 

       A Envelope reserve 

       B Envelope - National Allocations 

       B Envelope reserve 

OCT 

       National allocations Reserve A Envelope STABEX 

       Non-mobilisable reserve 

       Regional allocations 

       Regional allocations reserve 

       Studies / Technical assistance OCT 

SUB TOTAL OCT 

TOTAL 10th EDF 

OCT 

(1) 

(2) 

(3) 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

20,896 

275 

193 

0 

15 

0 

0 

21 

40 

0 

5 

275 

712 

0 

(1) 

(2) 

(0) 

(2) 

2 

(2) 

(0) 

(2) 

0 

(120) 

275 

192 

0 

15 

0 

0 

23 

40 

0 

5 

275 

21,488 

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

Transfers in / from the 10th EDF reserves 

For the co-financing, the table only presents  the commitment appropriations 

78 

 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
Annual accounts of the European Development Fund 2017 

Table 1.4 

11th EDF 
EVOLUTION OF APPROPRIATIONS:  31 December 2017 
ANALYSIS OF CREDITS PER INSTRUMENT 

EUR millions 

INSTRUMENT 

INITIAL 
APPROPRIATION 

INCREASES/DECREASES IN CUMULATIVE  
RESOURCES AT 31 DECEMBER 2016 

INCREASE OR DECREASE 
IN RESOURCES IN 2017 

Notes 

CURRENT LEVEL 
APPROPRIATION 

Regular MS Contributions 

       A Envelope - National Allocations 

       B Envelope - National Allocations 

       B Envelope reserve 

       Implementation costs 

       Institutional and support expenditure 

       Interests and other receipts 

       Intra-ACP Reserve 

       National allocations Reserve A Envelope STABEX 

       NIP/RIP reserve 

ACP  

       Non-mobilisable reserve 

       Other Intra-ACP allocations 

       Peace facility 

       Regional allocations 

Co-financing 

       A Envelope - National Allocations 

       Implementation costs 

       Peace facility 

EC Internal SLA 

       A Envelope - National Allocations 

ACP  

29,008 

0 

0 

0 

1,053 

0 

0 

3,590 

0 

24,365 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

SUB TOTAL ACP  

29,008 

79 

54 

15,115 

648 

0 

0 

246 

16 

(3,387) 

0 

(20,937) 

31 

2,241 

900 

5,181 

5 

3 

0 

1 

1 

1 

60 

170 

425 

67 

0 

(110) 

0 

(1,077) 

170 

(1) 

10 

100 

585 

20 

19 

1 

0 

0 

190 

29,232 

15,540 

715 

0 

1,053 

246 

16 

93 

0 

2,351 

201 

2,251 

1,000 

5,766 

24 

22 

1 

1 

1 

1 

29,257 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

INSTRUMENT 

INITIAL 
APPROPRIATION 

INCREASES/DECREASES IN CUMULATIVE  
RESOURCES AT 31 DECEMBER 2016 

INCREASE OR DECREASE 
IN RESOURCES IN 2017 

Notes 

CURRENT LEVEL 
APPROPRIATION 

Regular MS Contributions 

       A Envelope - National Allocations 

       NIP/RIP reserve 

       Non-mobilisable reserve 

       Regional allocations 

OCT 

       Studies / Technical assistance OCT 

Co-financing 

       A Envelope - National Allocations 

EC Internal SLA 

       A Envelope - National Allocations 

OCT 

SUB TOTAL OCT 

Regular MS Contributions 

       A Envelope - National Allocations 

SUB TOTAL  

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

363 

41 

316 

3 

0 

3 

0 

0 

0 

0 

363 

0 

0 

0 

(1) 

(5) 

142 

(151) 

1 

1 

2 

0 

0 

0 

0 

(5) 

6 

6 

6 

358 

183 

165 

5 

1 

5 

0 

0 

0 

0 

358 

6 

6 

6 

TOTAL 11th EDF 

29,008 

423 

191 

29,621 

(1) 

Council Decision No 2013/759/EU (3) established transitional European Development Fund (EDF) management measures (‘Bridging Facility’) to ensure the availability of funds for cooperation with African, Caribbean 
and Pacific (ACP) States and with Overseas Countries and Territories (OCTs), as well as for support expenditure, from 1 January 2014 until the entry into force of the 11th EDF Internal Agreement 

80 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
Annual accounts of the European Development Fund 2017 

Table 2.1 

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2017 
PROGRESS REPORT 

                                      ALLOCATION 

8 

9 

EDF 
10 

11 

TOTAL 

EUR millions 

Lomé 

Sundry Income 

Total indicative programmes 

Total Non-Programmable Aid 

Transfers from other funds 
SUB TOTAL: REGULAR MS 
CONTRIBUTIONS 

A Envelope - National Allocations 

B Envelope - National Allocations 

Bridging facility 

CDE, CTA and Parliamentary Assembly 

Country reserve 

35 

4,989 

4,711 

9,735 

417 

233 

Implementation Costs and Interests Revenues 

0 

Cotonou 

Intra-ACP allocations 

Intra-ACP Reserve 
National allocations Reserve A Envelope 
STABEX 

NIP/RIP reserve 

Non-mobilisable reserve 

Regional allocations 

Regional allocations reserve 

Special allocation R.D. Congo 

Special allocation South Sudan 

Special allocation Sudan 

Voluntary contribution Peace facility 
SUB TOTAL: REGULAR MS 
CONTRIBUTIONS 

A Envelope - National Allocations 
SUB TOTAL: EC INTERNAL SLA 

A Envelope - National Allocations 

Implementation Costs and Interests Revenues 

Intra-ACP allocations 
SUB TOTAL: CO-FINANCING 

672 

672 

8,861 

1,215 

154 

240 

2,955 

812 

105 

267 

110 

39 

13,292 

2,019 

0 

536 

3,132 

0 

0 

0 

309 

1,996 

0 

15,729 

715 

(0) 

0 

1,073 

3,497 

93 

0 

2,515 

206 

5,767 

35 

4,989 

4,711 

672 

10,407 

38,299 

4,181 

(0) 

154 

0 

1,849 

9,584 

93 

0 

2,515 

515 

8,575 

0 

105 

267 

110 

39 

650 

14,758 

21,284 

29,596 

66,287 

1 
1 

22 

1 

1 
24 

1 
1 

209 

6 

13 
229 

187 

5 

12 
204 

TOTAL 

10,385 

15,430 

21,488 

29,621 

76,924 

81 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
Annual accounts of the European Development Fund 2017 

Decisions 

Aggregate Total 

EDF 

At 31/12/2017 

% of allocation 

Cummulative 
Figures 
2008 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

2009 

2010 

2011 

2012 

2013 

2014 

2015 

2016 

2017 

8 

9 

10 

11 

10,382 

15,391 

21,052 

19,027 
65,852 

100% 

100% 

98% 

64% 

10,786 

16,633 

4,766 

32,185 

(42) 

(54) 

3,501 

3,405 

(45) 

(116) 

2,349 

2,187 

(60) 

(9) 

3,118 

3,049 

(64) 

(297) 

3,524 

3,163 

(98) 

(72) 

4,131 

3,961 

(63) 

(381) 

(95) 

1,160 
621 

(12) 

(170) 

(156) 

5,372 
5,034 

(13) 

(104) 

(80) 

6,688 
6,491 

(9) 

(38) 

(5) 

5,807 
5,754 

Aggregate Total 

EDF 

At 31/12/2017 

% of allocation 

Cummulative 
Figures 
2008 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

2009 

2010 

2011 

2012 

2013 

2014 

2015 

2016 

2017 

8 

9 

10 

11 

10,376 

15,289 

20,125 

13,453 
59,242 

100% 

99% 

94% 

45% 

10,541 

14,209 

130 

24,881 

(42) 

997 

3,184 

4,140 

8 

476 

2,820 

3,304 

(13) 

9 

2,514 

2,509 

(46) 

(187) 

3,460 

3,226 

(11) 

(96) 

3,457 

3,350 

(37) 

(1) 

2,687 

731 
3,380 

(16) 

(52) 

783 

3,293 
4,008 

(6) 

(46) 

541 

3,745 
4,234 

(3) 

(20) 

550 

5,684 
6,211 

Aggregate Total 

EDF 

At 31/12/2017 

% of allocation 

Cummulative 
Figures 
2008 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

Annual Figures 

2009 

2010 

2011 

2012 

2013 

2014 

2015 

2016 

2017 

Total 

Assigned 
Funds 

Total 

Payments 

8 

9 

10 

11 

Total 

10,375 

15,164 

17,753 

6,206 
49,497 

100% 

98% 

83% 

21% 

* Negative figures represent decommitments 

9,930 

10,011 

90 

20,031 

152 

1,806 

1,111 

3,069 

158 

1,304 

1,772 

3,233 

90 

906 

1,879 

2,874 

15 

539 

2,655 

3,209 

18 

231 

2,718 

2,967 

16 

145 

2,760 

595 
3,516 

(3) 

43 

2,024 

1,024 
3,088 

(0) 

68 

1,466 

1,816 
3,350 

(1) 

111 

1,277 

2,770 
4,158 

82 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
Annual accounts of the European Development Fund 2017 

Table 2.2 

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2017 

8 

% 

(1) 

9 

% 

(1) 

EDF 

10 

% 

(1) 

11 

% 

(1) 

TOTAL 

% 

(1) 

EUR millions 

Lomé 

Cotonou 

Sundry Income 

Appropriations 

Decisions 

Assigned funds 

Payments 

Total indicative programmes 

Appropriations 

Decisions 

Assigned funds 

Payments 

Total Non-Programmable Aid 

Appropriations 

Decisions 

Assigned funds 

Payments 

Transfers from other funds 

Appropriations 

Decisions 

Assigned funds 

Payments 
Regular MS Contributions 

A Envelope - National Allocations 

Appropriations 

Decisions 

Assigned funds 

Payments 

B Envelope - National Allocations 

Appropriations 

Decisions 

Assigned funds 

Payments 

Bridging facility 

Appropriations 

Decisions 

Assigned funds 

Payments 

CDE, CTA and Parliamentary Assembly 

Appropriations 

Decisions 

Assigned funds 

Payments 
Implementation Costs and Interests 
Revenues 

Appropriations 

Decisions 

Assigned funds 

Payments 

Intra-ACP allocations 

Appropriations 

Decisions 

Assigned funds 

Payments 

Regional allocations 

Appropriations 

Decisions 

Assigned funds 

Payments 

Special allocation R.D. Congo 

Appropriations 

Decisions 

Assigned funds 

Payments 

Special allocation South Sudan 

Appropriations 

Decisions 

Assigned funds 

Payments 

35 

35 

35 

35 

100% 

100% 

100% 

4,989 

4,987 

100% 

4,986 

100% 

4,985 

100% 

4,711 

4,710 

100% 

4,706 

100% 

4,706 

100% 

417 

417 

417 

417 

233 

233 

232 

231 

100% 

100% 

100% 

100% 

99% 

99% 

0 

83 

672 

671 

671 

670 

8,861 

8,852 

8,834 

8,800 

1,215 

1,213 

1,209 

1,203 

154 

154 

154 

154 

240 

240 

240 

240 

2,955 

2,949 

2,937 

2,921 

812 

808 

792 

774 

105 

105 

105 

105 

267 

266 

218 

184 

100% 

100% 

100% 

100% 

100% 

99% 

100% 

100% 

99% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

99% 

99% 

100% 

98% 

95% 

100% 

100% 

100% 

100% 

82% 

69% 

35 

35 

35 

35 

4,989 

4,987 

4,986 

4,985 

4,711 

4,710 

4,706 

4,706 

672 

671 

671 

670 

38,299 

33,468 

28,836 

23,290 

4,181 

4,161 

4,122 

3,823 

(0) 

154 

154 

154 

154 

1,849 

1,299 

1,243 

1,204 

9,584 

8,421 

7,654 

6,922 

8,575 

7,219 

6,170 

3,160 

105 

105 

105 

105 

267 

266 

218 

184 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

87% 

75% 

61% 

100% 

99% 

91% 

100% 

100% 

100% 

70% 

67% 

65% 

88% 

80% 

72% 

84% 

72% 

37% 

100% 

100% 

100% 

100% 

82% 

69% 

13,292 

13,212 

12,641 

11,113 

2,019 

2,017 

1,994 

1,918 

99% 

95% 

84% 

100% 

99% 

95% 

15,729 

10,987 

6,944 

2,960 

715 

699 

687 

472 

(0) 

536 

506 

503 

501 

3,132 

3,128 

2,930 

2,636 

1,996 

1,989 

1,864 

1,442 

94% 

94% 

93% 

100% 

94% 

84% 

100% 

93% 

72% 

1,073 

552 

499 

464 

3,497 

2,344 

1,786 

1,365 

5,767 

4,422 

3,514 

943 

70% 

44% 

19% 

98% 

96% 

66% 

51% 

47% 

43% 

67% 

51% 

39% 

77% 

61% 

16% 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
Annual accounts of the European Development Fund 2017 

EUR millions 

8 

% 

(1) 

9 

% 

(1) 

EDF 

10 

% 

(1) 

11 

% 

(1) 

TOTAL 

Special allocation Sudan 

Appropriations 

Decisions 

Assigned funds 

Payments 

Voluntary contribution Peace facility 

Appropriations 

Decisions 

Assigned funds 

Payments 
Regular MS Contributions 

A Envelope - National Allocations 

Appropriations 

Decisions 

Assigned funds 

Payments 
Implementation Costs and Interests 
Revenues 

Appropriations 

Decisions 

Assigned funds 

Payments 

Intra-ACP allocations 

Appropriations 

Decisions 

Assigned funds 

Payments 
Co-financing 

A Envelope - National Allocations 

Appropriations 

Decisions 

Assigned funds 

Payments 
EC Internal SLA 

Appropriations 

Country reserve 

Intra-ACP Reserve 
National allocations Reserve A Envelope 
STABEX 

NIP/RIP reserve 

Cotonou 

Regional allocations reserve 
Mobilisable reserves 

Non-mobilisable reserve 
Non-mobilisable reserve 

Appropriations 

Decisions 

Assigned funds 

Payments 

TOTAL: ALL ALLOCATIONS 

(1) % of appropriations 

110 

109 

105 

90 

39 

24 

24 

24 

98% 

96% 

81% 

62% 

62% 

62% 

187 

185 

178 

131 

5 

4 

2 

1 

12 

12 

11 

11 

99% 

95% 

70% 

84% 

45% 

28% 

97% 

91% 

88% 

8 

% 

(1) 

9 

% 

(1) 

10 

% 

(1) 

0 

0 

(0) 

0 

0 

22 

20 

20 

92% 

92% 

100% 

100% 

100% 

71% 

71% 

52% 

1 

1 

1 

1 

1 

1 

1 

1 

1 

11 

0 

93 

0 

2,515 

% 

(1) 

98% 

96% 

81% 

62% 

62% 

62% 

98% 

95% 

63% 

69% 

37% 

23% 

98% 

92% 

89% 

71% 

71% 

52% 

110 

109 

105 

90 

39 

24 

24 

24 

209 

205 

199 

131 

6 

4 

2 

1 

13 

13 

12 

12 

1 

1 

1 

1 

% 

(1) 

TOTAL 

% 

(1) 

0 

93 

0 

2,515 

0 

309 

206 

515 

% 

(1) 

8 

10,385 

10,382 

100% 

10,376 

100% 

10,375 

100% 

9 

15,430 

15,391 

15,289 

15,164 

% 

(1) 

100% 

99% 

98% 

10 

21,488 

21,052 

20,125 

17,753 

% 

(1) 

98% 

94% 

83% 

11 

29,621 

19,027 

13,453 

6,206 

% 

(1) 

64% 

45% 

21% 

TOTAL 

76,924 

65,852 

59,242 

49,497 

% 

(1) 

86% 

77% 

64% 

84 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
Table 2.3 

Annual accounts of the European Development Fund 2017 

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2017 
CLASS OF AID 
ACP + PTOM - Eight EDF 

CREDITS 

DECISIONS 
AGGREG.  ANNUAL 

(1) 

(2) 

ASSIGNED FUNDS 

% 
(2) : (1) 

