COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS ANNUAL ACCOUNTS OF THE EUROPEAN DEVELOPMENT FUND FOR THE FINANCIAL YEAR 2024
Date: 2025-06-24
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, 24.6.2025  COM(2025) 354 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS ANNUAL ACCOUNTS OF THE EUROPEAN DEVELOPMENT FUND FOR THE FINANCIAL YEAR 2024  
 
 
Annual accounts of the European Development Fund 2024 

CONTENTS 

CERTIFICATION OF THE ACCOUNTS ................................................................... 2 

IMPLEMENTING AND ACCOUNTING FOR THE EDF RESOURCES ............................... 3 

FUNDS MANAGED BY THE EUROPEAN COMMISSION ............................................. 7 
FINANCIAL STATEMENTS OF THE EDF ........................................................................... 9 
FINANCIAL STATEMENTS OF THE EU TRUST FUNDS CONSOLIDATED IN THE EDF ............ 52 
FINANCIAL STATEMENTS OF THE BÊKOU EU TRUST FUND 2024 .................................... 53 
FINANCIAL STATEMENTS OF THE EUTF AFRICA 2024 ................................................... 61 
CONSOLIDATED FINANCIAL STATEMENTS OF THE EDF AND THE EU TRUST FUNDS .......... 70 
EDF REPORT ON FINANCIAL IMPLEMENTATION ............................................................ 75 

1 

 
 
 
 
Annual accounts of the European Development Fund 2024 

CERTIFICATION OF THE ACCOUNTS 

The  annual  accounts  of  the  European  Development  Fund  for  the  year  2024  have  been  prepared  in 
accordance with Title X of the Financial Regulation of the 11th European Development Fund and with the 
accounting principles, rules and methods set out in the notes to the financial statements. 

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

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

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

Beatriz SANZ REDRADO 

Accounting Officer 

2 

 
 
 
 
 
Annual accounts of the European Development Fund 2024 

IMPLEMENTING AND ACCOUNTING FOR 
THE EDF RESOURCES 

1.  BACKGROUND 

The  European  Union  (‘the  EU’)  has  cooperative  relations  with  many  developing  countries.  The  main 
objective  of  these  relations  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  these  strategies. 
These EU resources allocated to development cooperation come from three sources: 

- 
- 
- 

the EU budget; 
the European Development Fund (EDF); and 
the European Investment Bank (EIB). 

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

The EDF is made up of individual EDFs, each of which is concluded for a period of around five years and is 
governed by its own  Financial  Regulation.  This  requires the preparation of specific financial  statements. 
In  addition,  these  financial  statements  are  aggregated  so  as  to  provide  a  global  view  of  the  financial 
situation of the resources for which the Commission is responsible. 

Up until 2021,  when the 11th  EDF  reached its final stage as the  ‘sunset clause’  came  into effect on  31 
December 2020, the EDF was the main instrument for providing aid for development cooperation to the 
African,  Caribbean  and  Pacific  (ACP)  states  and  overseas  countries  and  territories  (‘OCTs’).  However, 
since 2021 EU cooperation with ACP states and OCTs has been funded through the EU budget. 

Under the ACP-EU Partnership Agreement, the Investment Facility was established, managed by the EIB, 
and  used  to  support  private  sector  development  in  the  ACP  states  by  financing  mostly  –  but  not 
exclusively – private investments. The Investment 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.  Because  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’s  and  the 
related report on financial implementation. The financial statements of the Investment Facility, prepared 
by the EIB, are included as a separate part of the EDF’s annual accounts (part II) to provide a full picture 
of the development aid of the EDF. 

2.  HOW IS THE EDF FUNDED? 

The  Council  of  2  December  2013  adopted  Regulation  (EU,  Euratom)  1311/2013  laying  down  the 
Multiannual  Financial  Framework  for  2014-2020.  In  this  context,  it  was  decided  that  geographical 
cooperation  with  the  ACP  states  would  not  be  integrated  into  the  EU  budget  but  would  continue  to  be 
funded through the existing intergovernmental EDF. 

Unlike  the  EU  budget,  the  EDF  is  a  fund  that  operates  based  on  multi-annuality.  Each  EDF  sets  up  an 
overall fund to implement development cooperation typically for a period of five years. Because resources 
are  allocated  on  a  multiannual  basis,  the  allocated  funds  may  be  used  over the  period  of  the  EDF.  The 
fact  that  budgets  are  set  for  a  period  of  several  years  –  rather  than  being  set  for  a  single  year  is 
highlighted  in  the  budgetary  reporting,  where  the  budgetary  implementation  of  the  EDFs  is  measured 
against the total funds. 

3 

 
 
Annual accounts of the European Development Fund 2024 

The  EDF  resources  are  ‘ad  hoc’  contributions  from  the  EU  Member  States.  Approximately  every  five 
years, Member State representatives met at intergovernmental level and decided on an overall amount to 
be allocated to the fund and to oversee its implementation.  

The Commission manages the EDF in accordance with the EU’s policy on development cooperation. Since 
Member  States  have  their  own  development  and  aid  policies  in  parallel  to  the  EU  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. 

EDF ACTIVITIES AFTER 31 DECEMBER 2020 

The  Commission  is  currently  working  towards  the  closure  of  the  9th  EDF  (which  ran  from  2000-2007), 
and which incorporated remaining balances transferred from the 8th EDF (which ran from 1995 to 2000) 
in  accordance  with  the  provisions  of  Part  3  of  the  financial  regulation1  applicable  to  the  9th  EDF. 
Currently, there are still 8 ongoing contracts funded under the 9th EDF, which will reach their conclusion 
within  the  specified  timeframe,  contributing  to  the  finalisation  of  activities  and  projects  associated  with 
the 9th EDF. The full closure of the 9th EDF can only be accomplished once all contracts come to an end 
and following the completion of their evaluations and audits.  

The  closure  of  the  10th  EDF  (which  ran  from  2008  to  2013)  is  progressing  well  with  97.35%  of  its 
contracts  already  closed.  However,  the  operational  and  financial  closure  of  the  remaining  contracts  will 
take  some  time.  The  financial  closure  requires  the  launch  and  completion  of  all  necessary  evaluations, 
audits and recoveries. 

The 11th EDF (which ran from 2014 to 2020) has reached its final stage as the sunset clause came into 
effect on 31 December 2020. This clause sets a cut-off date for commitments meaning that as of 2021 no 
further  financing  decisions  can  be  adopted  under  the  11th  EDF.  However,  the  implementation  of  the 
ongoing projects funded by the 11th EDF will continue until their final completion.   

Under  the  current  Multiannual  Financial  Framework  2021-2027,  EU  cooperation  with  ACP  countries  is 
integrated  in  the  Neighbourhood,  Development  and  International  Cooperation  Instrument  –Global 
Europe. Similarly, the cooperation with OCTs is now covered by the Overseas Association Decision. This 
means that, although up to 2021 the EDF programmes were funded by the voluntary contributions of EU 
Member  States,  as  of  2021  development  programmes  will  be  funded  through  the  EU  budget.  This  also 
implies  that  the  funding  of  development  programmes  is  subject  to  the  authorisation  of  the  European 
Parliament, and that the transactions  must comply with the EU’s Financial Regulations in the same way 
as other EU-funded programmes.  

4. 

YEAR-END REPORTING 

4.1.  ANNUAL ACCOUNTS 

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

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

The annual accounts are presented as follows: 

1 OJ L 83, 1.4.2003, p. 27. 

4 

 
 
 
Annual accounts of the European Development Fund 2024 

Part I: Funds managed by the Commission 

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

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

5.  AUDIT AND DISCHARGE 

5.1.  AUDIT 

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

5.2.  DISCHARGE 

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

5 

 
 
Annual accounts of the European Development Fund 2024 

HIGHLIGHTS OF FINANCIAL 
IMPLEMENTATION 2024 

10th and 11th EDF budget implementation 2008-2024

7.000

6.000

5.000

4.000

3.000

2.000

1.000

0

(1.000)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Commitments

Contracts

Payments

* Net amount, only 10th & 11th EDF 

Budget implementation 

In  2024,  individual  net  commitments  of  EUR  42  million  were  made  under  both  the  10th  EDF  and  11th 
EDF. In 2024, net payments of EUR 1 345 million were also made under the 10th EDF and 11th EDF. The 
total amount of gross payments for the EDF in 2024 amounted to EUR 1 405.45 million, which represents 
99.68% of the target of EUR 1 410 million communicated to the Member States. 

In 2022, the Council unanimously decided to reuse EUR 600 million of de-committed funds from the 10th 
and 11th EDF to finance actions addressing the food-security crisis and economic shock in ACP countries 
following Russia’s war of aggression against Ukraine. The Commission committed this EUR 600 million  in 
2022 and disbursed EUR 392 million up until 2024.  

Impact of the activities in the financial statements 

In the financial statements, the impact of the above mentioned activities is most visible when looking at: 

—  pre-financing  (see  note  2.2):  a  decrease  of  EUR 287 million  largely  as  a  result  of  the  winding 
down  of  the  EDF  and  the  resulting  decrease  in  the  number  of  new  contracts.  In  2024,  new 
contracts amounted to EUR 300 million compared with EUR 860 million in 2023;  

—  cash  and  cash  equivalents  (see  note  2.5):  a  decrease  of  EUR 190 million  primarly  due  to  the 
reduction  in  contributions  from  donors,  which  decreased  from  EUR  1 800  million  in  2023  to 
EUR 1 200 million in 2024; 

—  accrued charges (see note 2.8): a decrease of EUR 210 million as a result of the decrease in the 
number of open contracts at the end of the year for which no cost claims were validated by year-
end; and 

—  aid instruments (see note 3.4): an overall decrease of EUR 944 million mainly as a result of the 
decrease  in  expenses  under  the  11th  EDF  (EUR 1 906  million  in  2023  to  EUR 1 145  million  in 
2024). This trend aligns with the decreasing volume of new contracts signed since 2021. 

6 

 
 
 
Annual accounts of the European Development Fund 2024 

EUROPEAN DEVELOPMENT FUND 
FINANCIAL YEAR 2024 

FUNDS MANAGED BY THE EUROPEAN 
COMMISSION 

7 

 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

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 ...................................................... 16 
STATEMENT OF CHANGES IN NET ASSETS BY EDF ....................................................... 17 
NOTES TO THE FINANCIAL STATEMENTS OF THE EDF ................................................... 19 

FINANCIAL STATEMENTS OF THE EU TRUST FUNDS CONSOLIDATED IN EDF .......... 52 

FINANCIAL STATEMENTS OF THE BÊKOU EU TRUST FUND 2024 ........................... 53 
BALANCE SHEET ...................................................................................................... 58 
STATEMENT OF FINANCIAL PERFORMANCE ................................................................. 59 
CASHFLOW STATEMENT ............................................................................................ 60 

FINANCIAL STATEMENTS OF THE EUTF AFRICA 2024 .......................................... 61 
BALANCE SHEET ...................................................................................................... 67 
STATEMENT OF FINANCIAL PERFORMANCE ................................................................. 68 
CASHFLOW STATEMENT ............................................................................................ 69 

CONSOLIDATED FINANCIAL STATEMENTS OF THE EDF AND THE EU TRUST FUNDS . 70 
CONSOLIDATED BALANCE SHEET ............................................................................... 71 
CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE .......................................... 72 
CONSOLIDATED CASH FLOW STATEMENT ................................................................... 73 
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS ........................................... 74 

EDF REPORT ON FINANCIAL IMPLEMENTATION .................................................. 75 

8 

 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

FINANCIAL STATEMENTS OF THE EDF 

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

9 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

EDF BALANCE SHEET 

NON-CURRENT ASSETS 
Financial assets 
Pre-financing 
Trust Fund contributions 
Exchange receivables  

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

TOTAL ASSETS 

NON-CURRENT LIABILITIES 
Financial liabilities 

CURRENT LIABILITIES 
Provisions 
Payables 
Accrued charges  

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 

Note 

EUR million 
31.12.2024  31.12.2023 

2.1 
2.2 
2.3 
2.4 

2.1 
2.2 
2.4 
2.5 

2.6 

2.6 
2.7 
2.8 

2.9 
2.9 

 128 
 500 
 188 
 5 
 821 

 5 
 742 
 37 
 411 
1 194 
2 016 

 87 
 574 
 216 
 5 
 883 

 3 
 954 
 24 
 601 
1 583 
2 466 

 (1) 
 (1) 

 (5) 
 (5) 

(2) 
 (256) 
 (774) 
(1 032) 
(1 032) 

(0) 
 (391) 
 (984) 
(1 375) 
(1 380) 

 983 

1 086 

55 704 
2 252 
(55 733) 
(1 240) 
 983 

54 566 
2 252 
(53 484) 
(2 249) 
1 086 

10 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

EDF STATEMENT OF FINANCIAL PERFORMANCE 

REVENUE 
Revenue from non-exchange transactions 
Recovery activities 

Revenue from exchange transactions 
Financial revenue 
Other revenue 

Total Revenue 
EXPENSES 

Implemented by other entities 
Aid instruments 
Co-financing expenses 
Finance costs 
Other expenses 
Total Expenses 

ECONOMIC RESULT OF THE YEAR 

Note 

2024 

EUR million 
2023 

3.1 

3.2 
3.2 

3.3 
3.4 
3.5 
3.6 
3.7 

 41 
 41 

 19 
 71 
 90 
 131 

 14 
 14 

 9 
 43 
 52 
 65 

 (4) 
(1 237) 
 (17) 
 (3) 
 (110) 
(1 371) 

 (3) 
(2 181) 
 (8) 
 (7) 
 (116) 
(2 315) 

(1 240) 

(2 249) 

11 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

EDF CASHFLOW STATEMENT 

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 provisions 
Increase/(decrease) in financial liabilities 
Increase/(decrease) in payables 
Increase/(decrease) in accrued charges and deferred income 
Investing activities 
(Increase)/decrease in non-derivative financial assets at fair value through 
surplus or deficit  
NET CASHFLOW 

Note 

EUR million 
2023 
(1 240)  (2 249) 

2024 

1 138 
 28 
 287 
 (12) 
 0 
 (2) 
 (136) 
 (210) 

1 630 
 37 
 356 

 4 
 2 
 (3) 
 (35) 
 (148) 

 (42) 

 (20) 

 (190) 

 (426) 

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 

2.5 
2.5 

 (190) 
 601 
 411 

 (426) 
1 027 
 601 

12 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EDF STATEMENT OF CHANGES IN NET ASSETS 

Annual accounts of the European Development Fund 2024 

Fund 
capital - 
active EDFs 
(A) 

Uncalled 
funds - 
active 
EDFs (B) 

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

 72 955 
  (185) 
 (12 164) 
– 
 60 607 
  (62) 
– 
 60 544 

 7 855 
 (1 815) 

– 
 6 040 
 (1 200) 
– 
 4 840 

 65 100 
 1 630 
 (12 164) 
– 
 54 566 
 1 138 
– 
 55 704 

Cumulative 
reserves (D) 

Called fund capital 
from closed EDFs 
carried forward (E) 

Total net assets 
(C)+(D)+(E) 

EUR million 

 (65 647) 
– 
 12 164 
 (2 249) 
 (55 732) 
– 
 (1 240) 
 (56 973) 

 2 252 
– 

– 
 2 252 
– 
– 
 2 252 

 1 705 
 1 630 
– 
 (2 249) 
 1 086 
 1 138 
 (1 240) 
  983 

BALANCE AS AT 31.12.2022 
Capital increase - contributions 
Closure of the 8th EDF 
Economic result of the year 
BALANCE AS AT 31.12.2023 
Capital increase - contributions 
Economic result of the year 
BALANCE AS AT 31.12.2024 

13 

 
 
 
 
 
   
 
 
 
 
 
BALANCE SHEET BY EDF 

Annual accounts of the European Development Fund 2024 

31.12.2024 

31.12.2023 

Note 

Ninth  
EDF 

10th  
EDF 

11th  
EDF 

NON-CURRENT ASSETS 
Financial assets 
Pre-financing 
Trust Fund contributions 
Exchange receivables 

CURRENT ASSETS 
Financial assets 
Pre-financing 
Exchange receivables and non-
exchange recoverables 
Inter-EDF accounts 
Cash and cash equivalents 

TOTAL ASSETS 

NON-CURRENT LIABILITIES 
Financial liabilities 

CURRENT LIABILITIES 
Provisions 
Payables 
Accrued charges  

TOTAL LIABILITIES 

2.1 
2.2 
2.3 

2.1 
2.2 

2.4 

2.5 

2.6 

2.6 
2.7 
2.8 

– 
– 
 31 
– 
  31 

– 
 6 

– 

 (207) 
– 
  (201) 
  (170) 

– 
– 

– 
– 
– 
– 
– 

 14 
 418 
 9 
– 
  441 

– 
 81 

 21 

 227 
– 
  329 
  770 

– 
– 

– 
 (25) 
 (71) 
  (96) 
  (96) 

Total 

 128 
 500 
 188 
 5 
  821 

 5 
 742 

 37 

 114 
 82 
 148 
 5 
  349 

 5 
 655 

 16 

 (20) 
 411 
 1 067 
 1 415 

– 
 411 
 1 194 
 2 016 

 (1) 
  (1) 

 (2) 
 (230) 
 (703) 
  (935) 
  (936) 

 (1) 
  (1) 
– 
 (2) 
 (256) 
 (774) 
 (1 032) 
 (1 032) 
– 

Ninth  
EDF 

10th  
EDF 

11th  
EDF 

– 
– 
 31 
– 
  31 

– 
 5 

 – 

 (200) 
– 
  (195) 
  (163) 

 14 
 447 
 9 
– 
  470 

– 
 113 

 10 

 426 
– 
  549 
 1 020 

 73 
 127 
 176 
 5 
  381 

 3 
 835 

 14 

 (226) 
 601 
 1 229 
 1 610 

 EUR million 

Total 

 87 
 574 
 216 
 5 
  883 

 3 
 954 

 24 

– 
 601 
 1 583 
 2 466 

– 
– 

– 
– 
– 
– 
– 

– 
– 

 (5) 
  (5) 

 (5) 
  (5) 

– 
 (63) 
 (129) 
  (192) 
  (192) 

 (0) 
 (328) 
 (855) 
 (1 183) 
 (1 188) 

 (0) 
 (391) 
 (984) 
 (1 375) 
 (1 380) 

NET ASSETS 

  (170) 

  674 

  479 

  983 

  (163) 

  827 

  422 

 1 086 

14 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

31.12.2024 

31.12.2023 

 EUR million 

Ninth 
 EDF 
10 435 

2 252 

 (510) 

10th  
EDF 
20 819 

11th  
EDF 
24 449 

Total 

55 704 

– 

– 

2 252 

Ninth  
EDF 
10 442 

2 252 

10th  
EDF 
20 834 

– 

 (187) 

 696 

– 

 (509) 

 (120) 

11th  
EDF 
23 290 

– 

 628 

Total 

54 566 

2 252 

- 

(12 348) 

(19 887) 

(23 497) 

(55 733) 

(12 350) 

(19 607) 

(21 527) 

(53 484) 

Note 

Called fund capital - active EDFs  2.9 
Called fund capital from closed 
EDFs carried forward 
Called fund capital transfers 
between active EDFs 
Economic result carried forward 
from previous years 

2.9 

2.9 

Economic result of the year 

– 

 (72) 

(1 169) 

(1 240) 

 1 

 (280) 

(1 970) 

(2 249) 

NET ASSETS 

  (170) 

  674 

  479 

  983 

  (163) 

  827 

  422 

 1 086 

15 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENT OF FINANCIAL PERFORMANCE BY EDF 

Annual accounts of the European Development Fund 2024 

2024 

2023 

EUR million 

Note 

Ninth  
EDF 

10th 
EDF 

11th  
EDF 

Total 

Ninth  
EDF 

10th 
EDF 

11th  
EDF 

Total 

3.1 

3.2 
3.2 

3.3 
3.4 
3.5 
3.6 
3.7 

 1 
  1 

– 
2 
 2 
  3 

 28 
  28 

 1 
 4 
 5 
  33 

 12 
  12 

 18 
 65 
 83 
  95 

 41 
  41 

 19 
 71 
 90 
  131 

– 
– 

– 
 2 
 2 
  2 

 2 
  2 

 (1) 
 4 
 4 
  5 

 12 
  12 

 10 
 37 
 46 
  58 

 14 
  14 

 9 
 43 
 52 
  65 

– 
 (2) 
– 
– 
 (2) 
  (3) 

– 
 (90) 
 (12) 
 5 
 (7) 
  (104) 

 (4) 
(1 145) 
 (5) 
 (9) 
 (101) 
 (1 264) 

 (4) 
(1 237) 
 (17) 
 (3) 
 (110) 
 (1 371) 

– 
 1 
– 
 1 
 (3) 
  (1) 

– 
 (276) 
– 
 (2) 
 (8) 
  (286) 

 (3) 
(1 906) 
 (8) 
 (6) 
 (106) 
 (2 028) 

 (3) 
(2 181) 
 (8) 
 (7) 
 (116) 
 (2 315) 

REVENUE 
Revenue from non-exchange 
transactions 
Recovery activities 

Revenue from exchange 
transactions 
Financial revenue 
Other revenue 

Total revenue 
EXPENSES 
Implemented by other entities 
Aid instruments 
Co-financing expenses 
Finance costs 
Other expenses 
Total expenses 

ECONOMIC RESULT OF THE YEAR 

– 

  (72) 

 (1 169) 

 (1 240) 

  1 

  (280) 

 (1 970) 

 (2 249) 

16 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENT OF CHANGES IN NET ASSETS BY EDF 

Annual accounts of the European Development Fund 2024 

Ninth EDF 

BALANCE AS AT 31.12.2022 
Transfers to/from the 10th EDF 

Fund 
capital - 
active 
EDFs 
(A) 

 10 464 
– 

Uncalled 
funds - 
active EDFs 
(B) 

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

Cumulative 
reserves (D) 

EUR million 

Called fund 
capital from 
closed EDFs 
carried 
forward (E) 

Called fund 
capital 
transfers 
between 
active 
EDFs (F) 

Total net 
assets 
(C)+(D)+(E)
+(F) 

  15 
 (15) 

 10 450 
 15 

 (14 416) 
– 

 1 625 
– 

 2 010 
– 

  (331) 
 15 

Transfers to/from the 10th and 11th EDF 

– 

Refund to Member States 
Closure of the 8th EDF 
Economic result of the year 
BALANCE AS AT 31.12.2023 
Capital increase - contributions 
Transfers to/from the 10th and 11th EDF 
Refund to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2024 

 (22) 
– 
– 
 10 442 
– 
– 
 (6) 
– 
 10 435 

– 

– 
– 
– 
  – 
– 
– 
– 
– 
  1 

– 

– 

– 

 (4) 

 (4) 

 (22) 
– 
– 
 10 442 
– 
– 
 (6) 
– 
 10 435 

– 
2 066 
 1 
 (12 348) 
– 
– 
– 

 (12 348) 

– 
 627 
– 
 2 252 
– 
– 
– 
– 
 2 252 

– 
(2 514) 
– 
  (509) 
– 
(1) 
– 
– 
  (510) 

 (22) 
 179 
 1 
  (163) 
– 
 (1) 
 (6) 

  (170) 

17 

 
 
 
 
 
Annual accounts of the European Development Fund 2024 

10th EDF 

BALANCE AS AT 31.12.2022 
Transfers to/from the Eighth and Ninth EDF 
Transfers to/from the 11th EDF 
Refund to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2023 
Transfers to/from the Eighth and Ninth EDF 
Transfers to/from the 11th EDF 
Refund to Member States 
Economic result of the year 
BALANCE AS AT 31.12.2024 

Fund 
capital - 
active 
EDFs (A) 

 20 960 
– 
– 
 (126) 
– 
 20 834 
– 
– 
 (15) 
– 
 20 819 

Uncalled funds 
- active EDFs 
(B) 

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

Cumulative 
reserves (D) 

– 
– 
– 
– 
– 
– 
– 
– 
– 
– 
– 

 20 960 
– 
– 
 (126) 
– 
 20 834 
– 
– 
 (15) 
– 
 20 819 

 (19 606) 
– 
– 
– 
 (280) 
 (19 886) 

 (72) 
 (19 959) 

Called fund 
capital from 
closed EDFs 
carried 
forward (E) 

Called fund 
capital 
transfers 
between 
active EDFs 
(F) 

EUR million 

Total net 
assets 
(C)+(D)+(E)
+(F) 

– 
– 
– 
– 
– 
– 
– 
– 
– 
– 
– 

  (38) 
 6 
 (87) 
– 
– 
  (120) 
 1 
 (68) 
– 
– 
  (187) 

 1 315 
 6 
 (87) 
 (126) 
 (280) 
  827 
 1 
 (68) 
 (15) 
 (72) 
  674 

11th EDF 

Fund capital 
- active EDFs 
(A) 

Uncalled 
funds - active 
EDFs (B) 

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

Cumulative 
reserves 
(D) 

Called fund 
capital from 
closed EDFs 
carried 
forward (E) 

Called fund 
capital 
transfers 
between 
active EDFs 
(F) 

EUR million 

Total net 
assets 
(C)+(D)+(E)
+(F) 

BALANCE AS AT 31.12.2022 
Capital increase - contributions 
Refund to Member States  
Economic result of the year 
BALANCE AS AT 31.12.2023 
Capital increase - contributions 
Refund to Member States  
Economic result of the year 
BALANCE AS AT 31.12.2024 

 29 367 
– 
 (36) 
– 
 29 331 
– 
 (41) 
– 
 29 290 

 7 840 
(1 800) 
– 
– 
 6 040 
(1 200) 
– 
– 
 4 840 

 21 527 
1 800 
 (36) 
– 
 23 290 
1 200 
 (41) 
– 
 24 449 

 (21 528) 
– 
– 
(1 970) 
 (23 498) 
– 
– 
(1 169) 
 (24 667) 

– 
– 
– 
– 
– 
– 
– 
– 
– 

  541 
 87 
– 
– 
  628 
 68 
– 
– 
  696 

  541 
1 887 
 (36) 
(1 970) 
  422 
1 268 
 (41) 
(1 169) 
  479 

18 

 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

NOTES TO THE FINANCIAL STATEMENTS 
OF THE EDF 

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

19 

 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

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 stakeholders.  

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 euro, the euro being the EU’s functional currency. Foreign currency 
transactions are translated into euro 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 euro at the date 
when they were purchased. 

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

Euro exchange rates 

Currency 

31.12.2024 

31.12.2023 

Currency 

31.12.2024 

31.12.2023 

BGN 
CZK 
DKK 
GBP 
NOK 
HUF 

1.9558 
25.185 
7.4578 
0.82918 
11.795 
411.35 

1.9558   
24.724   
7.4529   
0.86905   
11.2405   
382.8   

PLN 
RON 
SEK 
CHF 
JPY 
USD 

4.275 
4.9743 
11.459 
0.9412 
163.06 
1.0389 

4.3395 
4.9756 
11.096 
0.926 
156.33 
1.105 

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: amounts for employee 
benefit liabilities, financial risk of accounts receivable and the amounts disclosed in the notes concerning 
financial  instruments,  impairment  allowance  for  financial  assets  at  amortised  cost  and  for  financial 
guarantee  contract  liabilities,  accrued  revenue  and  charges,  provisions,  degree  of  impairment  of 
intangible  assets  and  property,  plant  and  equipment,  net  realisable  value  of  inventories,  contingent 
assets and liabilities. Actual results could differ from those estimates.  

20 

 
 
 
Annual accounts of the European Development Fund 2024 

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

1.2.4.  Application of new and revised European Union Accounting Rules (EAR) 

New EAR which are effective for annual periods beginning on or after 1 January 2024 

There are no new EAR which became effective for annual periods beginning on or after 1 January 2024. 

New EAR adopted but not yet effective at 31 December 2024 

There are no new EAR adopted during 2024. 

1.3.  BALANCE SHEET 

1.3.1. 

Financial assets 

Classification at initial recognition 

The  classification  of  the  financial  instruments  is  determined  at  initial  recognition.  Based  on  the 
management  model  and  the  asset  contractual  cash-flow  characteristics  the  financial  assets  can  be 
classified  in  three  categories:  Financial  assets  at  amortised  cost  (‘AC’),  financial  assets  at  fair  value 
through net assets/equity (‘FVNA’) or financial assets at fair value through surplus or deficit (‘FVSD’). 

(i)  Financial assets at amortised cost 

Financial assets at amortised  cost  are  non-derivative financial assets that meet  two conditions:  (1) The 
entity  holds  them  in  order  to  collect  the  contractual  cash  flows.  (2)  On  specified  days,  there  are 
contractual cash flows that are solely payments of the principal and interest on the outstanding principal. 

This category comprises: 

—  Cash and cash equivalents; 

—  Loans (including term deposits with original maturity of more than three months);  

—  Exchange receivables 

Financial assets at amortised cost are included in current assets, except for those with maturity of more 
than 12 months from the reporting date.  

(ii)  Financial assets at fair value through net assets/equity 

These  non-derivatives  financial  assets  have  contractual  cash  flows  that  represent  only  principal  and 
interest on the outstanding principal. In addition, the management model is to hold the financial assets 
both to collect contractual cash flows and to sell the financial assets.  

Assets  in  this  category  are  classified  as  current  assets,  if  they  are  expected  to  be  realised  within  12 
months from the reporting date. 

The entity does not hold such assets at 31 December 2024. 

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

The  entity  classifies  derivatives  and  equity  investments  as  FVSD  because  the  contractual  cash  flows  do 
not represent only principal and interests on the principal. 

21 

 
 
Annual accounts of the European Development Fund 2024 

In  addition,  the  entity  classifies  the  debt  securities  it  holds  as  FVSD  because  the  portfolios  of  debt 
securities are managed and evaluated on a portfolio fair value basis. 

Assets  in  this  category  are  classified  as  current  assets,  if  they  are  expected  to  be  realised  within  12 
months from the reporting date. 

Initial recognition and measurement 

Purchases of financial assets at fair value through surplus or deficit are recognised on their trade-date – 
the date on which the entity commits to purchase the asset. Cash equivalents and loans are recognised 
when cash is deposited in a financial institution or advanced to borrowers. 

Financial  assets  are  initially  measured  at  fair  value.  For  all  financial  assets  not  carried  at  fair  value 
through  surplus  or  deficit,  the  transactions  costs  are  added  to  the  fair  value  at  initial  recognition.  For 
financial assets carried at fair value through surplus or deficit the transaction costs are expensed in the 
statement of financial performance. 

The  fair  value  of  a  financial  asset  on  initial  recognition  is  normally  the  transaction  price  unless  the 
transaction is not at arm’s length i.e. at no or at nominal consideration for public policy purposes. In this 
case, the difference between the fair value of the financial instrument and the transaction price is a non-
exchange  component  which  is  recognised  as  an  expense  in  the  statement  of  financial  performance.  In 
this  case,  the  fair  value  of  a  financial  asset  is  derived  from  current  market  transactions  for  a  directly 
equivalent  instrument.  If  there  is  no  active  market  for  the  instrument,  the  fair  value  is  derived  from  a 
valuation technique that uses available data from observable markets.  

Subsequent measurement 

Financial  assets  at  amortised  cost  are  subsequently  measured  at  amortised  cost  using  the  effective 
interest method.  

Financial  assets  at  fair  value  through  surplus  or  deficit  are  subsequently  measured  at  fair  value.  Gains 
and  losses  from  changes  in  the  fair  value  (including  those  stemming  from  foreign  exchange  translation 
and any interests earned) are included in the statement of financial performance in the period in which 
they arise. 

Fair value at subsequent measurement 

The fair values of quoted investments in active markets are based on current bid prices. If the market for 
a  financial  asset  is  not  active  (and  for  unlisted  securities  and  over-the–counter  derivatives),  the  EU 
establishes  a  fair  value  by  using  valuation  techniques.  These  include  the  use  of  recent  arm’s  length 
transactions,  reference  to  other  instruments  that  are  substantially  the  same,  discounted  cashflow 
analysis, option pricing models and other valuation techniques commonly used by market participants.  

Investments  in  venture  capital  funds  which  do  not  have  a  quoted  market  price  in  an  active  market  are 
valued at the attributable net asset value, which is considered as an equivalent of their fair value. 

Impairment of financial assets 

The  EU  recognises  and  measures  an  impairment  loss  for  expected  credit  losses  on  financial  assets  that 
are measured at amortised cost and at fair value through net assets/equity. 

The expected credit loss (ECL) is the present value of the difference between the contractual cash flows 
and  the  cash  flows  that  the  EU  expects  to  receive.  The  ECL  incorporates  reasonable  and  supportable 
information that is available without undue cost or effort at the reporting date. 

For  assets  at  amortised  cost,  the  asset’s  carrying  amount  is  reduced  by  the  amount  of  the  impairment 
loss which is recognised in the statement of financial performance. If, in a subsequent period, the amount 
of  the  impairment  loss  decreases,  the  previously  recognised  impairment  loss  is  reversed  through  the 
statement of financial performance. 

(a) 

Receivables 

The entity measures the impairment loss at the amount of lifetime ECL, using practical expedients (e.g. 
provision matrix).  

22 

 
 
 
Annual accounts of the European Development Fund 2024 

(b) 

Cash and cash equivalents 

The  entity  holds  cash  and  cash  equivalents  in  current  bank  accounts  and  term  deposits  of  up  to 
3 months.  The  cash  is  held  in  banks  with  very  high  credit  ratings,  thus  having  very  low  default 
probabilities. Given the short duration and low default probabilities, the expected credit losses from cash 
and  cash  equivalents  are  negligible.  As  a  result,  no  impairment  allowance  is  recognised  for  cash 
equivalents. 

(c) 

Loans  

The ECL is measured with a three stage model that takes into account probability weighted default events 
during  the  lifetime  of  the  financial  asset  and  the  evolution  of  credit  risk  since  the  origination  of  the 
financial asset. For loans, origination is the date of the irrevocable loan commitment 

If there is no significant increase in credit risk since origination (‘stage 1’), the impairment loss is the ECL 
from possible default events in the next 12 months from the reporting date (’12 months ECL’). If there is 
a significant increase in credit risk since origination (‘stage 2’) or if there is objective evidence of a credit 
impairment (‘stage 3’), the impairment loss equals the ECL from possible default events over the whole 
lifetime of the financial asset (‘lifetime ECL’) 

De-recognition 

Financial instruments are derecognised when the rights to receive cash flows from the investments have 
expired  or  the  entity  has  transferred  substantially  all  risks  and  rewards  of  ownership  to  another  party. 
Sales of financial assets through surplus or deficit are recognised on their trade-date. 

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 beneficiaries do not incur eligible expenditure, they 
have the obligation to return the pre-financing advance to the entity. Thus, as the entity retains control 
over the pre-financing and is entitled to a refund for the ineligible part, the amount is recognised as an 
asset.  

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

1.3.3.  Receivables and recoverables 

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

Receivables from exchange transactions meet the definition of financial instruments. The entity classified 
them as financial assets at amortised cost and measured them accordingly. 

Recoverables from non-exchange transactions are carried at fair value as at the date of acquisition 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. 

23 

 
 
 
 
 
Annual accounts of the European Development Fund 2024 

1.3.4.  Cash and cash equivalents 

Cash and cash equivalents are financial assets at amortised cost 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. 

Payables 

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

Where grants or other funding are provided to the beneficiaries, the cost claims are recorded as payables 
for  the  requested  amount,  at  the  moment  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. The corresponding expenses are entered in the accounts when the supplies or  services 
are delivered and accepted by the entity. 

1.3.6. 

Financial liabilities 

Financial liabilities are classified as financial liabilities carried at amortised cost, financial liabilities at fair 
value through surplus or deficit, or as financial guarantee contract liabilities. 

Financial  liabilities  at  amortised  cost  are  initially  recognised  at  fair  value  including  transaction  costs 
incurred  and  subsequently  carried  at  amortised  cost  using  the  effective  interest  method.  They  are 
derecognised from the statement of financial position if and only if the obligation is discharged, waived, 
cancelled or expired.  

Financial  liabilities  at  fair  value  through  surplus  or  deficit  include  derivatives  where  the  fair  value  is 
negative. Where the guarantee contract requires the entity to make payments in response to changes in 
financial instruments prices or foreign exchange rates, the guarantee contract is a derivative. They follow 
the same accounting treatment as financial assets at fair value through surplus or deficit. 

The entity recognises a financial guarantee contract liability when it enters into a contract that requires to 
make  specified  payments  to  reimburse  the  guarantee  holder  for  a  loss  it  incurs  because  a  specified 
debtor  fails  to  make  payment  when  due  in  accordance  with  the  original  or  modified  terms  of  a  debt 
instrument. Financial guarantee contract liabilities are initially recognised at fair value.  

The  subsequent  measurement  depends  on  the  evolution  of  the  credit  risk  exposure  from  the  financial 
guarantee.  If  there  is  no  significant  increase  in  credit  risk  (‘stage  1’),  financial  guarantee  liabilities  are 
measured at the higher of the 12 months expected credit losses and the amount initially recognised less, 
when  appropriate,  cumulative  amortisation.  If  there  is  a  significant  increase  in  credit  risk  (‘stage  2’), 
financial  guarantee  liabilities  are  measured  at  the  higher  of  the  lifetime  expected  credit  losses  and  the 
amount initially recognised less, when appropriate, cumulative amortisation.  

Financial liabilities are classified as non-current liabilities, except for maturities less than 12 months after 
the  balance  sheet  date.  Financial  guarantee  contracts  are  classified  as  current  liabilities  except  if  the 
entity has  an  unconditional right to defer the  settlement of  the  liability for at least twelve months after 
the reporting date. 

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,  or  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. 

24 

 
 
Annual accounts of the European Development Fund 2024 

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. These 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, 
revenue is distinguished between: 

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.  For  the  EU  entities,  transfers  mostly  comprise  funds  received  from  the 
Commission  (e.g.  balancing  subsidy  to  the  traditional  agencies,  operating  subsidy  for  the  delegation 
agreements). 

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. 

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. 

a)  Interest revenue and expense 

Interest  revenue  and  expense  from  financial  assets  and  financial  liabilities  at  amortised  cost  are 
recognised  in  the  statement  of  financial  performance  using  the  effective  interest  method.  This  is  a 
method of calculating  the amortised  cost of  a financial asset or a financial liability and  of  allocating the 
interest revenue or interest expense over the relevant period. 

b)  Revenue from dividends 

Revenue  from  dividends  and  similar  distributions  is  recognised  when  the  right  to  receive  payment  is 
established. 

c)  Revenue and expense from financial assets at fair value through surplus or deficit 

This refers to the fair value gains (revenue) and fair value losses (expense) from these financial assets, 
including  those  stemming  from  foreign  exchange  translation.  For  interest-bearing  financial  assets,  this 
also includes interest. 

d)  Revenue from financial guarantee contracts 

25 

 
 
Annual accounts of the European Development Fund 2024 

The  revenue  from  financial  guarantee  contracts  (guarantee  premium)  is  recognised  over  the  time  the 
entity stands ready to compensate the holder of the financial guarantee contract for the credit loss it may 
incur. 

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 the incurring of liabilities that result in decreases in net assets. 
They  include  both  the  expenses  from  exchange  transactions  and  expenses  from  non-exchange 
transactions.  

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

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

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

1.5.  CONTINGENT ASSETS AND LIABILITIES 

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 either a possible obligation 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 where it is not probable that an outflow of resources embodying economic 
benefits or service potential will be required to settle the obligation.  

A contingent liability also arises in the rare circumstances where a present obligation exists but cannot be 
measured with sufficient reliability.  

Contingent  liabilities  are  not  recognised  in  the  accounts.  They  are  disclosed unless  the  possibility  of  an 
outflow of resources embodying economic benefits or service potential is remote. 

1.6.  FUND CAPITAL 

The EDF member states provide contributions to the Fund for the implementation of EDF programmes as 
laid down in the Internal Agreement of each EDF. According to the applicable legal basis the capital calls, 
i.e. the requests for funding for a given year N, are decided by a Council Decision in year N-1, with the 
funds to be received clearly assigned to specified future periods.  

26 

 
 
Annual accounts of the European Development Fund 2024 

The  contributions  meet  the  criteria  of  contribution  from  owners  (EAR  1)  and  are  thus  treated  as  fund 
capital in the EDF financial  statements. The fund capital represents the total amount of contributions to 
be received from the EDF members states. As the uncalled fund capital is openly deducted from the total 
fund capital (see Statement  of  Changes in Net  Assets), only the called fund  capital is recognised  in the 
Balance Sheet.  

As the agreed contributions are assigned to specified reporting periods, with the EDF’s legal claim against 
the EDF member states arising only in these periods, any amounts received in advance are recognised as 
deferred capital contributions under payables rather than as called capital. 

1.7.  CO-FINANCING 

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

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

27 

 
 
 
Annual accounts of the European Development Fund 2024 

2.  NOTES TO THE BALANCE SHEET 

ASSETS 

2.1.  FINANCIAL ASSETS 

A financial asset is any asset that is: 

(a) Cash;  

(b) An equity instrument of another entity;  

(c)  A  contractual  right:  to  receive  cash  or  another  financial  asset  from  another  entity;  or  to  exchange 
financial assets or financial liabilities with another entity under conditions that are potentially favourable 
to the entity; or 

(d) A contract that will or may be settled in the entity’s own equity instruments. 

Financial  assets  are  classified  in  the  following  categories:'financial  assets  at  amortised  costs',  ‘financial 
assets  at  fair  value  through  surplus  or  deficit’  and  ‘financial  assets  at  fair  value  through  net 
assets/equity'.  The  classification  of  the  financial  instruments  is  determined  at initial  recognition  and  re-
evaluated at each balance sheet date. 

The financial assets of the EDF comprise financial assets at FVSD and loans and are as follows:   

Non-current 

Financial assets at fair value through surplus or deficit (FVSD)  
Loans 

Current 
Financial assets at fair value through surplus or deficit (FVSD)  

Loans 

Total 

EUR million 

31.12.2024 

31.12.2023 

 112 
 16 
  128 

– 
 5 
  5 

 70 
 16 
  87 

 3 
 – 
  3 

  132 

  89 

The EUR 112 million of financial assets at FVSD relate to equity investments in the following areas:  

—  Renewable  sustainable  energy  via  Climate  Investor  One,  ElectriFI  and  the  Global  Energy 

Efficiency and Renewable Energy Fund (GEEREF); 

—  Promoting inclusive smallholder and rural SME finance via the ABC FUND; 

—  Financial inclusion in Uganda via the aBi Finance; and 

—  creating jobs and sustainable growth in Africa via the Boost Africa intitiative.  

The  EUR  16  million  of  non-current  loans  and  EUR  5  milllion  of  current  loans  concern  two  main  areas: 
sustainable  agriculture  via  the  AgriFI  and  electricity  access  and  generation  from  sustainable  energy 
sources via the ElectriFI investment Facility.  

2.2.  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 

28 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

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

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

Non-current pre-financing 
Current pre-financing 
Total 

Note 

2.2.1 
2.2.2 

Ninth 
EDF 
– 
 6 
  6 

10th 
EDF 
 418 
 81 
  499 

11th 
EDF 
 82 
 655 
  737 

EUR million 

31.12.2024 

31.12.2023 

 500 
 742 
 1 242 

 574 
 954 
 1 529 

The decrease in total pre-financing by EUR 287 million at 31 December 2024 can be largely explained by 
the decrease in pre-financing paid out to beneficiaries under the 11th EDF which fell from EUR 963 million 
in 2023 to EUR 737 million in 2024. This is in line with the life cycle of the EDF and is also related to the 
evolution  of  the  number  of  open  contracts.  The  11th  EDF  reached  maturity  as  the  sunset  clause  came 
into  effect  at  the  end  of  2020.  Since  1  January  2021  no  further  financing  agreements  could  be  signed 
under the 11th EDF,  although  specific contracts  for the exsisting agreements  could still be signed.  As a 
result,  the  volume  of  newly  signed  contracts  steadily  decreased  from  EUR  2  118  million  in  2021  to 
EUR 853 million in 2022 and EUR 860 million in 2023, before dropping further to EUR 300 million in 2024. 

Pre-financing  from  the  10th  EDF  decreased  from  EUR  560  million  in  2023  to  EUR  499  million  in  2024, 
aligning with the normal trend and consistent with the life cycle of the EDF.  

Out of the non-current pre-financing, EUR 393 million (EUR 427 million in 2023) relates to the open pre-
financing  for  two  contracts  under  the  EU-Africa  Infrastructure  Trust  Fund  (AITF).  The  aim  of  this  Trust 
Fund  is to  provide  financial  support  with  grants  to  infrastructure  projects  alongside  long-term  financing 
made available by project financiers. The provision of such grant funds leverages the provision of long-
term  financing  by  participating  finance  institutions.  At  the  time  of  the  signature  of  the  contracts,  the 
Trust Fund’s type of actions  was considered as adequately covered by the agreement (no template was 
yet  available  for  financial  instruments,  nor  did  the  Regulation  mention  this  type  of  instrument). 
Consequently,  payments  made  under  these  agreements  were  registered  as  pre-financing  and  not  as  a 
financial instrument component. Due to the long-term nature of the operations implemented by the Trust 
Fund, the annual clearing of the AITF’s old pre-financing is very limited and spreads out over the years. 
Therefore,  to  better  reflect  the  project  conditions,  EUR  393  million  of  the  open  pre-financing  was  re-
classed to long term while EUR 34 million corresponds to the expenses accrued at year-end. 

2.2.1.  Non-current pre-financing by management mode 

31.12.2024 

EUR million 
31.12.2023 

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 

29 

– 
 1 
 2 
  3 

 402 
 65 
 7 
 13 
 10 
  497 
  500 

 15 
 2 
 7 
  24 

 436 
 74 
 16 
 17 
 7 
  550 
  574 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

2.2.2.  Current pre-financing 

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

Ninth EDF 
 8 
 (2) 
  6 

10th EDF 
 518 
 (438) 
  81 

11th EDF 
3 237 
(2 582) 
  655 

31.12.2024 
3 763 
(3 022) 
  742 

EUR million 
31.12.2023 
4 906 
(3 952) 
  954 

2.2.3.  Current pre-financing by management mode 

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 
EU bodies and Public Private Partnership 

Total 

31.12.2024 

EUR million 
31.12.2023 

 37 
 2 
 47 
  86 

 62 
 388 
 71 
 77 
 56 
 1 
  655 
  742 

 55 
 3 
 82 
  140 

 87 
 431 
 78 
 98 
 119 
 1 
  814 
  954 

2.2.4.  Guarantees received in respect of pre-financing 

Guarantees are held to secure pre-financing and are released when the final claim under a project is paid. 

Guarantees for pre-financing 

EUR million 

31.12.2024  31.12.2023 

 19 

 32 

The  EUR  19  million  comprises  guarantees  intended  to  secure  pre-financing  paid  under  direct 
management, with the EDF being the beneficiary of the guarantee (see note 4.1). However, most of pre-
financing is paid under the indirect management mode, where the beneficiary of the guarantee is not the 
EDF  but  the  contracting  authority.  In  2024,  the  total  value  of  such  guarantees  amounted  to 
EUR 415 million. 

2.3.  TRUST FUND CONTRIBUTIONS 

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

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

30 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

Africa 
Bêkou 
Total 

Net contribution at 
31.12.2023 

Contributions 
paid in 2024 

Allocation of TF's net 
expenses  2024 

 186 
 30 
  216 

 90 

  90 

 (111) 
 (7) 
  (118) 

EUR million 
Net contribution 
at 31.12.2024 
 165 
 23 
  188 

The decrease in contributions paid from EUR 274 million in 2023 to EUR 90  million in 2024 stems from 
the  decline  in  the  Trust  Funds’  expenses  due  to  the  winding  down  of  both  Trust  Funds.  At  the  end  of 
2021, the EUTF Africa and EUTF Bêkou had reached the peak of their activities as they had reached the 
end  of  the  contracting  period.  The  winding  down  of  the  Trust  Funds  that  started  thereafter  led  to  a 
decrease in the number of open contracts and thus a decrease in expenses. 

2.4.  EXCHANGE RECEIVABLES AND NON-EXCHANGE 

RECOVERABLES 

Exchange  transactions  are  transactions  in  which  the  entity  receives  assets  or  services,  or  has  liabilities 
extinguished,  and  directly  gives  approximately  equal  value  (primarily  in  the  form  of  goods,  services  or 
use  of  assets)  to  the  other  party  in  exchange.  Non-exchange  transactions  are  transactions  in  which  an 
entity  either  receives  value  from  another  entity  without  directly  giving  approximately  equal  value  in 
exchange,  or  gives  value  to  another  entity  without  directly  receiving  approximately  equal  value  in 
exchange.  

2.4.1.  Non-current exchange receivables 

As  at  31.12.2024,  the  EDF  had  EUR  5  million  of  long-term  exchange  receivables  comprising  mainly  
deferred charges arising from several financial instruments. 

2.4.2.  Current non-exchange recoverables and exchange receivables 

Recoverables from non-exchange transactions 
Receivables from exchange transactions 
Total 

Note 
2.4.2.1 
2.4.2.2 

2.4.2.1.  Recoverables from non-exchange transactions 

EUR million 

31.12.2024  31.12.2023 
 13 
 12 
  24 

 24 
 12 
  37 

Customers 
Public bodies 
Third states 
Write down 
Total 

Ninth 
EDF 
 2 
 4 
  - 
 (6) 
  - 

10th 
EDF 
 40 
 13 
 13 
 (49) 
  17 

11th 
EDF 
 9 
 2 
 3 
 (7) 
  6 

EUR million 

31.12.2024  31.12.2023 

 52 
 19 
 16 
 (63) 
  24 

 55 
 19 
 6 
 (68) 
  13 

31 

 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

2.4.2.2.  Receivables from exchange transactions 

Accrued income 
Inter-EDF accounts 
Other 
Total 

Ninth EDF 

- 
 (207) 
– 
  (207) 

10th 
EDF 
- 
 227 
 4 
  231 

11th 
EDF 
 2 
 (20) 
 7 
  (11) 

EUR million 

31.12.2024 

31.12.2023 

 2 
– 
 11 
  12 

 1 
– 
 11 
  12 

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

The  heading  ‘other’  comprises  mainly  receivables  deriving  from  financial  instruments.  Out  of  the 
EUR 11 million  other  receivables,  an  amount  of  EUR  4  million  relates  to  a  receivable  from  the  Global 
Energy  Efficiency  and  Renewable  Energy  Fund  (GEEREF)  and  an  amount  of  EUR  7  million  relates  to  a 
receivable from Climate Investor One.    

2.5.  CASH AND CASH EQUIVALENTS2 

Cash and cash equivalents are financial instruments at amortised cost and include cash at hand, deposits 
held  at  call  or  at  short  notice  with  banks  (such  as  current  accounts  and  savings  accounts),  and  other 
short-term highly liquid investments with original maturities of three months or less. 

Special accounts 
Central banks 

Current accounts 
Commercial banks 
Cash belonging to financial instruments 

Total 

Ninth 
EDF 

10th 
EDF 

11th 
EDF 

31.12.2024  31.12.2023 

EUR million 

– 
– 

– 
– 
– 
– 

– 
– 

– 
– 
– 
– 

 285 
  285 

 49 
 77 
  126 
  411 

 285 
  285 

 49 
 77 
  126 
  411 

 341 
  341 

 193 
 67 
  260 
  601 

The decrease of EUR 190 million in cash and cash equivalents is mainly driven by the reduction in cash 
reserves held in central and commercial banks. This decline mostly results from payments made to cover 
expenses  and  advances  exceeding  the  contributions  received  during  the  year.  Notably,  called 
contributions  fell  from  EUR  1  800  million  in  2023  to  EUR  1  200  million  in  2024.  Additionally,  Member 
States received a refund of EUR  7.8 million from the 9th EDF for the first instalment of 2024, while the 
UK  requested  that  its  contributions  for  the  second  and  third  instalments  of  2023  amounting  to 
EUR 41 million be offset from their outstanding share in the 10th and 11th EDFs (see note 2.9.1). 

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

2 In accordance with Article 53 of the Financial Regulation applicable to the 11th European Development Fund, the treasury is presented in the balance sheet of the 11th 
EDF. The nature of the various bank accounts is outlined in Chapter 5, Financial Risk Management. 

32 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

LIABILITIES 

2.6.  FINANCIAL LIABILITIES 

A financial liability is any liability that is: 

(a) A contractual obligation: to deliver cash or another financial asset to another entity; or to exchange 
financial assets or financial liabilities with another entity under conditions that are potentially 
unfavourable to the entity; or 

(b) A contract that will or may be settled in the entity’s own equity instruments.  

Financial liabilities are classified in the following categories: 'financial liabilities at fair value through 
surplus or deficit', 'other financial liabilities measured at amortised cost' or financial guarantee contract 
liabilities. 

Note 

31.12.2024 

Non-current 

2.6.1 
Financial provisions 
Financial guarantee liability  2.6.2 

Other financial liabilities 
Co-financing payables  
Total 

2.6.3 

2.6.1. 

Provisions 

 – 
 1 
– 
– 

  1 

EUR million 
31.12.2023 

 3 
 1 
 1 
 1 
  5 

These provisions represent the estimated credit losses that will be incurred in relation to the loans given 
under different financial instruments. 

EUR million 

Non-current financial provisions  
Current financial provisions  
Total 

Ninth EDF 
– 
– 
– 

10th EDF 
– 
– 
– 

11th EDF  31.12.2024  31.12.2023 
 3 
- 
  3 

– 
 2 
  2 

– 
 2 
  2 

The  amount  of  EUR  2  million  represents  the  estimated  loss  in  relation  to  the  loans  given  under  the 
following  financial  instruments:  ElectriFI  CW  and  ElectriFI  CW  II,  AgriFI  Tanzania  and  AgriFI  Regional 
ACP. 

2.6.2. 

Financial guarantee liability 

These provisions represent the estimated losses that will be incurred in relation to the guarantees given 
under  different  financial  instruments,  where  entrusted  entities  are  empowered  to  issue  guarantees  in 
their own name but on behalf of, and at the risk of, the EDF. The financial risk of the EDF linked to the 
guarantees  is  capped  and  financial  assets  are  gradually  provisioned  to  cover  for  the  future  guarantee 
calls. 

Financial guarantee liability 

Ninth EDF 
– 

10th EDF 
– 

EUR million 
11th EDF  31.12.2024  31.12.2023 
 1 

 1 

 1 

The amount of EUR 1 million represents the estimated loss in relation to the guarantee given under the 
Euritz financial instrument of EUR 9 million (see note 4.2.1). 

33 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

2.6.3.  Other financial liabilities 

Financial liabilities at fair value 
through surplus or deficit 

Ninth EDF 

10th EDF 

EUR million 
11th EDF  31.12.2024  31.12.2023 

– 

– 

– 

– 

 1 

As  at  31.12.2024  the  total  payables  related  to  financial  instruments  amounted  only  to  kEUR  25.  This 
amount relates entirely to payables arising from ABC Fund. 

2.7.  PAYABLES 

Payables  are  liabilities  to  pay  for  goods  or  services  that  have  been  received  or  supplied  and  -  unlike 
accrued charges - have already been invoiced or formally agreed with the supplier. Payables can relate to 
both exchange transactions (such as the purchase of goods and services) and non-exchange transactions 
(e.g. cost claims from beneficiaries of grants, pre-financing or other EU funding). 

Current payables 
Sundry payables 
Total 

2.7.1. 

 Current payables 

Suppliers 
Third states 
Public bodies 
Total 

Note 

2.7.1 
2.7.2 

Ninth 
EDF 
- 
- 
- 

10th 
EDF 
 21 
 5 
  25 

11th 
EDF 
 130 
 100 
  230 

EUR million 

31.12.2024  31.12.2023 

 150 
 105 
  256 

 260 
 132 
  391 

Ninth EDF 

– 
– 
– 
– 

10th 
EDF 

 14 
– 
 6 
 21 

11th 
EDF 

 41 
 29 
 59 
 130 

EUR million 

31.12.2024  31.12.2023 

 56 
 29 
 66 
 150 

 98 
 32 
 129 
 260 

Payables  largely  comprise  cost  statements  received  by  the  EDF  in  respect  of  grants  provided  to  the 
beneficiaries.  They  are  recorded  at  the  moment  when  the  cost  statement  is  received  and  for  the  full 
amount  of  the  cost  statement.  Following  an  eligibility  check,  only  the  eligible  amounts  are  paid  to  the 
beneficiaries. At year-end, the outstanding cost claims are analysed and the estimated eligible amounts 
related to those cost claims are recognised in the statement of financial performance. The estimated non-
eligible amounts are shown under ‘Other current payables’. 

The decrease in payables is attributed to a lower volume of invoices received that remained outstanding 
at year-end. 

2.7.2.  Sundry payables 

Co-financing payables 
Deferred capital contributions 
Other sundry payables 
Total 

Note 

2.7.2.1 
2.7.2.2 

Ninth 
EDF 
– 
– 
– 
– 

10th 
EDF 
 5 
– 
 (1) 

11th 
EDF 
 23 
 64 
 13 
 5   100 

EUR million 

31.12.2024 

31.12.2023 

 28 
 64 
 12 
 105 

 41 
 88 
 3 
 132 

34 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

2.7.2.1.  Co-financing payables 

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

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

Eighth 
EDF 

Ninth 
EDF 

Current co-financing payables 

– 

– 

2.7.2.2.  Deferred capital contributions 

EUR million 

10th 
EDF 

 5 

11th 
EDF 

 23 

31.12.2024  31.12.2023 

 28 

 41 

An amount of EUR 6.3 million of deferred capital contributions relates to a refund to Member States and 
the  United  Kingdom  from  decommitted  or  unused  funds  from  projects  under  the  Ninth  EDF  (see  note 
2.9.1).  The  Member  States  agreed  for  the  refund  to  be  offset  against  the  contributions  from  the  11th 
EDF during the first call for contributions in 2025. 

In  addition  to  the  refund,  an  amount  of  EUR  58  million  relates  to  the  first  instalment  of  2025  paid  in 
advance  by  the  United  Kingdom,  Portugal,  Hungary  Lithuania,  Cyprus  and  Estonia.  Of  this  amount, 
EUR 51 million  was  contributed  entirely  by  the  United  Kingdom,  with  EUR  15  million  deducted  from  the 
UK's  remaining  share  of  unused  funds  from  the  10th  and  11th  EDFs.  According  to  Article  152  of  the 
Withdrawal Agreement, the United Kingdom remains party to the EDF until the closure of the 11th EDF 
and all previous unclosed EDFs and assumes the same obligations as the Member States in this respect 
(see note 2.9.1). 

2.8.  ACCRUED CHARGES  

Accruals  are  liabilities  to  pay  for  goods  or  services  that  have  been  received  or  supplied  but  -  unlike 
payables - have not yet been invoiced or formally agreed with the supplier. The calculation of accruals is 
based on the open amount of budgetary commitments at year-end. The portion of the estimated accrued 
charges relating to pre-financing paid has been recorded as a reduction of the pre-financing amounts. 

Accrued charges 
Other accruals and deferrals 
Total 

Ninth 
EDF 
– 
– 
– 

10th 
EDF 
 71 
– 
  71 

11th 
EDF 
 703 
– 
  703 

EUR million 

31.12.2024 

31.12.2023 

 774 
– 
  774 

 983 
 1 
  984 

Accrued  charges  comprise  estimated  operating  expenses  for  on-going  or  completed  contracts  without 
validated cost claims where the eligible expenses incurred by beneficiaries were estimated using the best 
available information at the time of preparing the financial statements. It is noted that information from 
large-scale  day-to-day  activities,  such  as  contract  extensions  signed  after  the  reporting  date,  is  not 
systematically considered, and the potential impact of these activities on the accrued charges cannot be 
reliably  estimated.  The  portion  of  the  estimated  accrued  charges  that  relates  to  pre-financing  paid  has 
been recorded as a reduction of the pre-financing amounts (see note 2.2). 

The  decrease  in  accrued  charges  of  EUR  210  million  is  explained  by  the  reduction  in  the  number  of 
contracts for which charges had to be estimated and accrued. This decrease is in line with the life cycle of 
the EDF and the underlying number of open contracts.  

35 

 
 
 
 
 
Annual accounts of the European Development Fund 2024 

NET ASSETS 

2.9.  FUND CAPITAL 

The EDF Member States provide contributions to the Fund for the implementation of EDF programmes as 
laid down in the Internal Agreement of each EDF. According to the applicable legal basis the capital calls, 
i.e. the requests for funding for a given year N, are decided by a Council Decision in year N-1, with the 
funds to be received clearly assigned to specified future periods.  

The  contributions  meet  the  criteria  of  contribution  from  owners  (EAR  1)  and  are  thus  treated  as  fund 
capital in the EDF financial  statements. The fund capital represents the total amount of contributions to 
be received from the EDF members states. As the uncalled fund capital is deducted from the total fund 
capital (see Statement of Changes in Net Assets), only the called fund capital is recognised in the Balance 
Sheet. 

As the agreed contributions are assigned to specified reporting periods, with the EDF’s legal claim against 
the EDF member states arising only in these periods, any amounts received in advance are recognised as 
deferred capital contributions under Payables rather than as called capital. 

2.9.1.  Called fund capital – active EDFs 

Fund capital 
Uncalled fund capital 
Called fund capital 31.12.2023 
Fund capital 
Uncalled fund capital 
Called fund capital 31.12.2024 

Ninth EDF 
10 442 
- 
 10 442 
10 435 
- 
 10 435 

10th EDF  11th EDF 
29 331 
(6 040) 
 23 290 
29 290 
(4 840) 
 24 449 

20 834 
- 
 20 834 
20 819 
- 
 20 819 

EUR million 
Total 
60 607 
(6 040) 
 54 566 
60 544 
(4 840) 
 55 704 

The  uncalled  funds  represent  amounts  not  yet  called  from  Member  States.  The  called  fund  capital 
represents the contributions which have been called by the EDF and transferred to the treasury accounts 
by the Member States (see below 2.9.2). 

By means of Council Decision (EU) 2024/2906, the Member States' contributions set out in the Internal 
Agreements of the Eighth and Ninth EDF were reduced accordingly by an amount of EUR 6.3 million from 
funds  decommitted  under  the  Ninth  EDF.  Refunds  arising  from  this  reduction  have  been  compensated 
against  additional  calls  for  funds  under  the  11th  EDF.  In  fact,  the  refund  will  be  used  against  the  first 
instalment of 2025 (see note 2.7.2.).  