AGGREG.  ANNUAL 

(3) 

% 
(3) : (2) 

EUR millions 

PAYMENTS 
AGGREG.  ANNUAL 

(4) 

% 
(4) : (3) 

ACP  

Regular MS Contributions 

      Utilisation of interest income 
SUB TOTAL: SUNDRY INCOME 

      Total indicative programmes 
SUB TOTAL: TOTAL INDICATIVE PROGRAMMES 

      Aid for refugees 

      Emergency aid (Lomé) 

35 
35 

4,954 
4,954 

100 

136 

35 
35 

4,951 
4,951 

100 

136 

Lomé 

      Heavily indebted poor countries (Lomé) 

1,060 

1,060 

(5) 
(5) 

(0) 

100% 
100% 

100% 
100% 

100% 

100% 

100% 

      Interest-rate subsidies 

      Risk capital 

      Stabex 

      Structural adjustment 

      Sysmin 
SUB TOTAL: TOTAL NON-PROGRAMMABLE AID 

ACP  

Regular MS Contributions 

      A Envelope - National Allocations 

SUB TOTAL: A ENVELOPE - NATIONAL ALLOCATIONS 

      B Envelope - National Allocations 

Cotonou 

      Compensation export earnings 

SUB TOTAL: B ENVELOPE - NATIONAL ALLOCATIONS 

      Interests and other receipts 

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES 

69 

69 

(3) 

100% 

1,015 

1,015 

100% 

1,012 

723 

1,497 

101 
4,700 

723 

1,497 

101 
4,699 

(0) 

100% 

0 

100% 

100% 
100% 

(4) 

722 

1,497 

101 
4,695 

(0) 

(0) 

(1) 

417 

417 

233 

233 

100% 

100% 

(0) 

(0) 

100% 

417 

417 

232 

232 

417 

417 

233 

233 

0 

0 

35 
35 

4,950 
4,950 

100 

136 

1,060 

68 

(2) 
(2) 

(0) 

100% 
100% 

100% 
100% 

100% 

100% 

100% 

(0) 

100% 

100% 

100% 

100% 

100% 
100% 

100% 

100% 

(0) 

(0) 

99% 

99% 

35 
35 

4,950 
4,950 

100 

136 

1,060 

68 

1,012 

722 

1,497 

101 
4,695 

417 

417 

231 

231 

(1) 
(1) 

100% 
100% 

100% 
100% 

100% 

100% 

100% 

(0) 

100% 

(0) 

100% 

100% 

100% 

100% 
100% 

100% 

100% 

100% 

100% 

TOTAL ACP     (A) 

10,339 

10,336 

(9) 

100% 

10,330 

(3) 

100% 

10,329 

(1) 

100% 

85 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
Annual accounts of the European Development Fund 2017 

CREDITS 

DECISIONS 

ASSIGNED FUNDS 

PAYMENTS 

AGGREG.  ANNUAL 

% 

AGGREG.  ANNUAL 

% 

AGGREG.  ANNUAL 

% 

(1) 

(2) 

(2) : (1) 

(3) 

(3) : (2) 

(4) 

(4) : (3) 

EUR millions 

OCT 

Regular MS Contributions 

      Total indicative programmes 
SUB TOTAL: TOTAL INDICATIVE PROGRAMMES 

      Interest-rate subsidies 

Lomé 

      Risk capital 

      Stabex 

      Sysmin 
SUB TOTAL: TOTAL NON-PROGRAMMABLE AID 

TOTAL OCT     

35 
35 

1 

6 

1 

2 
10 

46 

35 
35 

1 

6 

1 

2 
10 

46 

(1) 
(1) 

100% 
100% 

100% 

100% 

100% 

100% 
100% 

(1) 

100% 

35 
35 

1 

6 

1 

2 
10 

46 

100% 
100% 

100% 

100% 

100% 

100% 
100% 

100% 

35 
35 

1 

6 

1 

2 
10 

46 

100% 
100% 

100% 

100% 

100% 

100% 
100% 

100% 

TOTAL: ACP+OCT    (A+B) 

10,385 

10,382 

(9) 

100% 

10,376 

(3) 

100% 

10,375 

(1) 

100% 

86 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
Table 2.4 

Annual accounts of the European Development Fund 2017 

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2017 
CLASS OF AID 
ACP + PTOM - Ninth EDF 

CREDITS 

DECISIONS 
AGGREG.  ANNUAL 

(1) 

(2) 

ASSIGNED FUNDS 

% 
(2) : (1) 

AGGREG.  ANNUAL 

(3) 

% 
(3) : (2) 

EUR millions 

PAYMENTS 
AGGREG.  ANNUAL 

(4) 

% 
(4) : (3) 

ACP  

Regular MS Contributions 

      Transfers from 6th EDF - Lomé 

Lomé 

      Transfers from 7th EDF - Lomé 
SUB TOTAL: TRANSFERS FROM OTHER FUNDS 

20 

649 
669 

20 

648 
668 

(0) 

(3) 
(3) 

100% 

100% 
100% 

20 

647 
668 

ACP  

Regular MS Contributions 

      A Envelope - National Allocations 

SUB TOTAL: A ENVELOPE - NATIONAL ALLOCATIONS 

      B Envelope - National Allocations 

      Compensation export earnings 

      Emergency aid 

      Heavily indebted poor countries 

8,624 

8,624 

1,210 

SUB TOTAL: B ENVELOPE - NATIONAL ALLOCATIONS 

1,210 

      CDE, CTA and Parliamentary Assembly 

SUB TOTAL: CDE, CTA AND PARLIAMENTARY ASSEMBLY 

Cotonou 

      Implementation costs 

      Interests and other receipts 

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES 

      Other Intra-ACP allocations 

      Peace facility 
SUB TOTAL: INTRA-ACP ALLOCATIONS 

      Regional allocations 
SUB TOTAL: REGIONAL ALLOCATIONS 

      Special allocation R.D. Congo 
SUB TOTAL: SPECIAL ALLOCATION R.D. CONGO 

      Special allocation South Sudan 

SUB TOTAL: SPECIAL ALLOCATION SOUTH SUDAN 

154 

154 

177 

63 

240 

2,602 

354 
2,955 

765 
765 

105 
105 

267 

267 

(16) 

(16) 

100% 

100% 

(1) 

(1) 

(2) 

100% 

100% 

100% 

100% 

100% 

100% 

(9) 

100% 

100% 
100% 

100% 
100% 

100% 
100% 

100% 

100% 

(9) 

(6) 
(6) 

0 

0 

8,599 

8,599 

148 

1,045 

11 

1,204 

154 

154 

177 

63 

240 

2,584 

353 
2,937 

747 
747 

105 
105 

218 

218 

8,615 

8,615 

148 

1,050 

11 

1,208 

154 

154 

177 

63 

240 

2,595 

354 
2,949 

763 
763 

105 
105 

266 

266 

87 

(0) 

(1) 
(1) 

(6) 

(6) 

(1) 

1 

100% 

100% 
100% 

100% 

100% 

100% 

100% 

100% 

0 

100% 

100% 

100% 

0 

100% 

100% 

0 

100% 

(6) 

100% 

100% 
100% 

98% 
98% 

100% 
100% 

82% 

82% 

(6) 

(5) 
(5) 

1 

1 

20 

647 
667 

8,566 

8,566 

148 

1,040 

11 

1,198 

154 

154 

177 

63 

239 

2,567 

353 
2,921 

729 
729 

105 
105 

184 

184 

(0) 
(0) 

(3) 

(3) 

(1) 

(0) 

100% 

100% 
100% 

100% 

100% 

100% 

99% 

100% 

(1) 

100% 

100% 

100% 

1 

100% 

100% 

1 

100% 

(3) 

99% 

100% 
99% 

98% 
98% 

100% 
100% 

84% 

84% 

(3) 

3 
3 

107 

107 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

CREDITS 

DECISIONS 
AGGREG.  ANNUAL 

(1) 

(2) 

ASSIGNED FUNDS 

% 
(2) : (1) 

AGGREG.  ANNUAL 

(3) 

      Special allocation Sudan 
SUB TOTAL: SPECIAL ALLOCATION SUDAN 

      Voluntary contribution Peace facility 

SUB TOTAL: VOLUNTARY CONTRIBUTION PEACE FACILITY 

110 
110 

39 

39 

109 
109 

24 

24 

0 
0 

98% 
98% 

62% 

62% 

105 
105 

24 

24 

0 
0 

EUR millions 

PAYMENTS 
AGGREG.  ANNUAL 

(4) 

9 
9 

90 
90 

24 

24 

% 
(4) : (3) 

85% 
85% 

100% 

100% 

% 
(3) : (2) 

97% 
97% 

100% 

100% 

TOTAL: ACP     (A) 

15,138 

15,101 

(35) 

100% 

15,001 

(17) 

99% 

14,876 

112 

99% 

OCT 

Regular MS Contributions 

      Transfers from 6th EDF - Lomé 

Lomé 

      Transfers from 7th EDF - Lomé 
SUB TOTAL: TRANSFERS FROM OTHER FUNDS 

OCT 

Regular MS Contributions 

      A Envelope - National Allocations 

SUB TOTAL: A ENVELOPE - NATIONAL ALLOCATIONS 

      B Envelope - National Allocations 

      Emergency aid 

Cotonou 

SUB TOTAL: B ENVELOPE - NATIONAL ALLOCATIONS 

      Studies / Technical assistance OCT 

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES 

      Regional allocations 
SUB TOTAL: REGIONAL ALLOCATIONS 

0 

3 
3 

237 

237 

4 

4 

1 

1 

47 
47 

0 

3 
3 

100% 

100% 
100% 

0 

3 
3 

100% 

100% 
100% 

0 

3 
3 

100% 

100% 
100% 

237 

237 

(0) 

(0) 

100% 

100% 

235 

235 

(2) 

(2) 

99% 

99% 

235 

235 

(0) 

(0) 

100% 

100% 

4 

4 

1 

1 

45 
45 

100% 

100% 

100% 

96% 
96% 

(3) 
(3) 

4 

4 

1 

1 

45 
45 

100% 

100% 

100% 

100% 

100% 
100% 

(1) 
(1) 

4 

4 

1 

1 

45 
45 

100% 

100% 

100% 

100% 

99% 
99% 

(1) 
(1) 

TOTAL: OCT     

292 

290 

(3) 

99% 

288 

(3) 

99% 

288 

(1) 

100% 

TOTAL: ACP+OCT    (A+B) 

15,430 

15,391 

(38) 

100% 

15,289 

(20) 

99% 

15,164 

111 

99% 

88 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
Table 2.5 

Regular MS Contributions 

Allocations 

      A Envelope - National Allocations 

SUB TOTAL: A ENVELOPE - NATIONAL ALLOCATIONS 

      B Envelope - National Allocations 

      Compensation export earnings 

      Emergency aid 

      Heavily indebted poor countries 

      Other chocs with budgetary impact 

Annual accounts of the European Development Fund 2017 

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2017 
CLASS OF AID 
ACP + PTOM - 10th EDF 

CREDITS 

DECISIONS 
AGGREG.  ANNUAL 

(1) 

(2) 

ASSIGNED FUNDS 

% 
(2) : (1) 

AGGREG.  ANNUAL 

(3) 

% 
(3) : (2) 

EUR millions 

PAYMENTS 
AGGREG.  ANNUAL 

(4) 

% 
(4) : (3) 

13,021 

13,021 

(200) 

(200) 

99% 

99% 

12,477 

12,477 

176 

176 

96% 

96% 

10,983 

10,983 

739 

739 

88% 

88% 

13,100 

13,100 

2,004 

SUB TOTAL: B ENVELOPE - NATIONAL ALLOCATIONS 

2,004 

2,002 

      Implementation costs 

      Interests and other receipts 

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES 

      Institutional and support expenditure 

ACP  

      Other Intra-ACP allocations 

      Peace facility 

SUB TOTAL: INTRA-ACP ALLOCATIONS 

      Regional allocations 

SUB TOTAL: REGIONAL ALLOCATIONS 

Co-financing 

Allocations 

      A Envelope - National Allocations 

SUB TOTAL: A ENVELOPE - NATIONAL ALLOCATIONS 

      Implementation costs 

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES 

      Other Intra-ACP allocations 

      Peace facility 

SUB TOTAL: INTRA-ACP ALLOCATIONS 

445 

85 

530 

232 

1,886 

1,014 

3,132 

1,956 

1,956 

187 

187 

5 

5 

12 

1 

12 

433 

68 

501 

232 

1,882 

1,014 

3,128 

1,950 

1,950 

185 

185 

4 

4 

11 

1 

12 

89 

204 

844 

49 

905 

(0) 

(6) 

(0) 

(6) 

1 

(1) 

1 

(0) 

(7) 

220 

213 

(10) 

(10) 

(0) 

(0) 

0 

0 

199 

836 

49 

897 

100% 

1,980 

97% 

80% 

94% 

100% 

100% 

100% 

100% 

100% 

100% 

99% 

99% 

84% 

84% 

97% 

100% 

97% 

431 

67 

498 

230 

1,828 

872 

2,930 

1,826 

1,826 

178 

178 

2 

2 

10 

1 

11 

6 

5 

0 

1 

12 

2 

(0) 

2 

(1) 

4 

233 

235 

49 

49 

43 

43 

0 

0 

(0) 

(0) 

97% 

99% 

100% 

99% 

99% 

100% 

98% 

99% 

99% 

97% 

86% 

94% 

94% 

94% 

97% 

97% 

53% 

53% 

94% 

99% 

94% 

183 

791 

49 

882 

1,904 

429 

67 

496 

211 

1,611 

814 

2,636 

1,410 

1,410 

131 

131 

1 

1 

10 

1 

11 

4 

24 

0 

10 

38 

2 

0 

2 

(0) 

119 

198 

317 

145 

145 

16 

16 

0 

0 

0 

0 

92% 

95% 

100% 

98% 

96% 

100% 

100% 

100% 

91% 

88% 

93% 

90% 

77% 

77% 

74% 

74% 

63% 

63% 

96% 

100% 

96% 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
Annual accounts of the European Development Fund 2017 

CREDITS 

DECISIONS 
AGGREG.  ANNUAL 

(1) 

(2) 

ASSIGNED FUNDS 

% 
(2) : (1) 

AGGREG.  ANNUAL 

(3) 

% 
(3) : (2) 

PAYMENTS 
AGGREG.  ANNUAL 

(4) 

% 
(4) : (3) 

EUR millions 

Non-mobilisable reserve 

Reserves 

      Non-mobilisable reserve 

SUB TOTAL: NON-MOBILISABLE RESERVE 

Regular MS Contributions 

Allocations 

      A Envelope - National Allocations 

SUB TOTAL: A ENVELOPE - NATIONAL ALLOCATIONS 

      B Envelope - National Allocations 

      Emergency aid 

      Other chocs with budgetary impact 

SUB TOTAL: B ENVELOPE - NATIONAL ALLOCATIONS 

OCT 

      Studies / Technical assistance OCT 

SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES 

      Regional allocations 

SUB TOTAL: REGIONAL ALLOCATIONS 

Non-mobilisable reserve 

Reserves 

      Non-mobilisable reserve 

SUB TOTAL: NON-MOBILISABLE RESERVE 

286 

286 

192 

192 

15 

15 

5 

5 

40 

40 

23 

23 

191 

191 

9 

6 

15 

5 

5 

40 

40 

99% 

99% 

(2) 

(2) 

(0) 

(0) 

100% 

(0) 

(0) 

0 

0 

100% 

100% 

100% 

100% 

164 

164 

8 

6 

14 

5 

5 

38 

38 

29 

29 

2 

2 

(0) 

(0) 

3 

3 

86% 

86% 

95% 

100% 

97% 

99% 

99% 

97% 

97% 

131 

131 

7 

6 

13 

5 

5 

32 

32 

7 

7 

0 

0 

0 

0 

12 

12 

79% 

79% 

84% 

100% 

91% 

98% 

98% 

84% 

84% 

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

21,488 

21,052 

(5) 

98% 

20,125 

550 

96% 

17,753 

1,277 

88% 

90 

 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
Table 2.6 

Annual accounts of the European Development Fund 2017 

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2017  
CLASS OF AID 
ACP + PTOM - 11th EDF 