While the United  Kingdom remains party to the EDF  until the closure of all programmes, in accordance 
with Article 153 of the Withdrawal Agreement, its share of uncommitted and decommitted funds from the 
Ninth and 10th EDF cannot be reused. In 2024, the UK requested that its second and third instalments 
for  the  year  be  compensated  using  its  outstanding  share  in  the  reserve  of  the  10th  and  11th  EDFs.  In 
addition, another  EUR  15  million was refunded  to the UK  towards  its  first  instalment of  2025  (see note 
2.7.2.1).  As  a  result,  the  fund  capital  of  the  10th  and  11th  EDFs  was  reduced  by  EUR  15  million  and 
EUR 41 million respectively.  

36 

 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

2.9.2.  Called and uncalled fund capital by Member States and the UK 

Contributions 11th EDF 

% 

Uncalled capital 
31.12.2023 

Capital called 
in 2024 

EUR million 
Uncalled capital 
31.12.2024 

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

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 

 145 
 196 
 13 
 14 
 7 
 48 
 120 
 5 
 91 
1 076 
1 243 
 91 
 37 
 57 
 757 
 7 
 11 
 15 
 2 
 289 
 121 
 72 
 43 
 23 
 14 
 479 
 178 
 887 
6 040 

 (29) 
 (39) 
 (3) 
 (3) 
 (1) 
 (10) 
 (24) 
 (1) 
 (18) 
 (214) 
 (247) 
 (18) 
 (7) 
 (11) 
 (150) 
 (1) 
 (2) 
 (3) 
 (0) 
 (57) 
 (24) 
 (14) 
 (9) 
 (5) 
 (3) 
 (95) 
 (35) 
 (176) 
(1 200) 

 116 
 157 
 11 
 11 
 5 
 39 
 96 
 4 
 73 
 862 
 996 
 73 
 30 
 46 
 606 
 6 
 9 
 12 
 2 
 231 
 97 
 58 
 35 
 18 
 11 
 384 
 142 
 710 
4 840 

Since the capital of the Ninth and  10th EDFs has been called up and received in its entirety in previous 
years, in 2024, an amount of EUR 1 200 million has been called which relates entirely to the  11th EDF. 
Called capital decreased from EUR 1 800 million in 2023 to EUR 1 200 million in 2024. 

2.9.3.  Called fund capital transfers between active EDFs 

Balance at 31.12.2022 
Transfer of amounts to the 8th EDF performance 
reserve from previous EDFs 
Transfer of amounts to the 10th EDF performance 
reserve from previous EDFs 
Transfer of amounts to the 11th EDF performance 
reserve from previous EDFs 
Balance at 31.12.2023 
Transfer of amounts to the 10th EDF performance 
reserve from previous EDFs 
Transfer of amounts to the 11th EDF performance 
reserve from previous EDFs 
Balance at 31.12.2024 

Eighth 
EDF 
 (2 513) 

Ninth 
EDF 
 2 010 

2 762 

(2 762) 

10th 
EDF 
  (38) 
– 

11th 
EDF 
  541 
– 

 427 

 (432) 

 6 

– 

 (676) 

 676 

 (87) 

 87 

– 

– 

– 

– 

  (509)    (120) 

  628 

 (1) 

 1 

– 

– 

 (68) 

 68 

  (510)    (187) 

  696 

EUR million 

Total 

– 

– 

– 

– 

– 

 – 

– 

– 

This heading includes the resources transferred between the active EDFs. 

37 

 
 
 
Annual accounts of the European Development Fund 2024 

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 de-commitment. 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. 

38 

 
 
 
Annual accounts of the European Development Fund 2024 

3.  NOTES  TO  THE  STATEMENT  OF  FINANCIAL 

PERFORMANCE 

REVENUE 

Revenue from non-exchange transactions 
Revenue from exchange transactions 
Total 

Note 
3.1 
3.2 

EUR million 

2024 
 41 
 90 
 131 

2023 
 14 
 52 
 65 

3.1.  REVENUE FROM NON-EXCHANGE TRANSACTIONS 

Revenue from non-exchange transactions relates to transactions where the transferor provides resources 
to  the  recipient  entity  without  the  recipient  entity  providing  approximately  equal  value  directly  in 
exchange.    The  heading  mainly  includes  amounts  received  from  the  Commission  during  the  year  and 
recoveries of operational expenses. 

Note 

Ninth EDF 

Recovery of expenses 
Co-financing revenue 
Total 

3.1.1 

 1 
– 
  1 

10th 
EDF 
 16 
 12 
  28 

11th 
EDF 
 7 
 5 
  12 

EUR million 

2024 

2023 

 24 
 17 
  41 

 6 
 8 
  14 

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

Direct Management 
Implemented by: 
Commission 
Executive agencies 
EU delegations 

Indirect Management 
Implemented by: 
Third countries 
Public-law bodies 
International organisations 
Private-law bodies with a public service mission 

Total 

3.1.1.  Co-financing revenue 

2024 

EUR million 
2023 

 1 
 2 
 4 
 7 

 31 
– 
 3 
– 
 34 
  41 

– 
– 
 5 
 5 

 6 
– 
 3 
– 
 9 
  14 

The  co-financing  contributions  received  fulfil  the  criteria  of  revenues  from  non-exchange  transactions 
under  conditions  and  as  such  should  not  affect  the  statement  of  financial  performance  when  received. 
The contributions remain under liabilities (see note 2.7.2 & 2.7.2.1) until the conditions attached to the 
donated funds are met, i.e. eligible expenses are incurred (see note  3.5). The corresponding amount is 
then  recognised  in the  statement of  financial  performance  as  non-exchange  revenue  from  co-financing. 
Consequently, the effect on the economic result of the year is zero. 

39 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

3.2.  REVENUE FROM EXCHANGE TRANSACTIONS 

Financial revenue 
Other revenue 
Total 

Ninth EDF 

– 
 2 
  2 

10th 
EDF 
 1 
 4 
  5 

11th 
EDF 
 18 
 65 
  83 

EUR million 

2024 

2023 

 19 
 71 
  90 

 9 
 43 
  52 

The EUR  19  million under the heading  ‘Financial revenue’  mainly consists of  accrued interest on  unpaid 
recovery  orders,  interest  on  pre-financing,  interest  generated  on  balances  held  with  central  and 
commerical banks and revenue from financial instruments.  

‘Other revenue’ relates mainly to foreign exchange gains. The corresponding foreign exchange losses are 
recorded under ‘Other expenses’ (see note 3.7).  

EXPENSES 

3.3.  EXPENSES IMPLEMENTED BY OTHER ENTITIES 

Technical assistance expenses 

– 

  Ninth EDF 

10th 
EDF 
– 

11th 
EDF 
 4 

EUR million 

2024 

2023 

 4 

 3 

The amount of EUR 4 million comprises of expenses for technical assistance incurred by several financial 
instruments. 

3.4.  AID INSTRUMENTS 

Programmable aid 
Macroeconomic support 
Sectoral policy 
Intra ACP projects 
Emergency aid 
Institutional support 
Compensation Export Receipts 
Contributions to Trust Funds 
Total 

  Ninth EDF 

 2 
 – 
– 
– 
– 
– 
– 
– 
  2 

10th 
EDF 

 (13) 
– 
– 
 89 
 12 
 2 
– 
– 
  90 

11th 
EDF 

 641 
– 
– 
 408 
 (25) 
 3 
– 
 118 
 1 145 

EUR million 

2024 

2023 

 630 
– 
– 
 497 
 (13) 
 4 
– 
 118 
 1 237 

 841 
 7 
 (1) 
 779 
 230 
 12 
 2 
 311 
 2 181 

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

In 2024, operational expenditure decreased by EUR 944 million, primarily due to a significant reduction in 
expenses under the 11th EDF, which  fell from EUR 1 906 million in 2023 to EUR 1 145 million in 2024. 
This decline was observed across all programmes and is in line with the EDF lifecycle. 

Similarly, the changes in expenses under the 9th and 10th EDFs align with the lifecycle of the EDF and the 
gradual  closure  of  contracts.  Many  contracts  under  these  EDF’s  were  completed  and  closed  in  2024, 
resulting in lower expenses.  

40 

 
 
 
 
Annual accounts of the European Development Fund 2024 

The  negative  amounts  under  the  10th  and  11th  EDFs  relating  to  the  programmable  and  emergency  aid 
programmes  are  due  to  the  reversal  of  the  2023  accruals  that  were  higher  than  the  actual  expenses 
incurred in 2024. For the 11th EDF in particular the negative amounts relate to a contract with the World 
Bank which was initially set to end in December 2023  and was then extended to December 2025 during 
2024. The Commission contributes to this Trust Fund using funds from both the Trust Fund Africa and the 
EDF. By applying the priority of consumption principle to pre-financing, expenses incurred in 2024 were 
allocated to the Trust Fund Africa, while the EDF funds are expected to be used in 2025.  

In  addition,  expenses  for  programmable  aid,  emergency  aid,  and  Intra-ACP  projects  were  impacted  by 
EUR 175 million as a result of the reversal of 2023 accruals related to four projects, including the contract 
with  the  World  Bank.  Based  on  updated  implementation  information  received  from  the  implementing 
partners, which more accurately reflects the actual project progress, no accruals were recorded for these 
contracts in 2024. 

3.5.  CO-FINANCING EXPENSES 

Co-financing 

Ninth EDF 

– 

10th 
EDF 
 12 

11th 
EDF 
 5 

EUR million 

2024 

2023 

 17 

 8 

Included  under  this  heading  are  the  expenses  incurred  on  co-financing  projects  in  2024.  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).  

In line with the accounting rules on co-financing, the incurred amounts did not have any impact on the 
EDF’s result for the year because they were recognised both in the co-financing expenses and in the co-
financing revenue (see also note 3.1.1).    

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 
EU bodies with Public Private Partnership 

Total 

2024 

 17 
 3 
 118 
 148 
 286 

 84 
 287 
 156 
 126 
 314 
– 
 967 
1 254 

EUR million 
2023 

 50 
 16 
 290 
 235 
 591 

 (45) 
 994 
 201 
 147 
 297 
 3 
1 597 
2 189 

41 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

3.6.  FINANCE COSTS 

  Ninth EDF 

Net impairment losses on loans and receivables 
Loss on financial assets or liabilities at FVSD 

Fee subsidy 
Total 

– 
– 
– 
– 

10th 
EDF 
 (5) 
– 
– 
  (5) 

11th 
EDF 
 4 
 3 
 2 
  9 

EUR million 

2024 

2023 

 (1) 
 3 
 2 
  3 

 2 
 3 
 1 
  7 

Net impairment losses on loans and receivables comprise impairment losses on financial instruments and 
estimated  expenses  on  irrecoverable  amounts  arising  from  ageing  recovery  orders  (over  2  years), 
bankruptcies and waivers. 

The  EUR  3  million  of  financial  expenses  for  financial  assets  at  FVSD  relates  mainly  to  exchange 
differences, interest and fair value changes for several financial instruments.  

The  amount  of  EUR  2  million  under  the  heading  ‘Fee  subsidy’  relates  to  expenses  incurred  under  the 
Kulima financial instrument. 

3.7.  OTHER EXPENSES 

Included  under  this  heading  are  expenses  of  administrative  nature  such  as  external  non  IT  services, 
operating leasing expenses, communications and publications, training costs etc. 

Administrative and IT expenses 
Provision for risks and charges 
Realised losses on trade debtors 
Exchange losses 
Foreign exchange losses on financial instruments 
Total 

Ninth 
EDF 
- 
- 
 1 
 1 
– 
  2 

10th 
EDF 
 1 
- 

 2 
 4 
– 
  7 

11th 
EDF 
 42 
- 

- 
 59 
 1 
  101 

EUR million 

2023 

 51 
 1 
 - 
 62 
 1 
  116 

2024 

 43 
- 

 4 
 63 
 1 
  110 

The  heading  ‘Administrative  and  IT  expenses’  includes  amounts  that  are  based  on  the  EDF  internal 
agreement  with  the  Commission  to  cover  the  administrative  expenditure  incurred  by  both  the 
headquarters and the delegations when managing the EDF programmes.  

42 

 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

4. 

CONTINGENT  ASSETS  &  LIABILITIES  AND 
OTHER SIGNIFICANT DISCLOSURES 

4.1.  CONTINGENT ASSETS 

Contingent  assets  are  possible  assets  that  arise  from  past  events,  and  whose  existence  will  only  be 
confirmed  by  the  occurrence  or  non-occurrence  of  one  or  more  uncertain  future  events  that  are  not 
wholly within the control of the entity.  

Pre-financing guarantees 
Total 

Ninth 
EDF 
– 
– 

10th 
EDF 
– 
– 

11th 
EDF 
 19 
  19 

31.12.2024 

31.12.2023 

 19 
  19 

 32 
  32 

EUR million 

Pre-financing  guarantees  are  requested  in  certain  cases  from  beneficiaries  that  are  not  Member  States 
when making advance payments.  

At the end of 2024, pre-financing guarantees amounted to EUR 19 million compared with EUR 32 million 
in 2023. This is in line with the winding down of the EDF and the gradual closure of contracts.  

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

4.2.  CONTINGENT LIABILITIES 

Contingent liabilities are either possible obligations that arise from past events and whose existence will 
only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly 
within  the  control  of  the  entity,  or  present  obligations  arising  from  past  events  where  the  outflow  of 
resources is not probable or the amount cannot be measured reliably. 

4.2.1.  Guarantees given 

Guarantees given 

Ninth 
EDF 
– 

10th 
EDF 
– 

11th 
EDF 
 26 

31.12.2024 

31.12.2023 

 26 

28 

EUR million 

The  above  table  shows  the  extent  of  the  exposure  of  the  EDF  to  possible  future  payments  linked  to 
guarantees  given  to  the  EIB  group  or  to  other  financial  institutions.  The  amounts  are  presented  net  of 
financial provisions or financial liabilities recognised for those programmes.  

The  amount  of  EUR  26  million  relates  to  guarantees  under  the  following  financial  instruments: 
EUR 9 million under the Euritz financial instrument, EUR 10 million under the KULIMA FUND and another 
EUR 7 million under the ZAMBIA agriculture value chain facility. 

4.2.2. 

 Contingent liabilities relating to legal cases 

Pending legal cases 

Ninth 
EDF 
– 

10th 
EDF 
– 

11th 
EDF 
 7 

31.12.2024 

31.12.2023 

7 

 7 

EUR million 

At the end of 2024, there were only two pending cases, totalling EUR 7 million.  

43 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

4.3.  OTHER SIGNIFICANT DISCLOSURES 

4.3.1.  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 multiannual programmes. 

Outstanding commitments not yet 
expensed 

Ninth 
EDF 

10th 
EDF 

11th 
EDF 

31.12.2024  31.12.2023 

 15 

 166 

2 520 

2 701 

3 449 

EUR million 

The  decrease  in  the  RAL  is  largely  driven  by  the  decrease  in  budgetary  RAL  which  totalled 
EUR 3 812 million at the end of 2024 (2023: EUR 5 116 million). This is in line with the life cycle of the 
EDF and is also related to the evolution of the number of open contracts (see note 2.2).  

44 

 
 
 
Annual accounts of the European Development Fund 2024 

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: 

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

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

EUR and in other currencies. 

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

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

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

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

45 

 
 
5.2.  CURRENCY RISK 

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

Annual accounts of the European Development Fund 2024 

Financial assets 

Financial assets at amortised cost 
Financial assets at FVSD 
Receivables 
Cash and cash equivalents 

Financial liabilities 

Financial provisions and guarantee liability  

Total 

31.12.2024 

31.12.2023 

USD 

EUR 

Other 

Total 

USD 

EUR 

Other 

Total 

EUR million 

 10 
 42 
 6 
 11 
  69 

– 
– 
  69 

 4 
 61 
5 
 400 
  470 

 3 
  3 
  473 

 7 
 9 
– 
– 
  16 

– 
– 
  16 

 21 
112 
 11 
 411 
  555 

 3 
  3 
  558 

 7 
 16 
 7 
 6 
  36 

– 
– 
  36 

 7 
 49 
 4 
 595 
  655 

 2 
  2 
  657 

 3 
 8 
– 
– 
  11 

 2 
2 
  13 

 17 
 73 
 11 
 601 
  704 

 4 
  4 
  706 

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. 

46 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

5.3.  INTEREST RATE RISK 

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

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

Contributions to the EDF budget are credited by each Member State to a special account opened with the 
financial institution designated by it. To address the risk of negative remuneration, which existed a couple 
of  years  ago,  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 in this rate. As a result, no risk is taken 
by the EDF that its balances could be remunerated at rates lower than market rates. 

5.4.  CREDIT RISK (COUNTERPARTY RISK) 

Maximum credit risk exposure: 

For financial assets, the reported amounts are net carrying amounts and represent the EDF’s exposure to 
credit risk at the end of the reporting period. 

Financial assets 

Loans  

Cash and cash equivalents 

Exchange receivables* 

Guarantees given  

Financial guarantee contracts 

Total at 31.12.2024 

* Excluding deferred charges 

Financial instrument loans: credit quality 

Credit rating 
Premium and high grade 
Upper medium grade 
Lower medium grade 
Non-investment grade and default grade 
Gross carrying amount 
Minus loss allowance 
Net carrying amount  

31.12.2024 

31.12.2023 

EUR million 

 21 

 411 

 11 

 12 

 454 

 16 

 601 

 11 

 14 

 642 

EUR million 

31.12.2024 

Stage 1  

Stage 2  Stage 3 

POCI 

Total  

– 
– 
– 
  6 
  6 
  1 
  5 

– 
– 
– 
  3 
  3 
– 
  3 

– 
– 
– 
– 
– 
– 
– 

– 
– 
– 
  25 
 25 
 4 
 21 

– 
– 
– 
  16 
  16 
  3 
  13 

47 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EUR million 
31.12.2024 

EUR million 
31.12.2023 

  314 
  91 
  6 
– 
 411 
- 
 411 

  514 
  77 
  11 
– 
 601 
- 
 601 

EUR million 

Total 

 11 
– 
 11 

Annual accounts of the European Development Fund 2024 

Cash and cash equivalents: credit quality 

Credit rating 
Premium and high grade 
Upper medium grade 
Lower medium grade 
Non-investment grade and default grade 
Gross carrying amount 
Minus loss allowance 
Net carrying amount  

Receivables: credit quality  

31.12.2024 

Not due 

Past due 
0-30  
days 

Past due 
31-90  
days 

Past.  
91 days 
- 1 year 

Past.  
> 1 
year 

Gross carrying amount 
Minus loss allowance 
Net carrying amount  

 11 
– 
 11 

– 
– 
– 

– 
– 
– 

– 
– 
– 

– 
– 
– 

Financial assets at FVSD: credit quality  

In 2024, the financial assets at FVSD included in these financial statements relate to equity investments 
that are not subject to credit risk (see note 2.1).  

5.5.  LIQUIDITY RISK 

Maturity analysis of financial liabilities by remaining contractual maturity 

The  finance  liabilities  and  payables  under  this  heading  are  disclosed  by  the  carrying  amounts  from  the 
balance sheet. 

Financial liabilities at 31.12.2024 
Financial liabilities at 31.12.2023 

  < 1 year 
 256 
 391 

1-5 years 
– 
 2 

> 5 years 
– 
– 

EUR million 
Total 
 256 
 393 

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

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

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

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

48 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

6.  RELATED PARTY DISCLOSURES 

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

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

7. 

EVENTS AFTER THE BALANCE SHEET DATE 

At  the  date  of  signature  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. 

49 

 
 
 
Annual accounts of the European Development Fund 2024 

8.  RECONCILIATION OF ECONOMIC RESULT AND 
BUDGET RESULT 

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

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) 

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) 
BUDGET RESULT OF THE YEAR  

8.1.  RECONCILING ITEMS - REVENUE 

2024 
 (1 240) 

EUR million 
2023 
 (2 249) 

 (25) 
 (4) 
 18 
 38 
 (98) 

 (11) 
 (2) 
 12 
 36 
 (54) 

 65 
 (176) 
1 147 
(1 071) 
 (1 345) 

 (55) 
 (349) 
 556 
 59 
 (2 056) 

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

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 budget expenditure.  However, the expenses of 
previous years paid in the current year must be deducted from the economic result for reconciliation 

50 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

purposes  as  they  are  part  of  the  current  year's  budget  expenditure  but  have  either  no  effect  on  the 
economic result or they decrease the expenses in the event of corrections. 

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

51 

 
 
Annual accounts of the European Development Fund 2024 

FINANCIAL STATEMENTS OF THE EU 
TRUST FUNDS CONSOLIDATED IN THE EDF 

52 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

FINANCIAL STATEMENTS OF THE BÊKOU 
EU TRUST FUND 2024 

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

53 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

BACKGROUND INFORMATION  

General background on Union Trust Funds 

Establishment 

In accordance  with  Articles 238  and 239  of the Financial  Regulation applicable  to the general budget of 
the  Union  (EU  FR)3  and  Article  35  of  the  Financial  Regulation  applicable  to  the  11th  European 
Development  Fund  (EDF  FR)4,  the  European  Commission  may  establish  Union  Trust  Funds  for  external 
actions (‘EU Trust Funds/EUTFs’). The Union Trust Funds are constituted under an agreement concluded 
with  other  donors  for  emergency  and  post-emergency  actions  necessary  to  react  to  a  crisis,  or  for 
thematic actions.  

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

Union Trust Funds are only established and implemented subject to the following conditions: 

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

—  Union Trust Funds bring clear political visibility for the Union and managerial advantages as well 
as  better  control  by  the  Union  of  risks  and  disbursements  of  the  Union  and  other  donors’ 
contributions; 

—  Union Trust Funds do not duplicate other existing funding channels or similar instruments without 

providing any additionality; 

—  The  objectives  of  Union  Trust  Funds  are  aligned  with  the  objectives  of  the  Union  instrument  or 

budgetary item from which they are funded. 

Current EU Trust Funds 

To date, the Commission has set up four EUTFs: 

—  The EUTF BÊKOU, whose objective is to support all aspects of the Central African Republic's exit 

from crisis and its reconstruction efforts. Established on 15 July 2014; 

—  The  EUTF  MADAD,  a  European  Union  Regional  Trust  Fund  in  response  to  the  Syrian  crisis. 

Established on 15 December 2014; 

—  The  EUTF  AFRICA,  a  European  Union  Emergency  Trust  Fund  for  stability  and  addressing  root 

causes of irregular migration and displaced persons in Africa. Established on 12 November 2015; 

—  The  EUTF  COLOMBIA,  which  supports  the  implementation  of  the  peace  agreement  in  the  early 

recovery and stabilisation post conflict. Established on 12 December 2016. 

Mission 

The EUTF Bêkou, was established, with the aim of  promoting the stabilisation and reconstruction of the 
Central  African  Republic  (CAR).  Its  main  objective,  as  set  out  in  the  Constitutive  Agreement,  is  “to 
provide consistent, targeted aid for the resilience of vulnerable groups and support for all aspects of the 
Central  African  Republic's  exit  from  the  crisis  and  reconstruction,  to  coordinate  actions  over  the  short, 
medium and long term and to help neighbouring countries cope with the consequences of the crisis”. 

Main operational activities  

The Union Trust Fund pools together resources from different donors to finance programmes on the basis 
of agreed objectives.  Since its creation  in  July 2014, the EUTF  Bêkou has adopted 22 programmes and 

3  Regulation  (EU,  Euratom)  2024/2509  of  the  European  Parliament  and  of  the  Council  of  23  September  2024  on  the  financial  rules 

applicable to the general budget of the Union (recast). 

4 Council Regulation (EU) 2018/1877 of 26 November 2018 on the financial regulation applicable to the 11th European Development 

Fund, and repealing Regulation (EU) 2015/323. 

54 

 
 
 
Annual accounts of the European Development Fund 2024 

has  reached  more  than  2.5  million  beneficiaries.  The  programmes  are  to  assist  the  Central  African 
Republic (CAR) and its population in the aftermath of the 2013 crisis. More specifically, the  EUTF Bêkou 
aims to ensure access to basic services (mainly health, water and sanitation), support economic recovery 
and job creation, and promote social cohesion and reconciliation. 

Governance 

The  management  of  the  EUTF  Bêkou  is  ensured  by  the  European  Commission,  which  also  acts  as  the 
secretariat of its two governing bodies – the Trust Fund Board and the Operational Committee. The Trust 
Fund  Board  and  the  Operational  Committee  of  the  EUTF  Bêkou  are  composed  of  representatives  of  the 
donors, of the Commission, of the European Parliament, a representative of the Central African Republic’s 
authorities and observers. The rules for the composition of the board and its internal rules are laid down 
in the constitutive agreement of the Union Trust Fund. 

The main task of the Board is to establish and review the overall strategy of the Trust Fund. The 
Operational Board is responsible for the selection of the actions financed by the Fund and supervises their 
implementation. It also approves the annual accounts and the annual reports on the activities financed by 
the Trust Fund. 
Sources of financing 

The EUTF Bêkou is financed through contributions from donors.  

Annual accounts 

Basis for preparation 

The  legal  framework  and  the  deadlines  for  the  preparation  of  the  annual  accounts  are  set  by  the 
“Agreement establishing the European Union Trust Fund for the Central African Republic, ‘The Bêkou EU 
Trust  Fund”,  and  its  internal  rules’  (‘Constitutive  Agreement’).  As  per  this  Constitutive  Agreement,  the 
annual  accounts  are  prepared  in  accordance  with  the  rules  adopted  by  the  Accounting  Officer  of  the 
Commission  (EU  Accounting  Rules,  EAR),  which  are  based  on  internationally  accepted  accounting 
standards for the public sector (IPSAS).  

Accounting Officer 

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

Composition of the annual accounts 

The  annual  accounts  cover  the  period  from  1  January  to  31  December  and  comprise  the  financial 
statements and the reports on the implementation of the budget. While the financial statements and the 
complementary  notes  are  prepared  on  an  accrual  accounting  basis,  the  budget  implementation  reports 
are primarily based on movements of cash. 

Process from provisional accounts to discharge 

The annual accounts are subject to independent external audit. The provisional annual accounts prepared 
by  the  Accounting  Officer  are  transmitted,  by  the  15th  of  February  of  the  following  year,  to  the 
Operational Committee who then transmits them to the audit company selected by the entity following a 
tender  procedure.  Following  the  audit,  the  Accounting  Officer  prepares  the  final  annual  accounts  and 
submits them to the Operational Committee for approval (Article 8.3.4(c)). 

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

55 

 
 
Annual accounts of the European Development Fund 2024 

Operational highlights 

Achievements of the year 

The  EU  launched,  in  July  2014,  its  first  ever  Trust  Fund  (EUTF),  named  Bêkou  (meaning  hope  in  the 
Sango language) to assist the Central African Republic (CAR) and its population in the aftermath of the 
2013  crisis.  The  EUTF  Bêkou  aims  to  ensure  access  to  basic  services  (mainly  health,  water  and 
sanitation),  support  rural  development  and  economic  recovery,  and  promote  reconciliation.  Since  its 
creation,  the  EUTF  Bêkou  has  financed  22  programmes  comprising  119  projects  and  has  reached  more 
than half of the country’s population. 

The  Central  African  Republic  remains  a  fragile  state  from  all  points  of  view,  particularly  in  terms  of 
governance and availability of local resources (human, technical, financial etc.) to meet the challenges of 
development. 

The security situation is improving;  the violence between armed forces is decreasing. Nevertheless, the 
destabilisation of neighbouring countries increases  instability in the country with the influx of Sudanese 
refugees  in  Central  African.  In  October,  Chad  and  Central  African  Republic  concluded  an  agreement  to 
protect together their common borders. Around 20% of the CAR’s population are still displaced, therefore 
the need for humanitarian assistance remains high. 

The economic situation is characterised by a drastic decline in government revenues in a context of weak 
growth. However, the dialogue with the International Monetary Fund (IMF) is nevertheless maintained.  

Political  life  in  2025  will  be  marked  by  local  and  presidential  elections  that  have  repeatedly  been 
postponed.   

The management of the Bekou’s operations has been relocated to the Delegation to CAR but nevertheless 
the financial and contractual side is still centralised in Brussels. 

Key achievements in specific focus areas 

Key  achievements  of  2024  presented  below  reflect  the  main  specific  objectives/areas  of  intervention  of 
the Trust Fund.  

In  the  area  of  access  to  services,  Trust  Fund  Bêkou  continued  its  support  to  the  Health  and  WASH 
sectors.  In  2024,  an  additional  107 842  people  benefited  from  improved  access  to  water,  hygiene  and 
sanitation services (EHA – indicator 1.1), bringing the total to 1 177 587 beneficiaries since the start of 
the Fund. This was a 5% overrun on the initial target.  

The  people  having  benefited  from  medical  consultations  and  health  interventions  (indicator  1.2)  during 
the year was low (53 264) due to the closure of projects associated with the third strand of the HEALTH 
programme. However, with a total of beneficiaries of 9 132 811 for a target of 7 915 873, it is 15% more 
than  expected.  The  two  last  Health  projects  (RESULDE  ALIMA  and  GENRE  III  IRC)  terminated  their 
activities this year.   

The  number  of  beneficiaries  of  literacy  activities  has  increased  significantly  (+35%)  from  17 105  to 
23 054 between 2023 and 2024, over the initial target.  

In the area of social cohesion, most of the activities implemented with EUTF Bêkou’s support aimed to 
empower women and to combat gender-based violence (GBV), as well as to strengthen the media in the 
country.  

In  2024,  15 741  girls  or  women  benefited  from  socio-economic  empowerment  activities,  bringing  the 
number of beneficiaries to 173 109, well above the original target (+380%). 2 494 survivors of Gender-
based  violence  (GBV)  were  supported  by  Bêkou  (indicator  2.2)  this  year  for  a  total  of  16 769  on  the 
planned 133 943. It represents a completion rate of only 13%.  

There were 36 870 more people who received support in the context of ‘2.4 activity (civil peace-building 
post-conflict and/ or conflict prevention’ a total of 418 581 (+172%) since the fund was created. 

56 

 
 
 
 
Annual accounts of the European Development Fund 2024 

In the area of supporting economic and productive sectors’ recovery, EUTF Bêkou assisted both 
productive  and  subsistence-oriented  agriculture,  supporting  agricultural  groups  and  smallholders, 
fostering job creation (both labour-intensive work, vocational training, development of income-generating 
activities) and facilitating access to financial services for small businesses and individuals.  

This year, there were few achievements for this objective as most projects are completed. There is still a 
2%  increase  (1 471)  in  people  who  received  support  for  the  establishment  of  an  income-generating 
activity.  6 263  people  benefited  during  the  year  from  vocational  training  activities  (indicator  3.6),  an 
increase  of  6%  compared  to  the  previous  year.  6 220  trained  through  the  project  DEVRUR  II 
implemented by Enabel. 

The  PAPEUR  Rural  project  (ITC)  continued  to  support  the  35  cooperatives  set  up  in  2022.  

Budget and budget implementation 

By  the  end  of  2024,  the  contributions  to  EUTF  Bêkou  amounted  to  over  EUR  310  million,  as  in  the 
previous  year  2023,  as  well  as  EUR  2  million  of  other  income  from  interest  earned.  The  Trust  Fund 
finalised the commitments and contracting of all received contributions on 31 December 2021, with the 
exception  of  funds  reserved  for  monitoring,  evaluation,  audit  and  communication  that  can  still  be 
contracted after this date.  

More than EUR 7 million were paid to contractors in 2024; total disbursements have reached more than 
EUR 290 million since the creation of the EUTF Bêkou.  