CREDITS 

DECISIONS 
AGGREG.  ANNUAL 

(1) 

(2) 

ASSIGNED FUNDS 

% 
(2) : (1) 

AGGREG.  ANNUAL 

(3) 

% 
(3) : (2) 

EUR millions 

PAYMENTS 
AGGREG.  ANNUAL 

(4) 

% 
(4) : (3) 

Regular MS Contributions 

Allocations 

      A Envelope - National Allocations 
SUB TOTAL: A ENVELOPE - NATIONAL ALLOCATIONS 

      B Envelope - National Allocations 

      Emergency aid 

      Other chocs with budgetary impact 
SUB TOTAL: B ENVELOPE - NATIONAL ALLOCATIONS 

      Bridging facility  
SUB TOTAL: BRIDGING FACILITY 

      Implementation costs 

      Interests and other receipts 
SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES 

      Institutional and support expenditure 

      Other Intra-ACP allocations 

      Peace facility 
SUB TOTAL: INTRA-ACP ALLOCATIONS 

      Regional allocations 
SUB TOTAL: REGIONAL ALLOCATIONS 

ACP  

Co-financing 

Allocations 

      A Envelope - National Allocations 
SUB TOTAL: A ENVELOPE - NATIONAL ALLOCATIONS 

      Implementation costs 
SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES 

      Peace facility 
SUB TOTAL: INTRA-ACP ALLOCATIONS 

Mobilisable reserves 

Reserves 

      B Envelope reserve 
SUB TOTAL: COUNTRY RESERVE 

      Intra-ACP Reserve 

SUB TOTAL: INTRA-ACP RESERVE 

      National allocations Reserve A Envelope STABEX 
SUB TOTAL: NATIONAL ALLOCATIONS RESERVE A ENVELOPE STABEX 

15,540 

15,540 

715 

715 

0 

0 

1,053 

16 
1,068 

246 

2,251 

1,000 
3,497 

5,766 
5,766 

22 
22 

1 

1 

1 
1 

0 
0 

93 

93 

0 
0 

590 

109 

699 

538 

10 
548 

106 

1,245 

994 
2,344 

4,422 
4,422 

20 
20 

1 
1 

91 

0 

91 

164 

2 
166 

0 

885 

94 
979 

1,536 
1,536 

98% 

51% 

62% 
51% 

43% 

55% 

99% 
67% 

77% 
77% 

17 
17 

92% 
92% 

100% 
100% 

91 

10,890 

10,890 

2,960 

2,960 

70% 

70% 

6,856 

6,856 

3,106 

3,106 

63% 

63% 

2,931 

2,931 

1,414 

1,414 

43% 

43% 

77% 

26% 

69% 

93% 

93% 
93% 

76% 

61% 

91% 
76% 

27% 
27% 

443 

29 

472 

456 

6 
461 

70 

490 

805 
1,365 

943 
943 

205 

24 

229 

153 

0 
153 

10 

284 

74 
368 

582 
582 

578 

109 

687 

247 

100 

347 

98% 

100% 

98% 

161 

0 
161 

14 

560 

7 
580 

1,408 
1,408 

91% 

63% 
91% 

86% 

65% 

89% 
76% 

79% 
79% 

20 
20 

100% 
100% 

490 

6 
496 

91 

810 

885 
1,786 

3,514 
3,514 

20 
20 

1 
1 

0 
0 

100% 
100% 

1 
1 

1 
1 

100% 
100% 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
Annual accounts of the European Development Fund 2017 

CREDITS 

DECISIONS 
AGGREG.  ANNUAL 

(1) 

(2) 

ASSIGNED FUNDS 

% 
(2) : (1) 

AGGREG.  ANNUAL 

(3) 

% 
(3) : (2) 

PAYMENTS 
AGGREG.  ANNUAL 

(4) 

% 
(4) : (3) 

       EUR millions        

      NIP/RIP reserve 
SUB TOTAL: NIP/RIP RESERVE 

Non-mobilisable reserve 

Reserves 

      Non-mobilisable reserve 

SUB TOTAL: NON-MOBILISABLE RESERVE 

EC Internal SLA 

Reserves 

      A Envelope - National Allocations 
SUB TOTAL: A ENVELOPE - NATIONAL ALLOCATIONS 

Regular MS Contributions 

Allocations 

      A Envelope - National Allocations 
SUB TOTAL: A ENVELOPE - NATIONAL ALLOCATIONS 

      Bridging facility  
SUB TOTAL: BRIDGING FACILITY 

      Studies / Technical assistance OCT 
SUB TOTAL: IMPLEMENTATION COSTS AND INTERESTS REVENUES 

      Regional allocations 
SUB TOTAL: REGIONAL ALLOCATIONS 

OCT 

Mobilisable reserves 

Reserves 

      NIP/RIP reserve 

SUB TOTAL: NIP/RIP RESERVE 

Non-mobilisable reserve 

Reserves 

      Non-mobilisable reserve 

SUB TOTAL: NON-MOBILISABLE RESERVE 

2,351 
2,351 

201 

201 

1 

1 

189 

189 

0 

0 

5 

5 

1 

1 

165 

165 

5 

5 

1 

1 

97 

97 

5 

5 

0 

0 

71% 

71% 

56 

56 

51% 

51% 

2 

2 

0 

0 

94% 

94% 

0% 

0% 

1 

1 

87 

87 

4 

4 

100% 

100% 

90% 

90% 

75% 

75% 

61 

61 

1 

1 

1 

1 

28 

28 

2 

2 

73% 

73% 

33% 

33% 

66% 

66% 

21 

21 

1 

1 

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

29,621 

19,027 

5,807 

64% 

13,453 

5,684 

71% 

6,206 

2,770 

46% 

92 

 
 
 
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
Annual accounts of the European Development Fund 2017 

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

93 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

EUROPEAN INVESTMENT BANK 

CA/511/18 

15 March 2018 

Document 18/099 

B O A R D   O F   D I R E C T O R S  

IN VESTMENT  FAC IL IT Y  

FINANCIAL STATEMENTS 

AS AT 31 DECEMBER 2017 

  Statement of financial position 

  Statement of profit or loss and other 

comprehensive income 

  Statement of changes in contributors’ resources 

  Statement of cash flows 

  Notes to the financial statements 

 

Independent auditor’s report 

ORG.: E 

CONFIDENTIAL 

94 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

STATEMENT OF FINANCIAL POSITION 
AS AT 31 DECEMBER 2017 
(In EUR’000) 

Notes 

31.12.2017 

31.12.2016 

ASSETS 

Cash and cash equivalents 

Amounts receivable from contributors 

Held-to-maturity financial assets 

Derivative financial instruments 

Loans and receivables 

Available-for-sale financial assets 

Other assets 

Total assets 

LIABILITIES AND CONTRIBUTORS' RESOURCES 

LIABILITIES 

Derivative financial instruments 

Deferred income 

Provisions for guarantees issued 

Amounts owed to third parties 

Other liabilities 

Total liabilities 

CONTRIBUTORS' RESOURCES 

Member States Contribution called 

Fair value reserve 

Retained earnings 

5 

9/16 

10 

6 

7 

8 

11 

6 

12 

13 

14 

15 

549,101 

150,000 

144,382 

12,521 

1,666,725 

497,539 

4,385 

360,817 

86,395 

169,398 

6,920 

1,729,380 

516,884 

345 

3,024,653 

2,870,139 

1,153 

25,802 

484 

157,285 

2,462 

25,189 

26,283 

625 

116,114 

2,546 

187,186 

170,757 

16 

2,517,000 

2,377,000 

125,816 

194,651 

142,884 

179,498 

Total contributors' resources 

2,837,467 

2,699,382 

Total liabilities and contributors' resources 

3,024,653 

2,870,139 

95 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME  
FOR THE YEAR ENDED 31 DECEMBER 2017 
(In EUR’000) 

Notes 

From 01.01.2017 

From 01.01.2016 

to 31.12.2017 

to 31.12.2016 

Interest and similar income 

Interest and similar expenses 

Net interest and similar income 

Fee and commission income 

Fee and commission expenses 

Net fee and commission income 

Fair value change of derivative financial instruments  

Net realised gains on available-for-sale financial assets 

Net foreign exchange loss 

Net result on financial operations 

Change in impairment on loans and receivables, net of reversal 

Change in provisions for guarantees 

Impairment on available-for-sale financial assets 

General administrative expenses 

Profit/loss for the year 

Other comprehensive income: 

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

Available-for-sale financial assets – Fair value reserve   

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

2. Net amount transferred to profit or loss 

Total available-for-sale financial assets 

Total other comprehensive income 

Total comprehensive income for the year 

18 

18 

19 

19 

20 

7 

13 

8 

21 

8 

101,406 

-2,671 

106,698 

-2,307 

98,735 

104,391 

210 

-60 

150 

29,637 

2,711 

-38,165 

699 

-48 

651 

-10,361 

6,504 

-14,995 

-5,817 

-18,852 

-10,721 

-65 

-22,024 

-45,105 

44,365 

-242 

-2,493 

-43,483 

15,153 

84,337 

-31,034 

13,966 

-17,068 

-14,624 

-6,485 

-21,109 

-17,068 

-21,109 

-1,915 

63,228 

96 

 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
   
 
 
   
 
 
 
   
 
 
 
 
   
 
 
 
   
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

STATEMENT OF CHANGES IN CONTRIBUTORS’ RESOURCES 
FOR THE YEAR ENDED 31 DECEMBER 2017 
(In EUR’000) 

At 1 January 2017 

Notes 

2,377,000 

142,884 

179,498 

2,699,382 

Contribution 
called 

Fair value 
reserve  

Retained 
earnings  

Total  

Member States contribution called during the year 

16 

140,000 

Profit for the year 2017 

Total other comprehensive income for the year 

- 

- 

- 

- 

- 

140,000 

15,153 

15,153 

-17,068 

- 

-17,068 

Changes in contributors’ resources 

140,000 

-17,068 

15,153 

138,085 

At 31 December 2017 

2,517,000 

125,816 

194,651 

2,837,467 

At 1 January 2016 

Contribution 
called 

Fair value 
reserve  

Retained 
earnings  

Total  

2,157,000 

163,993 

95,161 

2,416,154 

Member States contribution called during the year 

16 

220,000 

Profit for the year 2016 

Total other comprehensive income for the year 

- 

- 

- 

- 

- 

220,000 

84,337 

84,337 

-21,109 

- 

-21,109 

Changes in contributors’ resources 

220,000 

-21,109 

84,337 

283,228 

At 31 December 2016 

2,377,000 

142,884 

179,498 

2,699,382 

97 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

STATEMENT OF CASH FLOWS 
FOR THE YEAR ENDED 31 DECEMBER 2017 
(In EUR’000) 

OPERATING ACTIVITIES 

Profit for the financial year 

Adjustments made for: 

Impairment on available-for-sale financial assets   

Net change in impairment on loans and receivables    

Interest capitalised on loans and receivables  

Change in accrued interest and amortised cost on loans and receivables 

Net change in provisions for guarantees issued 

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

Change in deferred income 

Effect of exchange rate changes on loans   

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

Effect of exchange rate changes on cash held  

Loss on operating activities before changes in operating assets and liabilities 

Loan disbursements 

Repayments of loans 

Change in accrued interest on cash and cash equivalent 

Fair value changes on derivatives  

(Decrease) in held-to-maturity financial assets 

Maturities of held-to-maturity financial assets 

(Decrease) in available-for-sale financial assets 

Repayments/sales of available-for-sale financial assets   

(Increase) in other assets 

(Decrease)/increase in other liabilities 

Increase in amounts payable to the European Investment Bank 

Net cash flows used from/in operating activities 

FINANCING ACTIVITIES 

Contribution received from Member States  

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

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

Net cash flows from financing activities 

Net increase/(decrease) in cash and cash equivalents 

Summary statement of cash flows: 

Notes 

From 01.01.2017 
to 31.12.2017 

From 01.01.2016 
to 31.12.2016 

15,153 

84,337 

8 

7 

7 

7 

13 

10 

7 

7 

7 

5 

10 

10 

8 

8 

16 

22,024 

10,721 

- 

-1,198 

-141 

-398 

-481 

168,304 

-1,655 

-6,473 

205,856 

-368,662 

253,486 

63 

-29,637 

-1,084,149 

1,109,563 

-62,660 

44,568 

-4,040 

-84 

2,202 

66,506 

76,395 

60,000 

-21,026 

115,369 

181,875 

2,493 

-44,365 

-7,183 

-5,843 

625 

-1,126 

-3,042 

-35,025 

-5,125 

-1,106 

-15,360 

-528,376 

351,468 

2 

10,361 

-1,159,704 

1,219,953 

-153,986 

37,978 

-318 

182 

423 

-237,377 

133,605 

30,000 

-15,510 

148,095 

-89,282 

Cash and cash equivalents at the beginning of financial year 

360,821 

448,998 

Net cash from: 

Operating activities 

Financing activities 

Effects of exchange rate changes on cash and cash equivalents 

Cash and cash equivalents at the end of financial year 

Cash and cash equivalents are composed of: 

Cash in hand  

Term deposits (excluding accrued interest) 

Commercial papers 

98 

66,506 

115,369 

6,473 

549,169 

166,445 

367,721 

15,003 

549,169 

-237,377 

148,095 

1,106 

360,822 

51,462 

259,342 

50,018 

360,822 

5 

5 

 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

Notes to the financial statements as at 31 December 2017 

1  General information 

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

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

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

- 

- 

the Facility, a EUR 3,685.5 million  risk-bearing revolving fund geared to fostering private sector investment in ACP countries of 
which EUR 48.5 million are allocated to Overseas Countries and territories (“OCT countries”); 

grants for the financing of interest  subsidies  worth max. EUR 1,220.85 million for ACP countries and max. EUR 8.5 million for 
OCT countries. Up to 15% of these subsidies can be used to fund project-related technical assistance (“TA”). 

The present financial statements cover the period from 1 January 2017 to 31 December 2017. 

On a proposal from the Management Committee of EIB, the Board of Directors of EIB adopted the Financial Statements on 15 March 2018, 
and authorised their submission to the Board of Governors for approval by 27 April 2018. 

2  Significant accounting policies 

2.1  Basis of preparation – Statement of compliance 

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

2.2  Significant accounting judgments and estimates 

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

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

 

Measurement of fair values of financial instruments 

Fair  values  of  financial  assets  and  financial liabilities  that  are  traded  in  active  markets  are  based on  quoted  market  prices  or  broker  price 
quotations. Where the fair values cannot be derived from active markets, they are determined using a variety of valuation techniques that 
include the use of mathematical models. The input to these models is taken from observable markets where possible, but where  this is not 
feasible, a degree of judgement is required in establishing fair values. The valuations are categorised into different levels in the fair value 
hierarchy based on the inputs used in the valuation techniques as described and disclosed in Notes 2.4.3 and 4. 

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

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

The Facility uses widely recognised valuation models for determining the fair value of common and more simple financial instruments, like 

99 

 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

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

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

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

- 

- 

- 

- 

- 

Verification of observable pricing; 

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

Calibration and back testing of models against observed market transactions; 

Analysis and investigation of significant valuation movements; 

Review of significant unobservable inputs and valuation adjustments. 

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

- 

- 

- 

Determining where broker quote or pricing service pricing is appropriate; 

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

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

-  When  prices  for  similar  instruments  are  used  to  measure  fair  value,  how  these  prices  have  been  adjusted  to  reflect  the 

characteristics of the instrument subject to measurement. 

 

Impairment losses on loans and receivables 

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

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

 

Provisions on financial guarantees 

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

- 

- 

- 

amount and timing of future cash flows; 

utilisation level of the guarantees; 

discount factors applied on the estimated cash flows. 

100 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

 

Valuation of unquoted available-for-sale equity investments 

Valuation of unquoted available-for-sale equity investments is normally based on one of the following:  

- 

- 

- 

- 

- 

recent arm’s length market transactions;  

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

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

adjusted net assets method; or  

other valuation models. 