In 2024, 11 contracts were ongoing for a total budget around EUR 81 million. Among them, 8 operational 
projects and 1 for Technical Assistance.  

Impact of the activities in the financial statements 

In the financial statements, the impact of the above mentioned activities is most visible when looking at: 

—  Pre-financing:  decreased  by  kEUR  1 126  as  a  result  of  the  winding  down  of  the  Trust  Fund  and 
the 
only  
5 contracts were signed relating to audit, evaluation and communication activities for an amount 
of kEUR 167;  

the  number 

consequent 

contracts: 

in  2024 

of  new 

decrease 

in 

—  Financial liabilities: decreased by kEUR 6 893 mainly due to the absence of cashed contributions 

during the year; 

—  Operating expenses: decreased by kEUR 17 968 as a result of the ongoing winding down of the 
Trust  Fund  which  led  to  a  decrease  in  the  number of  open  contracts  and  thus  to  a  decrease  in 
expenses. 

57 

 
 
 
 
 
Annual accounts of the European Development Fund 2024 

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  

TOTAL LIABILITIES 

NET ASSETS 

31.12.2024 

 EUR '000 
31.12.2023 

– 
– 

 2 619 
 2 267 
 23 465 
 28 350 
 28 350 

 (24 108) 
 (24 108) 

 (2 536) 
 (1 707) 
 (4 243) 
 (28 350) 

– 
– 

 3 745 
 3 462 
 28 420 
 35 627 
 35 627 

 (31 001) 
 (31 001) 

– 
 (4 626) 
 (4 626) 
 (35 627) 

– 

– 

58 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

STATEMENT OF FINANCIAL PERFORMANCE 

REVENUE 
Revenue from non-exchange transactions 
Revenue from donations 
Recovery of expenses 

Revenue from exchange transactions 
Financial revenue 

Total revenue 
EXPENSES 
Operating expenses 
Finance costs 
Other expenses 
Total expenses 
ECONOMIC RESULT OF THE YEAR 

2024 

EUR '000 
2023 

 6 894 
  183 
 7 076 

  884 
  884 
 7 961 

 24 550 
  717 
 25 268 

  636 
  636 
 25 904 

 (6 310) 
  (166) 
 (1 485) 
 (7 961) 
– 

 (24 278) 
– 
 (1 626) 
 (25 904) 
– 

59 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

CASHFLOW STATEMENT 

Economic result of the year 
(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  
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 

2024 
– 
 1 126 
 1 196 
 (6 894) 
 2 536 
 (2 919) 
 (4 955) 

 (4 955) 
 28 420 
 23 465 

EUR '000 
2023 
– 
 7 420 
  132 
 18 450 
 (4 563) 
 2 665 
 24 104 

 24 104 
 4 316 
 28 420 

60 

 
 
 
 
 
 
 
 
 
 
  
Annual accounts of the European Development Fund 2024 

FINANCIAL STATEMENTS OF THE EUTF 
AFRICA 2024 

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

61 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

BACKGROUND INFORMATION ON THE EUTF AFRICA 

General background on Union Trust Funds 

Establishment 

In accordance  with Articles 238  and 239  of the Financial  Regulation applicable  to the general budget of 
the  Union  (EU  FR)5  and  Article  35  of  the  Financial  Regulation  applicable  to  the  11th  European 
Development  Fund  (EDF  FR)6,  the  European  Commission  may  establish  Union  Trust  Funds  for  external 
actions (‘EU Trust funds/EUTFs’).  The Union Trust Funds are constituted under an agreement concluded 
with  other  donors  for  emergency  and  post-emergency  actions  necessary  to  react  to  a  crisis,  or  for 
thematic actions.  

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

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

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

—  Union Trust Funds bring clear political visibility for the Union and managerial advantages as well 
as  better  control  by  the  Union  of  risks  and  disbursements  of  the  Union  and  other  donors’ 
contributions; 

—  Union Trust Funds do not duplicate other existing funding channels or similar instruments without 

providing any additionality; 

—  The  objectives  of  Union  Trust  Funds  are  aligned  with  the  objectives  of  the  Union  instrument  or 

budgetary item from which they are funded. 

Current EU Trust Funds 

To date, the Commission has set up four EUTFs: 

—  The EUTF BÊKOU, whose objective is to support all aspects of the Central  African Republic's exit 

from crisis and its reconstruction efforts. Established on 15 July 2014; 

—  The  EUTF  MADAD,  a  European  Union  Regional  Trust  Fund  in  response  to  the  Syrian  crisis. 

Established on 15 December 2014; 

—  The  EUTF  AFRICA,  a  European  Union  Emergency  Trust  Fund  for  stability  and  addressing  root 

causes of irregular migration and displaced persons in Africa. Established on 12 November 2015; 

—  The  EUTF  COLOMBIA,  which  supports  the  implementation  of  the  peace  agreement  in  the  early 

recovery and stabilisation post conflict. Established on 12 December 2016. 

Mission 

The  main  objectives  of  the  EUTF  Africa  are  to  support  all  aspects  of  stability  and  contribute  to  better 
migration management as well as addressing the root causes of destabilisation, forced displacement and 
irregular migration, in particular by promoting resilience, economic and equal opportunities, security and 
development and addressing human rights abuses. 

Main operational activities  

The Union Trust Fund pools together resources from different donors to finance an action on the basis of 
agreed  objectives.  EUTF  Africa  operates  in  three  main  geographic  areas,  namely  the  Sahel  region  and 
Lake  Chad  area,  the  Horn  of  Africa  and  the  North  of  Africa.  The  neighbouring  countries  of  the  eligible 

5 Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules 

applicable to the general budget of the Union (recast). 

6 Council regulation (EU) 2018/1877 of 26 November 2018 on the financial regulation applicable to the 11th European Development 

Fund, and repealing Regulation (EU) 2015/323. 

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Annual accounts of the European Development Fund 2024 

countries  may  benefit,  on  a  case  by  case  basis,  from  the  Trust  Fund's  projects.  The  Trust  Fund  is 
established for a limited period, in order to provide a short and medium-term response to the challenges 
of the regions. 

Governance 

The  management  of  the  EUTF  Africa  is  ensured  by  the  European  Commission,  which  also  acts  as  the 
secretariat of its two governing bodies – the Trust Fund Board and the Operational Committee. The Trust 
Fund  Board  and  the  Operational  Committee  of  the  EUTF  Africa  are  composed  of  representatives  of  the 
donors  and  of  the  Commission,  as  well  as  representatives  of  non-contributing  EU  Member  States, 
authorities of eligible countries' and regional organisations as observers. The rules for the composition of 
the board and its internal rules are laid down in the constitutive agreement of the Union Trust Fund. 

The main task of the Board is to establish and review the overall strategy of the Trust Fund. The 
Operational Board is responsible for the selection of the actions financed by the Fund and supervises their 
implementation. It also approves the annual accounts and the annual reports on the activities financed by 
the Trust Fund. 
Sources of financing 

The EUTF Africa is financed through contributions from donors.  

Basis for preparation 

The  legal  framework  and  the  deadlines  for  the  preparation  of  the  annual  accounts  are  set  by  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’).  As  per  this Constitutive  Agreement,  the  annual  accounts  are  prepared  in  accordance  with 
the  rules  adopted  by  the  Accounting  Officer  of  the  Commission  (EU  Accounting  Rules,  EAR),  which  are 
based on internationally accepted accounting standards for the public sector (IPSAS).  

Accounting Officer 

Based on the Constitutive Agreement, the Accounting Officer of the Commission serves as the Accounting 
Officer of the Trust Fund.  

Composition of the annual accounts 

The  annual  accounts  cover  the  period  from  1  January  to  31  December  and  comprise  the  financial 
statements and the reports on the implementation of the budget. While the financial statements and the 
complementary  notes  are  prepared  on  an  accrual  accounting  basis,  the  budget  implementation  reports 
are primarily based on movements of cash. 

Process from provisional accounts to discharge 

The annual accounts are subject to independent external audit. The provisional annual accounts prepared 
by  the  Accounting  Officer  are  transmitted,  by  the  15th  of  February  of  the  following  year,  to  the 
Operational Committee who then transmits them to the audit company selected by the entity following a 
tender  procedure.  Following  the  audit,  the  Accounting  Officer  prepares  the  final  annual  accounts  and 
submits them to the Operational Committee for approval. 

The annual accounts of the EUTF Africa are consolidated in the annual accounts of the European 
Development Fund. 

63 

 
 
Annual accounts of the European Development Fund 2024 

Operational highlights 

Achievements of the year 

In  line  with  the  end  of  the  contracting  period  on  31  December  2021,  as  of  January  2022  the  EUTF  for 
Africa  has  not  funded  any  new  financial  commitments  or  budgetary  top-ups.  Financial  commitments 
related to administrative activities such  as audits,  evaluations, monitoring and communication activities 
are the only ones that can be contracted. The EUTF Africa programmes will continue being implemented 
up to end of 2025. 

In  the  course  of  2024,  the  EUTF  for  Africa  further  demonstrated  that  it  is  a  swift  and  effective 
implementation  tool,  facilitating  policy  dialogue  with  African  partner  countries,  applying  innovative 
approaches, and producing tangible results across the three regions (Sahel and Lake Chad, Horn of Africa 
and North of Africa).   

In September 2024 the European Court of Auditors (ECA) published a special audit report on the EUTF for 
Africa7.  The  ECA  acknowledged  that  the  EUTF  for  Africa  has  developed  a  new  approach  for  collecting 
information about the root causes of instability, irregular migration and displacements, identifying human 
rights risks in a volatile environment and reporting on the cumulative achievements of its actions. It also 
recognised  that  the  EUTF  has  contributed  to  keeping  migration  high  on  the  development  and  political 
agenda, and that EUTF projects have reported the delivery of many of the planned outputs and partially 
achieved their objectives.  

In  2024,  the  Horn  of  Africa  (HoA)  region  remains  a  highly  unstable  region,  facing  multiple  challenges 
relating to severe climate change impacts, socio-economic and political hurdles, and ongoing conflicts and 
security  threats.  In  addition  to  the  ongoing  conflict  in  Sudan,  internal  strife  in  parts  of  Ethiopia  and 
instability in Somalia persist, while the repercussions of the Red Sea crisis are exacerbating inflation and 
insecurity  across  the  area.  As  of  October  2024,  Sudan  is  grappling  with  the  world's  largest  internal 
displacement  crisis,  with  a  staggering  14  million  people  forced  to  flee  their  homes  and  to  seek  refuge 
within  or  outside  the  country.  This  mass  displacement  has  had  a  far-reaching  impact  on  neighbouring 
countries. Nonetheless, some positive developments can be identified as the accession of Somalia to the 
East  Africa  Community  in  February  2024,  the  IMF  approval  of  the  financial  support  for  Ethiopia's 
economic  reform  programme  and  the  decisive  lead  taken  by  Kenya  on  climate  change  adaptation  and 
mitigation. 

In  this  challenging  context,  the  EUTF  has  reported  significant  progress  in  promoting  economic  and 
employment opportunities in the Horn of Africa. By June 2024, a total of 152 000 jobs have been created 
or supported, including 2 471 jobs in the first semester of 2024. Additionally, 24 091 micro, small, and 
medium enterprises have been created or supported, with 314 MSMEs added in 2024. EUTF programmes 
have  also  assisted  around  750,000  individuals  in  developing  income-generating  activities.  These  efforts 
have  been  particularly  successful  in  supporting  refugees,  with  12  349  refugees  benefiting  from  job 
creation/supported and 85 593 assisted individuals with income-generating activities. 

Likewise,  EUTF-funded  projects  have  provided  11  million  health-related  services  to  households  to  date, 
with  99%  being  medical  treatments.  Improved  access  to  health  facilities  has  been  achieved  for  3.67 
million  people,  with  roughly  59  000  benefiting  in  the  first  half  of  2024.  Notably,  the  largest  biannual 
output  of  WASH  (water,  sanitation,  and  hygiene)  facilities  since  the  inception  of  the  EUTF  has  been 
achieved through the construction or rehabilitation of 1 303 facilities. Additionally, 3 million people have 
received nutrition assistance, including 54 250 in the first half of 2024. 

The  EUTF  made  significant  strides  in  improving  migration  management  by  providing  critical  assistance 
and protection to 3 256 migrants and displaced people in the first half of 2024, bringing its total support 
to  nearly  195  000  individuals  to  date.  Furthermore,  in  the  first  semester  of  2024,  the  EUTF  has  also 
played  a  key  role  in  supporting  stabilisation  and  peacebuilding  initiatives,  with  a  total  of  30  162 
individuals  participating  in  conflict  prevention  and  human  rights  promotion  activities,  with  a  focus  on 
South  Sudan.  This  brings  the  total  number  of  participants  to  1.37  million,  contributing  to  strengthened 
peace and political stability across the region. 

In  2024,  the  Sahel  and  Lake  Chad  (SLC)  region  continued  to  be  confronted  with  a  growing  political 
instability across the region, security threats, socio-economic challenges, and intensified conflicts, driving 
more people into  food  insecurity  and forcibly  displacement. Moreover, the  political  divide  in  West Africa 

7 Special report 17/2024 https://www.eca.europa.eu/en/publications/SR-2024-17. 

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Annual accounts of the European Development Fund 2024 

deepened  further,  as  Burkina  Faso,  Mali  and  Niger  announced  their  withdrawal  from  the  Economic 
Community of West African States (ECOWAS). 

In the first half of 2024, conflicts in West Africa intensified, particularly in the central Sahel countries and 
in  Nigeria.  This  escalation  was  a  key  driver  of  forced  displacement,  affecting  10.1  million  people 
(including both refugees and IDPs) across the 12 EUTF SLC countries.  

Inflation  and  currency  depreciation  continued  to  affect  a  large  share  of  the  populations,  primarily  the 
most  vulnerable.  From  March  to  May  2024,  38  million  people  across  West  Africa  faced  acute  food 
insecurity,  a  number  that  was  expected  to  rise  to  52  million  during  the  2024  lean  season.  Yet,  in  this 
challenging context, and notwithstanding the phasing out of the EUTF and hence the drastic decrease of 
its  active  projects,  substantial  results  continued  to  be  reported  in  the  first  semester  of  2024.  For 
instance,  during  the  first  half  of  2024,  56  549  people  benefitted  from  assistance  to  develop  income 
generating  activities  (IGAs),  out  of  a  total  of  831  945  supported  to  date,  and  2,686  people  benefitted 
from technical and vocational education and training (TVET) and/or skills development, for a total of 240 
470. 

Additionally,  peace-building  activities  also  showed  significant  achievements,  with  561  874  participants, 
bringing the total to 7.1 million, and 387 people were trained in migration management and protection, 
bringing the total to 20 953. 

Not  least,  in  the  same  period,  EUTF-funded  programmes  supplied  136  313  people  with  food  security-
related  assistance  (3.6  million  overall),  and  125  910  people  benefited  from  nutrition  assistance  (2.8 
million overall). 

In  2024,  the  North  Africa  (NoA)  region  continued  to  face  complex  geopolitical,  socioeconomic,  and 
environmental  challenges,  further  shaping  migratory  patterns.  Because  of  geopolitical  instability, 
including the ongoing conflicts involving Israel, Lebanon and Sudan, the repercussions of Russia’s war of 
aggression  against  Ukraine,  and  the  economic  downturns,  the  pressure  of  irregular  migration  towards 
Europe  has  persisted.  The  North  African  countries  remain  important  countries  of  origin,  transit,  and 
destination of migrants, with some of them also hosting large refugee populations.  

This year, 31 contracts were still implemented in NoA, representing a budget of EUR 301 million (or 33% 
of the total commitment of the EUTF in the region). These interventions contributed to achieve tangible 
results in the North of Africa from June 2023 to May 2024. Despite the complex environment, our EUTF 
partners reported improving the access of 526 126 people to basic social services, delivering 95 863 basic 
social services and providing post-return assistance to 3 653 returning migrants. In addition, awareness 
raising efforts continued with 150 433 potential migrants reached through information campaigns and 16 
085  beneficiaries  participating  in  conflict  prevention  and  human  rights  activities.  In  the  context  of  the 
EUTF  support  for  employment  and  entrepreneurship,  2073  new  jobs  were  created,  577  MSMEs  were 
supported, 3 893 participated in legal migration and mobility programs and 8 944 received professional 
training in the North of Africa region.   

Budget and budget implementation 

In  2024,  no  new  program  or  budgetary  top-up  took  place  in  any  of  the  three  regions  of  the  EUTF  for 
Africa, in line with the end of the contracting period on 31 December 2021. The total amount committed 
for  operational  and  administrative  expenditure  since  the  beginning  of  the  EUTF  for  Africa  amounts  to 
EUR 5 060.13  million.  The  amount  of  approved  operational  programs  since  the  beginning  of  the  EUTF 
Africa amounts to EUR 1 810 million for the Horn of Africa region; EUR 2 217.8 million for the Sahel and 
Lake Chad region and EUR 907.3 million for the North of Africa region.  

23  new  contracts  for  a  total  amount  of  EUR  1.8  million  were  contracted  in  2024,  considering  net 
committed  amount  and  no  de-commitments.  These  contracts  were  only  related  to  administrative 
activities  (audit,  evaluation,  communication  and  monitoring),  as  operational  programmes  or  activities 
cannot be funded any longer since 31 December 2021.  

The operational payments in 2024 reached EUR 162.96 million, which was EUR 169.44 million lower than 
in 2023 (EUR 332.4 million) because several projects reached the end of their implementation period. 

Impact of the activities in the financial statements 

In the financial statements, the impact of the above mentioned activities is most visible when looking at: 

65 

 
 
Annual accounts of the European Development Fund 2024 

—  Pre-financing: decreased by kEUR 64 731 as a result of the winding down of the Trust Fund and 
the  consequential  decrease  in  the  number  of  new  contracts:  in  2024  only  23  contracts  were 
signed relating to administrative activities for an amount of EUR 1.8 million; 

—  Financial liabilities: decreased by kEUR 13 216 mainly due to the fact that contributions cashed in 

the year were lower than the net expenses allocated to the donors; and    

—  Operating  expenses:  decreased  by  kEUR  225 425  as  a  result  of  the  winding  down  of  the  Trust 
Fund  which  led  to  a  decrease  in  the  number  of  open  contracts  and  thus  to  a  decrease  in 
expenses.  

66 

 
 
 
 
 
Annual accounts of the European Development Fund 2024 

BALANCE SHEET 

NON-CURRENT ASSETS 

Financial 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  

TOTAL LIABILITIES 

NET ASSETS 

31.12.2024 

 EUR '000 
31.12.2023 

 3 950 

– 

 3 950 

 131 889 

 24 314 

 187 539 

 343 742 

 347 691 

 3 949 

 18 254 

 22 204 

 178 366 

 22 396 

 177 553 

 378 315 

 400 519 

 (251 339) 

 (264 555) 

 (251 339) 

 (264 555) 

 (13 774) 

 (82 578) 

 (96 352) 

 (347 691) 

 (14 261) 

 (121 704) 

 (135 965) 

 (400 519) 

– 

– 

67 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

STATEMENT OF FINANCIAL PERFORMANCE 

REVENUE 
Revenue from non-exchange transactions 
Revenue from donations 
Recovery of expenses 

Revenue from exchange transactions 
Financial revenue 
Other exchange revenue 

Total revenue 
EXPENSES 
Operating expenses 
Finance costs 
Other expenses 
Total expenses 
ECONOMIC RESULT OF THE YEAR 

2024 

EUR '000 
2023 

 169 603 
  245 
 169 848 

 6 690 
 13 551 
 20 240 
 190 089 

 408 274 
  179 
 408 453 

 4 865 
 13 446 
 18 311 
 426 764 

 (161 869) 
  (28) 
 (28 191) 
 (190 089) 
– 

 (387 294) 
  (434) 
 (39 036) 
 (426 764) 
– 

68 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

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  
Investing activities 
Increase/decrease in non-derivative financial assets at fair value through 
surplus or deficit 
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 

2024 
– 

EUR '000 
2023 
  – 

 64 732 
 (1 917) 
 (13 216) 
  (486) 
 (39 126) 

 122 362 
 13 517 
 (70 236) 
 (16 715) 
 (26 956) 

– 
 9 986 

 (2 007) 
 19 966 

 9 986 
 177 553 
 187 539 

 19 966 
 157 587 
 177 553 

69 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

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 euro, some financial data in the 
tables may appear not to add-up. 

70 

 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

CONSOLIDATED BALANCE SHEET 

NON-CURRENT ASSETS 
Financial assets 
Pre-financing 
Exchange receivables 

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

TOTAL ASSETS 

NON-CURRENT LIABILITIES 
Financial liabilities 

CURRENT LIABILITIES 
Provisions 
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 

31.12.2024 

 EUR million 
31.12.2023 

 131 
 500 
 5 
 637 

 5 
 876 
 63 
 622 
1 566 
 2 203 

 91 
 592 
 5 
 689 

 3 
1 137 
 50 
 807 
1 997 
 2 686 

 (88) 
  (88) 

 (85) 
  (85) 

 (2) 
 (272) 
 (858) 
(1 132) 
 (1 220) 

 – 
 (406) 
(1 110) 
(1 516) 
 (1 600) 

  983 

 1 086 

55 704 
2 252 
(55 733) 
(1 240) 
  983 

54 566 
2 252 
(53 484) 
(2 249) 
 1 086 

71 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

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 other entities 
Expenses implemented by trust funds 
Co-financing expenses 
Finance costs 
Other expenses 

Total Expenses 

ECONOMIC RESULT OF THE YEAR 

2024 

 42 
 59 
  100 

 26 
 85 
  111 
  211 

(1 119) 
 (4) 
 (168) 
 (17) 
 (3) 
 (140) 

EUR million 
2023 

 15 
 122 
  136 

 14 
 56 
  70 
  207 

(1 870) 
 (3) 
 (412) 
 (8) 
 (7) 
 (157) 

 (1 451) 

 (2 456) 

 (1 240) 

 (2 249) 

72 

 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

CONSOLIDATED CASH FLOW STATEMENT 

Economic result of the year 
Operating activities 
Capital increase - contributions 
(Increase)/decrease in pre-financing 
(Increase)/decrease in exchange receivables and non-exchange recoverables 
Increase/(decrease) in provisions 
Increase/(decrease) in financial liabilities 
Increase/(decrease) in payables 
Increase/(decrease) in accrued charges and deferred income 
Investing activities 
(Increase)/decrease in non-derivative financial assets at fair value through 
surplus or deficit 
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 

2024 
 (1 240) 

EUR million 
2023 
 (2 249) 

1 138 
 352 
 (13) 
 2 
 3 
 (134) 
 (252) 

1 630 
 486 

  18 
  2 
 (18) 
 (56) 

  (172) 

 (42) 

(22) 

  (185) 

  (382) 

 (185) 
  807 
  622 

 (382) 
 1 189 
  807 

73 

 
 
   
 
 
 
 
 
 
 
 
 
   
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS 

Annual accounts of the European Development Fund 2024 

Fund capital - 
active EDFs 
(A) 

 72 955 
 (185) 
(12 164) 
– 

 60 607 
 (62) 

Uncalled funds - 
active EDFs (B) 
 7 855 
(1 815) 
– 
– 

 6 040 
(1 200) 

 60 544 

 4 840 

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

Cumulative 
Reserves (D) 

Called fund 
capital from 
closed EDFs 
carried 
forward (E) 

 65 100 
1 630 
(12 164) 
– 

 54 566 
1 138 
– 

 55 704 

 (65 647) 
– 
12 164 
(2 249) 

 (55 733) 

(1 240) 

 (56 973) 

 2 252 
– 
– 
– 

 2 252 

 2 252 

EUR million 

Total Net 
Assets 
(C)+(D)+(E) 
 1 705 
1 630 
– 
(2 249) 

 1 086 
1 138 
(1 240) 

  983 

BALANCE AS AT 31.12.2022 
Capital increase - contributions 
Closure of the 8th EDF 
Economic result of the year 

BALANCE AS AT 31.12.2023 
Capital increase - contributions 
Economic result of the year 

BALANCE AS AT 31.12.2024 

74 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

EDF REPORT ON FINANCIAL 
IMPLEMENTATION 

75 

 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

CONTENTS 

1.  BACKGROUND ........................................................................................ 77 
Previous EDFs ................................................................................................ 77 
10th and 11th EDF ......................................................................................... 78 

1.1. 
1.2. 

2.  FINANCIAL IMPLEMENTATION ................................................................... 79 
2.1. 
FINANCIAL OUTTURN ..................................................................................... 79 
2.2.  RESOURCES .................................................................................................. 83 
2.3.  OPERATIONAL EXPENDITURE AND SPECIFIC PROGRAMMES ................................ 84 

  GLOSSARY ............................................................................................. 90 

76 

 
 
 
 
Annual accounts of the European Development Fund 2024 

1.  BACKGROUND 

Launched in 1959, the  EDF  is the main instrument  for  providing EU  aid  for development cooperation to 
the  African,  Caribbean  and  Pacific  (ACP)  states  and  overseas  countries  and  territories  (OCTs).    Its 
primary objective is to reduce and ultimately eradicate poverty.  

The  EDF  is  established  by  an  Internal  Agreement  of  the  representatives  of  the  Member  States  and 
managed  by  a  specific  committee.  The  EDF  resources  are  ‘ad  hoc’  contributions  from  the  EU  Member 
States, which decide on an overall amount that will be allocated to the fund (over a period of five years). 
In  addition  to  these  contributions,  it  is  also  possible  for  Member  States  to  enter  into  co-financing 
arrangements  or  to  make  voluntary  financial  contributions  to  the  EDF.  The  European  Commission  is 
responsible  for  the  financial  implementation  of  the  operations  carried  out  with  EDF  resources.  The  EIB 
manages the Investment Facility.  

The EDF is a fund operating based on multiannuality. Each EDF is concluded for a period of around five 
years and is governed by its own financial regulation. The Internal Agreement establishing the last EDF, 
the 11th EDF (2014-2020), came into force on 1 March 2015. Since 2021, the cooperation with the ACP 
countries  is  included  in  the  Neighbourhood,  Development  and  International  Cooperation  Instrument 
(NDICI).  However,  projects  that  were  already  ongoing,  funded  under  the  EDF,  will  continue  to  be 
implemented, under the respective EDF legal basis. 

This report is produced in accordance with Article 39 of the Financial Regulation of 11th EDF 8. It provides 
information on  the revenue and expenditure operations of  the EDF,  with the focus on important events 
that had a significant impact on financial implementation in 2024. 

Given that there are no ongoing operations under previous EDFs9, this report includes figures only for the 
10th and 11th EDFs. 

1.1.  Previous EDFs 

6th and 7th EDF 

The 6th EDF was closed in 2006 and the 7th EDF was closed in 2008.  

In  accordance  with  Article  1(2)(b)  of  the  Internal  Agreement  of  the  9th  EDF,  balances  and  de-
commitments of previous EDFs were transferred to the 9th EDF. 

8th and 9th EDF 

2021 marked the financial and operational closure of the Eighth EDF for a total amount of expenditure of 
EUR 10 374 million. The Commission  announced the closure of the eight EDF to the Member States in a 
communication that was presented to the Council in October 2021.  

All eight EDF activities have now been completed, and all checks and controls have been performed. All 
contracts  and  financial decisions  have  also  been  closed  in  the  EDF  accounts. All  recovery  orders,  which 
were still open after the operational closure, were cashed or waived with the exception of  four recovery 
orders  being  followed  by  the  Commission’s  Legal  Service.  In  line  with  Commission  Decision 
C(2003)19044, these recovery orders were transferred to the ninth EDF. 

The    closure    of  the  ninth  EDF    is    progressing    well.  There  are  still  8  contracts  open,  out  of  which  6 
concern actions in Southern   Sudan  (Council  Decision  2011/315/EU). These  actions  were decided   after  
the ninth EDF sunset  clause and will reach their conclusion within the specified timeframe, contributing 
to  the  finalisation  of  activities  and  projects  associated  with  the  ninth  EDF.  The  full  closure  of  the  ninth 
EDF  can  only  be  accomplished  once  all  contracts  come  to  an  end  and  following  the  completion  of  their 
evaluations and audits. 

8 COUNCIL REGULATION (EU) 2018/1877. 
9 Except for operations in South Sudan. 

77 

 
 
 
Annual accounts of the European Development Fund 2024 

From 2015 to 2024, the Commission carried out six refunds of 8th/9thEDF credits for a total amount of 
EUR  1918.910  million.  A  balance  of  EUR  6.3  million  was  refunded  in  January  202511  as  part  of  the 
payment of the first instalment of Member State contributions to the EDF for the year 2025. 

1.2.  10th and 11th EDF  

The ACP-EC Partnership Agreement (also known as the Cotonou Agreement) was signed on 23 June 2000 
in Cotonou by the Member States of the European Community and the ACP States. It entered into force 
on  1  April  2003  (establishing  the  9th  EDF).  The  Cotonou  Agreement  was  amended  twice,  firstly  by  the 
agreement  signed  in  Luxembourg  on  25  June  2005  (establishing  the  10th  EDF)  and  secondly  by  the 
agreement signed in Ouagadougou on 22 June 2010 (establishing the 11th EDF). 

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

The  Internal  Agreement  on  the  financing  of  Community  aid  under  the  Multiannual  Financial  Framework 
for  the  period  2014-2020  in  accordance  with  the  revised  Cotonou  Agreement,  adopted  by  the 
representatives of the governments of the Member States of the European Community on  August 2013, 
entered into force on March 2015. 

Under the Cotonou Agreement, for the second period (2008-2013), the 10th EDF had an overall budget 
of EUR 22 682 million. Of this amount:  

—  EUR 21 966 million was allocated to the ACP countries;  

—  EUR 286 million was allocated to the OCT; and  

—  EUR  430  million  was  allocated  to  the  Commission  as  support  expenditure  for  programming  and 

implementation of the EDF.  

The amount for the ACP countries is divided as follows:  

—  EUR 17 766 million to national and regional indicative programmes;  

—  EUR 2 700 million to intra-ACP and intra-regional cooperation; and  

—  EUR 1 500 million to Investment Facilities.  

Notably, an increased share of the budget was devoted to regional programmes, thereby emphasising the 
importance of regional economic integration as the basic framework for national and local development. 
An innovation in the 10th EDF was the creation of ‘incentive amounts’ for each country. 

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

—  EUR  29  089  million  was  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    was  managed  by  the 
European Commission. 

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

the Internal Agreement, of which 359.5 million was managed by the European Commission. 

—  EUR 1 052.5 million was  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. 

10 1.402,57 million bridging facility (Council Decision 2015/0246), EUR 200 million ( Council Decision 2017/1206), EUR 223 million ( 
Council Decision 2020/1708) EUR 43 million (Council Decision 2021/1941) and EUR 42.5 million( (Council Decision 2022/2242), EUR 
7.8 million (Council Decision 2023/2586). 
11 Council Decision (EU) 2024/2906 of 14 November 2024. 

78 

 
 
 
 
 
Annual accounts of the European Development Fund 2024 

2. 