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

 

Impairment of available-for-sale financial assets 

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

 

Consolidation of entities in which the Facility holds interest  

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

2.3  Changes in accounting policies 

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

Standards adopted 

Amendments to IAS 7 ‘Statement of cash flows’ – Disclosure initiative; 

The  amendments  require  disclosures  that  enable  users  of  financial  statements  to  evaluate  changes  in  liabilities  arising  from  financing 
activities,  including  both  changes  arising  from  cash  flow  and  non-cash  changes.  Amendments  are  effective  for  annual  reporting  periods 
beginning on or after 1 January 2017, with early adoption permitted.  

Additional disclosures of relevance for the Facility include changes arising from:  

- 
- 

cash flows, such as drawdowns and repayments of borrowings; and 
non-cash changes, such as acquisitions, disposals and unrealised exchange differences. 

Amendment to IAS 7 has been endorsed by the EU on 9 November 2017 and is effective for the annual reporting periods beginning on or 
after 1 January 2017.  

Standards issued but not yet effective 

The following standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2017. The 
Facility has not applied the following new or amended standards in preparing these financial statements.  

Annual improvements 2014-2016 Cycle - various standards (Amendments to IFRS 12) 

This amendment clarifies that the disclosure requirement of IFRS 12 is applicable to interest in entities classified as held for sale except for 
summarised financial information. Previously, it was unclear whether all other IFRS 12 requirements were applicable for these interests.  

The adoption of these amendments had no impact on the Facility`s financial statements. 

It is worth noted that the aforementioned amendments have not been yet endorsed by EU according to the latest status of endorsement by 
EFRAG.  

101 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

IFRS 9 Financial instruments 

Estimated impact of the adoption of IFRS 9 - Financial instruments 

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

IFRS 9 has been endorsed by the EU on 22 November 2016 and is effective for annual reporting periods beginning on or after 1  January 
2018,  with  early  adoption  permitted.  The  Facility  did  not  adopt  the  standard  earlier  than  its  effective  date.  The  Facility  has  assessed  the 
estimated impact that the initial application of IFRS 9 will have on its contributors resources’ in the financial statements. 

In EUR’000 

As reported at 
31 December 
2017 

Estimated 
adjustment to 
Contributors` 
resources at  
1 January 2018 

Estimated 
adjusted 
opening balance 
at 1 January 
2018 

Net impact Contributors‘ resources 

2,837,467 

53,891 

2,783,576 

This impact is based on the assessments undertaken to date and is summarised below. The actual impacts of adopting IFRS 9 at 1 January 
2018 may change because:  
 
 

the Bank has not finalised the testing and assessment of controls over its new IT systems; and 
The new accounting policies are subject to change until the Facility presents its first financial statements that include the date of initial 
application.  

Classification and measurement 

IFRS 9 contains a new classification and measurement approach for financial assets that reflects the business model in which  assets are 
managed and their cash flow characteristics.  

IFRS  9  contains  three  principal  classification  categories  for  financial  assets:  measured  at  amortised  cost  (“AC”),  fair  value  through  other 
comprehensive income (‘’FVOCI’’) and fair value through profit or loss (‘’FVTPL’’). The standard eliminates the existing IAS 39 categories of 
held to maturity, loans and receivables and available for sale.  

In  addition,  under  IFRS  9,  derivatives  embedded  in  contracts  where  the  host  is  a  financial  asset  in  the  scope  of  the  standard  are  never 
bifurcated. Instead, the hybrid financial instrument as a whole is assessed for classification. 

Based on its assessment, the Facility does not expect the new guidance to have a significant impact on the classification and measurement 
of its financial assets and financial liabilities except for:   

 

 

equity investments: There are two types of equity investments at the Facility: (i) direct equity investments and (ii) venture capital funds. 
At 31 December 2017, the Facility had classified equity investments, as available-for-sale with a fair value of EUR 497 million. Under 
IFRS 9, the Facility will designate these investments as measured at FVTPL. The related fair value reserve will be released against the 
retained earnings.  

quasi-equity loans, which are a category of “debt” bearing equity-type risks. The cash flows of those types of products have equity-type 
features  that  are  unrelated  to  a  basic  lending  arrangement.  According  to  the  requirements  of  IFRS  9,  quasi-equity  loans  will  be 
mandatorily reclassified from loans and receivables under IAS 39 to FVTPL under IFRS 9. The fair value of quasi-equity loans are EUR 
1.4 million as at 31 December 2017. These net fair value adjustments amount to EUR 0.4 million. 

IFRS  9  largely  retains  the  existing  requirements  in  IAS  39  for  the  classification  of  financial  liabilities  and  the  IF’s  financial  liabilies  are 
measured at amortised under IAS39 and IFRS9 as well.    

Impairment 

IFRS 9 replaces the ‘incurred loss’ model in IAS 39 with a forward-looking ‘expected credit loss’ (‘’ECL’’) model. This will require judgement 
as to how changes in economic factors affect ECLs, which will be determined on a probability-weighted basis.  

To  comply  with  IFRS  the  EIB  has  developed  an  Expected  Credit  Loss  (hereinafter  “ECL”)  model  for  the  EIB`s  IFRS  group  financial 
statements which is also applied to the IF.  

The new impairment model will apply to financial assets measured at AC as well as to off-balance commitments  

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

102 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

- 
- 

12-month ECL’s: these are the ECLs that result from possible default events within the 12 months after the reporting date; and 
Lifetime ECLs: these are the ECLs that result from all possible default events over the expected life of a financial instrument.  

The  IFRS  9  Standard  sets  out  a  “three-stage”  model  for  impairment  based  on  changes  in  credit  quality  since  initial  recognition.  Financial 
instruments are classified in Stage 1 except for those instruments for which significant increase in credit risk (SICR) since initial recognition is 
identified. For determining whether there is a significant increase in credit risk since initial recognition, the Bank considers reasonable and 
supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information 
and analysis, based on the Facility’s historical experience and expert credit and including forward-looking information. If significant increase 
in credit risk has occurred, the financial instrument is moved to Stage 2 but is not yet deemed to be credit-impaired. If the financial instrument 
is  credit-impaired,  the  financial  instrument  is  then  moved  to  Stage  3.  The  Bank’s  assessment  of  the  impairment  Stage  is  based  on  a 
sequential  approach  using  counterparty  or  instrument  specific  information  (Internal  Default  Event,  Special  High  Risk,  Watch  List,  Rating 
deterioration, Days in arrears – more than 30 days past due).  

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

It is expected that impairment losses are likely to increase and become more volatile for assets in the scope of the IFRS 9 impairment model. 
Based on the impairment methodology described below, the Facility has estimated that application of IFRS 9’s impairment requirements at 1 
January 2018 results in additional impairment losses as follows:  

In EUR’000 

Loans and receivables 

Treasury assets 

Undisbursed loans 

Gross additional impairment losses 

Estimated additional impairment recognised 
at 1 January 2018 

49,709 

30 

4,152 

53,891 

Treasury assets are composed of high credit quality securities, therefore, the Facility decided to make use of the IFRS 9 practical expedient 
for low credit risk financial instruments. 

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

 
 
 

Probability of default (PD),  
Loss Given default (LGD),  
Exposure at default (EAD). 

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

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

The EIB employs statistical models to analyse the data collected and generate estimates of the remaining lifetime PD of exposures and how 
these  are  expected  to  change  as  a  result  of  the  passage  of  time.  This  analysis  includes  the  identification  and  calibration  of  relationships 
between changes in default rates and changes in key macro-economic factors. The gross domestic product (GDP) growth is identified as the 
relevant  macro-economic  factor.  Based  on  projections  of  that  variable,  three  macro-economic  scenario’s  are  generated,  which  are  then 
translated into credit cycles and finally into PD’s.  

The LGD represents the expectation of the extent of loss on a defaulted exposure. The LGD definition is derived from the following definition 
of Recovery rate (i.e. “1-LGD”): the recovery rate for each defaulted contract is the ratio between the discounted cash flows received after 
the  default  date  and  the  capital  outstanding  at  the  default  date.  LGD  varies  by  type  of  counterparty,  type  and  seniority  of  claim  and 
availability of collateral or other credit support. Recovery rates are defined across three main classes of borrowers: non-EU Sovereigns and 
Public Institutions, Financial Institutions and Corporates. 

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

The  Facility  estimated  that  the  application  of  IFRS  9  impairment  requirements  at  1  January  2018  results  in  an  increase  of  
EUR 53.9 million over the impairment recognised under IAS 39.  

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The following table provides information about the estimated exposure to credit and ECLs for loans and advances to credit institutions and 
customers and undisbursed loans: For an overview of credit risk on cash and cash equivalent and held-to-maturity financial assets, see note 
3.2.  

In 
EUR’000 

Stage 1 

Stage 2 

Stage 3 

Total  

Disclosures 

Disbursed amount 

Undisbursed 
amount 

Estimated impairment  
loss allowance 

Credit impaired 

1,265,945 

375,716 

138,319 

1,779,980 

823,023 

20,615 

- 

843,638 

21,727 

32,134 

113,255 

167,116 

No 

No 

Yes 

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

Transition 

Changes in accounting policies resulting from the adoption of IFRS 9 will generally be applied retrospectively, except as described below:  

 

 

The  Facility  will  take  advantage  of  the  exemption  allowing  it  not  to  restate  comparative  information  for  prior  periods  with  respect  to 
classification and measurement  (including impairment) changes.  Differences in the carrying amounts of financial assets and financial 
liabilities resulting from the adoption of IFRS 9 will generally be recognised in the contributors` resources as at 1 January 2018.  
The following assessments have to be made on the basis of the facts and circumstances that exist at the date of initial application:  
- 
- 

The determination of the business model within which a financial asset is held,  
The designation and revocation of previous designations of certain financial assets and financial liabilities as measured at FVTPL. 

IFRS 15 Revenue from Contracts with Customers  

IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing 
revenue recognition guidance, including IAS 18 Revenue, IAS 11 Construction Contracts and IFRIC 13 Customer Loyalty Programmes.  

The core principle of IFRS 15 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in 
an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, the 
Standard introduces a five-step approach to revenue recognition: 

 
 
 
 
 

Identify the contract with the customer; 
Identify the performance obligations in the contract; 
Determine the transaction price; 
Allocate the transaction price to the performance obligations in the contracts; 
Recognize revenue when (or as) the entity satisfies the performance obligation. 

Under IFRS 15, an entity recognizes revenue when (or as) a performance obligation is satisfied, i.e. when ‘control’ of the goods or services 
underlying the particular performance obligation is transferred to the customer.  

Additional disclosures are required when IFRS 15 is to be effective. 

The standard gives a range of possible transition methods including (i) a full retrospective approach, (ii) a modified retrospective approach 
with optional practical expedients and (iii) a cumulative effect method with no restatement of comparative information. 

At this stage, the Facility is finalising the assessment of the effects of applying the new standard on the financial statements. The nature of 
the following three main income types has been further analysed whether the new standard applies to them: 

 
 
 

Interest and similar income  
Fee and commission income 
Net financial result 

The Facility’s analysis indicated that only fee and commission income is in scope of IFRS 15.  

Regarding Fee and commission income, the Facility is currently performing an assessment per type of fee. The preliminary assessment is 
based  on  the  fact  that  the  fee  which  is  an  integral  part  of  the  effective  interest  rate  calculation is considered  as  out  of  IFRS  15  scope  (in 
scope of IFRS 9). For the types of fees that are in scope of IFRS 15, the Facility is assessing the revenue recognition pattern of each type 
according to the 5-step approach of IFRS 15 and compares it with the existing one.  

IFRS 15 has been endorsed by the EU on 22 September 2016 and is effective for annual reporting periods beginning on or after 1 January 
2018.  

The Facility intends to adopt the standard using the modified retrospective approach which means that the cumulative impact of the adoption 
will be recognised in retained earnings as of 1 January 2018 and that comparatives will not be restated. 

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Based  on  the  detailed  assessment  of  the  impact  resulting  from  the  application  of  IFRS  15  by  the  Facility,  it  is  not  expected  that  this  new 
standard will have a significant impact on the Facility’s financial statements. 

IFRS 16 Leases 

IFRS 16 was issued in January 2016 and replaces the current guidance of IAS 17. It will result in almost all leases being recognised on the 
balance sheet, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the 
leased item) and a financial liability to pay rentals are recognised. The only exemptions are short-term and low-value leases. The accounting 
for lessors will not significantly change.  

IFRS  16  has  been  endorsed  by  the  EU  on  31  October  2017  and  is  effective  for annual  reporting  periods  beginning  on  or  after  1  January 
2019, with early adoption permitted if IFRS 15 is applied.  

The Facility expects that this change will have no material impact on the Facility`s financial statements. 

IFRIC 22 Foreign currency transactions and advance consideration 

The  Interpretation  applies  where  an  entity  either  pays  or  receives  consideration  in  advance  for  foreign  currency-denominated  contract.  It 
considers how to determine the date of the transaction when applying the standard on foreign currency transactions, IAS 21 and provides 
guidance  whether  the  date  of  the  transaction  is  the  date  when  the  asset,  expense  or  income  is  initially  recognised,  or  the  earlier  date  on 
which the advance consideration is paid or received, resulting in recognition of a prepayment or deferred income. 

The Interpretation has not yet been adopted by the EU. According to the latest update of EFRAG, endorsement is not expected by the end of 
the year. 

The  Facility  does  not  plan  to  adopt  this  interpretation  early  and  does  not  expect  to  cause  any  material  impact  on  the  Facility’s  financial 
statements. 

2.4  Summary of significant accounting policies 

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

2.4.1   

Foreign currency translation 

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

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

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

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

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

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

2.4.2   

Cash and cash equivalents 

The  Facility  defines  cash  and  cash  equivalents  as  current  accounts,  short-term  deposits  or  commercial  papers  with  original  maturities  of 
three months or less. 

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2.4.3   

 Financial assets other than derivatives 

Financial assets are accounted for using the settlement date basis. 

 

Fair value of financial instruments 

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

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

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

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

- 

- 

- 

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

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

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

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

 

Held-to-maturity financial assets 

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

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

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

 

Loans 

Loans originated by the Facility are recognised in the assets of the Facility when cash is advanced to borrowers. They are initially recorded 
at  cost  (net  disbursed  amounts),  which  is  the  fair  value  of  the  cash  given  to  originate  the  loan,  including  any  transaction  costs,  and  are 
subsequently measured at amortised cost, using the effective yield method, less any provision for impairment or uncollectability. 

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 

Available-for-sale financial assets 

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

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

a.  Venture capital funds 

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

b.  Direct equity investments 

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

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

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

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

 

Guarantees 

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

Under  the  existing  rules,  these  guarantees  do  not  meet  the  definition  of  an  insurance  contract  (IFRS  4  Insurance  Contracts)  and  are 
accounted  for  under  IAS  39  Financial  Instruments:  Recognition  and  Measurement,  either  as  “Derivatives”  or  as  “Financial  Guarantees”, 
depending on their features and characteristics as defined by IAS 39. 

The accounting policy for derivatives is disclosed under Note 2.4.5. 

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

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

- 

- 

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

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

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

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

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

The premium received is recognised in the statement of profit or loss and other comprehensive income in “Fee and commission income” on 
the basis of an amortisation schedule in accordance with IAS 18 over the life of the financial guarantee. 

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

2.4.4   

Impairment of financial assets 

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

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

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

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

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

2.4.5   

Derivative financial instruments 

Derivatives  include  cross  currency  swaps,  cross  currency  interest  rate  swaps,  short  term  currency  swaps  (“FX  swaps”)  and  interest  rate 
swaps. 

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

The Facility does not use any of the hedge possibilities under IAS 39. All derivatives are measured at fair value through the profit or loss and 
are reported as derivative financial instruments. Fair values are derived primarily from discounted cash-flow models, option-pricing models 
and from third party quotes. 

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

Derivatives are initially recognised using the trade date basis. 

2.4.6   

Contributions 

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

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

- 

- 

- 

- 

- 

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

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

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

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

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

2.4.7   

Interest income on loans 

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

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

2.4.8   

Interest subsidies and technical assistance 

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

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

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

2.4.9   

Interest income on cash and cash equivalents 

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

2.4.10 

Fees, commissions and dividends 

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

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

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2.5  Taxation 

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

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3  Risk Management 

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

- 

- 

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

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

-  market risk – the risk that changes in market prices and rates, such as interest rates, equity prices and foreign exchange rates will 

affect an entity’s income or the value of its holdings in financial instruments. 

3.1  Risk management organisation 

The European Investment Bank, as a manager of the Facility, adapts its risk management on an ongoing basis. 

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

3.2  Credit risk 

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

3.2.1 

Credit risk policy 

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

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

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

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

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

- 

- 

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

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

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

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3.2.2 

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

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

Maximum exposure (in EUR’000) 

ASSETS 

Cash and cash equivalents 

Amounts receivable from contributors 

Held-to-maturity financial assets 

Derivative financial instruments 

Loans and receivables 

Other assets 

Total assets 

OFF BALANCE SHEET 

Contingent liabilities 

- Guarantees undrawn 

Commitments 

- Undisbursed loans 

- Guarantees drawn 

Total off balance sheet 

Total credit exposure 

31.12.2017 

31.12.2016 

549,101 

150,000 

144,382 

12,521 

360,817 

86,395 

169,398 

6,920 

1,666,725 

1,729,380 

4,385 

345 

2,527,114 

2,353,255 

74,569 

35,337 

869,983 

7,682 

952,234 

901,899 

8,627 

945,863 

3,479,348 

3,299,118 

3.2.3 

Credit risk on loans and receivables 

3.2.3.1  Credit risk measurement for loans and receivables 

Each and every loan or guarantee undertaken by the Facility benefits from a comprehensive risk assessment and quantification of expected 
loss estimates that are reflected in a Loan Grading (“LG”). Operations under the IFE (as described in Note 23), with the exception 
of  intermediated  loans,  are  not  subject  to  the  Credit  Risk  Policy  Guidelines  and  are  subject  to  a  different  procedure.  LGs  are 
established according to generally accepted criteria, based on the quality of the borrower, the maturity of the loan, the guarantee 
and, where appropriate, the guarantor. 

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

- 

- 

- 

- 

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

as help in distributing monitoring efforts; 

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

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

The following factors enter into the determination of an LG: 

i) 

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

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ii) 

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

iii) 

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

iv) 

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

v) 

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

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

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

B  High quality loans: these represent an asset class with which the bank feels comfortable, although a minor deterioration is not ruled out 

in the future. B+ and B- are used to denote the relative likelihood of the possibility of such deterioration occurring. 

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

maturity at disbursement. 

D 

E 

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

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

F 

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

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

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

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3.2.3.2  Analysis of lending credit risk exposure 

The  following  table  shows  the  maximum  exposure  to  credit  risk  on  loans  signed  and  disbursed  by  nature  of  borrower  taking  into  account 
guarantees provided by guarantors: 

At 31.12.2017 

In EUR’000 

Banks 

Corporates 

Public institutions 

States 

Total disbursed 

Signed not disbursed 

At 31.12.2016 

In EUR’000 

Banks 

Corporates 

Public institutions 

States 

Total disbursed 

Signed not disbursed 

Guaranteed 

Other credit 
enhancements 

Not guaranteed 

Total 

% of Total 

46,860 

145,914 

30,882 

- 

223,656 

89,597 

11,651 

59,462 

- 

3,218 

74,331 

919,216 

285,492 

- 

164,030 

977,727 

490,868 

30,882 

167,248 

59% 

29% 

2% 

10% 

1,368,738 

1,666,725 

100% 

- 

780,385 

869,983 

Guaranteed 

Other credit 
enhancements 

Not guaranteed 

Total 

% of Total 

22,691 

110,849 

38,330 

- 

171,870 

94,976 

34,597 

97,213 

- 

3,764 

933,609 

320,406 

- 

167,921 

990,897 

528,468 

38,330 

171,685 

57% 

31% 

2% 

10% 

135,574 

1,421,936 

1,729,380 

100% 

- 

806,923 

901,899 

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

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3.2.3.3  Credit quality analysis per type of borrower 

The tables below show the credit quality analysis of the Facility’s loan portfolio as at 31 December 2017 and 31 December 2016 by the Loan 
Grading applications, based on the exposure signed (disbursed and un-disbursed): 

At 31.12.2017 

In EUR’000 

Borrower 

 High Grade  

 Standard 
Grade  

 Min. 
Accept. Risk 

 High Risk    No grading 

 Total   % of Total 

A to B-  

C  

D+  

 D- and 
below 

Banks 

208,601 

187,225 

189,727 

870,912 

- 

1,456,465 

Corporates 

114,769 

8,018 

3,288 

533,382 

1,428 

660,885 

Public institutions 

States 

- 

- 

- 

- 

30,882 

- 

13,861 

374,614 

- 

- 

30,882 

388,476 

58% 

26% 

1% 

15% 

Total 

323,370 

195,243 

237,758 

1,778,908 

1,428 

2,536,708 

100% 

At 31.12.2016 

In EUR’000 

 High Grade  

 Standard 
Grade  

 Min. 
Accept. Risk 

 High Risk    No grading 

 Total   % of Total 

A to B-  

C  

D+  

 D- and 
below 

Banks 

94,081 

53,970 

315,524 

1,038,705 

126,951 

1,629,231 

Borrower 

Corporates 

125,810 

Public institutions 

States 

- 

- 

- 

- 

- 

19,389 

393,877 

152,355 

691,431 

38,330 

- 

18,131 

254,156 

- 

- 

38,330 

272,287 

62% 

26% 

1% 

11% 

Total 

219,891 

53,970 

391,374 

1,686,738 

279,306 

2,631,279 

100% 

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3.2.3.4  Risk concentrations of loans and receivables 

3.2.3.4.1 

Geographical analysis 

Based on the country of borrower, the Facility’s loan portfolio can be analysed by the following geographical regions (in EUR‘000): 

Country of borrower 

Kenya 

Nigeria 

Uganda 

Tanzania 

Jamaica 

Burundi 

Mauritania 

Congo (Democratic Republic) 

Dominican Republic 

Ethiopia 

Ghana 

Togo 

Rwanda 

Mauritius 

Barbados 

Cameroon 

Malawi 

New Caledonia 

Cape Verde 

Mozambique 

French Polynesia 

Cayman Islands 

Angola 

Senegal 

Zambia 

Botswana 

Burkina Faso 

Haiti 

Niger 

Mali 

Samoa 

Seychelles 

Vanuatu 

Namibia 

Congo 

Liberia 

Palau 

Micronesia 

Regional-ACP 

South Africa 

Tonga 

Trinidad and Tobago 

Saint Lucia 

Bahamas 

Sint Maarten 

Total 

31.12.2017 

31.12.2016 

331,891 

230,042 

169,869 

116,093 

341,805 

241,547 

175,424 

115,239 

85,728 

74,703 

64,007 

62,439 

61,326 

51,719 

49,895 

45,574 

38,555 

26,598 

25,124 

25,012 

22,800 

21,670 

20,487 

19,212 

17,235 

14,958 

14,850 

13,881 

10,910 

7,618 

6,041 

6,006 

5,631 

5,612 

5,100 

5,036 

2,162 

1,971 

1,730 

1,553 

1,384 

868 

751 

653 

31 

- 

- 

- 

- 

90,237 

87,373 

85,008 

47,122 

81,230 

59,837 

45,715 

64,605 

29,918 

31,518 

6,809 

41,255 

11,493 

2,191 

23,029 

22,389 

21,387 

11,221 

19 

18,544 

11,079 

7,889 

4,480 

6,879 

523 

6,159 

6,356 

2,058 

2,470 

- 

3,460 

1,759 

1,929 

1,088 

15,640 

1,336 

46 

528 

392 

392 

2 

1,666,725 

1,729,380 

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3.2.3.4.2 

Industry sector analysis 

The table below analyses the Facility’s loan portfolio by industry sector of the borrower. Operations which are first disbursed to a financial 
intermediary before being disbursed to the final beneficiary are reported under global loans (in EUR’000): 

Industry sector of borrower 

Tertiary and other 

Electricity, coal and others 

Urban development, renovation and transport 

Basic material and mining 

Roads and motorways 

Airports and air traffic management systems 

Telecommunications 

Food chain 

Oil, gas and petroleum 

Waste recuperation 

Materials processing, construction 

Social infrastructure, education and health 

Consumer goods 

Total 

31.12.2017 

31.12.2016 

991,282 

290,364 

194,101 

59,462 

40,960 

30,882 

20,310 

15,586 

12,466 

8,018 

2,194 

1,100 

- 

1,027,202 

283,489 

205,152 

82,242 

48,600 

38,330 

1,981 

14,257 

8,384 

7,988 

8,691 

2,280 

784 

1,666,725 

1,729,380 

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3.2.3.5  Arrears on loans and impairments 

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

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

The arrears and impairments on loans can be analysed as follows (in EUR’000): 

Carrying amount 

Individually impaired 

Gross amount 

Allowance for impairment 

Carrying amount individually impaired 

Collectively impaired 

Gross amount 

Allowance for impairment 

Carrying amount collectively impaired 

Past due but not impaired 

Past due comprises 

0-30 days 

30-60 days 

60-90 days 

90-180 days 

more 180 days 

Carrying amount past due but not impaired 

Notes 

 7 

Loans and receivables 

Loans and receivables 

31.12.2017 

1,666,725 

31.12.2016 

1,729,380 

136,827 

-106,203 

30,624 

119,381 

-117,640 

1,741 

- 

- 

- 

1,227 

77 

31 

18 

1 

1,354 

- 

- 

- 

1,620 

30 

- 

- 

1 

1,651 

Carrying amount neither past due nor impaired 

1,634,747 

1,725,988 

Total carrying amount loans and receivables 

1,666,725 

1,729,380 

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3.2.3.6 

Loan renegotiation and forbearance 

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

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

Forbearance  measures  and  practices  undertaken  by  the  Facility’s  restructuring  team  during  the  reporting  period  includes  extension  of 
maturity, deferral of capital only, deferral of capital and interest and capitalisation of arrears. Such forbearance measures do not lead to the 
derecognition of the underlying operation.  

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

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

In EUR’000 

Number of operations subject to forbearance practices 

Carrying values 

of which impaired 

Impairment recognised 

Interest income in respect of forborn operations 

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

31.12.2017 

31.12.2016 

27 

136,973 

112,423 

107,256 

8,418 

9,395 

22 

171,135 

124,250 

113,052 

19,877 

31,298 

Forbearance measures 

In EUR’000 

31.12.2016 

Extension of 
maturities 

Deferral of 
capital only 

Deferral of 
capital and 
interest 

Other 

Contractual 
repayment and 
termination (1) 

31.12.2017 

Banks 

Corporates 

Total 

37,276 

133,859 

171,135 

- 

10,062 

10,062 

2,886 

2,803 

5,689 

- 

- 

- 

5,490 

3,013 

8,503 

-15,305 

-43,111 

-58,416 

30,347 

106,626 

136,973 

(1) Decreases are explained by repayments of capital occurred during the year on operations already considered as forborne as of 31 December 2017 and by termination of 

forborn measures during the year. 

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3.2.4 

Credit risk on cash and cash equivalents 

Available funds are invested in accordance with the Facility’s schedule of contractual disbursement obligations. As of 31 December 2017 and 
31 December 2016, investments were in the form of bank deposits, certificates of deposit and commercial papers.  

The authorized entities have a rating similar to the short-term and long-term ratings required for the EIB’s own treasury placements. In case 
of different ratings being granted by more than one credit rating agency, the lowest rating governs. The maximum authorized limit for each 
authorised bank is currently EUR 50,000,000 (fifty million euro). An exception to this rule has been granted to Societe Generale where the 
Facility has its operational cash accounts. The short term credit limit for Societe Generale as at 31 December 2017 and 31 December 2016 
amounts to EUR 110,000,000 (one hundred and ten million euro). The increased limit applies to the sum of the cash held at the operational 
cash accounts and the instruments issued by this counterpart and held by the treasury portfolio. 

All investments have been done with authorised entities with a maximum tenor of three months from value date. As at 31 December 2017 
and 31 December 2016 all term deposits, commercial papers and cash in hand held by the treasury portfolio of the Facility had a minimum 
rating of P-1 (Moody’s equivalent) at settlement day.  

The following table shows the situation of cash and cash equivalents including accrued interest (in EUR’000): 

Minimum short-term 
rating 

Minimum long-term 
rating 

(Moody’s term) 

(Moody’s term) 

P-1 

P-1 

P-1 

P-1 

P-1 

Total 

Aaa 

Aa2 

Aa3 

A1 

A2 

3.2.5 

Credit risk on derivatives 

3.2.5.1  Credit risk policy of derivatives 

31.12.2017 

31.12.2016 

49,616 

- 

89,971 

143,080 

266,434 

549,101 

9% 

0% 

16% 

26% 

49% 

100% 

37,949 

46,963 

40,436 

100,012 

135,457 

360,817 

10% 

13% 

11% 

28% 

38% 

100% 

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

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

3.2.5.2  Credit risk measurement for derivatives 

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

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

120 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 

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

Swap contracts at 31.12.2017 

less than 

1 year 

5 years 

more than 

Total 2017 

In EUR’000 

Notional amount 

Fair Value (i.e. net discounted value) 

1 year 

to 5 years 

to 10 years 

to 10 years 

- 

- 

8,098 

-955 

- 

- 

- 

- 

8,098 

-955 

Swap contracts at 31.12.2016 

less than 

1 year 

5 years 

more than 

Total 2016 

In EUR’000 

Notional amount 

Fair Value (i.e. net discounted value) 

1 year 

to 5 years 

to 10 years 

to 10 years 

- 

- 

7,430 

-3,051 

- 

- 

- 

- 

7,430 

-3,051 

 

 

The  Facility  enters  into  foreign  exchange  short  term  currency  swaps  (“FX  swaps”)  contracts  in  order  to  hedge  currency  risk  on  loan 
disbursements in currencies other than EUR. FX swaps have a maturity of maximum three months and are regularly rolled-over. The 
notional amount of FX swaps stood at EUR 1,500.0 million at 31 December 2017 against EUR 1,611.0 million at 31 December 2016. 
The fair value of FX swaps amounts to EUR 12.0 million at 31 December 2017 against EUR -15.3 million at 31 December 2016. 

The Facility enters into interest rate swap contracts in order to hedge the interest rate risk on loans disbursed. As at 31 December 2017 
there are two interest rate swaps outstanding with a notional amount of EUR 31.7 million (2016: EUR 41.2 million) and a fair value of 
EUR 0.3 million (2016: EUR 0.1 million). 

3.2.6 

Credit risk on held-to-maturity financial assets 

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

Minimum short-term 
rating 

Minimum long-term 
rating 

(Moody’s term) 

(Moody’s term) 

P-1 

P-1 

P-2 

P-2 

NP 

Non-Rated 

Total 

Aa2 

A1 

Non-Rated 

Baa2 

Ba1 

Baa2 

31.12.2017 

31.12.2016 

- 

- 

- 

94,353 

50,029 

- 

144,382 

0% 

0% 

0% 

65% 

35% 

0% 

100% 

18,012 

30,002 

20,025 

- 

50,005 

51,354 

169,398 

10% 

18% 

12% 

0% 

30% 

30% 

100% 

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Annual accounts of the European Development Fund 2017 

3.3  Liquidity risk 

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

3.3.1   

Liquidity risk management 

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

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

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

In accordance with the principle of segregation of duties between the Front and Back Office, settlement operations related to the investment 
of these assets are under the responsibility of the EIB’s Planning and Settlement of Operations Department. Furthermore, the authorisation 
of  counterparts  and  limits  for  treasury  investments,  as  well  as  the  monitoring  of  such  limits,  are  the  responsibility  of  the  Bank’s  Risk 
Management Directorate.  

3.3.2   

Liquidity risk measurement 

The tables in this section analyse the financial liabilities of the Facility by maturity on the basis of the period remaining between the balance 
sheet date and the contractual maturity date (based on undiscounted cash flows). 

In terms of non-derivative financial liabilities, the Facility holds commitments in form of un-disbursed portions of the credit under signed loan 
agreements,  of  un-disbursed  portions  of  signed  capital  subscription/investment  agreements,  of  loan  guarantees  granted,  or  of  committed 
interest subsidies and TA.  