FINANCIAL IMPLEMENTATION 

2.1.  FINANCIAL OUTTURN 

EVOLUTION OF 10th EDF APPROPRIATIONS 

10th EDF 
EVOLUTION OF APPROPRIATIONS:  31 December 2024 
ANALYSIS OF CREDITS PER INSTRUMENT 

INSTRUMENT 

INITIAL 
APPROPRIATIO
N 

INCREASES/DECREAS
ES IN CUMULATIVE  
RESOURCES AT 
31 DECEMBER 2023 

INCREASE OR 
DECREASE IN 
RESOURCES IN 
2024 

Note
s 

CURRENT 
LEVEL 
APPROPRIATIO
N 

(EUR million) 

Co-financing 

Regular MS contributions 

SUB TOTAL ACP 

Regular MS contributions 

SUB TOTAL OCT 

AC
P 

OC
T 

0 

21.326 

21.326 

0 

0 

202 

(621) 

(419) 

239 

239 

(89) 

(89) 

(3) 

(3) 

202 

20.616 

20.818 

236 

236 

TOTAL 10th EDF 

21.326 

(180) 

(92) 

21.054 

79 

 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

EVOLUTION OF 11th EDF APPROPRIATIONS 

11th EDF 
EVOLUTION OF APPROPRIATIONS:  31 December 2024 
ANALYSIS OF CREDITS PER INSTRUMENT 

INSTRUMENT 

INITIAL 
APPROPRIATIO
N 

INCREASES/DECREASE
S IN CUMULATIVE  
RESOURCES AT 
31 DECEMBER 2023 

INCREASE OR 
DECREASE IN 
RESOURCES 
IN 2024 

Note
s 

CURRENT 
LEVEL 
APPROPRIATIO
N 

(EUR million) 

Co-financing 

ACP 

EC internal SLA 

Regular MS contributions 

SUB TOTAL ACP 

Co-financing 

OCT 

EC internal SLA 

Regular MS contributions 

SUB TOTAL OCT 

0 

0 

30.060 

30.060 

0 

0 

0 

0 

89 

1 

(896) 

(805) 

0 

0 

351 

351 

2 

41 

3 

91 

1 

29.205 

29.297 

0 

0 

354 

354 

TOTAL 11th EDF 

30.060 

(455) 

45 

29.651 

80 

 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

EVOLUTION OF COMMITMENTS, ASSIGNED FUNDS AND PAYMENTS FOR 10TH EDF 

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2024 
CLASS OF AID 

ACP + PTOM - 10 th EDF 

CREDITS 

DECISIONS 
AGGREG.  ANNUAL 

(1) 

(2) 

ASSIGNED FUNDS 

AGGREG. 

ANNUAL 

(3) 

AGGREG. 

PAYMENTS 
ANNUAL 

(4) 

% 
(3) : 
(2) 

% 
(4) : 
(3) 

% 
(2) : 
(1) 

(EUR million) 

12.280 

12.268 

(20) 

100% 

12.255 

(9) 

100% 

12.201 

12.280 

12.268 

(20) 

100% 

12.255 

(9) 

100% 

12.201 

2 

2 

100% 

100% 

1.960 

1.960 

(2) 

100% 

1.960 

(1) 

100% 

1.960 

(1) 

100% 

343 

526 

482 

526 

(2) 

141% 

0 

100% 

483 

526 

1 

100% 

0 

100% 

355 

522 

49 

74% 

99% 

3.582 

3.579 

(17) 

100% 

3.561 

(12) 

99% 

3.491 

108 

98% 

1.924 

1.763 

(29) 

92% 

1.755 

(12) 

100% 

1.695 

3 

97% 

185 

175 

(0) 

95% 

175 

0 

100% 

175 

2 

100% 

5 

12 

1 

182 

182 

14 

5 

34 

5 

11 

0 

110% 

91% 

5 

11 

0 

100% 

100% 

5 

11 

100% 

100% 

182 

182 

14 

5 

34 

(3) 

100% 

(3) 

100% 

100% 

100% 

0 

100% 

180 

180 

14 

5 

34 

(2) 

98% 

(2) 

98% 

100% 

100% 

0 

99% 

172 

172 

14 

5 

34 

0 

0 

96% 

96% 

100% 

100% 

100% 

21.054 

21.005 

(73) 

100% 

20.964 

(35) 

100% 

20.640 

163 

98% 

Regular MS 
Contributions 

Allocations 
      A Envelope - National 
Allocations 
SUB TOTAL: A 
ENVELOPE - 
NATIONAL 
ALLOCATIONS 
SUB TOTAL: B 
ENVELOPE - 
NATIONAL 
ALLOCATIONS 
SUB TOTAL: FOOD 
SECURITY 
SUB TOTAL: 
IMPLEMENTATION 
COSTS AND 
INTERESTS REVENUES 
SUB TOTAL: INTRA-
ACP ALLOCATIONS 
SUB TOTAL: 
REGIONAL 
ALLOCATIONS 

Co-financing 

Allocations 
SUB TOTAL: A 
ENVELOPE - 
NATIONAL 
ALLOCATIONS 
SUB TOTAL: 
IMPLEMENTATION 
COSTS AND 
INTERESTS REVENUES 
SUB TOTAL: INTRA-
ACP ALLOCATIONS 
Non-mobilisable 
reserve 

Reserves 
SUB TOTAL: NON-
MOBILISABLE 
RESERVE 08/09TH EDF 

Regular MS 
Contributions 

Allocations 
      A Envelope - National 
Allocations 
SUB TOTAL: A 
ENVELOPE - 
NATIONAL 
ALLOCATIONS 
SUB TOTAL: B 
ENVELOPE - 
NATIONAL 
ALLOCATIONS 
SUB TOTAL: 
IMPLEMENTATION 
COSTS AND 
INTERESTS REVENUES 
SUB TOTAL: 
REGIONAL 
ALLOCATIONS 

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

ACP 

OCT 

81 

 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

EVOLUTION OF COMMITMENTS, ASSIGNED FUNDS AND PAYMENTS FOR 11TH EDF 

EDF AGGREGATED ACCOUNTS AT 31 DECEMBER 2024 
CLASS OF AID 

ACP + PTOM - 11 th EDF 

CREDITS 

DECISIONS 

AGGREG. 

ANNUAL 

(1) 

(2) 

ASSIGNED FUNDS 

AGGREG. 

ANNUAL 

(3) 

% 
(2) : 
(1) 

(EUR million) 

PAYMENTS 

AGGREG.  ANNUAL 

(4) 

% 
(4) : 
(3) 

% 
(3) : 
(2) 

Regular MS 
Contributions 

Allocations 
SUB TOTAL: A ENVELOPE 
- NATIONAL ALLOCATIONS 
SUB TOTAL: B ENVELOPE 
- NATIONAL ALLOCATIONS 
SUB TOTAL: BRIDGING 
FACILITY 
SUB TOTAL: FOOD 
SECURITY 
SUB TOTAL: 
IMPLEMENTATION COSTS 
AND INTERESTS 
REVENUES 
SUB TOTAL: INTRA-ACP 
ALLOCATIONS 
SUB TOTAL: REGIONAL 
ALLOCATIONS 

Co-financing 

Allocations 
SUB TOTAL: A ENVELOPE 
- NATIONAL ALLOCATIONS 
SUB TOTAL: 
IMPLEMENTATION COSTS 
AND INTERESTS 
REVENUES 
SUB TOTAL: INTRA-ACP 
ALLOCATIONS 
SUB TOTAL: REGIONAL 
ALLOCATIONS 
Non-mobilisable 
reserve 

Reserves 
SUB TOTAL: NON-
MOBILISABLE RESERVE 
10TH EDF 
SUB TOTAL: NON-
MOBILISABLE RESERVE 
11TH EDF 

EC Internal SLA 

Reserves 
SUB TOTAL: A ENVELOPE 
- NATIONAL ALLOCATIONS 

Regular MS 
Contributions 

Allocations 
SUB TOTAL: A ENVELOPE 
- NATIONAL ALLOCATIONS 
SUB TOTAL: B ENVELOPE 
- NATIONAL ALLOCATIONS 
SUB TOTAL: 
IMPLEMENTATION COSTS 
AND INTERESTS 
REVENUES 
SUB TOTAL: REGIONAL 
ALLOCATIONS 
Non-mobilisable 
reserve 

Reserves 
SUB TOTAL: NON-
MOBILISABLE RESERVE 
10TH EDF 
SUB TOTAL: NON-
MOBILISABLE RESERVE 
11TH EDF 

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

15.218 

15.132 

(197) 

99% 

14.803 

80 

98% 

12.828 

704 

87% 

1.056 

1.056 

(4) 

100% 

1.052 

(1) 

100% 

1.023 

15 

97% 

0 

112 

112 

0 

100% 

112 

0 

100% 

42 

2 

38% 

1.075 

1.064 

(2) 

99% 

1.060 

(2) 

100% 

968 

10 

91% 

3.961 

7.213 

3.859 

7.168 

(35) 

97% 

(59) 

99% 

3.934 

7.082 

8 

102% 

(8) 

99% 

3.515 

6.220 

175 

89% 

256 

88% 

45 

4 

33 

6 

(0) 

99% 

100% 

(0) 

100% 

60% 

45 

4 

33 

6 

(0) 

100% 

0 

100% 

0 

0 

100% 

100% 

43 

4 

29 

6 

4 

97% 

100% 

1 

89% 

100% 

46 

4 

33 

10 

193 

376 

1 

1 

52% 

1 

100% 

1 

100% 

211 

12 

7 

102 

(0) 

100% 

(0) 

99% 

0 

100% 

194 

12 

6 

0 

92% 

(0) 

100% 

(0) 

95% 

0 

100% 

102 

(0) 

99% 

193 

12 

6 

84 

0 

100% 

100% 

0 

98% 

15 

83% 

211 

12 

7 

102 

19 

3 

29.651 

28.809 

(297) 

97% 

28.444 

77 

99% 

24.973 

1.182 

88% 

82 

 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
Annual accounts of the European Development Fund 2024 

2.2.  RESOURCES  

Nature of revenue  

The  main  resources  of  the  EDF  come  from  Member  State  contributions.  Three  times  per  year,  the 
European Commission and the EIB call on the Member States to contribute to the EDF. The amount of the 
contributions called each year reflects the amount of payment to be covered during the year.  

Overview of contributions by Member State 

10th and 11th contribution to EDF by MS & United Kingdom (in EUR million)
2011-2024

12.000,0

10.000,0

8.000,0

6.000,0

4.000,0

2.000,0

0,0

DE FR UK IT SP NL BE SE AT DK PL FI GR PT IE CZ HU RO SK LU SI BG LT HR CY LV EE MT

10th 11th
EDF called

11th
EDF uncalled

83 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

2.3.  OPERATIONAL EXPENDITURE AND SPECIFIC 

PROGRAMMES  

Nature of expenditure  

The amount available under the Multiannual Financial Framework consists of 3% allocated to Commission 
for  support  expenditure  and  97%  allocated  to  the  implementation  of  EDF  projects.  Amounts  are  set  by 
each  Internal  Agreement  and  can  be  increased  by  voluntary  contributions  and  income  yielded  from 
operations. 

Breakdown of committed, contracted and paid amounts per nature of expenditure: 

OPERATIONAL IMPLEMENTATION  IMPEMENTATION COSTS AND INTEREST 
REVENUES  
(10th and 11th EDF) 

CREDITS 

DECISIONS 

ASSIGNED FUNDS 

PAYMENTS 

AGGREG. 

ANNUAL 

% 

AGGREG. 

ANNUAL 

% 

AGGREG 

ANNUAL 

% 

(1) 

(2) 

(2) : (1) 

(3) 

(3) : (2) 

(4) 

(4) : (3) 

1.621 

1.610 

(2) 

99,3% 

1.606 

(2) 

99,8% 

1.509 

10 

94,0% 

50.705 

49.815 

(370) 

98,2% 

49.409 

42 

99,2% 

45.612 

1.345 

92,3% 

IMPLEMENTATION COSTS AND 
INTERESTS REVENUES 10th  + 
11th EDF 
OPERATIONAL 
IMPLEMENTATION   (A+B)  10th 
+ 11th EDF 

Implementation rate (%) for the 10th and 11th EDF

1,02

1

0,98

0,96

0,94

0,92

0,9

0,88

0,86

0,84

Commitment rate

Contract rate

Administrative

Operational

Payment rate

84 

 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

Breakdown of committed, contracted and paid amounts per region and country 

EDF CUMULATIVE ACCOUNTS AT 31 DECEMBER 2024 BY COUNTRY % APPR 

10th + 11 th EDF 

TOTAL 10th and 11th EDF (EUR in million) 

Cumulative 2024 

Appropriations 

Decisions 

% of 
Appr 

Assigned 
funds 

% of 
Appr 

Payments 

% of 
Appr 

General/administrative 
envelope/interests 

1.627 

1.612 

99% 

1.613 

99% 

1.506 

93% 

Reserve/Not distributed by country 

3.123 

2.553 

82% 

2.553 

82% 

2.553 

82% 

All ACP countries 

4.751 

4.165 

88% 

4.166 

346 

734 

126 

346 

732 

126 

100% 

100% 

100% 

344 

731 

126 

88% 

99% 

99% 

100% 

4.059 

321 

692 

126 

Angola 

Benin 

Botswana 

Burkina Faso 

Burundi 

Cameroon 

Cape Verde 

Comoros 

Congo (Brazzaville) 

Congo (Democratic Republic of) 

Ivory Coast 

Djibouti 

Eritrea 

Ethiopia 

Gabon 

Gambia 

Ghana 

Guinea Bissau 

Guinea (Conakry) 

P
C
A

Mauritius 

Kenya 

Lesotho 

Liberia 

Madagascar 

Malawi 

Mali 

Mauritania 

Mozambique 

Namibia 

Niger 

Nigeria 

Uganda 

Central African Republic 

Rwanda 

Sao Tome and Principe 

Senegal 

Seychelles 

Sierra Leone 

Somalia 

Sudan 

South Sudan 

Eswatini (Swaziland) 

Tanzania 

1.296 

1.296 

100% 

1.294 

100% 

1.262 

566 

520 

144 

77 

163 

566 

520 

144 

77 

163 

100% 

100% 

100% 

100% 

100% 

562 

519 

144 

76 

160 

99% 

100% 

100% 

98% 

98% 

546 

489 

144 

73 

144 

1.402 

1.400 

100% 

1.376 

98% 

1.274 

91% 

702 

175 

215 

702 

175 

215 

100% 

100% 

100% 

701 

173 

215 

100% 

99% 

100% 

681 

164 

165 

1.598 

1.596 

100% 

1.592 

100% 

1.415 

33 

302 

785 

186 

500 

82 

859 

249 

486 

782 

1.018 

1.395 

343 

1.451 

187 

1.262 

1.098 

982 

610 

833 

55 

663 

22 

655 

898 

298 

91 

123 

33 

302 

785 

184 

500 

82 

853 

248 

485 

779 

100% 

100% 

100% 

99% 

100% 

100% 

99% 

99% 

100% 

100% 

33 

301 

782 

182 

494 

82 

850 

247 

474 

752 

1.018 

1.393 

100% 

1.009 

100% 

1.387 

343 

100% 

341 

1.440 

99% 

1.410 

187 

100% 

181 

99% 

100% 

100% 

98% 

99% 

100% 

99% 

99% 

97% 

96% 

99% 

99% 

99% 

97% 

97% 

31 

285 

737 

177 

441 

82 

777 

205 

451 

631 

912 

1.246 

332 

1.188 

173 

100% 

1.258 

100% 

1.250 

1.262 

1.088 

930 

609 

831 

55 

663 

22 

655 

896 

298 

91 

123 

99% 

95% 

100% 

100% 

99% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

1.086 

923 

609 

831 

53 

659 

22 

646 

894 

298 

91 

121 

99% 

94% 

100% 

100% 

96% 

99% 

100% 

99% 

100% 

100% 

100% 

99% 

99% 

1.037 

845 

592 

823 

51 

632 

22 

617 

891 

298 

91 

111 

1.094 

1.171 

1.171 

100% 

1.162 

85 

85% 

93% 

94% 

99% 

97% 

96% 

94% 

100% 

95% 

88% 

97% 

94% 

77% 

89% 

93% 

94% 

94% 

95% 

88% 

100% 

90% 

82% 

93% 

81% 

90% 

89% 

97% 

82% 

93% 

99% 

95% 

86% 

97% 

99% 

91% 

95% 

100% 

94% 

99% 

100% 

100% 

91% 

93% 

 
 
 
  
 
Annual accounts of the European Development Fund 2024 

Chad 

Togo 

Zambia 

Zimbabwe 

935 

376 

827 

462 

935 

374 

826 

461 

100% 

99% 

100% 

100% 

913 

372 

804 

459 

* Total Africa 

28.086 

27.981 

100% 

27.739 

Antigua and Barbuda 

Barbados 

Belize 

Dominica 

Grenada 

Guyana 

Haiti 

Jamaica 

Dominican Republic 

Saint Lucia 

Saint Kitts and Nevis 

Saint Vincent and the 
Grenadines 

Suriname 

Trinidad and Tobago 

15 

22 

42 

41 

21 

79 

997 

235 

281 

32 

6 

26 

27 

28 

15 

22 

42 

40 

20 

79 

997 

235 

281 

32 

6 

26 

27 

28 

100% 

100% 

100% 

99% 

99% 

100% 

100% 

100% 

100% 

100% 

100% 

99% 

100% 

100% 

15 

22 

41 

40 

20 

78 

910 

233 

279 

32 

6 

26 

27 

28 

* Total Caribbean 

1.853 

1.852 

100% 

1.758 

48 

5 

66 

42 

17 

23 

4 

3 

4 

239 

67 

167 

28 

13 

55 

780 

7.916 

59 

100% 

100% 

97% 

100% 

100% 

100% 

100% 

100% 

70% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

99% 

98% 

48 

5 

66 

41 

17 

22 

4 

3 

4 

233 

67 

166 

28 

13 

54 

771 

7.970 

59 

Fiji 

Cook Islands 

Solomon Islands 

Kiribati 

Marshall Islands 

Micronesia 

Nauru 

Niue 

Palau 

Papua New Guinea 

Western Samoa 

Timor Leste 

Tonga 

Tuvalu 

Vanuatu 

* Total Pacific 

Intra-ACP Allocations 

PALOP 

Southern Africa Region FED 10 

Central Africa region 

Eastern and Southern Africa 
region 

Western Africa Region 

Caribbean Region 

Pacific Region 

* Total regional cooperation 
ACP 

48 

5 

68 

42 

17 

23 

4 

3 

5 

239 

67 

167 

28 

13 

55 

783 

8.025 

60 

129 

552 

3.059 

1.936 

536 

322 

98% 

99% 

97% 

99% 

99% 

100% 

100% 

96% 

99% 

98% 

99% 

91% 

99% 

99% 

100% 

99% 

98% 

99% 

99% 

95% 

100% 

100% 

96% 

99% 

100% 

97% 

100% 

100% 

70% 

97% 

100% 

99% 

100% 

100% 

99% 

98% 

99% 

98% 

818 

361 

709 

457 

25.863 

15 

21 

36 

40 

20 

77 

793 

226 

279 

32 

6 

22 

26 

27 

1.619 

48 

5 

62 

39 

17 

18 

4 

3 

4 

215 

66 

159 

28 

13 

52 

733 

7.305 

58 

87% 

96% 

86% 

99% 

92% 

98% 

95% 

85% 

99% 

98% 

97% 

80% 

96% 

99% 

100% 

99% 

83% 

96% 

94% 

87% 

100% 

100% 

91% 

93% 

100% 

78% 

100% 

100% 

70% 

90% 

100% 

95% 

100% 

100% 

94% 

94% 

91% 

96% 

129 

100% 

129 

100% 

127 

98% 

547 

99% 

543 

98% 

438 

79% 

3.020 

99% 

2.970 

97% 

2.522 

82% 

1.922 

533 

318 

99% 

99% 

99% 

1.911 

526 

298 

99% 

98% 

93% 

1.688 

421 

244 

87% 

79% 

76% 

14.619 

14.445 

99% 

14.406 

99% 

12.803 

88% 

ACP 

       50.091,33  

49.222,97  

98% 

48.839,57  

98% 

45.076,97  

90% 

Reserve/Not distributed by 
country/territory 

All OCT countries 

T
C
O

Anguilla 

Falklands Islands 

33 

33 

27 

10 

12 

12 

27 

10 

35% 

35% 

100% 

100% 

11 

11 

27 

10 

34% 

34% 

100% 

100% 

11 

11 

27 

10 

34% 

34% 

100% 

100% 

86 

 
 
  
  
  
  
  
  
  
  
  
 
Annual accounts of the European Development Fund 2024 

Pitcairn Islands 

Turks and Caicos Islands 

British Virgin Islands 

Montserrat 

Saint Helena 

* Total British OCT 

Netherlands Antilles 

Netherlands Antilles - Bonaire 

Netherlands Antilles - Saba 

Netherlands Antilles - Sint-
Eustatius 

Aruba 

Sint Maarten 

* Total Dutch OCT 

Wallis and Futuna Islands 

Mayotte 

New Caledonia 

French Polynesia 

Saint Pierre and Miquelon 

* Total French OCT 

region 

* Total regional cooperation 
OCT 

5 

32 

2 

33 

38 

146 

38 

4 

3 

2 

21 

14 

83 

39 

29 

50 

50 

47 

214 

137 

137 

5 

32 

2 

33 

38 

146 

38 

4 

3 

2 

21 

14 

83 

39 

29 

50 

50 

47 

214 

137 

137 

100% 

100% 

93% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

100% 

5 

32 

2 

33 

38 

146 

20 

4 

3 

2 

21 

13 

64 

37 

29 

50 

49 

47 

100% 

100% 

93% 

100% 

100% 

100% 

54% 

98% 

100% 

100% 

99% 

95% 

78% 

95% 

100% 

100% 

99% 

100% 

100% 

212 

99% 

100% 

136 

99% 

5 

32 

2 

33 

38 

146 

20 

4 

3 

2 

21 

5 

56 

29 

29 

50 

49 

47 

204 

118 

100% 

100% 

93% 

100% 

100% 

100% 

54% 

97% 

100% 

100% 

98% 

38% 

68% 

76% 

100% 

100% 

99% 

100% 

95% 

86% 

100% 

136 

99% 

118 

86% 

OCT 

            613,65  

591,78  

96% 

569,20  

93% 

535,44  

87% 

TOTAL: 
ACP+OCT 

      50.704,99  

49.814,76  

98% 

49.408,77  

97% 

45.612,40  

90% 

87 

 
 
 
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

Breakdown of committed, contracted and paid amounts by spending area for the 11th EDF 

11TH EDF Breakdown of committed, contracted and paid amount by spending area (DAC sector codes)12 

Sector  
Social infrastructure and services 
110-Education 
120-Health 
130-Population policies/programmes and reproductive health 
140-Water and sanitation 
150-Government and civil society 
160-Other social infrastructure and services 

Social infrastructure and services TOTAL 

Economic infrastructure and services 
210-Transport and storage 
220-Communications 
230-Energy 
240-Banking and financial services 
250-Business and other services 

 Economic infrastructure and services TOTAL 

Production sectors 
310-Agriculture, forestry and fishing 
320-Industry, mineral resources and mining, construction 
330-Trade and tourism 

Production sectors TOTAL 

Multisector/Cross-cutting 
410-General environmental protection 
430-Other multisector 

Multisector/Cross-cutting TOTAL 

Commodity aid and general programme assistance 
510-General budget support 
520-Developmental food assistance 

Commodity aid and general programme assistance TOTAL 

Action relating to debt 
600-Action relating to debt 

Action relating to debt TOTAL 

Humanitarian aid 
720-Emergency response 
730-Reconstruction relief and rehabilitation 
740-Disaster preparedness 

Humanitarian aid TOTAL 

Administrative costs of donors / Unallocated / Unspecified 
910-Administrative costs of donors 
998-Unallocated / Unspecified 
N/A-Not Available 

Administrative costs of donors / Unallocated / Unspecified TOTAL 
 GRAND TOTAL OF 11TH EDF   

Committed 

Contracted 

Paid 

(EUR million) 

1.192,46 
2.131,40 
352,44 
788,50 
5.826,37 
996,71 
11.287,88 

1.425,48 
140,96 
2.015,13 
82,03 
343,43 
4.007,01 

3.344,16 
641,58 
507,49 
4.493,23 

989,82 
3.886,22 
4.876,04 

3.116,32 
617,50 
3.733,82 

183,00 
183,00 

746,19 
137,83 
72,79 
956,81 

1.174,05 
2.524,02 
50,31 
858,32 
6.058,19 
1.401,86 
12.066,75 

2.088,15 
147,40 
2.031,37 
131,71 
329,24 
4.727,87 

3.154,32 
529,15 
437,30 
4.120,77 

849,41 
2.625,43 
3.474,84 

3.178,92 
390,55 
3.569,47 

183,00 
183,00 

452,54 
65,05 
110,06 
627,65 

995,52 
183,74 
260,50 
1.439,76 
30.977,55 

948,30 
59,87 
1,57 
1.009,75 
29.780,11 

1.034,15 
2.338,24 
43,25 
599,10 
5.677,22 
1.628,50 
11.320,47 

1.213,63 
131,58 
1.375,46 
95,57 
259,09 
3.075,33 

2.516,00 
347,51 
313,25 
3.176,77 

717,86 
1.872,80 
2.590,66 

2.506,33 
364,26 
2.870,59 

183,00 
183,00 

448,40 
42,30 
100,54 
591,24 

858,64 
48,56 
1,15 
908,35 
24.716,42 

12 Gross amounts (i.e. excluding de-commitments and recovery orders). 

88 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

Evolution of cumulative committed, contracted and paid amounts by spending area for the 
11th EDF  

89 

 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

 GLOSSARY 

Administrative appropriations 

Appropriations to cover the running costs of the entities (staff, buildings, office equipment). 

Adopted budget 

Draft budget becomes the adopted budget as soon as approved by the budgetary authority. 

Amending budget 

Decision adopted during the budget year to amend (increase, decrease, transfer) aspects of the adopted 
budget of that year. 

Appropriations 

Budget funding. 

The budget forecasts both commitments (legal pledges to provide finance) and payments (cash or bank 
transfers  to  the  beneficiaries).  Appropriations  for  commitments  and  payments  often  differ  — 
differentiated  appropriations  —  because  multiannual  programmes  and  projects  are  usually  fully 
committed  in  the  year  they  are  decided  and  are  paid  over  the  years  as  the  implementation  of  the 
programme and project progresses. 

Assigned revenue 

Revenue dedicated to finance specific items of expenditure. 

Budget result 

The  difference  between  income  received  and  amounts  paid,  including  adjustments  for  carry-overs, 
cancellations and exchange rate differences. 

For agencies, the resulting amount will have to be reimbursed to the funding authority. 

Budget implementation 

Consumption of the budget through expenditure and revenue operations. 

Budget item / Budget line / Budget position 

Revenue and expenditure are shown in the budget structure in accordance with a binding nomenclature, 
which  reflects  the  nature  and  purpose  of  each  item,  as  imposed  by  the  budgetary  authority.  The 
individual headings (title, chapter, article or item) provide a formal description of the nomenclature. 

Budgetary commitment 

Operation  by  which  the  authorising  officer  responsible  reserves  the  budget  appropriations  necessary  to 
cover for subsequent payments to honour legal commitments. 

Cancellation of appropriations 

Appropriations  which  have  not  been  used  by  the  end  of  the  financial  year  and  which  cannot  be  carried 
over, shall be cancelled.  

Carryover of appropriations 

Exception to the principle of annuality in so far as appropriations that could not be used in a given budget 
year may, under strict conditions, be exceptionally carried over for use during the following year. 

90 

 
 
 
 
Annual accounts of the European Development Fund 2024 

Commitment appropriations 

Commitment  appropriations  cover  the  total  value  of  legal  obligations  (contracts,  grant  agreements  or 
decisions) that could be signed in the current financial year. 

De-commitment 

Operation  whereby  the  authorising  officer  responsible  cancels  wholly  or  partly  the  reservation  of 
appropriations previously made by means of a budgetary commitment. 

Differentiated appropriations 

Differentiated  appropriations  are  used  to  finance  multiannual  operations;  they  cover,  for  the  current 
financial  year,  the  total  cost  of  the  legal  obligations  entered  into  for  operations  whose  implementation 
extends over more than one financial year. 

Economic result 

Impact on the balance sheet of expenditure and revenue based on accrual accounting rules. 

Entitlements established 

Right to collect income from a debtor as recognised through the issuing of a recovery order.   

Exchange rate difference 

The  difference  resulting  from  currency  exchange  rates  applied  to  the  transactions  concerning  countries 
outside the euro area, or from the revaluation of assets and liabilities in foreign currencies at the date of 
the accounts. 

Expenditure 

Term used to describe spending the budget from all types of funds sources. 

Grants 

Direct financial contributions from the budget to third-party beneficiaries, engaged in activities that serve 
Union policies.   

Lapsing appropriations 

Unused appropriations to be cancelled at the end of the financial year. Lapsing means the cancellation of 
all  or  part  of  the  authorisation  to  make  expenditures  and/or  incur  liabilities,  as  represented  by  an 
appropriation. 

For joint undertakings (and EIT), as specified in their Financial Rules, any unused appropriations may be 
entered in the estimate of revenue and expenditure of up to the following three financial years (the so-
called "N+3" rule). Hence, lapsing appropriations for JUs can be re-activated until financial year "N+3". 

Legal basis / basic act 

The  legal  act  adopted  by  the  legislative  authority  (usually  the  Council  and  European  Parliament) 
specifying the objective of a Union spending programme, the purpose of the appropriations, the rules for 
intervention, expiry date and the relevant financial rules to serve as a legal basis for the implementation 
of the spending programme.  

Legal commitment 

The act whereby the Authorising Officer enters into an obligation towards third parties which results in a 
charge for the Union budget.  

Common  forms  of  legal  commitments  are  contracts  in  the  case  of  procurement,  grant  agreements  and 
grant decisions.  

91 

 
 
Annual accounts of the European Development Fund 2024 

Non-differentiated appropriations 

Appropriations which meet annual needs and must therefore be committed during the budget year. Only 
amounts  qualifying  for  automatic  carryover  can  be  disbursed  in  the  following  year.  Non-differentiated 
appropriations which have not been used, i.e. committed, by the end of the year, are cancelled (unless, 
exceptionally,  permission  is  given  by  a  Commission  decision  for  a  non-automatic  carryover).  Non-
differentiated  appropriations  apply  to  administrative  expenditure  and  commitment  appropriations  equal 
payment appropriations. 

Operational appropriations 

Operational appropriations finance the different policies, mainly in the form of grants or procurement.  

Outstanding commitments 

Outstanding  commitments  (or  RAL,  from  the  French  ‘reste  à  liquider’)  are  defined  as  the  amount  of 
appropriations  committed  that  have  not  yet  been  paid.  They  stem  directly  from  the  existence  of 
multiannual programmes and the dissociation between commitment and payment appropriations. 

Payment appropriations 

Payment  appropriations  cover  expenditure  due  in  the  current  year,  arising  from  legal  commitments 
entered in the current year and/or earlier years. 

RAL (Reste à liquider)  

Amount  remaining  to  be  paid  on  a  budgetary  commitment  at  a  given  moment.  Cf.  Outstanding 
commitments 

Surplus 

Positive difference between revenue and expenditure, which has to be returned to the funding authority. 
Cf. Budget result 

Transfer between budget lines 

Transfers between budget lines imply the relocation of appropriations from one budget line to another, in 
the course  of the financial year,  and thereby  they  constitute  an exception to the  budgetary principle  of 
specification. 

92 

 
 
 
 
 
Annual accounts of the European Development Fund 2024 

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

93 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

EUROPEAN INVESTMENT BANK 

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

IN V E ST M ENT  F AC ILI TY  

FINANCIAL STATEMENTS 

AS AT 31 DECEMBER 2024 

(1)  Independent auditor’s report  

(2)  Statement of financial position 

(3)  Statement of profit or loss and other 

comprehensive income 

(4)  Statement of changes in contributors’ resources 

(5)  Statement of cash flows 

(6)  Notes to the financial statements 

ORG.: E 

CONFIDENTIAL 

94 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

STATEMENT OF FINANCIAL POSITION 
AS AT 31 DECEMBER 2024 
(in EUR’000) 

Notes 

31.12.2024 

31.12.2023 

ASSETS 

Cash and cash equivalents 

Amounts receivable from contributors 

Treasury financial assets 

Derivative financial instruments 

Loans and advances 

Shares and other variable yield securities 

Other assets 

Total assets 

LIABILITIES AND CONTRIBUTORS' RESOURCES 

LIABILITIES 

Derivative financial instruments 

Deferred income 

Provisions for loan commitments 

Amounts owed to third parties 

Other liabilities 

Total liabilities 

5 

9/16 

10 

6 

7 

8 

11 

6 

12 

13 

14 

15 

1,638,604 

7,482 

- 

783 

1,498,048 

834,621 

- 

1,376,824 

85,321 

- 

55,765 

1,683,312 

820,713 

616 

3,979,538 

4,022,551 

39,210 

47,725 

18,320 

566,083 

3,289 

- 

48,515 

19,038 

427,828 

3,338 

674,627 

498,719 

Contributors' resources 

16/17 

3,304,911 

3,523,832 

Total liabilities and contributors' resources 

3,979,538 

4,022,551 

95 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME  
FOR THE YEAR ENDED 31 DECEMBER 2024 
(in EUR’000) 

Notes 

From 01.01.2024 

From 01.01.2023 

to 31.12.2024 

to 31.12.2023 

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 result on shares and other variable yield securities 

Net result on loans and advances measured at FVTPL 

Net foreign exchange result 

Net result on financial operations 

Change in impairment on loans and advances, net of reversals 

Change in provisions for loan commitments, net of reversals 

General administrative expenses 

Profit for the year 

Total comprehensive income profit for the year 

19 

19 

20 

20 

6 

21 

7 

22 

7.2 

13 

23 

156,601 

-1,805 

148,336 

- 

154,796 

148,336 

20 

-212 

-192 

-94,192 

-34,096 

-5,436 

81,907 

25 

-62 

-37 

-20,087 

-8,457 

-8,932 

-67,885 

-51,817 

-105,361 

12,145 

718 

-24,794 

90,856 

90,856 

9,055 

-2,470 

-29,655 

19,868 

19,868 

* For the year ended 31 December 2024, Interest and similar income includes EUR 144.3 million (2023: EUR 118.5 million) calculated 
on assets held at amortised cost based on the effective interest method.  

96 

 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
 
 
  
 
 
 
  
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

STATEMENT OF CHANGES IN CONTRIBUTORS’ RESOURCES 
FOR THE YEAR ENDED 31 DECEMBER 2024 
(in EUR’000) 

At 1 January 2024 

Notes 

3,721,695 

-587,913 

390,050 

3,523,832 

Contribution 
called 

Contributions 
paid out 

Retained 
earnings 

Total  

Member States contributions called during the year 

Member States contributions paid out during the year 

16 

17 

Profit for the year 2024 

Changes in contributors’ resources 

- 

- 

- 

- 

- 

-309,777 

- 

- 

- 

-309,777 

- 

90,856 

90,856 

-309,777 

90,856 

-218,921 

At 31 December 2024 

3,721,695 

-897,690 

480,906 

3,304,911 

At 1 January 2023 

Member States contribution called during the year 

Member States contributions paid out during the year 

Profit for the year 2023 

Changes in contributors’ resources 

Contribution 
called  

Contributions 
paid out 

Retained 
earnings  

Total  

3,701,695 

20,000 

- 

- 

- 

- 

-587,913 

- 

20,000 

-587,913 

370,182 

4,071,877 

- 

- 

19,868 

19,868 

20,000 

-587,913 

19,868 

-548,045 

At 31 December 2023 

3,721,695 

-587,913 

390,050 

3,523,832 

97 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

STATEMENT OF CASH FLOWS 
FOR THE YEAR ENDED 31 DECEMBER 2024 
(in EUR’000) 

OPERATING ACTIVITIES 
Profit for the year 
Adjustments made for: 
Net result on shares and other variable yield securities 
Change in impairment on loans and advances, net of reversals 
Net result on loans and advances measured at FVTPL 
Change in accrued interest and amortised cost on loans and advances 
Net change in provisions for loan commitments, net of reversals 
Fair value changes on derivatives  
Change in accrued interest and amortised cost on treasury financial assets 
Change in deferred income 
Effect of exchange rate changes on loans   
Effect of exchange rate changes on shares and other variable yield securities 
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 equivalents 
Acquisition of treasury financial assets 
Maturities of treasury financial assets 
Shares and other variable yield securities disbursements 
Net proceeds from shares and other variable yield securities 
Decrease in other assets 
Increase in other liabilities 
(Decrease) / Increase in amounts payable to the European Investment Bank 
Net cash flows (used in) / from operating activities 

FINANCING ACTIVITIES 
Contributions 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 
Contributions paid out on behalf of Member States 
Net cash flows from financing activities 
Net increase in cash and cash equivalents 
Summary statement of cash flows: 
Cash and cash equivalents at the beginning of financial year 
Net cash flows (used in) / 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 

Notes 

From 
01.01.2024 to 
31.12.2024 

From 
01.01.2023 to 
31.12.2023 

90,856 

19,868 

7.2 
7 

10 

8 

7 
7 
5 
10 
10 
8 

17 

5 
5 
5 

52,265 
-12,145 
5,436 
-2,229 
-718 
94,192 
- 
-790 
-78,744 
-23,199 
-5,282 
119,642 
-101,394 
371,568 
-646 
- 
- 
-69,392 
39,581 
616 
-49 
-985 
358,941 

15,142 
-9,055 
8,932 
708 
2,455 
20,087 
-248 
-3,902 
86,765 
30,026 
-8,031 
162,747 
-207,237 
288,155 
4,039 
-348,523 
421,278 
-101,100 
39,246 
334 
919 
33,951 
293,809 

- 

79,710 

286,800 

220,290 

-68,256 

-77,050 

-309,777 
-91,233 
267,708 

-587,913 
-364,963 
-71,154 

1,371,404 

1,450,589 

358,941 
-91,233 
-5,282 
1,633,830 

212,466 
304,538 
1,116,826 
1,633,830 

293,809 
-364,963 
-8,031 
1,371,404 

146,494 
625,403 
599,507 
1,371,404 

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Notes to the financial statements as at 31 December 2024 

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 Samoa Agreement, 
replacing the Cotonou Agreement as the new framework for cooperation between the European Union and the Organisation of African, 
Caribbean, and Pacific States (OACPS) (Council Decision (EU) 2023/2861 of 20 July 2023 and Council Decision (EU) 2023/2862 of 28 
December 2023), was signed on 15 November 2023, and entered into force on 1 January 2024. It succeeds the Cotonou Agreement, 
which  had  governed  relations  between  the  EU  and  ACP  states  since  2000.  This  transition  ensures  continuity  of  partnerships  while 
addressing contemporary global challenges. 

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. 

The duration of the Facility is not determined. The 11th EDF Internal Agreement remains in force (pursuant to Article 14(3) thereof) so 
long as is necessary for all the operations financed under the ACP-EU Partnership Agreement, the Overseas Association Decision and 
the Multiannual Financial Framework to be fully executed. 

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 Multiannual 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: 

(iv)  the Facility, a EUR 3,685.5 million risk-bearing revolving fund geared to fostering private sector investment in ACP States of 

which EUR 48.5 million are allocated to Overseas Countries and territories (“OCT countries”); 

(v)  grants for the financing of interest subsidies worth max. EUR 1,220.85 million for ACP States and max. EUR 8.5 million for 

OCT countries. Up to 15% of these subsidies can be used to fund project-related technical assistance (“TA”). 

On  23  December  2020,  the  Council  decided  for  the  extension  of  the  Investment  Facility  commitment  period  by  at  least  six  months. 
Following the extension, the Bank approved operations in line with its Mandate until 30 June 2021 (Council Decision 2020/2233 of 23 
December  2020  concerning  the  commitment  of  the  funds  stemming  from  reflows  under  the  ACP  Investment  Facility  from  operations 
under the 9th, 10th and 11th EDF - L 437/188, 28.12.2020).  

The EU and ACP sides agreed to amend the decision on transitional measures in order to extend the application of the provisions of the 
ACP-EU  Partnership  Agreement  until  31  December  2023,  or  until  the  entry  into  force  of  the  new  Agreement  or  the  provisional 
application between the Union and the ACP States of the new Agreement, whichever comes first (Decision No 2/2019 of the ACP EU 
Committee of Ambassadors to adopt transitional measures pursuant to Article 95(4) of the ACP EU Partnership Agreement which was 
subsequently  amended  by  the  Decision  No  3/2021  of  the  ACP-EU  Committee  of  Ambassadors  of  26  November  2021  to  amend,  the 
Decision No 970/2022 of the ACP-EU Committee of Ambassadors of 16 June 2022 and the Decision 2/2023 of the ACP-EU Committee 
of Ambassadors of 25 October 2023). 

The NDICI - Global Europe Regulation, which entered into force on 14 June 2021 (Regulation (EU) 2021/947 of 9 June 2021), provides 
the primary legal basis for EU assistance outside the EU in 2021-2027, and the governance for the Bank’s new institutional mandate for 
operations outside the European Union, including the ACP region. This includes the integration of the current extra-budgetary EDF into 
the  EU  budget.  The  NDICI  Regulation  provides  the  legal  basis  for  the  Commission  to  entrust  future  EU  mandates  to  the  EIB  for  its 
activity outside the EU. It will also provide the external investment framework for the Union to cooperate with partner institutions through 
grants or guarantees from the EU budget. 

Going  forward,  reflows  from  the  IF  shall  be  deployed  within  the  NDICI  framework  through  a  combination  of  a  dedicated  ACP  private 
sector  window  under  the  European  Fund  for  Sustainable  Development  (EFSD+)  and  a  Trust  Fund.  On  15  February  2023,  a  transfer 
agreement between the EIB and the European Commission was signed (“Transfer Agreement”). The purpose of this agreement is the 
transfer of the funds stemming from reflows, under the Facility, as they become available, in accordance with decision (EU) 2020/2233 
(“ACP  IF  Reflows”)  and  Decision  (EU)  2021/1764  (“OCT  IF  Reflows”,  and  together  with  ACP  IF  Reflows,  the  “Reflows”).  For  more 
details please refer to the Note 2.4.6 and Note 17. 

The present financial statements cover the period from 1 January 2024 to 31 December 2024. 

On  a  proposal  from  the  Management  Committee,  the  Board  of  Directors  adopted  the  Financial  Statements  on  21  March  2025  and 
authorised their submission to the Board of Governors for approval by 25 April 2025. 

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2  Material accounting policies 

2.1  Basis of preparation – Statement of compliance 

The financial statements have been prepared on a going concern basis, which assumes that the Facility will be able to meet all monies 
payables under any operations for the foreseeable future, in accordance with International Financial Reporting Standards as issued by 
the International Accounting Standards Board (“IASB”) and adopted by the European union (hereinafter referred to as “IFRS Accounting 
Standards”). The financial statements as at 31 December 2024 include the statement of financial position, the statement of profit or loss 
and other comprehensive income, statement of changes in contributors’ resources, the statement of cash flows, and the notes. 

2.2  Significant accounting judgments, assumptions and estimates 

The  preparation  of  financial  statements  requires  to  make  estimates  and  assumptions  that  affect  reported  income,  expenses,  assets, 
liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgment are inherent in the 
formation of estimates. Actual results in the future could differ from such estimates and the differences may be material to  the financial 
statements.  Estimates  and  underlying  assumptions  are  reviewed  on  an  ongoing  basis.  Revisions  estimates  are  recognized 
prospectively. 

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

▪ 

Fair value of financial instruments 

Where  the  fair  values  of  financial  instruments  recorded  on  the  balance  sheet  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  judgment  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 
in  
Notes 2.4.2 and 4. 

disclosed 

and 

▪ 

Impairment losses on loans and advances 

The expected credit loss (“ECL”) measurement requires management to apply significant judgments, in particular, the assessment of a 
significant increase in credit risk since initial recognition, the incorporation of forward looking information and further the estimation of 
the amount and timing of future cash flows and collateral values when determining impairment losses. These estimates are driven by a 
number of factors, which can result in significant changes to the timing and amount of allowance for credit loss to be recognised (Note 
2.4.2). Relevant assumptions on the effects on impairment resulting from the general context of uncertainty and the turbulence which 
occurred in 2023 and carried on in 2024 are detailed under Note 2.4.2.2 and Note 3.2.3.7. 

▪ 

Valuation of unquoted equity investments 

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

▪ 

Consolidation of entities in which the Facility holds interest  

The EIB made 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. 

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2.3  Changes in accounting standards 

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. 

New and amended standards adopted by the Facility 

The following amendments to existing standards, became effective for the Facility’s financial statements as of 1 January 2024: 

- 

- 

Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Supplier Finance Arrangements; 

Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Non-
current Liabilities with Covenants; 

The amendments listed above did not have any material impact on the Facility’s financial statements. 

New standards, amendments, and interpretations not yet adopted by the Facility 

As at 31 December 2024, the following amendments to existing Standards had been issued but were not mandatory for annual reporting 
periods ending on 31 December 2024: 

Amendments  to  existing  Standards  endorsed  by  the  EU,  and  which  are  effective  for  annual  periods  beginning  on  or  after  1  January 
2025:  

- 

Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability. 

New standards and amendments to existing Standards not yet endorsed by the EU: 

- 

- 

- 

- 

- 

Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7); 

Annual Improvements Volume 11; 

IFRS 18 Presentation and Disclosure in Financial Statements; 

IFRS 19 Subsidiaries without Public Accountability: Disclosures; 

Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures: Sale 
of Contribution of Assets between an Investor and its Associate or Joint Venture. 

At the date of authorisation of the financial statements none of the above listed standards or amendments to existing standards have 
been adopted early by the Facility and no Interpretations have been issued that are applicable and need  to be taken into consideration 
by  the  Facility  at  either  reporting  date.  Management  anticipates  that  all  relevant  pronouncements  will  be  adopted  for  the  first  period 
beginning on or after the effective date of the pronouncement, and that there will be not  any material impact on the Facility’s financial 
statements. 

2.4  Summary of material 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. 

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2.4.2  

Financial assets other than derivatives 

• 

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

Classification and measurement 

Financial assets  

On  initial  recognition,  a financial asset  is  classified  as  measured  at  amortised cost  (“AC”)  or fair  value  through  P&L  (“FVTPL”)  and  a 
financial liability is classified as measured at AC or FVTPL. 

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

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

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

- 
- 

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

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

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

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

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

All other financial assets are classified as measured at FVTPL. 

Business model assessment 

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

- 

- 
- 

- 

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

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

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

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

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

The business model for the Impact Financing Envelope direct loan operations has been described and disclosed in Note 25. 

Solely payment of principal and interests (“SPPI”) criteria 

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

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

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Derecognition 

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

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

In the context of IBOR reform, the Facility’s assessment of whether a change to an amortised cost financial instrument is substantial, is 
made  after  applying  the  practical  expedient  introduced  by  IBOR  reform  Phase  2.  As  per  the  amendments  issued  by  the  IASB,  the 
Facility does not derecognise a financial instrument, which contractual cash flows are modified as a direct consequence from the reform 
and the change is economically equivalent to the previous basis for determining the contractual cash flows (i.e., the basis immediately 
before the change). 

Reclassification 

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

Modification  

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

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

A contractual modification is deemed substantial if the discounted present value of the cash flows under the revised terms (discounted 
using the original effective interest rate) is at least 10% different from the discounted present  value of the remaining cash flows of the 
original financial asset. Qualitative factors such as a change in the currency on which the financial asset is denominated and conversion 
features are also considered. 

In the context of IBOR reform, the Facility’s assessment of whether a change to an amortised cost financial instrument is substantial, is 
made after applying the practical expedient introduced by IBOR reform Phase 2. The Facility updates the effective interest rate, without 
modifying  the  carrying  amount  of  the  financial  instrument  if  the  basis  for  determining  the  contractual  cash  flows  of  the  financial 
instrument, measured at amortised cost, changes as a direct consequence from the reform and if the change is economically equivalent 
to the previous basis (i.e., the basis immediately before the change). 

Measurement of fair values of financial instruments 

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

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

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

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

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

The Bank uses widely recognised valuation models for determining the fair value of common and more simple financial instruments, like 
interest rate and currency swaps that use only observable market data and require limited expert judgement and estimation. Observable 

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

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

- 

- 

- 

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

Level 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. 

Impairment on financial assets 

IFRS 9 is based on a forward-looking expected credit loss (“ECL”) model. The EIB has established a framework to calculate “expected 
credit  loss”  conditional  on  the  state  of  the  macro-economy.  It  involves  the  construction  of  point-in-time  (“PIT”)  credit  risk  parameters 
(Probability of default  – “PD” and Loss given default  – “LGD”) based on a systematic factor (credit cycle) that is driven by the macro-
economy  and  projected via  macroeconomic forecasts  or scenarios.  The final  ECL  is  a  probability  weighted  average  of  the  respective 
macro-economic  scenario  ECLs.  This  forward-looking  impairment  model  is  applied  to  financial  assets  measured  at  AC,  to  financial 
guarantee contracts, as well as to off-balance sheet commitments.  

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

- 

- 

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

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

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

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

The  Bank’s  assessment  of  the  IFRS9  staging  is  based  on  a  sequential  approach  which  is  using  counterparty  or  instrument  specific 
information consistent to internal Early Warning Signals (”EWS”), Non-performing exposures (”NPE”) and forbearance guidelines and 
procedures. 

The  EIB  considers  that  the  existing  forward-looking  ECL  model  is  deemed  sufficiently  robust  to  factor  in  extreme  economic  events, 
which have been directly captured through the macroeconomic projections and the PD terms structures.  

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

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

In this respect, a financial asset is considered impaired when it is determined that it is probable that the Facility will not be able to collect 
all amounts due according to the original contractual terms or an equivalent value. Individual credit exposures are evaluated based upon 

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the borrower’s characteristics, overall financial condition, resources and payment record, the prospects for support from any financially 
responsible guarantors and, where applicable, the realisable value of any collateral. 

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

Measuring ECL – Inputs, Assumptions and Techniques 

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

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

- 
- 
- 

Credit rating and PIT Probability of default (“PD”), 

PIT Loss Given default (“LGD”), 

Exposure at default (“EAD”). 

The  credit  rating  of  a  counterpart  is  determined  at  a  certain  date,  using  score-sheet  models  tailored  to  the  various  categories  of 
counterparties and exposures. 

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

The EIB employs statistical models to analyse the data collected and generate estimates of the remaining lifetime PD of exposures and 
how these are expected to change because of the passage of time and given specific macro-economic scenarios.  

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

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

For  the measurement  of ECL, the  EIB  has  developed  a  conditional  modelling  approach,  called  the  PIT PD model,  for calculating  PD 
term structures involving: 

- 
- 

the definition of an economically reasonable link function between the credit cycle and macroeconomic variables, and 

a  set  of  three  macro-economic scenarios  (one  baseline  and  two scenarios  reflecting  downturn  and  upturn  in  the  economy) 
with multi-year potential realisation for the GDP and their associated likelihoods. 

To  generate  macroeconomic  scenarios,  the  EIB  uses  a  macro  semi-structural  multi-country  and  multi-equation  model  of  the  global 
economy  with  country  specific  blocks.  The  central  /  baseline  scenario  is  designed  to  be  consistent  with  the  most  recent  European 
Commission  forecasts.  The  positive  and  negative  scenarios  are  designed  around  the  central  scenario  by  deploying  of  the  multi-
country/multi-equation  model.  The  scenarios  are  derived  by  shocking  the  GDP,  which  is  the  key  measure  of  economic  activity.  The 
shocks to real GDP are calibrated to replicate the observed volatility of the variable. Also expert judgment is applied, when appropriate, 
to refine the size and persistency of GDP shocks. As a result, shocks are determined together with a decay function to determine the 
impact of the shocks over time. Probabilities attached to each scenario are defined reflecting market (volatility) indicators and internally 
developed indicators/trackers deployed in a consistent manner over time to capture uncertainty. 

The  EIB’s  PIT  PD  and  PIT  LGD  models  use  the  same  projected  values  of  the  credit  cycle  as  the  main  input  under  different 
macroeconomic  scenarios.  The  credit  cycle  is  calculated  from  an  external  rating  agency’s  downgrade  rates  and  the  projections  of 
annual growth rates of real GDP as well as the spread between long and short-term interest rates. 

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

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2.4.2.1  Cash and cash equivalents 

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

2.4.2.2  Treasury financial assets 

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

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

2.4.2.3  Loans and advances 

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

Loans and advances include: 

- 

- 

Loans and advances measured at AC 
Loans and advances mandatorily measured at FVTPL. 
2   

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

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

The impairment policy on loans and advances is described under Note 2.4.2. 

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

For  the  impact  of  the  IBOR  reform  on  remeasurement  of  loans  and  advances  at  amortised  cost,  please  refer  to  the  dedicated 
paragraphs in Note 2.4.2 – Classification and Measurement / Modification. 

2.4.2.4  Shares and other variable yield securities 

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

The  undrawn  but  committed  part  of  these  investments  is  recorded  as  consolidated  off-balance  sheet  commitments  at  their  nominal 
value. 

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Measurement of fair values of financial instruments 

The fair value is determined by applying the aggregated net asset value (‘NAV’) method (thereby assuming that, despite the absence of 
readily ascertainable market value, NAV is the best estimate of the fair value). For unquoted investment, when the fair value cannot be 
derived from active markets, the fair value is determined by applying recognised valuation techniques (Note 4.2.1). 

The attributable NAV is adjusted for events occurring between the date of the latest available NAV and the balance sheet date to the 
extent that such adjustment is considered to be material by the Management Committee. Material adjustments are amended until the 
Board of Directors adopt the Financial Statements for the year. In that respect, following the general context of uncertainty, various risks 
building up as a result of the Russian invasion of Ukraine and the volatility observed in terms  of performance, the Bank enhanced its 
valuation  techniques  to  estimate  any  adjustment  on  the  fair  value  of  the  equity  investments  for  the  NAVs  not  reported  by  the  fund 
managers at the reporting date of the Facility financial statements. 

For specific investments where NAVs cannot readily be determined, other guidelines for example the International Private Equity and 
Venture Capital Valuation (‘IPEV’) Guidelines, as published by the IPEV Board might be used and more detailed monitoring and  review 
will be required. In accordance with this method, the funds are internally classified into three categories: 

- 

- 

- 

Category I – funds that have adopted the fair value requirements of IFRS 13 or IPEV Guidelines for which a specific review is 
performed to ensure that the NAV is a reliable estimate of fair value; 
Category II – funds that have adopted other valuation guidelines (such as the former 2001 EVCA) or standards that can be 
considered to be in line with IFRS 13, for which an equivalent NAV can be calculated; and 
Category III – funds that have not adopted the fair value requirements of IFRS 13 or any other valuation guidelines in line with 
IFRS 13. 

Significant influence assessment 

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

2.4.3  

 Financial guarantees 

Financial  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. 

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

The accounting policy for derivatives is disclosed under Note 2.4.5. 

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

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

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

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

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

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

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2.4.4  

Financial liabilities other than derivatives 

Classification and measurement 

A financial liability is measured at amortised cost except for financial liabilities:  

- 

- 

are mandatorily measured at fair value through profit or loss (e.g. derivative liabilities); and 

that are designated as measured at fair value through profit or loss. 

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

2.4.5  

Derivative financial instruments 

Derivative financial instruments include cross currency swaps, cross currency  interest rate swaps and short-term currency swaps (“FX 
swaps”). 

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

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

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

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

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

2.4.6  

Contributions 

Contributions  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. 

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

Member States Contributions paid out represent Available Reflows paid out to the EC and the UK. As per the Transfer Agreement, as of 
year 2024 and until year 2027, not later than 31 March of each year, the EIB shall report, in writing, the amount of available ACP IF 
Reflows, and the amount of available OCT IF Reflows, accumulated respectively as of 31 December of the preceding year (the “Report 
on  Available  Reflows”).  The  Report  on  Available  Reflows  shall  distinguish  between  the  Reflows  that  are  to  be  transferred  to  the 
Commission (ACP and OCT Reflows), and the Reflows that are to be transferred to the United Kingdom (“UK”). Available Reflows  are 
recognised in the statement of financial position when corresponding payment request is sent to the Facility. 

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2.4.7  

Interest and similar income  

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

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

Interest  subsidies  received  for  the  Facility’s  resources  are  deferred  and  recognised  as  an  adjustment  to  the  effective  yield,  being 
recorded under “Interest and similar income” in the income statement over the period from disbursement to repayment of the subsidised 
loan. 

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

2.4.8  

Interest subsidies and technical assistance 

As part of its activity, the Facility manages interest subsidies and technical assistance (“TA”) 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 shares and other variable yield securities are recognised when declared and presented in the statement of profit or 
loss and other comprehensive income within net realised gains on shares and other variable yield securities. 

2.4.11 

Taxation 

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 risk13; 
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 EIB adapts the IF`s risk management framework on an ongoing basis. 

The  Group  Risk  and  Compliance Directorate  (GR&C)  of the 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 GR&C is independent of the Front 
Office and provides second opinion on all proposals made by the Front Office having risk implications.  

At EIB level, the Group Chief Risk Officer (“GCRO”) reports on Group Risks to the EIB Management Committee under the oversight of 
the MC member in charge of risk. The GCRO has direct access to the Risk Policy Committee and can write directly to and communicate 
with the EIB Board of Directors on any matter of his/her field of attribution. 

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, the EIB assesses the credit risk and expected loss  with a view to quantify and 
price  the  risk.  The  EIB  has  developed  an  Internal  Rating  Methodology  (“IRM”)  to  determine  the  Internal  Ratings  of  its  credit-relevant 
borrower/guarantor  counterparts.  The  methodology  is  tailored  for  each  major  credit  counterpart  type  (e.g.  Corporates,  Financial 
Institutions, etc.). Taking into consideration both, Best Banking Practice applicable to the EIB and the principles set under the Capital 
Requirements Regulation (CRR), 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  PD 
following  an  in-depth  analysis  of  the  counterpart’s  business  and  financial  risk  profile  and  its  country  risk  operating  context.  Expert 
adjustments are made when necessary under the consideration of the legal entities’ parental or government support, and the final rating 
allows for overrides to reflect information (e.g. market pricing) not considered in the model. 

The credit assessment of project finance and other structured limited recourse operations uses 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. Finally, Non-EU sovereigns are rated by the Economics Department based on a statistical model. 

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

In  order  to  mitigate credit  risk  the  EIB  uses,  where  appropriate  and  on  a  case  by case  basis, various  credit  enhancements  including 
amongst others counterparty or project related securities, guarantees and contractual clauses depending of the nature of the  borrower 
and type of operation. 

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

13 Settlement risk is defined as the risk of potential losses due to transactions which remain unsettled after their due delivery date and/or due to transactions 
that are settled later than the applicable market standard. Due to the nature of the Facilty’s operations, the most relevant instruments affected by settlement 
risk are those derivatives entered into by the Bank which imply an exchange of foreign currencies. Settlement risk management is covered in the Financial 
Risk Guidelines. 

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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 

Derivative financial instruments 

Loans and advances 

Other assets 

Total  

Provisions for loan commitments 

OFF BALANCE SHEET 

Contingent liabilities 

- Issued Guarantees 

Commitments 

- Undisbursed loans 

- Non-issued guarantees 

Total off balance sheet 

Total credit exposure 

31.12.2024 

31.12.2023 

1,638,604 

1,376,824 

7,482 

783 

85,321 

55,765 

1,498,048 

1,683,312 

-  

616 

3,144,917 

3,201,838 

-18,320 

-19,038 

-  

985 

676,229 

2,500 

678,729 

883,092 

46,764 

930,841 

3,805,326 

4,113,641 

Credit risk on loans and advances 

3.2.3.1  Credit risk measurement for loans and advances 

Loans  and  advances  or  guarantees  undertaken  by  the  Facility  benefit  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  25),  with  the 
exception  of  intermediated  loans,  are  subject  to  the  general  Mandate  Risk  Principles  as  envisaged  in  the  EIB  credit  and  equity  risk 
guidelines. LGs are established according to generally accepted criteria, based on the quality of the borrower, the maturity of the loan, 
the type of guarantee and, where appropriate, the guarantor. 

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

- 
- 
- 
- 

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

as an indicator of credit risk variations for the purposes of prioritising monitoring efforts; 

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

as an input in risk-pricing decisions. 

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The following factors are used to determine an LG: 

i) 

ii) 

iii) 

iv) 

v) 

vi) 

The  borrower’s  creditworthiness:  Risk  Management 
their 
creditworthiness  based  on  internal  methodologies  and  external  data.  In  line  with  the  Basel  III  Internal  Ratings  Based 
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. 

reviews  borrowers  and  assesses 

independently 

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

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. 

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

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

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

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

“A”   Prime quality loans: 

“A0” comprising EU sovereign "risks” that is loans granted to, or fully, explicitly and unconditionally guaranteed by Member  States 
where no repayment difficulties are expected, i.e. expected loss of 0% (based on the Bank’s preferred creditor status and statutory 
protection which are deemed to assure a full recovery of the Bank’s assets upon maturity) as well as loans with a comprehensive 
EU or MS guarantee.  

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

“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 "single-signature" (unsecured) loans to solid corporates (e.g. equivalent internal rating of 

Baa1/BBB+), with a reasonable maturity and adequate protective clauses. 

“D”      This  grading  class  represents  (aside  from  loans  initially  approved  at  this  level)  the  borderline  exposure  that  have  a  risk  profile 
generally accepted by the Bank. This watershed in loan grading is more precisely determined by the sub-classifications D+ and D-. 

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

“F”   F (fail) denotes loans representing unacceptable risks. F- graded loans can only arise out of outstanding transactions that have 

experienced unforeseen, exceptional and dramatic adverse circumstances after signature. All operations where there is a loss of 
principal to the Facility are graded F and a specific provision is applied. 

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. 