Loans  under  the  IF  have  a  disbursement  deadline.  However,  disbursements  are  made  at  times  and  in  amounts  reflecting  the  progress  of 
underlying investment projects. Moreover, the IF’s loans are transactions performed in a relatively volatile operating environment, hence their 
disbursement schedule is subject to a significant degree of uncertainty.  

Capital  investments  become  due  when  and  as  soon  as  equity  fund  managers  issue  valid  calls  for  capital,  reflecting  the  progress  in  their 
investment  activities.  The  drawdown  period  is  usually  of  3  years,  with  frequent  prolongation  by  one  or  two  years.  Some  disbursement 
commitments usually survive the end of the drawdown period until full disposal  of the fund’s underlying investments, as the fund’s liquidity 
may be insufficient from time to time to meet payment obligations arising in respect of fees or other expenses.  

Guarantees are not subject to specific disbursement commitments unless a guarantee is called. The amount of guarantees outstanding is 
reduced alongside the repayment schedule of guaranteed loans. 

Committed interest subsidies’ cash outflows occur in the case of subsidized loans financed by the Bank’s own resources. Therefore, reported 
outflows represent only commitments related to these loans rather than the total amount of committed un-disbursed interest subsidies. As in 
the case of loans, their disbursement schedule is uncertain.   

Committed  TA  “gross  nominal  outflow”  in  the  “Maturity  profile  of  non-derivative  financial  liabilities”  table  refers  to  the  total  un-disbursed 
portion of signed TA contracts. The disbursement time pattern is subject to a significant degree of uncertainty. Cash outflows classified in the 
“3 months or less” bucket represent the amount of outstanding invoices received by the reporting date.  

Commitments  for  non-derivative  financial  liabilities  for  which  there  is  no  defined  contractual  maturity  date  are  classified  under  “Maturity 
Undefined”. Commitments, for which there is a recorded cash disbursement request at the reporting date, are classified under the relevant 
time bucket. 

122 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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In  terms  of  derivative  financial  liabilities,  the  maturity  profile  represents  the  contractual  undiscounted  gross  cash  flows  of  swap  contracts 
including cross currency swaps (CCS), cross currency interest rate swaps (CCIRS), short term currency swaps and interest rate swaps. 

Maturity profile of non-derivative financial liabilities 

In EUR’000 as at 31.12.2017 

Outflows for committed but un-disbursed loans 

Outflows for committed investment funds and share subscription 

Others (signed non-issued guarantees, issued guarantees) 

Outflows for committed interest subsidies 

Outflows for committed TA  

Total  

Maturity profile of non-derivative financial liabilities 

In EUR’000 as at 31.12.2016 

Outflows for committed but un-disbursed loans 

Outflows for committed investment funds and share subscription 

Others (signed non-issued guarantees, issued guarantees) 

Outflows for committed interest subsidies 

Outflows for committed TA  

Total  

 3 months 
or less 

More than 
3 months 
to 1 year 

More than 
1 year to 5 
years 

More than 
5 years 

Maturity 
Undefined 

5,543 

5,039 

- 

1,245 

1,931 

13,758 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

864,440 

316,656 

82,251 

286,066 

287,311 

24,720 

26,651 

1,574,133 

1,587,891 

 3 months 
or less 

More than 
3 months 
to 1 year 

More than 
1 year to 5 
years 

More than 
5 years 

Maturity 
Undefined 

82,405 

4,592 

- 

- 

2,671 

89,668 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

819,494 

239,458 

43,964 

275,917 

275,917 

24,807 

27,478 

1,403,640 

1,493,308 

Gross 
nominal 
outflow 

869,983 

321,695 

82,251 

Gross 
nominal 
outflow 

901,899 

244,050 

43,964 

Maturity profile of derivative financial liabilities 

In EUR’000 as at 31.12.2017 

CCS and CCIRS – Inflows 
CCS and CCIRS – Outflows 
Short term currency swaps – Inflows 
Short term currency swaps – Outflows 
Interest Rate Swaps – Inflows 
Interest Rate Swaps - Outflows 

Total  

Maturity profile of derivative financial liabilities 

In EUR’000 as at 31.12.2016 

CCS and CCIRS – Inflows 
CCS and CCIRS – Outflows 
Short term currency swaps – Inflows 
Short term currency swaps – Outflows 
Interest Rate Swaps – Inflows 
Interest Rate Swaps - Outflows 

Total  

 3 months or 
less 

More than 3 
months to 1 
year 

More than 1 
year to 5 
years 

More than 5 
years 

Gross 
nominal 
inflow/outflow 

7 

- 

1,500,000 

-1,493,987 

355 

- 

6,375 

3,144 

-4,051 

- 

- 

1,102 

-1,502 

-1,307 

5,122 

-5,959 

- 

- 

4,138 

-3,782 

-482 

- 

- 

- 

- 

625 

-556 

69 

8,273 

-10,010 

1,500,000 

-1,493,987 

6,219 

-5,840 

4,655 

 3 months or 
less 

More than 3 
months to 1 
year 

More than 1 
year to 5 
years 

More than 5 
years 

Gross 
nominal 
inflow/outflow 

3 

- 

1,611,000 

-1,636,001 

411 

- 

-24,587 

2,409 

-3,688 

- 

- 

1,234 

-1,962 

-2,007 

5,222 

-7,377 

- 

- 

5,529 

-5,316 

-1,942 

- 

- 

- 

- 

1,550 

-1,329 

221 

7,634 

-11,065 

1,611,000 

-1,636,001 

8,724 

-8,607 

-28,315 

123 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

3.3.3   

Long term financial assets and liabilities 

The  following  table  sets  out  the  carrying  amounts  of  non-derivative  financial  assets  and  financial  liabilities  expected  to  be  recovered  or 
settled more than 12 months after the reporting date. 

In EUR’000 

31.12.2017 

31.12.2016 

Financial assets: 

Loans and receivables 

Available-for-sale financial assets 

Other assets 

Total  

Financial liabilities: 

Provisions for guarantees issued 

Amount owed to third parties 

Total  

3.4  Market risk 

1,608,488 

497,539 

318 

1,692,867 

516,884 

141 

2,106,345 

2,209,892 

549 

109,004 

109,553 

497 

69,960 

70,457 

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

3.4.1   

Interest rate risk 

Interest  rate  risk  arises  from  the  volatility  in  the  economic  value  of,  or  in  the  income  derived  from,  interest  rate  bearing  positions  due  to 
adverse movements in interest rates.  

The Facility is not directly impacted by the fluctuation of its economic value or to pricing mismatches between different assets, liabilities and 
hedge instruments because (i) it does not have any direct borrowing costs or interest rate bearing liabilities and (ii) it accepts the impact of 
interest rate fluctuations on the revenues from its investments. 

The Facility measures the sensitivity of its loan portfolio and micro hedging swaps to interest rate fluctuations via a Basis Point Value (BPV) 
calculation. 

The BPV measures the gain or loss in the net present value of the relevant portfolio, due to a 1 basis point (0.01%) increase in interest rates 
tenors ranging within a specified time bucket “money market – up to one year”, “very short – 2 to 3 years”, “short – 4 to 6 years”, “medium – 7 
to 11 years”, “long – 12 to 20 years” or “extra-long – more than 21 years”. 

To determine the net present value (NPV) of the loans’ cash flows denominated in EUR, the Facility uses the EIB’s EUR base funding curve 
(EUR swap curve adjusted with EIB’s global funding spread). The EIB’s USD funding curve is used for the calculation of the NPV of  loan’s 
cash flows denominated in USD. The NPV of the loans’ cash flows denominated in currencies for which a reliable and sufficiently complete 
discount curve is not available, is determined by using EIB’s EUR base funding curve as a proxy.  

To calculate the net present value of the micro hedging swaps, the facility uses the EUR swap curve for cash flows denominated in EUR and 
the USD swap curve for cash flows denominated in USD. 

124 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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As shown in the following table the net present value of the loan portfolio including related micro-hedging swaps as at 31 December 2017 
would  decrease  by  EUR  488k  (as  at  31  December  2016:  decrease  by  EUR  516k)  if  all  relevant  interest  rates  curves  are  simultaneously 
shifted upwards in parallel by 1 basis point. 

Basis point value 

In EUR’000 

Money 

Market 

Very Short  

Short 

Medium 

Long 

Extra Long  

Total 

As at 31.12.2017 

1 year 

2 to 3 years 

4 to 6 years 

7 to 11 years  12 to 20 years 

21 years 

Total sensitivity of 
loans and micro 
hedging swaps 

-49 

-96 

-159 

-168 

-16 

- 

-488 

Basis point value 

In EUR’000 

Money 

Market 

Very Short  

Short 

Medium 

Long 

Extra Long  

Total 

As at 31.12.2016 

1 year 

2 to 3 years 

4 to 6 years 

7 to 11 years  12 to 20 years 

21 years 

Total sensitivity of 
loans and micro 
hedging swaps 

-46 

-101 

-164 

-175 

-30 

- 

-516 

3.4.2 

Foreign exchange risk 

Foreign exchange (“FX”) risk for the IF is the risk of loss in earnings or economic value due to adverse movements of FX rates. 

Given a reference accounting currency (EUR for the IF), the Facility is exposed to FX risk whenever there is a mismatch between assets and 
liabilities denominated in a non-reference accounting currency. FX risk also includes the effect of changes in the value of future cash flows 
denominated in non-reference accounting currency, e.g. interest and dividend payments, due to fluctuations in exchange rates. 

3.4.2.1 

Foreign exchange risk and treasury assets 

The IF’s treasury assets are denominated either in EUR or USD. 

FX  risk  is  hedged  by  means  of  FX  cross  currency  spot  or  forward  transactions,  FX  swaps  or  cross-currency  swaps.  The  EIB’s  Treasury 
Department can, where deemed necessary and appropriate, use any other instrument, in line with the Bank’s policy, that provide protection 
against market risks incurred in connection with the IF’s financial activities. 

3.4.2.2 

Foreign exchange risk and operations financed or guaranteed by the IF 

Member States’ IF contributions are received in EUR. The operations financed or guaranteed by the IF as well as interest subsidies can be 
denominated in EUR, USD or any other authorized currency. 

A foreign exchange risk exposure (against the EUR reference currency) arises whenever transactions denominated in currencies other than 
the EUR are left un-hedged. The IF’s foreign exchange risk hedging guidelines are set out below.  

3.4.2.2.1. 

Hedging of operations denominated in USD 

The FX risk generated by IF operations denominated in USD shall be covered on an aggregated basis via the use of USD/EUR FX swaps, 
rolled over and adjusted in terms of amount on a periodic basis. The use of FX swaps serves a dual purpose. On one side the necessary 
liquidity for new disbursements (loans and equity) is generated and on the other side an FX macro hedging is maintained. 

At  the  beginning  of  each  period,  the  cash  flows  to  be  received  or  paid  in  USD  during  the  next  period  shall  be  estimated  on  the  basis  of 
planned or expected reflows/disbursements. Subsequently, the maturing FX swaps shall be rolled over, their amount being adjusted to cover 
at least the USD liquidity needs projected over the next period.  

- 

On  a  monthly  basis,  the  USD  FX  position  shall  be  hedged,  if  exceeding  the  relevant  limits,  by  means  of  a  spot  or  forward 
operation. 

-  Within a roll-over period, unexpected USD liquidity deficits shall be covered by means of ad hoc FX swap operations while liquidity 

surpluses shall either be invested in treasury assets or converted into EUR if occurred from an increase of the FX position. 

125 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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3.4.2.2.2. 

Hedging of operations denominated in currencies other than EUR or USD 

- 

- 

IF operations denominated in currencies other than EUR and USD shall be hedged through cross-currency swap contracts with 
the same financial profile as the underlying Loan, provided that a swap market is operational. 

IF has operations denominated in currencies for which hedging possibilities are either not efficiently available or available at a high 
cost. These operations are denominated in local currencies (LCs) but settled in EUR or USD. IF’s financial risk framework,  which 
was  approved  by  the  IF  Committee  on  22  January  2015,  offers  the  possibility  to  hedge  the  FX  exposure  in  LCs  that  exhibit  a 
significant  positive  correlation  with  the  USD  synthetically  via  USD-denominated  derivatives.  The  LCs  hedged  synthetically  with 
USD  denominated  derivatives  are  reported  in  the  table  in  section  3.4.2.2.3  below  under  item  “Local  currencies  (under  synthetic 
hedge)”,  while  the  LCs  not  hedged  synthetically  with  the  USD  are  reported  in  the  same  table  under  item  “Local  currencies  (not 
under synthetic hedge)”. 

3.4.2.2.3 

Foreign exchange position (in EUR’000) 

The tables of this note show the Facility’s foreign exchange position. 

The foreign exchange position is presented in the tables below in accordance with the IF’s Risk Policies (as described in the IF’s financial 
risk framework). The FX position as per Risk Policies is based on accounting figures and defined as the balance between selected assets 
and liabilities. The assets and liabilities defined in the FX position as per Risk Policies are selected so as to ensure that the earnings will only 
be converted into the reporting currency (EUR) when received. 

The unrealised gains/losses and impairment on available-for-sale financial assets are included in the FX position as per Risk Policies, as well 
as impairments on loans and receivables. Derivatives included in the FX position as per Risk Policies are considered at their nominal value 
instead of their fair value, in order to be aligned with the retained value of the assets, considered also at their nominal value adjusted by the 
impairment for loans. 

In  the  tables  below  the  remaining  part  of  the  assets  and  liabilities,  which  includes  mainly  interest  accruals  on  loans,  derivatives  and 
subsidies, is presented as “FX position excluded from Risk Policies”. 

At 31 December 2017 

Assets and liabilities 

Commitments and 
contingent liabilities 

Currencies 

USD 

Local currencies  
(under synthetic hedge)* 

KES 

TZS 

DOP 

UGX 

RWF 

Local currencies  
(not under synthetic hedge)* 
HTG, MUR, MZN, XOF, ZMW, 
BWP 

Total non-EUR currencies 

FX position as per 
Risk Policies 

FX position excluded 
from Risk Policies 

Balance sheet FX 
position 

-206,535 

6,087 

-200,448 

377,994 

88,532 

98,722 

37,785 

52,653 

32,714 

30,802 

134,673 

2,854 

1,820 

1,494 

1,505 

354 

183 

14,297 

91,386 

100,542 

39,279 

54,158 

33,068 

30,985 

148,970 

- 

- 

- 

- 

- 

- 

377,994 

EUR 

- 

2,688,497 

2,688,497 

1,278,511 

Total EUR and non-EUR 

134,673 

2,702,794 

2,837,467 

1,656,505 

* See section 3.4.2.2.2 for explanations on synthetic hedge. 

126 

 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

At 31 December 2016 

Assets and liabilities 

Commitments and 
contingent liabilities 

Currencies 

USD 

Local currencies  
(under synthetic hedge)* 

KES 

TZS 

DOP 

UGX 

RWF 

Local currencies  
(not under synthetic hedge)* 

HTG, MUR, MZN, XOF, ZMW 

Total non-EUR currencies 

FX position as per 
Risk Policies 

FX position excluded 
from Risk Policies 

Balance sheet FX 
position 

-258,496 

7,578 

-250,918 

282,991 

117,881 

97,116 

52,553 

36,776 

22,258 

22,534 

90,622 

3,869 

1,931 

2,013 

1,077 

194 

252 

16,914 

121,751 

99,046 

54,566 

37,854 

22,452 

22,786 

107,537 

- 

- 

- 

- 

- 

246 

283,237 

EUR 

- 

2,591,845 

2,591,845 

1,241,229 

Total EUR and non-EUR 

90,622 

2,608,759 

2,699,382 

1,524,466 

3.4.2.3 

Foreign exchange sensitivity analysis 

As at 31 December 2017 a 10 percent depreciation of EUR versus  all non EUR currencies  would result in an  increase  of the contributors’ 
resources amounting to EUR 16.6 million (31 December 2016: EUR 12.0 million). A 10 percent appreciation of the EUR versus all non EUR 
currencies would result in a decrease of the contributors’ resources amounting to EUR 13.6 million (31 December 2016: EUR 9.9 million). 