112 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

3.2.3.2  Analysis of lending credit risk exposure 

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

At 31.12.2024 

in EUR’000 

Financial institutions 

Corporates 

Public authorities 

States 

Total disbursed 

Undisbursed 

Total disbursed and 
undisbursed 

At 31.12.2023 

in EUR’000 

Financial institutions 

Corporates 

Public authorities 

States 

Total disbursed 

Undisbursed 

Total disbursed and 
undisbursed 

Guaranteed 

Not guaranteed 

Total  % of Total disbursed 

45,015 

164,680 

- 

- 

209,695 

42,259 

251,954 

879,963 

193,836 

- 

214,554 

1,288,353 

615,650 

1,904,003 

924,978 

358,516 

- 

214,554 

1,498,048 

657,909 

2,155,957 

62% 

24% 

0% 

14% 

100% 

Guaranteed 

Not guaranteed 

Total  % of Total disbursed 

54,290 

155,653 

15,138 

- 

225,081 

43,200 

268,281 

952,740 

293,302 

- 

212,189 

1,458,231 

820,854 

2,279,085 

1,007,030 

448,955 

15,138 

212,189 

1,683,312 

864,054 

2,547,366 

60% 

27% 

1% 

13% 

100% 

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

113 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

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 2024 and 31 December 2023 by the 
Loan Grading applications, based on the exposure signed (disbursed and undisbursed): 

At 31.12.2024 

in EUR’000 

High Grade  

Standard 
Grade  

Min. 
Accept. 
Risk 

A to B-  

C  

D+  

High Risk  No grading* 

Total   % of Total 

D- and 
below 

Borrower 

Financial institutions 

234,681 

299,526 

218,172 

387,621 

- 

1,140,000 

Corporates 

41,934 

3,318 

Public authorities 

- 

- 

- 

- 

- 

189,403 

195,031 

429,686 

States 

51,820 

2,929 

22,375 

509,147 

53% 

20% 

0% 

27% 

- 

- 

- 

586,271 

Total 

328,435 

305,773 

240,547 

1,086,171 

195,031 

2,155,957 

100% 

*Loan operations measured at FVTPL. 

At 31.12.2023 

in EUR’000 

High Grade  

Standard 
Grade  

Min. 
Accept. 
Risk 

A to B-  

C  

D+  

High Risk  No grading* 

Total   % of Total 

D- and 
below 

Borrower 

Financial institutions 

270,520 

276,133 

268,648 

508,180 

- 

1,323,481 

Corporates 

51,505 

53 

564 

347,992 

194,441 

594,555 

Public institutions 

- 

15,138 

- 

- 

States 

50,858 

2,164 

12,907 

548,263 

- 

- 

15,138 

614,192 

52% 

23% 

1% 

24% 

Total 

372,883 

293,488 

282,119 

1,404,435 

194,441 

2,547,366 

100% 

*Loan operations measured at FVTPL. 

114 

 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

3.2.3.4  Risk concentrations of loans and advances 

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 
Egypt 
Nigeria 
Ethiopia 
Togo 
Mauritius 
Zambia 
Regional-ACP 
Barbados 
Rwanda 
Cameroon 
Uganda 
Zimbabwe 
Congo (Democratic Republic) 
New Caledonia 
Senegal 
Tanzania 
Benin 
Dominican Republic 
Guinea 
Madagascar 
Mauritania 
Ivory Coast 
Mali 
Eswatini 
Cayman Islands 
Seychelles 
Saint Lucia 
Malawi 
Cape Verde 
Mozambique 
Burkina Faso 
Micronesia 
Ghana 
French Polynesia 
Samoa 
Haiti 
Jamaica 
Vanuatu 

Total 

31.12.2024 

31.12.2023 

246,455 
224,074 
119,847 
117,954 
91,324 
86,850 
84,336 
75,060 
67,426 
67,061 
58,577 
37,062 
35,885 
23,820 
21,166 
18,052 
16,233 
16,208 
11,006 
10,337 
9,122 
8,717 
7,440 
5,707 
5,673 
5,588 
5,018 
4,864 
3,586 
3,318 
3,126 
2,348 
2,062 
1,304 
1,193 
198 
51 
- 
- 

248,823 
260,529 
218,521 
121,126 
80,267 
84,331 
66,947 
86,505 
72,036 
71,525 
48,616 
33,365 
35,546 
29,803 
26,425 
28,729 
21,394 
16,742 
16,768 
12,926 
9,287 
9,374 
9,644 
8,158 
6,453 
6,575 
2,037 
4,565 
6,476 
6,254 
5,142 
4,389 
2,342 
4,074 
1,838 
344 
121 
15,138 
177 

1,498,048 

1,683,312 

115 

 
 
 
 
Annual accounts of the European Development Fund 2024 

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 ”Tertiary and other” (in EUR’000): 

Industry sector of borrower 

Financial Services 

Public Administration 

Electricity 

Chemicals 

Healthcare 

Business Services, IT and Media 

Pharmaceuticals and Medical Equipment 

Investment Goods 

Metals and Mining 

Regulated Networks 

Waste Recuperation and Recycling 

Telecommunications 

Air and Maritime Transport Infrastructure 

Multi-Utilities 

Total 

31.12.2024 

31.12.2023 

924,947 

214,554 

170,632 

81,046 

36,833 

33,926 

13,227 

7,244 

7,157 

5,441 

3,041 

- 

- 

- 

1,012,001 

212,189 

187,701 

91,786 

36,833 

33,638 

18,526 

4,103 

7,236 

- 

3,802 

60,182 

15,138 

177 

1,498,048 

1,683,312 

116 

 
 
 
Annual accounts of the European Development Fund 2024 

3.2.3.5  Credit risk exposure for each internal risk rating 

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

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

in EUR’000 

Loans and advances at AC 

Moody’s 
equiv. 
grade 

12-month 
ECL 

2024 

Lifetime 
ECL not 
credit-
impaired 

Lifetime 
ECL credit-
impaired 

FVTPL 

Total 

- 

- 

- 

- 

- 

- 

- 

- 

38,896 

67,436 

10,501 

249,691 

66,050 

634,886 

304,650 

22,307 

Internal Rating 1 -  minimal credit risk 

Aaa 

- 

38,896 

Internal Rating  2 - very low credit risk 

Internal Rating  3 - low credit risk 

Aa1 - Aa3 

A1 - A3 

67,436 

10,501 

Internal Rating  4 - moderate credit risk 

Baa1 - Baa3 

246,650 

Internal Rating  5 - financially weak counterpart 

Ba1 - Ba3 

66,050 

- 

- 

- 

- 

- 

- 

- 

3,041 

- 

Internal Rating  6 - high credit risk 

B1 - B3 

588,657 

29,996 

16,233 

Internal Rating  7 - very high credit risk 

Internal Rating  8 - counterpart in default 

Loans and advances at FVTPL 

below Caa1 

below Caa1 
but in 
default 

74,924 

229,726 

- 

- 

- 

- 

- 

22,307 

- 

200,677 

200,677 

Loss allowance and FV adjustment 

-9,675 

-12,576 

-12,431 

-62,364 

-97,046 

Carrying amount of loans and advances 

1,044,543 

286,042 

29,150 

138,313 

1,498,048 

Loan commitments 

Internal Rating  2 - very low credit risk 

Aa1 - Aa3 

Internal Rating  4 - moderate credit risk 

Baa1 - Baa3 

Internal Rating  5 - financially weak counterpart 

Ba1 - Ba3 

86,796 

10,000 

81,500 

- 

- 

- 

Internal Rating  6 - high credit risk 

B1 - B3 

20,000 

270,990 

Internal Rating  7 - very high credit risk 

Internal Rating  8 - counterpart in default 

No internal rating* 

Loans and advances at FVTPL 

below Caa1 

below Caa1 
but in 
default 

12,500 

11,329 

- 

15,445 

- 

- 

- 

- 

Loss allowance and FV adjustment 

-1,491 

-16,829 

- 

- 

- 

- 

- 

111,000 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

86,796 

10,000 

81,500 

290,990 

23,829 

111,000 

15,445 

56,669 

56,669 

- 

-18,320 

Carrying amount of loan commitments 
* Agency agreements for which there are no underlying counterparts at reporting date. 

224,750 

265,490 

111,000 

56,669 

657,909 

117 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

3.2.3.5  Credit risk exposure for each internal risk rating (continued) 

- 

- 

- 

- 

- 

- 

- 

- 

47,534 

72,051 

10,428 

300,277 

75,418 

760,562 

323,692 

17,860 

in EUR’000 

Loans and advances at AC 

Internal Rating 1 -  minimal credit risk 

Internal Rating  2 - very low credit risk 

Internal Rating  3 - low credit risk 

Internal Rating  4 - moderate credit risk 

Moody’s 
equiv. 
grade 

12-month 
ECL 

2023 

Lifetime 
ECL not 
credit-
impaired 

Lifetime 
ECL credit-
impaired 

FVTPL 

Total 

Aaa 

Aa1 - Aa3 

A1 - A3 

- 

47,534 

72,051 

10,428 

- 

- 

- 

- 

- 

Baa1 - Baa3 

33,439 

263,036 

3,802 

Internal Rating  5 - financially weak counterpart 

Ba1 - Ba3 

75,418 

- 

- 

Internal Rating  6 - high credit risk 

Internal Rating  7 - very high credit risk 

Internal Rating  8 - counterpart in default 

Loans and advances at FVTPL 

B1 - B3 

533,775 

206,438 

20,349 

below Caa1 

77,010 

246,682 

- 

below Caa1 
but in default 

- 

- 

- 

- 

17,860 

Loss allowance and FV adjustment 

-10,964 

-24,674 

-14,976 

-55,976 

-106,590 

Carrying amount of loans and advances 

791,157 

739,016 

27,035 

126,104 

1,683,312 

- 

182,080 

182,080 

Loan commitments 

Internal Rating  2 - very low credit risk 

Internal Rating  3 - low credit risk 

Internal Rating  4 - moderate credit risk 

Internal Rating  5 - financially weak counterpart 

Internal Rating  6 - high credit risk 

Internal Rating  7 - very high credit risk 

Internal Rating  8 - counterpart in default 

No internal rating* 

Loans and advances at FVTPL 

Aa1 - Aa3 

A1 - A3 

Baa1 - Baa3 

Ba1 - Ba3 

86,796 

1,687 

10,000 

82,770 

- 

- 

- 

- 

B1 - B3 

327,995 

45,990 

below Caa1 

28,089 

30,537 

- 

- 

- 

- 

- 

- 

below Caa1 
but in default 

- 

50,000 

111,000 

39,940 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

86,796 

1,687 

10,000 

82,770 

373,985 

58,626 

161,000 

39,940 

68,288 

68,288 

- 

-19,038 

Loss allowance and FV adjustment 

-2,715 

-16,323 

Carrying amount of loan commitments 
* Agency agreements for which there are no underlying counterparts at reporting date. 

574,562 

110,204 

111,000 

68,288 

864,054 

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

118 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

3.2.3.6  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  the 
Facility management is provided on the overall status. 
The arrears and impairments on loans and advances can be analysed as follows (in EUR’000): 

Carrying amount 

Lifetime ECL credit- impaired 

Gross amount 

Impairment- loss allowance 

Carrying amount of lifetime ECL credit-impaired 

Past due but not credit- impaired 

Past due comprises 

0-30 days 

30-90 days 

90-180 days 

more than 180 days 

Carrying amount past due but not credit- impaired 

Loans and advances 

Loans and advances 

31.12.2024 

1,498,048 

31.12.2023 

1,683,312 

22,307 

-12,431 

9,876 

17,860 

-14,976 

2,884 

229 

26 

- 

25 

280 

- 

23 

315 

- 

338 

Carrying amount neither past due nor credit- impaired 

1,487,892 

1,680,090 

Total carrying amount loans and advances 

1,498,048 

1,683,312 

119 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

3.2.3.7 

Sensitivity on ECL to future economic conditions (in EUR’000) 

The  ECL  is  sensitive  to  judgments  and  assumptions  made  regarding  formulation  of  forward-looking  scenarios.  The  EIB  performs  a 
sensitivity analysis on the ECL recognised on material classes of its assets. 

The forecasts of future economic conditions (via macroeconomic  scenarios) are inputs to forecasting model producing conditional risk 
parameters, which are an input to loss allowance calculation. 

The scenarios are derived shocking GDP, which is the key measurement of economic activity. The shocks to real GDP are calibrated to 
replicate the past volatility of the variable. In addition, expert judgment is applied, when appropriate, to refine the size and persistency of 
GDP  shocks.  As  a  result,  shocks  are  determined  together  with  a  decay  function  to  determine  the  impact  of  the  shocks  over  time. 
Probabilities  attached to  each scenario  are  defined  reflecting  market  (volatility)  indicators  and  internally  developed  indicators/trackers 
consistently deployed over time to capture uncertainty. The weighting of positive and negative shocks depends on the balance of risks 
in the economy, negative and positive shocks with a probability of 40% and 5% respectively, were applied on quarterly projections in the 
last exercise.  

The table below shows the loss allowance on loans and advances under Stage 1 and 2. Each forward-looking scenario (e.g. baseline, 
positive and negative) was weighted 100% instead of applying scenario probability weights across the three scenarios. 

(in EUR’000) 

Gross exposure 

Loss allowance 

(in EUR’000) 

Gross exposure 

Loss allowance 

2024 

Positive 

Baseline   

Negative   

1,851,153 

28,883 

1,851,153 

30,301 

1,851,153 

31,819 

2023 

Positive 

Baseline   

Negative   

2,258,365 

45,603 

2,258,365 

51,610 

2,258,365 

58,857 

3.2.3.8  Loan renegotiation and forbearance 

The  EIB  considers  loans  to  be  forborne  loans  (i.e.  loans,  debt  securities  and  loan  commitments)  in  respect  of  which  forbearance 
measures have been extended. Forbearance measures consist of “concessions” that the EIB decides to make towards an obligor who is 
considered unable to comply with the contractual debt service terms and conditions due to its financial difficulties, in order to enable the 
obligor to service the debt or to refinance, totally or partially, the contract. Exposures shall be  treated as forborne if a concession has 
been made, irrespective of whether any amount is past-due, or the exposure is classified as defaulted. Exposures shall not be treated 
as forborne when the obligor is not in financial difficulties. 

In the normal course of business, the deterioration of the loans in question would have been detected via the provisions of the Bank’s 
guidelines and procedures and would have been monitored before renegotiation. Once renegotiated, the EIB would continue to closely 
monitor  these  loans.  In  the  case  of  the  financial  instrument  would  be  credit  impaired  it  will  be  moved  to  Stage  3.  The  loan  will  be 
monitored regularly in line with the Bank’s framework.  

Forbearance measures and practices undertaken by the EIB as part of its restructuring activities during the reporting period include, but 
are  not  limited  to,  extension  of  maturities,  deferral  of  capital  only,  deferral  of  capital  and  interest,  waiver  of  material  covenants  and 
capitalisation of arrears. 

120 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

3.2.3.8 

Loan renegotiation and forbearance (continued) 

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

in EUR’000 

31.12.2024 

31.12.2023 

Number of contracts subject to forbearance practices 

Carrying values (incl. interest and amounts in arrears) 

ECL allowance recognised 

Interest income in respect of forborne contracts 

Performing 

Non-
Performing 

Performing 

Non-
Performing 

3 

60,223 

622 

3,353 

7 

35,718 

11,156 

1,717 

13 

112,554 

1,654 

8,594 

6 

46,432 

22,151 

1,776 

Forbearance measures 

in EUR’000 

31.12.2023 

Extension of 
maturities 

Deferral of 
capital and 
interest 

Breach of 
material 
financial 
covenants 

Other 

Contractual 
repayment, 
termination 
and/or write off 

31.12.2024 

Financial institutions 

Corporates 

Total 

68,355 

90,631 

158,986 

- 

- 

- 

- 

- 

- 

10,472 

- 

10,472 

- 

- 

- 

-56,445 

-17,072 

-73,517 

22,382 

73,559 

95,941 

3.2.5 

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 
2024, and 31 December 2023, 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 
S. A.  where  the  Facility  has its  operational  cash  accounts. The  short-term  credit  limit for  Societe Generale  S.  A.  as  at  31  December 
2024 and 31 December  2023 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 
3 
tenor  of  three  months  from  value  date.  All  credit  exposure  limit  breaches  have  been  reported  to  the  mandators.  As  at  31  December 
2024 and as at 31 December 2023 all term deposits, commercial papers and cash in hand held by the treasury portfolio of the Facility 
had a minimum rating of at least P-2 (Moody’s equivalent) at settlement day.  

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

Minimum short-term 
rating 

Minimum long-term 
rating 

(Moody’s term) 

(Moody’s term) 

P-1 

P-1 

P-1 

P-1 

P-1 

P-1 

P-1 

P-2 

P-2 

Total 

Aaa 

Aa1 

Aa2 

Aa3 

A1 

A2 

A3 

A3 

Baa1 

31.12.2024 

31.12.2023 

124,532 

173,639 

- 

149,239 

309,342 

280,035 

367,211 

154,829 

79,777 

8% 

11% 

0% 

9% 

19% 

17% 

22% 

9% 

5% 

140,592 

- 

29,951 

89,682 

360,831 

204,179 

346,275 

205,314 

- 

10% 

0% 

2% 

7% 

26% 

15% 

25% 

15% 

0% 

1,638,604 

100% 

1,376,824 

100% 

121 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

3.2.6 

Credit risk on derivatives 

3.2.6.1  Credit risk policy of derivatives 

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

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

3.2.6.2  Credit risk measurement for derivatives 

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

The EIB measures the credit risk exposure related to swaps and derivatives transactions using the Current Unsecured Exposure  and 
Potential  Future  Exposure  approach  for  reporting  and  limit  monitoring.  These  metrics  fully  include  the  derivatives  related  to  the 
Investment Facility. 

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 1,330.0 million as at 31 December 2024 against EUR 1,640.0 million as at 31 December 
2023.  The  fair  value  of  FX  swaps  amounts  to  EUR  -38.9  million  as  at  31 December  2024  against  EUR 45.8  million  as  at 
31 December 2023. 

The Facility enters into cross currency swaps contracts in order to hedge currency risk on loan disbursements in currencies other than 
EUR.  Cross  currency  swaps  have  a  long-term  maturity.  The  notional  amount  of  FX  swaps  stood  at  EUR  33.1  million  as  at 
31 December 2024 against EUR 43.3 million as at 31 December 2023.  The fair value of FX swaps amounts to EUR 0.5 million as at 
31 December 2024 against EUR 10.0 million as at 31 December 2023. 

3.2.7 

Credit risk on treasury financial assets 

The treasury portfolio entirely composed of commercial papers issued by sub-sovereigns, banks and non-bank entities maturity of more 
than 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 
depending on liquidity requirements. There were no treasury financial assets as at 31 December 2023 and 31 December 2024. 

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3.3  Liquidity risk 

Liquidity  risk  refers  to  an  entity’s  ability  to  fund  increases  in  assets  and  meet  obligations  as  they  come  due,  without  incurring 
unacceptable losses. It can be further split into funding liquidity risk and market liquidity risk.  

Funding liquidity risk is connected to the risk that an entity will not be able to refinance the asset side of its balance sheet and to meet 
payment obligations in full, out of readily available liquidity resources. Market liquidity risk is the volatility observed in the economic value 
of, or in the income derived from, an entity’s positions due to its potential inability to execute a transaction serving to offset, eliminate or 
reduce such outstanding positions at reasonable market prices. 

3.3.1 

Liquidity risk management 

The Facility has been primarily funded by annual contributions from Member States as well as by reflows stemming from the Facility’s 
operations.  In  line  with  the  Council  Decision  2020/2233,  reflows  from  the  ACP  IF  shall  be  deployed  within  the  NDICI  framework. 
However, the availability of those reflows to be transferred is conditional to sustaining an adequate level of liquidity under the IF. 

The  Facility  manages  its  funding  liquidity  risk  primarily  by  planning  its  net  liquidity  needs.  To  further  minimize  the  liquidity  risk,  the 
Facility maintains a liquidity reserve sufficient to cover at any PIT forecasted cash disbursements, as communicated periodically by the 
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. 

It is worth highlighting that capital is managed solely from a liquidity perspective, as described above. 

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 GR&C.  

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 the form of undisbursed portions of credit under signed 
loan  agreements,  of  undisbursed  portions  of  signed  capital  subscription/investment  agreements,  of  loan  guarantees  granted,  or  of 
committed interest subsidies and TA.  

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

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

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

Committed interest subsidies’ cash outflows occur in the case of subsidized loans financed by the Bank’s own resources. The reported 
“Outflows for committed interest subsidies” represent only commitments related to these loans rather than the total amount of committed 
undisbursed interest subsidies. As in the case of loans, their disbursement schedule is uncertain.   

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

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

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

123 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Maturity profile of non-derivative financial liabilities 

in EUR’000 as at 31.12.2024 

Outflows for committed but undisbursed 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 

Gross 
nominal 
outflow 

80,913 
4,190 
- 
- 
1,859 

20,208 
- 
- 
- 
- 

86,962 

20,208 

- 
- 
- 
- 
- 

- 

- 
- 
- 
- 
- 

- 

575,108 
233,696 
2,500 
334,754 
18,341 

676,229 
237,886 
2,500 
334,754 
20,200 

1,164,399  1,271,569 

Maturity profile of non-derivative financial liabilities 

in EUR’000 as at 31.12.2023 

 3 months 
or less 

More than 
3 months 
to 1 year 

More 
than 1 
year to 5 
years 

More than 
5 years 

Maturity 
Undefined 

Gross 
nominal 
outflow 

Outflows for committed but undisbursed 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  

49,019 
- 
- 
4,235 
849 
54,103 

6,000 
- 
- 
- 
- 
6,000 

- 
- 
- 
- 
- 
- 

- 
- 
- 
- 
- 
- 

828,073 
297,534 
47,749 
343,282 
25,343 

883,092 
297,534 
47,749 
347,517 
26,192 
1,541,981  1,602,084 

Maturity profile of derivative financial liabilities 

in EUR’000 as at 31.12.2024 

CCS – Inflows 
CCS – Outflows 
Short-term currency swaps – Inflows 
Short-term currency 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 

157 
-87 
1,330,000 
-1,371,666 

-41,596 

10,405 
-12,310 
- 
- 

-1,905 

22,613 
-24,852 
- 
- 

-2,239 

832 
-899 
- 
- 

-67 

34,007 
-38,148 
1,330,000 
-1,371,666 

-45,807 

Maturity profile of derivative financial liabilities 

in EUR’000 as at 31.12.2023 

CCS and CCIRS – Inflows 
CCS and CCIRS – Outflows 
Short-term currency swaps – Inflows 
Short-term currency 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 

192 
-90 
1,640,000 
-1,597,068 

43,034 

10,909 
-10,212 
- 
- 

697 

32,186 
-23,783 
- 
- 

8,403 

1,706 
-1,828 
- 
- 

-122 

44,993 
-35,913 
1,640,000 
-1,597,068 

52,012 

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3.3.3  

Long term financial assets and liabilities 

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

in EUR’000 

Financial assets: 

Loans and advances 

Shares and other variable yield securities 

Total  

Financial liabilities: 

Amount owed to third parties* 

Provisions for loan commitments 

31.12.2024 

31.12.2023 

1,551,776 

834,621 

2,386,397 

1,755,831 

820,713 

2,576,544 

534,569 

18,320 

389,116 

19,038 

Total  
408,154 
* The amounts owed to third parties are including the Interest  subsidies and TA not yet disbursed owed to Member States, where the maturity is mainly 
undefined. 

552,889 

3.4  Market risk 

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

3.4.1  

Interest rate risk 

Interest rate risk 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 it does not have interest rate bearing. 

The Facility measures, on an annual basis, the sensitivity of its loan portfolio and micro hedging  cross-currency 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  and  hedging  swaps  cash  flows  denominated  in  EUR,  the  Facility  uses  the 
EURIBOR 3 month curve. The NPV of the loans’ cash flows denominated in non-EUR currencies is determined by using the EURIBOR 
3  month  curve  adjusted  with the cross-currency  basis spread  for  the  respective currency.  For those  non-EUR  currencies  for  which  a 
reliable and sufficiently complete discount curve is not available, either the EUR or USD discount curve is used instead. 

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3.4.2  

Interest rate risk (continued) 

As shown  in  the  following  table  the  net  present  value  of the  loan portfolio including  related  micro-hedging  swaps  as  at  31  December 
2024 would decrease by EUR 413k (as at 31 December 2023: decrease by EUR 491k) due to a 1 basis point increase in interest rates. 

Basis point value 
in EUR’000 

Money 
Market 

Very Short  

Short 

Medium 

Long 

Extra Long  

Total 

As at 31.12.2024 

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 

-33 

-82 

-126 

-133 

-38 

-1 

-413 

Basis point value 
in EUR’000 

Money 
Market 

Very Short  

Short 

Medium 

Long 

Extra Long  

Total 

As at 31.12.2023 

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 

-39 

-97 

-153 

-153 

-47 

-2 

-491 

3.4.2 

Foreign exchange risk 

Foreign  exchange  (“FX”)  risk  is  the  risk  to  the  economic  value  or  to  the  income  derived  from  the  IF’s  positions  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  currency  mismatch 
between assets, liabilities and hedging instruments. 

3.4.2.1 

Foreign exchange risk and treasury assets 

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

FX risk is hedged by means of FX 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 authorised currency. 

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

3.4.2.2.1. 

Hedging of operations denominated in USD 

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

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

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

Within  a  roll-over  period,  unexpected  USD  liquidity  deficits  shall  be  covered  by  means  of  ad  hoc  FX  swap  operations  while  liquidity 
surpluses shall either be invested in treasury assets or converted into EUR if occurred from an increase of the FX position.  

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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 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)”. 

In  addition,  for  loans  denominated  in  currencies  other  than  EUR,  USD  or  currencies  for  which  hedging  through  cross-currency  swap 
contracts  is  not  possible,  the  IF  charges  an  additional  interest  component  called  “FX  premium”  to  mitigate  the  risk  of  potential  local 
currency depreciation. 

3.4.2.2.3 

Foreign exchange position (in EUR’000) 

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

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

The  fair  value  change  on  shares  and  other  variable  yield  securities  are  included  in  the  FX  position  as  per  Risk  Policies,  as  well  as 
impairments on loans and advances. Derivatives included in the FX position as per Risk Policies are considered at their nominal value 
instead of their fair value, in order to be aligned with the retained value of the assets, considered also at their nominal value adjusted by 
the impairment for loans. 

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

As at 31 December 2024 

Assets and liabilities 

Commitments and 
contingent liabilities 

Currencies 

USD 

Local currencies  
(under synthetic hedge)* 

TZS 

DOP 

Local currencies  
(not under synthetic hedge)* 

KES, RWF, UGX, HTG, MUR, 
MZN, XOF, ZMW, BWP, JMD, 
NGN, ZAR 

FX position as per 
Risk Policies 

FX position excluded 
from Risk Policies 

Balance sheet FX 
position 

-45,774 

-21,740 

-67,514 

235,603 

- 

10,884 

- 

133 

- 

11,017 

225,877 

-3,763 

222,114 

- 

- 

- 

Total non-EUR currencies 

190,987 

EUR 

Total EUR and non-EUR 

190,987 

-25,370 

3,139,294 

3,113,924 

165,617 

3,139,294 

3,304,911 

235,603 

1,043,860 

1,279,463 

* See section 3.4.2.2.2 for explanations on synthetic hedge. Following the 2024 review of the synthetic hedging strategy, KES, UGX and 
RWF have been removed from the scope of the synthetic hedging. 

127 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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3.4.2.2.3        Foreign exchange position (in EUR’000) (continued) 

As at 31 December 2023 

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, JMD, NGN, ZAR 

FX position as per 
Risk Policies 

FX position excluded 
from Risk Policies 

Balance sheet FX 
position 

-194,166 

-16,111 

-210,277 

306,161 

87,829 

1,071 

16,663 

20,283 

55,837 

-4,832 

19 

122 

221 

367 

82,997 

1,090 

16,785 

20,504 

56,204 

67,992 

-1,136 

66,856 

- 

- 

- 

- 

- 

- 

Total non-EUR currencies 

55,509 

-21,350 

34,159 

306,161 

EUR 

- 

3,489,673 

3,489,673 

1,344,972 

Total EUR and non-EUR 

55,509 

3,468,323 

3,523,832 

1,651,133 

* See section 3.4.2.2.2 for explanations on synthetic hedge. 

3.4.2.3 

Foreign exchange sensitivity analysis 

As  at  31  December  2024  a  10%  depreciation  of  EUR  versus  all  non  EUR  currencies  would  result  in  an  increase  of  the  contributors’ 
resources and profit amounting to EUR 18.4 million (31 December 2023: EUR 2.9 million). A 10% appreciation of the EUR versus all 
non EUR currencies would result in a decrease of the contributors’ resources and profit amounting to EUR  -15.1 million (31 December 
2023: EUR -2.4 million). 

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3.4.2.4 

Conversion rates 
3  

The following conversion rates were used for establishing the balance sheet at 31 December 2024 and 31 December 2023: 

31 December 2024 

31 December 2023 

Non-EU currencies 

Botswana Pula (BWP) 

Dominican Republic Pesos (DOP) 

Fiji Dollars (FJD) 

Haitian Gourde (HTG) 

Jamaican Dollar (JMD) 

Kenya Shillings (KES) 

Mauritania Ouguiyas (MRU) 

Mauritius Rupees (MUR) 

Mozambican Metical (MZN) 

Nigerian Naira (NGN) 

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) 

3.4.3 

Equity price risk 

14.49 

63.09 

2.38 

135.09 

161.15 

133.69 

41.30 

48.56 

65.65 

1,591.68 

1,419.85 

2,490.24 

3,812.00 

1.04 

655.96 

19.62 

28.87 

14.78 

64.08 

2.39 

143.68 

168.22 

173.20 

43.35 

48.56 

69.98 

975.04 

1,385.07 

2,772.53 

4,178.00 

1.11 

655.96 

20.35 

28.45 

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

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

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

The effect on the Facility’s contributors’ resources (as a result of a change in the fair value of the equity instruments portfolio) due to a 
+/-10%  change  in  the  value  of  individual  direct  equity  and  venture  capital  investments,  with  all  other  variables  held  constant,  is  
EUR 83.5 million and EUR -83.5 million respectively as at 31 December 2024 (EUR 82.1 million and EUR -82.1 million respectively as 
at 31  December 2023).  

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Fair values of financial instruments 

4 
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  measured  at  AC  as  the  carrying  amount  is  a 
reasonable approximation of fair value. 