3.4.2.4 

Conversion rates 

The following conversion rates were used for establishing the balance sheet at 31 December 2017 and 31 December 2016: 

31 December 2017 

31 December 2016 

Non-EU currencies 

Botswana Pula (BWP) 

Dominican Republic Pesos (DOP) 

Fiji Dollars (FJD) 

Haitian Gourde (HTG) 

Kenya Shillings (KES) 

Mauritania Ouguiyas (MRO) 

Mauritius Rupees (MUR) 

Mozambican Metical (MZN) 

Rwanda Francs (RWF) 

Tanzania Shillings (TZS) 

Uganda Shillings (UGX) 

United States Dollars (USD) 

Franc CFA Francs (XAF/XOF) 

South Africa Rand (ZAR) 

Zambia Kvacha (ZMW) 

11.2657 

48.7476 

2.1969 

68.78 

108.06 

375.79 

37.85 

75.25 

856.80 

2,296.99 

3,805.00 

1.0541 

655.957 

14.457 

10.4653 

11.7512 

57.1465 

2.4186 

75.69 

123.7 

422.36 

40.07 

70.09 

1,003.37 

2,681.78 

4,357.00 

1.1993 

655.957 

14.8054 

11.965 

127 

 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

3.4.3 

Equity price risk 

Equity price risk refers to the risk that the fair values of equity investments decrease as the result of changes in the levels of equity prices 
and/or the value of equity investments. 

The IF is exposed to equity price risk via its investments in direct equity and venture capital funds. 

The  value  of  non-listed  equity  positions is  not  readily  available  for  the  purpose  of  monitoring  and  control  on  a  continuous  basis.  For  such 
positions, the best indications available include prices derived from any relevant valuation techniques. 

The effects on the Facility’s contributors’ resources (as a result of a change in the fair value of the available-for-sale equity portfolio) due to a 
+/-10%  change  in  the  value  of  individual  direct  equity  and  venture  capital  investments,  with  all  other  variables  held  constant,  is  
EUR  49.8  million  respectively  EUR  -49.8  million  as  at  31  December  2017  (EUR  51.7  million  respectively  EUR  -51.7  million  as  at  31 
December 2016). 

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4 

Fair values of financial instruments 

4.1  Accounting classifications and fair values 

The  following  table  shows  the  carrying  amounts  and  fair  values  of  financial  assets  and  financial  liabilities,  including  their  levels  in  the  fair  value  hierarchy.  These  do  not  include  fair  value 
information for financial assets and financial liabilities not carried at fair value if the carrying amount is a reasonable approximation of fair value. 

Carrying amount 

Fair value 

Held for 
trading 

Available-
for-sale 

Cash, loans 
and 
receivables 

Held to 
maturity 

Other 
financial 
liabilities 

Total 

Level 1 

Level 2 

Level 3 

Total 

At 31 December 2017 

In EUR’000 

Financial assets carried at fair value: 

Derivative financial instruments  

Venture Capital Funds 

Direct Equity Investments 

Total  

Financial assets not carried at fair value: 

Cash and cash equivalents 

Loans and receivables 

Amounts receivable from contributors 

Bonds 

Other assets 

Total  

12,521 

- 

- 

- 

420,104 

77,435 

12,521 

497,539 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

549,101 

1,666,725 

150,000 

- 

- 

- 

- 

- 

- 

- 

- 

144,382 

4,385 

- 

2,370,211 

144,382 

Total financial assets 

12,521 

497,539 

2,370,211 

144,382 

Financial liabilities carried at fair value: 

Derivative financial instruments 

Total  

Financial liabilities not carried at fair value: 

Provisions for guarantees issued 

Amounts owed to third parties 

Other liabilities 

Total  

-1,153 

-1,153 

- 

- 

- 

- 

Total financial liabilities 

-1,153 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

129 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

12,521 

420,104 

77,435 

510,060 

549,101 

1,666,725 

150,000 

144,382 

4,385 

- 

- 

24,458 

12,521 

- 

12,521 

- 

- 

420,104 

420,104 

52,977 

77,435 

24,458 

12,521 

473,081 

510,060 

- 

- 

-  1,852,507 

- 

144,382 

- 

- 

- 

- 

- 

- 

-  1,852,507 

- 

- 

- 

- 

144,382 

- 

2,514,593 

144,382  1,852,507 

-  1,996,889 

3,024,653 

-1,153 

-1,153 

- 

- 

-1,153 

-1,153 

- 

- 

-1,153 

-1,153 

-484 

-484 

-157,285 

-157,285 

-2,462 

-2,462 

-160,231 

-160,231 

-160,231 

-161,384 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Annual accounts of the European Development Fund 2017 

4 

Fair values of financial instruments (continued) 

4.1  Accounting classifications and fair values (continued) 

Carrying amount 

Fair value 

Held for 
trading 

Available-
for-sale 

Cash, loans 
and 
receivables 

Held to 
maturity 

Other 
financial 
liabilities 

Total 

Level 1 

Level 2 

Level 3 

Total 

At 31 December 2016 

In EUR’000 

Financial assets carried at fair value: 

Derivative financial instruments  

Venture Capital Funds 

Direct Equity Investments 

Total  

Financial assets not carried at fair value: 

Cash and cash equivalents 

Loans and receivables 

Amounts receivable from contributors 

Bonds 

Other assets 

Total  

6,920 

- 

- 

- 

437,788 

79,096 

6,920 

516,884 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

360,817 

1,729,380 

86,395 

- 

- 

- 

- 

- 

- 

- 

- 

169,398 

345 

- 

2,176,937 

169,398 

Total financial assets 

6,920 

516,884 

2,176,937 

169,398 

Financial liabilities carried at fair value: 

Derivative financial instruments 

Total  

Financial liabilities not carried at fair value: 

Provisions for guarantees issued 

Amounts owed to third parties 

Other liabilities 

Total  

-25,189 

-25,189 

- 

- 

- 

- 

Total financial liabilities 

-25,189 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

130 

- 

- 

22,880 

22,880 

6,920 

- 

6,920 

- 

- 

437,788 

437,788 

56,216 

79,096 

6,920 

494,004 

523,804 

-  1,951,786 

- 

- 

169,398 

120,123 

48,031 

345 

- 

- 

-  1,951,786 

- 

- 

- 

- 

168,154 

- 

2,346,335 

120,123  1,999,817 

-  2,119,940 

2,870,139 

-25,189 

-25,189 

- 

- 

-25,189 

-25,189 

- 

- 

-25,189 

-25,189 

6,920 

437,788 

79,096 

523,804 

360,817 

1,729,380 

86,395 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

-625 

-625 

-116,114 

-116,114 

-2,546 

-2,546 

-119,285 

-119,285 

-119,285 

-144,474 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Annual accounts of the European Development Fund 2017 

4.2  Measurement of fair values 

4.2.1 

Valuation techniques and significant unobservable inputs 

The table below sets out information about the valuation techniques and significant unobservable inputs used in measuring financial 
instruments, categorised as level 2 and 3 in the fair value hierarchy: 

Valuation technique 

Significant unobservable inputs 

Financial instruments carried at fair value 

Relationship of 
unobservable inputs 
to fair value 
measurement 

Derivative 
financial 
instruments 

Venture Capital 
Fund (VCF) 

Discounted  cash  flow:  Future  cash  flows  are  estimated 
based  on 
(from 
forward  exchange/interest 
observable forward exchange rates and yield curves at the 
end  of  the  reporting  period)  and  contract  forward/interest 
rates,  discounted  at  a  rate  that  reflects  the  credit  risk  of 
various counterparties. 

rates 

Not applicable. 

Not applicable. 

Adjusted  net  assets  method:  The  fair  value  is  determined 
by  applying  either  the  Facility’s  percentage  ownership  in 
the  underlying  vehicle  to  the  net  asset  value  reflected  in 
the  most  recent  report  adjusted  for  cash  flows  or,  where 
available,  the  precise  share  value  at  the  same  date, 
submitted  by  the  respective  Fund  Manager.  In  order  to 
bridge  the  interval  between  the  last  available  Net  assets 
value  (NAV)  and  the  year-end  reporting,  a  subsequent 
event review procedure is performed and if necessary the 
reported NAV is adjusted. 

Adjustment for time elapsed between the 
last  reporting  date  of  the  VCF  and  the 
measurement  date,  taking  into  account: 
operating  expenses  and  management 
fees,  subsequent  changes  in  the  fair 
value  of  the  VCF’s  underlying  assets, 
additional 
incurred,  market 
changes  or  other  economic  condition 
changes. 

liabilities 

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

Direct Equity 
Investment 

Adjusted net assets. 

taking 

Adjustment for time elapsed between the 
last  reporting  date  of  the  investee  and 
into 
the  measurement  date, 
account: 
expenses, 
operating 
subsequent  changes  in  the  fair  value  of 
the 
assets, 
additional 
incurred,  market 
changes  or  other  economic  condition 
changes,  capital  increase,  sale/change 
of control. 

underlying 

investee’s 

liabilities 

for 

Discount 
lack  of  marketability 
(liquidity)  determined  by  reference  to 
previous  transaction  prices  for  similar 
equities  in  the  country/region,  ranging 
from 5 to 30%. 

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

for 

The 
the 
higher 
marketability  discount, 
fair 
the 
value. 

lower 

the 

Financial instruments not carried at fair value 

Loans and 
receivables 

Discounted  cash 
flows:  The  valuation  model  uses 
contractual  cash  flows  that  are  conditional  upon  the  non-
occurrence  of  default  by  the  debtor  and  do  not  take  into 
account  any  collateral  values  or  early  repayments’ 
scenarios.  To  obtain  the  Net  Present  Value  (NPV)  of  the 
loans,  the  model  retained  discounts  the  contractual  cash 
flows  of  each  loan  using  an  adjusted  market  discount 
curve.  The  individual  loan  NPV  is  then  adjusted  to  take 
into consideration the  relevant associated Expected Loss. 
The  results  are  then  summed  to  obtain  the  fair  value  of 
Loans and receivables. 

Not applicable. 

Not applicable. 

Held-to-maturity 
financial assets 

Discounted cash flows. 

Not applicable. 

Not applicable. 

131 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

With the application of IFRS 13, valuation adjustments are included in the fair value of derivatives at 31 December 2017 and 2016, namely: 

- 

- 

Credit valuation adjustments (CVA), reflecting counterparty credit risk on derivative transactions, amounting to EUR -38k as at  31 
December 2017 and to EUR -76.4k  as at 31 December 2016.  
Debit  valuation  adjustments  (DVA),  reflecting  own  credit  risk  on  derivative  transactions,  amounting  to  EUR  +29.5k  as  at  
31 December 2017 and EUR +42.9k as at 31 December 2016.  

4.2.2 

Transfers between Level 1 and 2 

The  Facility’s  policy  is  to  recognise  the  transfers  between  Levels  as  of  the  date  of  the  event  or  change  in  circumstances  that  caused  the 
transfer. 

In 2017 and 2016 the Facility did not make transfers from Level 1 to 2 or Level 2 to 1 of the fair value hierarchy. 

4.2.3 

Level 3 fair values 

Reconciliation of Level 3 fair values 

The following tables present the changes in Level 3 instruments for the year ended 31 December 2017 and 31 December 2016: 

In EUR'000 

Balance at 1 January 2017 

Gains or losses included in profit or loss: 

- net realised gains on available-for-sale financial assets 

- impairment on available-for-sale financial assets  

Total 

Gains or losses included in other comprehensive income: 

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

Total 

Disbursements 

Repayments 

Write offs 

Balance at 31 December 2017 

In EUR'000 

Balance at 1 January 2016 

Gains or losses included in profit or loss: 

- net realised gains on available-for-sale financial assets 

- impairment on available-for-sale financial assets  

Total 

Gains or losses included in other comprehensive income: 

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

Total 

Disbursements 

Repayments 

Write offs 

Balance at 31 December 2016 

132 

Available-for-sale 
financial assets 

494,004 

2,711 

-22,024 

-19,313 

-17,592 

-17,592 

62,660 

-44,568 

-2,110 

473,081 

Available-for-sale 
financial assets 

419,175 

-6,504 

-2,493 

-8,997 

-24,628 

-24,628 

153,986 

-37,978 

-7,554 

494,004 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

In 2017 and 2016 the Facility did not make transfers out or to Level 3 of the fair value hierarchy. 

Sensitivity analysis 

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

At 31 December 2017 

(in EUR’000) 

Direct Equity Investments 

At 31 December 2016 

(in EUR’000) 

Direct Equity Investments 

Total 

5  Cash and cash equivalents (in EUR’000) 

The cash and cash equivalents are composed of: 

Cash in hand 

Term deposits 

Commercial papers 

Cash and cash equivalents in the statement of financial position 

Accrued interest  

Cash and cash equivalents in the cash flow statement 

6  Derivative financial instruments (in EUR’000) 

Increase 

Decrease 

- 

- 

Increase 

Decrease 

10 

10 

-10 

-10 

31.12.2017 

31.12.2016 

166,445 

367,653 

15,003 

549,101 

68 

549,169 

51,462 

259,337 

50,018 

360,817 

5 

360,822 

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

At 31 December 2017 

Cross currency interest rate swaps 

Interest rate swaps 

FX swaps 

Total derivative financial instruments 

At 31 December 2016 

Cross currency interest rate swaps 

Interest rate swaps 

FX swaps 

Total derivative financial instruments 

Fair Value 

Assets 

Liabilities 

Notional amount 

149 

393 

11,979 

12,521 

-1,105 

-48 

- 

-1,153 

8,098 

31,711 

1,500,000 

1,539,809 

Fair Value 

Assets 

Liabilities 

Notional amount 

- 

388 

6,532 

6,920 

-3,051 

-335 

-21,803 

-25,189 

7,430 

41,233 

1,611,000 

1,659,663 

133 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

7 

Loans and receivables (in EUR’000) 

The main components of loans and receivables are as follows: 

Nominal as at 1 January 2017 

Disbursements 

Write offs 

Repayments 

Interest capitalised 

Foreign exchange rates differences 

Nominal as at 31 December 2017 

Impairment as at 1 January 2017 

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

Write offs 

Reversal of impairment 

Foreign exchange rates differences 

Global loans(*) 

Senior loans 

994,527 

305,059 

-3,257 

-162,361 

- 

-128,874 

1,005,094 

-18,185 

-5,105 

3,257 

2,204 

914 

764,339 

63,603 

-6,138 

-91,125 

- 

-43,180 

687,499 

-28,294 

-11,572 

6,138 

3,752 

3,234 

Impairment as at 31 December 2017 

-16,915 

-26,742 

Amortised Cost 

Interest 

-3,802 

15,122 

-3,408 

9,877 

Loans and receivables as at 31 December 2017 

999,499 

667,226 

Nominal as at 1 January 2016 

Disbursements 

Write offs 

Repayments 

Interest capitalised 

Foreign exchange rates differences 

Nominal as at 31 December 2016 

Impairment as at 1 January 2016 

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

Write offs 

Reversal of impairment 

Foreign exchange rates differences 

Global loans(*) 

Senior loans 

661,792 

476,685 

- 

-178,282 

- 

34,332 

994,527 

-9,403 

-8,794 

- 

360 

-348 

818,007 

51,691 

-109 

-107,259 

- 

2,009 

764,339 

-22,445 

-11,999 

109 

6,100 

-59 

Impairment as at 31 December 2016 

-18,185 

-28,294 

Amortised Cost 

Interest 

-3,906 

14,807 

-3,682 

9,371 

Subordinated 
loans 

Total 

71,563 

1,830,429 

- 

- 

- 

- 

-9,017 

62,546 

368,662 

-9,395 

-253,486 

- 

-181,071 

1,755,139 

-71,161 

-117,640 

- 

- 

- 

8,615 

-62,546 

- 

- 

- 

-16,677 

9,395 

5,956 

12,763 

-106,203 

-7,210 

24,999 

1,666,725 

Subordinated 
loans 

Total 

160,555 

1,640,354 

- 

-31,189 

-65,927 

7,183 

941 

71,563 

528,376 

-31,298 

-351,468 

7,183 

37,282 

1,830,429 

-159,198 

-191,046 

- 

-20,793 

31,189 

58,698 

-1,850 

-71,161 

- 

1 

31,298 

65,158 

-2,257 

-117,640 

-7,588 

24,179 

Loans and receivables as at 31 December 2016 

987,243 

741,734 

403 

1,729,380 

(*) including agency agreements 

134 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

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

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

Cost as at 1 January 2017 

Disbursements 

Repayments / sales 

Write offs 

Foreign exchange rates differences on repayments / sales 

Cost as at 31 December 2017 

Unrealised gains and losses as at 1 January 2017 

Net change in unrealised gains and losses 

Unrealised gains and losses as at 31 December 2017 

Impairment as at 1 January 2017 

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

Write offs 

Impairment as at 31 December 2017 

Venture Capital 
Funds 

Direct Equity 
Investments 

331,253 

62,660 

-41,678 

-437 

1,600 

353,398 

129,427 

-18,242 

111,185 

-22,892 

-22,024 

437 

-44,479 

72,636 

- 

-2,890 

-1,673 

55 

68,128 

13,457 

1,174 

14,631 

-6,997 

- 

1,673 

-5,324 

Total 

403,889 

62,660 

-44,568 

-2,110 

1,655 

421,526 

142,884 

-17,068 

125,816 

-29,889 

-22,024 

2,110 

-49,803 

Available-for-sale financial assets as at 31 December 2017 

420,104 

77,435 

497,539 

Cost as at 1 January 2016 

Disbursements 

Repayments / sales 

Write offs 

Foreign exchange rates differences on repayments / sales 

Cost as at 31 December 2016 

Unrealised gains and losses as at 1 January 2016 

Net change in unrealised gains and losses 

Unrealised gains and losses as at 31 December 2016 

Impairment as at 1 January 2016 

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

Write offs 

Impairment as at 31 December 2016 

Venture Capital 
Funds 

Direct Equity 
Investments 

267,331 

101,323 

-37,948 

-4,594 

5,141 

331,253 

153,901 

-24,474 

129,427 

-25,029 

-2,457 

4,594 

-22,892 

22,979 

52,663 

-30 

-2,960 

-16 

72,636 

10,092 

3,365 

13,457 

-9,921 

-36 

2,960 

-6,997 

Total 

290,310 

153,986 

-37,978 

-7,554 

5,125 

403,889 

163,993 

-21,109 

142,884 

-34,950 

-2,493 

7,554 

-29,889 

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

437,788 

79,096 

516,884 

135 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

9  Amounts receivable from contributors (in EUR’000) 

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

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

The held-to-maturity portfolio is composed of quoted bonds which have a remaining maturity of less than three months at reporting date. The 
following table shows the movements of the held-to-maturity portfolio:  

169,398 

1,084,149 

-1,109,563 

-59 

457 

144,382 

228,521 

1,159,704 

-1,219,953 

-87 

1,213 

169,398 

31.12.2017 

31.12.2016 

4,117 

268 

4,385 

1 

344 

345 

31.12.2017 

31.12.2016 

24,895 

907 

25,802 

25,884 

399 

26,283 

Balance as at 1 January 2017 

Acquisitions 

Maturities 

Change in amortisation of premium/discount 

Change in accrued interest  

Balance as at 31 December 2017 

Balance as at 1 January 2016 

Acquisitions 

Maturities  

Change in amortisation of premium/discount 

Change in accrued interest  

Balance as at 31 December 2016 

11  Other assets (in EUR’000) 

The main components of other assets are as follows: 

Amount receivable from EIB 

Financial guarantees 

Total other assets 

12    Deferred income (in EUR’000) 

The main components of deferred income are as follows: 

Deferred interest subsidies 

Deferred commissions on loans and receivables 

Total deferred income 

136 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

13  Provisions for guarantees issued (in EUR’000) 

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

- 

- 

the amounts initially recognised less, where appropriate, cumulative amortisation recognised in accordance with IAS 18 Revenue 
and 
the  excess  over  the  above  amounts,  as  measured  in  accordance  with  IAS  37  Provisions,  Contingent  Liabilities  and  Contingent 
Assets. 

Balance at 1 January 

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

Utilised 

Transfer from "Other liabilities", financial guarantees  

Balance at 31 December 

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

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

Net general administrative expenses payable to EIB 

Other amounts payable to EIB 

Interest subsidies and TA not yet disbursed owed to Member States 

Total amounts owed to third parties 

15  Other liabilities (in EUR’000) 

The main components of other liabilities are as follows: 

Loan repayments received in advance  

Deferred income from interest subsidies 

Financial guarantees 

Total other liabilities 

2017 

625 

65 

-206 

- 

484 

2016 

- 

242 

- 

383 

625 

31.12.2017 

31.12.2016 

45,105 

580 

111,600 

157,285 

43,483 

- 

72,631 

116,114 

31.12.2017 

31.12.2016 

1,986 

436 

40 

2,462 

2,081 

458 

7 

2,546 

137 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

16  Member States Contribution called (in EUR’000) 

Member States 

Austria 

Belgium 

Bulgaria 

Cyprus 

Czech Republic 

Denmark 

Estonia 

Finland 

France 

Germany 

Greece 

Hungary 

Ireland 

Italy 

Latvia 

Lithuania 

Luxembourg 

Malta 

Netherlands 

Poland 

Portugal 

Romania 

Slovakia 

Slovenia 

Spain 

Sweden 

United Kingdom 

Total as at 31 December 2017 

Total as at 31 December 2016 

Contribution to 
the Facility 

Contribution to 
interest subsidies 
and technical 
assistance 

Total 
contributed 

Called and not 
paid 

65,597 

96,872 

644 

414 

2,346 

53,220 

230 

37,206 

589,781 

574,815 

32,475 

2,530 

16,939 

317,104 

322 

552 

7,207 

138 

129,685 

5,980 

25,243 

1,702 

966 

828 

156,239 

68,760 

329,205 

2,517,000 

2,377,000 

8,387 

12,340 

266 

171 

969 

6,875 

95 

4,920 

72,062 

72,516 

4,589 

1,045 

2,620 

42,453 

133 

228 

930 

57 

16,715 

2,470 

3,579 

703 

399 

342 

23,306 

9,129 

46,392 

333,691 

273,691 

73,984 

109,212 

910 

585 

3,315 

60,095 

325 

42,126 

661,843 

647,331 

37,064 

3,575 

19,559 

359,557 

455 

780 

8,137 

195 

146,400 

8,450 

28,822 

2,405 

1,365 

1,170 

179,545 

77,889 

375,597 

2,850,691 

2,650,691 

3,615 

5,295 

210 

135 

765 

3,000 

75 

2,205 

29,325 

30,750 

2,205 

825 

1,365 

19,290 

105 

180 

405 

45 

7,275 

1,950 

1,725 

555 

315 

270 

11,775 

4,110 

22,230 

150,000 

86,395 

 (*) On 26 October 2017, the Council fixed the amount of financial contributions to be paid by each Member State by. As at 31 December 
2017 EUR 150,000,000 were not paid in. 

138 

 
 
 
 
Annual accounts of the European Development Fund 2017 

17  Contingent liabilities and commitments (in EUR’000) 

Commitments 

Un-disbursed loans 

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

Issued guarantees 

Interest subsidies and technical assistance 

Contingent liabilities 

Signed non-issued guarantees 

31.12.2017 

31.12.2016 

869,983 

321,695 

7,682 

382,576 

901,899 

244,050 

8,627 

334,553 

74,569 

35,337 

Total contingent liabilities and commitments 

1,656,505 

1,524,466 

18 

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

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

Loans and receivables 

Interest subsidies 

Total interest and similar income 

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

Derivative financial instruments 

Cash and cash equivalents 

Held-to-maturity financial assets 

Total interest and similar expenses 

From 01.01.2017 

From 01.01.2016 

to 31.12.2017 

to 31.12.2016 

97,440 

3,966 

101,406 

102,580 

4,118 

106,698 

From 01.01.2017 

From 01.01.2016 

to 31.12.2017 

to 31.12.2016 

-980 

-1,037 

-654 

-2,671 

-1,142 

-752 

-413 

-2,307 

139 

 
 
 
 
 
 
 
   
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

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

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

Fee and commission on loans and receivables 

Fee and commission on financial guarantees 

Other 

Total fee and commission income 

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

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

Total fee and commission expenses 

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

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

Net proceeds from available-for-sale financial assets 

Dividend income 

Net realised gains on available-for-sale financial assets  

21  General administrative expenses (in EUR’000) 

From 01.01.2017 

From 01.01.2016 

to 31.12.2017 

to 31.12.2016 

- 

209 

1 

210 

515 

183 

1 

699 

From 01.01.2017 

From 01.01.2016 

to 31.12.2017 

to 31.12.2016 

-60 

-60 

-48 

-48 

From 01.01.2017 

From 01.01.2016 

to 31.12.2017 

to 31.12.2016 

1,030 

1,681 

2,711 

2,159 

4,345 

6,504 

General  administrative  expenses  represent  the  actual  costs  incurred  by  the  EIB  for  managing  the  Facility  less  income  generated  from 
standard appraisal fees directly charged by the EIB to clients of the Facility. 

Actual cost incurred by the EIB 

Income from appraisal fees directly charged to clients of the Facility 

Total general administrative expenses 

From 01.01.2017 

From 01.01.2016 

to 31.12.2017 

to 31.12.2016 

-48,285 

3,180 

-45,105 

-45,858 

2,375 

-43,483 

140 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

22 

Involvement with unconsolidated structured entities (in EUR’000) 

Definition of a structured entity 

A structured entity is one that has been designed so that voting or similar rights are not the dominant factor in deciding, who controls the-
entity. IFRS 12 observes that a structured entity often has some or all of the following features: 

 

 

 

 

Restricted activities; 

A narrow and well-defined objective, such as to effect a tax-efficient lease, carry out research and development activities, provide 
a  source  of  capital  or  funding  to  an  entity  or  provide  investment  opportunities  for  investors  by  passing  on  risks  and  rewards 
associated with the assets of the structured entity to investors; 

Insufficient equity to permit the structured entity to finance its activities without subordinated financial support; 

Financing  in  the  form  of  multiple  contractually  linked  instruments  to  investors  that  create  concentrations  of  credit  or  other  risks 
(tranches). 

Unconsolidated structured entities 

The  term  'unconsolidated  structured  entities'  refers  to  all  structured  entities  that  are  not  controlled by  the  Facility  and  includes interests  in 
structured entities that are not consolidated. 

Definition of Interests in structured entities: 

IFRS 12 defines "interests" broadly to include any contractual or non-contractual involvement that exposes the reporting entity to variability in 
returns from the performance of the entity.   Examples of such interests include the holding of equity interests and other forms of involvement 
such as the provision of funding, liquidity support, credit enhancements, commitments and guarantees to the other entity. IFRS 12 states that 
a reporting entity does not necessarily have an interest in another entity solely because of a typical customer supplier relationship. 

The table below describes the types of structured entities that the Facility does not consolidate but in which it holds an interest. 

Type of 
structured entity 

Project Finance - 
lending to Special 
Purposes Vehicles 
(“SPV”) 

Venture capital 
operations 

Nature and purpose 

Interest held by the Facility 

Project Finance  Transactions (PF Operations) are transactions  where the 
Facility relies for the servicing of its debt on a borrower whose sole or main 
source  of  revenue  is  generated  by  a  single  or  limited  number  of  assets 
being  financed  by  such  debt  or  other  pre-existing  assets  contractually 
linked to the project.  PF operations are often financed through SPV. 

Net disbursed amounts; 

Interest income. 

The Facility finances venture capital and investment funds. Venture capital 
and  investment  funds  pool  and  manage  money  from  investors  seeking 
private  equity  stakes  in  small  and  medium-size  enterprises  with  strong 
growth potential as well as financing infrastructure projects. 

Investments  in  units/shares  issued 
by the venture capital entity; 

Dividends 
income. 

received  as  dividend 

The table below shows the carrying amounts of unconsolidated structured entities in which the Facility has an interest at the reporting date, 
as well as the Facility's maximum exposure to loss in relation to those entities. The maximum exposure to loss includes the carrying amounts 
and the related un-disbursed commitments.  

Type of structured entity 

Caption 

Venture capital funds 

Total 

Available-for-sale financial 
assets 

Carrying 
amount at 
31.12.2017 

Carrying 
amount at 
31.12.2016 

Maximum 
exposure to 
loss at 
31.12.2017 

Maximum 
exposure to 
loss at 
31.12.2016 

420,104 

437,788 

737,661 

672,222 

420,104 

437,788 

737,661 

672,222 

141 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

23 

Impact financing envelope (in EUR’000) 

In  June  2013  the  ACP-EU  Joint  Ministerial  Council  approved  the  new  financial  protocol  for  the  11th  European  Development  Fund  (EDF), 
covering the period 2014-2020.  

A new EUR 500m endowment was agreed for the Investment Facility, the so called ‘impact financing envelope’ or “IFE”, enabling the Facility 
to support projects that promise a particularly high development impact whilst bearing the greater risks inherent in such investments. This 
envelope will present new possibilities for enhancing the Facility’s private sector lending through investments in the following instruments: 

Social  impact  equity  funds  -  promoted  by  an  emerging  population  of  private  equity  fund  managers  who  put  the  alleviation  of  social  or 
environmental issues at the core of their funds' investment strategy but still target sustainability at the levels of both the fund and its investee 
companies. 

Loans to financial intermediaries - (e.g. microfinance institutions, local banks and credit unions) operating in ACP countries in which the 
EIB cannot consider financing - in particular in local currency - under the existing credit risk guidelines, e.g. due to either high country risks, 
currency volatility or lack of pricing benchmarks. The main objective of such loans will be to fund projects with a high developmental impact, 
especially in the field of support to micro and small enterprises (MSEs) and agriculture, which generally do not qualify for IF financing. 

Risk sharing  facilitating instruments -  which will take the form of first loss guarantees ("first loss pieces") that will facilitate risk sharing 
operations of the EIB with local financial intermediaries (mainly commercial banks) for the benefit of underserved SMEs and small projects 
that meet the Impact Financing Criteria in situations where a market gap has been identified in relation to the access of SMEs/small projects 
to finance. The first loss pieces would be structured as a counter-guarantee in favour of senior guarantee tranches funded by the EIB - under 
the  Investment  Facility  -  and  by  other  International  Financial  Institutions/Development  Financial  Institutions,  thus  generating  a  substantial 
leverage effect. 

Direct financing - through debt or equity instruments in projects with sound and experienced promoters and high developmental impacts, 
but that  will, however, also entail higher expectations of losses and difficulties to recover the investment (equity type risk with higher than 
usual expectation of losses). The EIB will apply strict selection and eligibility criteria for this instrument, as these projects, notwithstanding 
their high developmental impact, would not be able to meet acceptable financing criteria (i.e. low expectation of recovering the investment or 
offsetting the losses through interest rates /equity returns). 

The IFE will also allow diversification into new sectors, such as health and education, agriculture and food security, and the development of 
new and innovative risk-sharing instruments. 

From  a  financial  and  accounting  perspective  the  IFE  forms  part  of  the  IF  portfolio  and  is  accounted  for  in  the  overall  IF  annual  financial 
statements. 

The following table represents the carrying amounts and the committed, but undisbursed amounts, per type of asset: 

Type of IFE investment 

Caption 

Social impact equity funds 

Available-for-sale financial 
assets 

Carrying 
amount at 
31.12.2017 

Carrying 
amount at 
31.12.2016 

Undisbursed 
amount at 
31.12.2017 

Undisbursed 
amount at 
31.12.2016 

7,839 

5,021 

51,720 

19,567 

Loans to financial 
intermediaries 

Risk sharing facilitating 
instruments 

Loans and receivables 

30,804 

23,702 

44,017 

46,958 

Issued guarantees 

296 

-288 

64,569 

33,719 

Direct financing – equity 
participations 

Available-for-sale financial 
assets 

Total 

42,981 

81,920 

39,986 

68,421 

4,014 

14 

164,320 

100,258 

142 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2017 

24  Subsequent events 

There  have  been  no  material  post  balance  sheet  events  which  could  require  disclosure  or  adjustment  to  the  31  December  2017  financial 
statements. 

143