At 31 December 2024 

in EUR’000 

Financial assets mandatorily 
measured at FVTPL 

Carrying amount 

Cash, 
loans 
and 
advance
s 

Treasury 
financial 
assets 

Other 
financial 
assets/li
abilities 

Derivativ
e 
financial 
instrume
nts 

Shares 
and 
other 
variable 
yield 
securitie
s 

Fair value 

Total 

  Level 1  Level 2  Level 3 

Total 

Derivative financial instruments  

783 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

783 

- 

783 

-  655,817  655,817 

-  178,804  178,804 

-  136,983  136,983 

783  971,604  972,387 

- 

783 

-  655,817 

-  178,804 

-  136,983 

-  972,387 

-  1,638,60
4 
-  1,361,06
5 
7,482 

- 

- 

- 

- 
- 
-  3,007,15
1 
-  3,979,53
8 

- 

- 

-39,210 

-39,210 

- 

- 

-39,210 

-39,210 

- 

- 

-39,210 

-39,210 

- 

-18,320 

-18,320 

-  -566,083  -566,083 

- 

-3,289 

-3,289 

-  -587,692  -587,692 

-  -587,692  -626,902 

Venture Capital Fund  

Direct Equity Investments 

Loans and advances 

Total financial assets mandatorily 
measured at FVTPL 

Financial assets measured at AC 

Cash and cash equivalents 

Loans and advances 

Amounts receivable from contributors 

Treasury financial assets 

Other assets 

Total financial assets measured at 
AC 
Total financial assets  

Financial liabilities measured at 
FVTPL 
Derivative financial instruments 

Total financial liabilities measured 
at FVTPL 
Financial liabilities at AC 

Provisions for loan commitments 

Amounts owed to third parties 

Other liabilities 

Total financial liabilities measured 
at AC 
Total financial liabilities 

-  655,817 

-  178,804 

- 

- 

- 

- 

-  136,983 

783  834,621  136,983 

- 

- 

- 

- 

-  1,638,60
4 
-  1,361,06
5 
7,482 

- 

- 

- 

- 

- 

- 
- 
-  3,007,15
1 
783  834,621  3,144,13
4 

-39,210 

-39,210 

- 

- 

- 

- 

-39,210 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

130 

 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Annual accounts of the European Development Fund 2024 

4 

Fair values of financial instruments (continued) 

4.1  Accounting classifications and fair values (continued) 

As at 31 December 2023 

in EUR’000 

Financial assets mandatorily 
measured at FVTPL 
Derivative financial instruments  

Venture Capital Fund  

Direct Equity Investment 

Loans and advances 

Total financial assets mandatorily 
measured at FVTPL 

Financial assets at AC 

Cash and cash equivalents 

Loans and advances 

Amounts receivable from contributors 

Treasury financial assets 

Other assets 

Total financial assets measured at 
AC 
Total financial assets 

Financial liabilities at AC 

Provisions for loan commitments 

Amounts owed to third parties 

Other liabilities 

Total financial liabilities measured 
at AC 
Total financial liabilities 

Carrying amount 

Cash, 
loans 
and 
advance
s 

Treasury 
financial 
assets 

Other 
financial 
assets/li
abilities 

Derivativ
e 
financial 
instrume
nts 

Shares 
and 
other 
variable 
yield 
securitie
s 

Fair value 

Total 

  Level 1  Level 2  Level 3 

Total 

55,765 

- 

-  693,042 

-  127,671 

- 

- 

- 

- 

-  124,323 

55,765  820,713  124,323 

- 

- 

- 

- 

-  1,376,82
4 
-  1,558,98
9 
85,321 

- 

- 

- 

- 

- 
- 
-  3,021,13
4 
55,765  820,713  3,145,45
7 

- 

- 

- 

- 

- 

- 

55,765 

- 

55,765 

-  693,042  693,042 

-  127,671  127,671 

-  124,323  124,323 

55,765  945,036 

1,000,80
1 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

55,765 

-  693,042 

-  127,671 

-  124,323 

- 

1,000,80
1 

-  1,376,82
4 
-  1,558,98
9 
85,321 

- 

- 

- 

616 
616 
616  3,021,75
0 
616  4,022,55
1 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

-19,038 

-19,038 

-  -427,828  -427,828 

- 

-3,338 

-3,338 

-  -450,204  -450,204 

-  -450,204  -450,204 

131 

 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Annual accounts of the European Development Fund 2024 

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: 

Relationship of 
unobservable inputs to 
fair value measurement 

Not applicable. 

4   
longer 

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

for 

The higher the 
marketability discount, the 
lower the fair value. 

The  higher  the  discount 
rate 
fair 
value 

lower  the 

the 

Financial instruments carried at fair value 

Valuation technique 

Significant unobservable inputs 

Derivative 
financial 
instruments 

Venture 
Capital Fund 
(VCF) 

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

forward/interest 

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 
review 
reporting,  a  subsequent  event 
procedure  is  performed  and  if  necessary  the 
reported NAV is adjusted. 

Direct Equity 
(DE) 
Investment 

Adjusted net assets. 

Loans at fair 
value (IFE) 

For  going  concern  borrowers:  Discounted  cash 
flow using contractual/expected future cash flows 
discounted  with 
risk-adjusted 
discount  rate  that  captures  the  risk  inherent  to 
the  loan  (including  credit  risk  of  the  borrower). 
The  discount  rate  is  compared/assessed  with 
any relevant market benchmark. 

appropriate 

For  borrowers  not  going  concern:  Net  assets 
approach (liquidation value approach). 

of 

cashflows 

in  estimation  and 
Curves  used 
discounting 
are 
calibrated  to  market  data,  and  the 
swaps in the portfolio have maturities 
that  do  not  exceed  the  longest  tenor 
available  in  the  inputs.  Therefore, 
there are no unobservable inputs. 

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

5   

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

for 

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

Components  of  the  discount  rate  to 
reflect  the  credit  risk  of  borrower 
compared  to 
the  risk-free  market 
rates. 

132 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

4.2.1 

Valuation techniques and significant unobservable inputs (continued) 

Financial instruments not carried at fair value 

Valuation technique 

Significant unobservable inputs 

Relationship of 
unobservable inputs to 
fair value measurement 

Loans and 
advances 

Treasury 
financial 
assets 

Not applicable. 

Not applicable. 

take 

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 
into  account  any 
collateral values or early repayments’ scenarios. 
To  obtain  the  Net  Present  Value  (NPV)  of  the 
the 
loans, 
contractual  cash  flows  of  each  loan  using  an 
adjusted  market  discount  curve.  The  individual 
loan  NPV 
into 
then  adjusted 
consideration  the  relevant  associated  Expected 
Loss. The results are then summed to obtain the 
fair value of loans and advances. 

retained  discounts 

the  model 

take 

to 

is 

Discounted cash flows. 

Not applicable. 

Not applicable. 

With the application of IFRS 13, valuation adjustments are included in the fair value of derivatives as at 31  December 2024 and 2023, 
namely: 

- 

- 

Credit valuation adjustments (CVA), reflecting counterparty credit risk on derivative transactions, amounting to EUR  -2.8k as 
at 31 December 2024 and to EUR -6.1k as at 31 December 2023.  
Debit  valuation  adjustments  (DVA),  reflecting  own  credit  risk  on  derivative  transactions,  amounting  to  EUR  +3.6k  as  at  
31 December 2024 and EUR +7.2k as at 31 December 2023.  

133 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

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 2024 and 2023 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 instruments14 for the year ended 31 December 2024 and 31 December 2023: 

in EUR'000 

Balance as at 1 January 2024 

Gains or losses included in profit or loss: 

Derecognition of fair value adjustment due to Sales / Exits 

Net fair value change on shares and other variable yield securities  

Total 

Disbursements 

Repayments 

Sales / Exits 

Foreign exchange rates differences 

Balance as at 31 December 2024 

in EUR'000 

Balance as at 1 January 2023 

Gains or losses included in profit or loss: 

Net fair value change on shares and other variable yield securities 

Total 

Disbursements 

Repayments 

Foreign exchange rates differences 

Balance as at 31 December 2023 

Sensitivity analysis 

Shares and other 
variable yield 
securities 

820,713 

14,051 

-45,698 

-31,647 

69,392 

-21,413 

-25,623 

23,199 

834,621 

Shares and other 
variable yield 
securities 

797,341 

-15,142 

-15,142 

101,100 

-32,560 

-30,026 

820,713 

The effects on the Facility’s contributors’ resources, and statement of profit or loss and other comprehensive income due to  a +/- 10% 
change in the value of direct equity and venture capital investments, with all other variables held constant is EUR 83.5 million and EUR - 
83.5 million, respectively as at 31 December 2024 (EUR 82.1 million and EUR - 82.1 million, respectively as at 31 December 2023). 

14 loans measured at FVTPL are presented in Note 7. 

134 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31.12.2024 

31.12.2023 

212,466 

304,538 

1,116,826 

1,633,830 

4,774 

1,638,604 

146,494 

625,403 

599,507 

1,371,404 

5,420 

1,376,824 

Notional  
amount 

33,073 

1,330,000 

1,363,073 

Notional  
amount 

43,250 

1,640,000 

1,683,250 

Annual accounts of the European Development Fund 2024 

5  Cash and cash equivalents 

The cash and cash equivalents are composed of: 

in EUR'000 
Cash in hand 

Term deposits 

Commercial papers 

Cash and cash equivalents in the cash flow statement 

Accrued interest  

Cash and cash equivalents in the statement of financial position 

6  Derivative financial instruments  

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

As at 31 December 2024 

in EUR'000 
Cross currency swaps 

FX swaps 

Total derivative financial instruments 

As at 31 December 2023 

in EUR'000 
Cross currency interest rate swaps 

FX swaps 

Total derivative financial instruments 

Fair Value 

Assets 

Liabilities 

783 

- 

783 

-268 

-38,942 

-39,210 

Fair Value 

Assets 

9,983 

45,782 

55,765 

Liabilities 

- 

- 

- 

135 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

7 

Loans and advances 

 Loans and advances 

7.1 
The following table shows the reconciliation from the opening to the closing balance of loans and advances: 

in EUR'000 

Nominal of loans at AC as at 1 January 2024 

Disbursements 

Write offs 

Repayments 

Interest capitalised 

Foreign exchange rates differences 

Nominal of loans at AC as at 31 December 2024 

Global loans*  Senior loans 

Subordinated 
loans 

1,098,121 

68,519 

-4,945 

495,337 

16,987 

- 

-226,719 

-141,664 

- 

60,352 

995,328 

- 

16,689 

387,349 

Impairment - loss allowance as at 1 January 2024 

-32,398 

-17,199 

Net changes of the 12 month ECL  

Net changes of lifetime ECL not credit-impaired 

Lifetime ECL credit-impaired 

Reversal of lifetime ECL credit-impaired  

Write offs 

Foreign exchange rates differences 

Impairment - loss allowance as at 31 December 2024 

2,081 

7,071 

-581 

2,796 

4,945 

-1,300 

-17,386 

124 

5,567 

-5,205 

292 

- 

-704 

-17,125 

Loans and advances at AC as at 31 December 2024 

977,942 

370,224 

Nominal of loans at FVTPL as at 1 January 2024 

1,080 

106,576 

Disbursements 

Interest capitalised 

Repayments 

Foreign exchange rates differences 

- 

- 

- 

- 

7,851 

1,675 

-3,185 

3,771 

Total 

1,593,458 

85,506 

-4,945 

-368,383 

- 

77,041 

1,382,677 

-49,597 

2,205 

12,638 

-5,786 

3,088 

4,945 

-2,004 

-34,511 

1,348,166 

178,109 

15,888 

2,243 

-3,185 

4,333 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

70,453 

8,037 

568 

- 

562 

Nominal of loans at FVTPL as at 31 December 2024 

1,080 

116,688 

79,620 

197,388 

Fair value adjustment as at 1 January 2024 

Net FV change 

Foreign exchange rates differences 

Fair value adjustment as at 31 December 2024 

Loans and advances at FVTPL as at 31 December 2024 

Amortised Cost 

Interest 

-1,080 

- 

- 

-1,080 

- 

-3,079 

10,766 

-34,983 

1,724 

-1,136 

-34,395 

82,293 

-3,681 

8,429 

-17,723 

-7,160 

-47 

-24,930 

-53,786 

-5,436 

-1,183 

-60,405 

54,690 

136,983 

- 

464 

-6,760 

19,659 

Loans and advances as at 31 December 2024 

985,629 

457,265 

55,154 

1,498,048 

* Including agency agreements 

136 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

Total 

1,800,164 

166,573 

-287,641 

-85,638 

1,593,458 

-60,402 

-379 

3,827 

5,607 

1,750 

-49,597 

1,543,861 

140,836 

40,664 

-514 

-2,877 

Annual accounts of the European Development Fund 2024 

Loans and advances (continued) 

7 
7.1  Loans and advances (continued) 

In EUR'000 

Nominal of loans at AC as at 1 January 2023 

Disbursements 

Repayments 

Foreign exchange rates differences 

Nominal of loans at AC as at 31 December 2023 

Global loans*  Senior loans 

Subordinated 
loans 

1,236,887 

154,587 

-219,739 

-73,614 

1,098,121 

563,277 

11,986 

-67,902 

-12,024 

495,337 

Impairment - loss allowance as at 1 January 2023 

-37,604 

-22,798 

Net changes of the 12 month ECL  

Net changes of lifetime ECL not credit-impaired 

Reversal of lifetime ECL credit-impaired  

Foreign exchange rates differences 

-287 

-1,060 

5,205 

1,348 

-92 

4,887 

402 

402 

Impairment - loss allowance as at 31 December 2023 

-32,398 

-17,199 

Loans and advances at AC as at 31 December 2023 

1,065,723 

478,138 

Nominal of loans at FVTPL as at 1 January 2023 

Disbursements 

Repayments 

Foreign exchange rates differences 

1,080 

- 

- 

- 

72,923 

37,092 

-514 

-2,925 

66,833 

3,572 

- 

48 

Nominal of loans at FVTPL as at 31 December 2023 

1,080 

106,576 

70,453 

178,109 

Fair value adjustment as at 1 January 2023 

Net FV change 

Foreign exchange rates differences 

Fair value adjustment as at 31 December 2023 

Loans and advances at FVTPL as at 31 December 2023 

Amortised Cost 

Interest 

-1,080 

- 

- 

-1,080 

- 

-3,518 

11,560 

-26,420 

-8,941 

378 

-34,983 

71,593 

-4,040 

10,876 

-17,732 

9 

- 

-17,723 

-45,232 

-8,932 

378 

-53,786 

52,730 

124,323 

- 

250 

-7,558 

22,686 

Loans and advances as at 31 December 2023 

1,073,765 

556,567 

52,980 

1,683,312 

* Including agency agreements 

137 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

7.2  Impairment on loans and advances – Loss allowances 

in EUR'000 

Loans and advances at AC 

Balance as at 1 January 2024 

Transfer to 12-month ECL 

Transfer to lifetime ECL not credit-impaired 

Transfer to lifetime ECL credit-impaired 

Net measurement of loss allowance 

New financial assets originated or purchased 

Financial assets that have been derecognised 

Write offs 

Foreign exchange rates differences* 

Balance as at 31 December 2024 

2024 

Lifetime ECL 

12-month ECL 

Lifetime ECL 
not credit-
impaired 

Lifetime ECL 
credit-impaired 

10,964 

2,271 

-288 

- 

-3,160 

- 

-1,028 

- 

916 

9,675 

24,674 

-9,511 

948 

-1,428 

-2,394 

- 

-253 

- 

540 

12,576 

13,959 

- 

- 

5,786 

-3,088 

- 

- 

-4,945 

548 

12,260 

2023 

Lifetime ECL 

Total 

49,597 

-7,240 

660 

4,358 

-8,642 

- 

-1,281 

-4,945 

2,004 

34,511 

in EUR'000 

Loans and advances at AC 

Balance as at 1 January 2023 

Transfer to 12-month ECL 

Transfer to lifetime ECL not credit-impaired 

Net measurement of loss allowance 

New financial assets originated or purchased 

Financial assets that have been derecognised 

Foreign exchange rates differences* 

12-month ECL 

Lifetime ECL 
not credit-
impaired 

Lifetime ECL 
credit-impaired 

Total 

11,370 

869 

-927 

-993 

1,470 

-41 

-784 

28,817 

-4,217 

3,593 

-4,333 

1,188 

-57 

-317 

20,215 

60,402 

- 

- 

-2,873 

- 

-2,734 

-649 

-3,348 

2,666 

-8,199 

2,658 

-2,832 

-1,750 

49,597 
Balance as at 31 December 2023 
*Foreign exchange movements are excluded from the amounts reported in the Statement of Profit or Loss and Other Comprehensive Income as well as the 
Statement of Changes in Contributors' Resources. 

24,674 

10,964 

13,959 

138 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

8 

Shares and other variable yield securities 

The following table show reconciliation from the opening to the closing balance of the Equity investments: 

in EUR'000 

Cost as at 1 January 2024 

Reclassification* 

Disbursements 

Repayments 

Sales / Exits 

Foreign exchange rates differences  

Cost as at 31 December 2024 

Unrealised gains and losses as at 1 January 2024 

Reclassification* 

Net change in unrealised gains and losses 

Derecognition of fair value adjustment due to Sales / Exits 

Foreign exchange rates differences 

Unrealised gains and losses as at 31 December 2024 

Venture Capital 
Funds 

Direct Equity 
Investments 

633,347 

-25,059 

69,392 

-21,181 

-22,992 

30,374 

663,881 

59,695 

-395 

-77,795 

11,202 

-771 

-8,064 

73,455 

25,059 

- 

-232 

-2,631 

-1,816 

93,835 

54,216 

395 

32,097 

2,849 

-4,588 

84,969 

Total 

706,802 

- 

69,392 

-21,413 

-25,623 

28,558 

757,716 

113,911 

- 

-45,698 

14,051 

-5,359 

76,905 

Shares and other variable yield securities as at 31 December 2024 

655,817 

178,804 

834,621 

*The Facility has changed the way an investment is classified as a VCF or as a DE, in line with newly implemented Valuation Operation 
Manual.  

in EUR'000 

Cost as at 1 January 2023 

Disbursements 

Repayments / sales 

Foreign exchange rates differences  

Cost as at 31 December 2023 

Unrealised gains and losses as at 1 January 2023 

Net change in unrealised gains and losses 

Foreign exchange rates differences 

Unrealised gains and losses as at 31 December 2023 

Venture Capital 
Funds 

Direct Equity 
Investments 

580,534 

101,100 

-32,560 

-15,727 

633,347 

104,030 

-43,652 

-683 

59,695 

81,711 

- 

- 

-8,256 

73,455 

31,066 

28,510 

-5,360 

54,216 

Total 

662,245 

101,100 

-32,560 

-23,983 

706,802 

135,096 

-15,142 

-6,043 

113,911 

Shares and other variable yield securities as at 31 December 2023 

693,042 

127,671 

820,713 

139 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

9  Amounts receivable from contributors 

The  amounts  of  EUR  7.5  million  (2023:  EUR  85.3  million)  receivable  from  contributors  are  entirely  composed  of  Member  States 
contributions called but not paid. 

10  Treasury financial assets 

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

in EUR'000 

Balance as at 1 January 2024 

Acquisitions 

Maturities 

Change in amortisation of premium/discount 

Change in accrued interest  

Balance as at 31 December 2024 

in EUR'000 
Balance as at 1 January 2023 

Acquisitions 

Maturities  

Change in amortisation of premium/discount 

Change in accrued interest  

Balance as at 31 December 2023 

11  Other assets 

The main components of other assets are as follows: 

in EUR'000 

Amount receivable from the EIB 

Financial guarantees 

Total other assets 

12  Deferred income 

The main components of deferred income are as follows: 

in EUR'000 

Deferred interest subsidies 

Deferred commissions on loans and advances 

Total deferred income 

- 
- 

- 

- 

- 

- 

73,003 

348,523 

-421,278 

-248 

- 

- 

31.12.2024 

31.12.2023 

- 

- 

- 

616 

- 

616 

31.12.2024 

31.12.2023 

46,461 

1,264 

47,725 

47,923 

1,202 

49,125 

140 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

13  Provisions for loan commitments 

The following tables show the reconciliation from the opening to the closing balance of the loss  allowance for undisbursed loans (loan 
commitments): 

in EUR'000 

Loan commitments 

Balance as at 1 January 

Transfer to 12-month ECL 

Transfer to lifetime ECL not credit-impaired 

Net measurement of loss allowance 

Financial assets that have been derecognised 

Balance as at 31 December 

12-month ECL 

Lifetime ECL not 
credit-impaired 

Lifetime ECL 
credit-impaired 

2024 

2,715 

13 

-853 

761 

-1,145 

1,491 

16,323 

-279 

15,386 

-1,330 

-13,271 

16,829 

- 

- 

- 

- 

- 

- 

in EUR'000 

Loans commitments 

Balance as at 1 January 

Transfer to lifetime ECL not credit-impaired 

Net measurement of loss allowance 

New financial assets originated or purchased 

Financial assets that have been derecognised 

Foreign exchange rates differences  

Balance as at 31 December 

14  Amounts owed to third parties  

12-month ECL 

Lifetime ECL not 
credit-impaired 

Lifetime ECL 
credit-impaired 

2023 

4,825 

-163 

466 

-1,295 

-1,120 

2 

2,715 

11,758 

1,955 

8,206 

-1,461 

-4,118 

-17 

16,323 

- 

- 

- 

- 

- 

- 

- 

Total 

19,038 

-266 

14,533 

-569 

-14,416 

18,320 

Total 

16,583 

1,792 

8,672 

-2,756 

-5,238 

-15 

19,038 

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

in EUR'000 

Net general administrative expenses payable to the EIB 

Other amounts payable to the EIB 

Interest subsidies and TA not yet disbursed owed to Member States 

Total amounts owed to third parties 

31.12.2024 

31.12.2023 

24,794 

43,260 

498,029 

566,083 

29,655 

39,384 

358,789 

427,828 

141 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

15  Other liabilities 

The main components of other liabilities are as follows: 

in EUR'000 

Loan repayments received in advance  

Deferred income from interest subsidies 

Total other liabilities 

16  Member States Contribution called (in EUR’000) 

Member States 

Austria 

Belgium 

Bulgaria 

Croatia 

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 2024 

Contribution to 
the Facility 

94,677 

138,169 

2,660 

1,126 

1,566 

9,697 

77,279 

992 

55,115 

818,754 

823,467 

50,271 

9,230 

27,921 

470,233 

1,364 

2,248 

10,395 

526 

187,913 

24,591 

39,250 

7,734 

4,231 

3,137 

250,314 

102,760 

506,075 

3,721,695 

Contribution to 
interest subsidies 
and technical 
assistance 
45,267 

26,952 

28,898 

173,578 

4,528 

3,028 

5,108 

5,141 

66,602 

196,514 

43,762 

3,672 

2,422 

18,598 

38,318 

7,630 

105,253 

1,242 

2,273 

10,236 

16,732 

12,058 

5,701 

2,293 

2,717 

28,943 

29,704 

150,826 

1,037,996 

31.12.2024 

31.12.2023 

3,289 

- 

3,289 

2,727 

611 

3,338 

Total Contributed 

Called and not 
paid* 

139,944 

165,121 

31,558 

174,704 

6,094 

12,725 

82,387 

6,133 

121,717 

1,015,268 

867,229 

53,943 

11,652 

46,519 

508,551 

8,994 

107,501 

11,637 

2,799 

198,149 

41,323 

51,308 

13,435 

6,524 

5,854 

279,257 

132,464 

656,901 

4,759,691 

216 

292 

20 

20 

- 

72 

178 

- 

136 

1,603 

1,852 

135 

- 

85 

1,128 

10 

- 

23 

3 

430 

181 

- 

65 

34 

20 

714 

265 

- 

7,482 

Total as at 31 December 2023 
85,321 
3,721,695 
*  On  14  November  2024,  the  Council  fixed  the  amount  of  financial  contributions  to  be  paid  by  each  Member  State  as  of  21  January  2025. 
As at 31 December 2024 EUR 7.5 million were not yet paid in.   

4,550,691 

828,996 

142 

 
 
 
 
Annual accounts of the European Development Fund 2024 

17  Member States Contributions paid out 

in EUR'000 

European Commission 

ACP 

OCT 

Total 

UK 

Total 

Reflows in relation to year 2021 

Reflows in relation to year 2022 

Reflows in relation to year 2023 

Member States Contributions paid out  
as at 31 December 2024 

Member States Contributions paid out  
as at 31 December 2023 

251,000 

236,883 

257,152 

7,000 

6,732 

7,154 

258,000 

243,615 

264,306 

44,386 

41,912 

45,471 

302,386 

285,527 

309,777 

745,035 

20,886 

765,921 

131,769 

897,690 

487,883 

13,732 

501,615 

86,298 

587,913 

As per the Transfer Agreement, as of year 2024 and until 31 December 2027, the Facility shall transfer annually to the EC the amount of 
available ACP IF Reflows and OCT IF Reflows. The indicative amount of the available ACP IF Reflows and OCT IF Reflows amounts to 
EUR 1,000 million and EUR 35 million respectively. In addition, the Facility shall transfer to the UK the amounts corresponding to the 
UK’s share of these available Reflows. The above table presents the Reflows already disbursed. 

18  Commitments and contingent liabilities  

in EUR'000 

Commitments 

Undisbursed loans 

Undisbursed commitment in respect of shares and other variable yield securities 

Issued guarantees 

Interest subsidies and technical assistance 

Contingent liabilities 

Signed non-issued guarantees 

31.12.2024 

31.12.2023 

676,229 

237,886 

- 

362,848 

883,092 

297,534 

985 

422,758 

2,500 

46,764 

Total commitments and contingent liabilities 

1,279,463 

1,651,133 

19 

Interest and similar income and expenses 

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

in EUR'000 

Cash and cash equivalents 

Loans and advances 

Interest subsidies 

Treasury financial assets 

Derivative financial instruments 

Total interest and similar income 

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

in EUR'000 

Derivative financial instruments 

Total interest and similar expenses 

From 01.01.2024  From 01.01.2023 

to 31.12.2024 

to 31.12.2023 

56,083 

90,034 

10,484 

- 

- 

36,668 

95,137 

10,029 

3,584 

2,918 

156,601 

148,336 

From 01.01. 2024  From 01.01. 2023 

to 31.12.2024 

to 31.12.2023 

-1,805 

-1,805 

- 

- 

143 

 
 
 
 
 
 
  
 
 
 
 
 
  
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

20  Fee and commission income and expenses  

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

in EUR'000 

Fee and commission on loans and advances 

Fee and commission on financial guarantees 

Total fee and commission income 

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

in EUR'000 

Commission paid to third parties with regard to shares and other variable yield securities 

Total fee and commission expenses 

From 01.01.2024  From 01.01.2023 

to 31.12.2024 

to 31.12.2023 

- 

20 

20 

1 

24 

25 

From 01.01.2024  From 01.01.2023 

to 31.12.2024 

to 31.12.2023 

-212 

-212 

-62 

-62 

21  Net result on shares and other variable yield securities 

The main components of the net result on shares and other variable yield securities are as follows: 

in EUR'000 

Net proceeds 

Dividend income 

Net fair value change 

Net result on shares and other variable yield securities 

22  Net foreign exchange results 

From 01.01.2024  From 01.01.2023 

to 31.12.2024 

to 31.12.2023 

-4,946 

16,548 

-45,698 

-34,096 

130 

6,555 

-15,142 

-8,457 

The main components of the net foreign exchange results are as follows: 

in EUR'000 

From 01.01.2024 
to 31.12.2024 

From 01.01.2023 
to 31.12.2023 

FX positions revaluation 

Cash and cash equivalents 

Derivative financial instruments 

Loans and advances 

Shares and other variable yield securities 

Other 

Total FX positions revaluation 

Realised results on FX swaps (cost of hedging) 

Net foreign exchange result 

23  General administrative expenses 

6,821 

-773 

78,744 

23,199 

-2,231 
105,760 

-123 

86,071 

-89,458 

-30,026 

3,479 
-30,057 

-23,853 

-37,828 

81,907 

-67,885 

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. 

As at 31 December 2024 total general administrative expense amounted to EUR -24.8 million (31 December 2023: EUR -29.7 million) 

144 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

24 

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 

Nature and purpose 

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

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

Interest held by the Facility 

Net disbursed amounts; 

Interest income. 

Venture 

capital 

operations 

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

Investments  in  units/shares  issued 

by the venture capital entity; 

Dividends 

received  as  dividend 

income. 

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

Type of structured entity 

Caption 

Venture capital funds 

Total 

Shares and other variable 
yield securities 

31.12.2024 

31.12.2023 

Carrying 
amount  

Maximum 
exposure to 
loss 

Carrying 
amount  

Maximum 
exposure to 
loss  

655,817 

667,832 

693,042 

725,781 

655,817 

667,832 

693,042 

725,781 

No support is provided to structured entities by the Facility beyond the respective financing.  

145 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

25 

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  presents  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  is  to  fund  projects  with  a  high 
developmental impact, especially in the field of support to micro and small enterprises (MSEs) and agriculture, which generally do not 
qualify for IF financing. 

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

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

The IFE also allows diversification into new sectors, such as health and education,  agriculture and food security, and the development 
of new and innovative risk-sharing instruments. In 2016, the IFE financing capacity was increased to EUR 800 million by making the IFE 
partially revolving. 

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.

146 

 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

25 

Impact financing envelope (in EUR’000) (continued) 

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

Type of IFE 
investment 

Loans to financial 
intermediaries 

Caption 

Measurement 

Loans and advances   AC 

Gross 
carrying 
amount as 
at 
31.12.2024 
59,209 

Direct loan operations  Loans and advances   FVTPL 

158,880 

Loss 
allowance / FV 
adj. amount as 
at 31.12.2024 

Carrying 
amount as 
at 
31.12.2024 

Undisburse
d amount 
as at 
31.12.2024 

OFF BS ECL 
adj. amount 
as at 
31.12.2024 

- 

- 

59,209 

5,000 

-225 

158,880 

56,669 

Social impact equity 
funds 

Direct equity 
participations 

Total 

Shares and other 
variable yield 
securities 
Shares and other 
variable yield 
securities 

FVTPL 

FVTPL 

* For details, please refer to section subsequent measurement of Note 2.4.3.  

134,595 

-1,559 

133,036 

34,686 

59,843 

61,686 

121,529 

14 

412,527 

60,127 

472,654 

96,369 

-225 

- 

- 

- 

Type of IFE 
investment 

Loans to financial 
intermediaries 

Caption 

Measurement 

Gross 
carrying 
amount as 
at 
31.12.2023 

Loss 
allowance/FV 
adj. amount as 
at  31.12.2023 

Carrying 
amount as 
at 
31.12.2023 

Undisburse
d amount 
as at 
31.12.2023 

OFF BS ECL 
adj. amount 
as at 
31.12.2023 

Loans and advances   AC 

73,423 

-1,522 

71,901 

7,749 

-334 

Direct loan operations  Loans and advances   FVTPL 

152,155 

-58,759 

93,396 

68,288 

Social impact equity 
funds 

Direct equity 
participations 

Risk sharing 
facilitating instruments 

Shares and other 
variable yield 
securities 
Shares and other 
variable yield 
securities 
Issued guarantees 

FVTPL 

FVTPL 

110,572 

9,936 

120,508 

58,572 

58,889 

41,490 

100,379 

14 

higher of approach* 

- 

- 

- 

44,264 

- 

- 

- 

- 

Total 

395,039 

-8,855 

386,184 

178,887 

-334 

* For details, please refer to section subsequent measurement of Note 2.4.3.  

The EIB is applying the General Mandate Risk Principles to IFE direct loan operations (excluding Loans to financial intermediaries), as envisaged in 
the EIB’s Credit and Equity Risk Guidelines, and to monitor and report the risk associated with the IFE direct loan operations on the basis of their 
fair  value.  According  to  the  methodology,  the  Bank  performs  a  Qualitative  Risk  Assessment  (QRA)  aiming  to  assess  the  soundness  of  the 
investment rationale and plausible business viability of such operations.  

147 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual accounts of the European Development Fund 2024 

26  Related party disclosures 

The  Facility  has  identified  EIB  as  a  related  party  in  the  context  of  IAS  24,  as  EIB  has  been  mandated  by  the  EU  Member  States  to 
manage the Facility in accordance with the provisions of the applicable legal framework, including the monitoring of its operations until 
full reimbursement and provides key management personnel services (EIB Management Committee and EIB Audit Committee). In this 
regard, EIB is entitled to recover its actual costs incurred for managing the Facility less income generated from standard appraisal fees 
directly charged by the EIB to clients of the Facility. For more details on the remuneration please refer to the Note 23. 

27  Subsequent events 

In the context of the current geopolitical and economic environment, the Entity continues to monitor the situation closely notably as part 
of the subsequent event review.  

There  have  been  no  material  events  after  the  balance  sheet  date  that  would  require  adjustment  of,  or  disclosure  in,  the  financial 
statements as at 31 December 2024.  

148