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ADF LONG TERM FINANCIAL INTEGRITY & ADF LONG TERM FINANCIAL INTEGRITY &
ADFADF--12 Financing Framework12 Financing Framework
Hassatou N’Sele, ManagerCapital Markets and Financial Operations
ADFADF--1212
2222--23 February23 February
Cape TownCape Town
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Components of ADF Resources
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1 Subscriptions
2 Advance Commitment Capacity
3 Financing Scenarios
ADF Long Term Financial Integrity & ADF Long Term Financial Integrity &
ADFADF--12 Financing Framework12 Financing Framework
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Replenishment Exchange Rates
Reference period for determining exchange rates for ADF-12 : 1 Dec 2009 - 31 May 2010
Payment currencies
Donors may pay their ADF subscriptions in SDR, in any of the currencies used for SDR valuation, or in their own currency
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Payment of Subscriptions
3 equal annual installmentsFrequency
15 January instead of 30 AprilDate
Better management of Commitment Capacity in case of front-loading
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Encashment of ADF-12 Subscriptions
•10-year encashment period similar to ADF-11
•Increased level of encashment during the first five years
Year Percentage
2011 5.03%
2012 10.34%
2013 14.76%
2014 15.7%
2015 12.98%
2016 11.17%
2017 10.14%
2018 9.13%
2019 8.33%
2020 3.04%
Standard Encashment Schedule Accelerated Encashment Schedule
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•Returns on investment
•Loan income and repayments
•Compensation under MDRI
•Loan cancellations
•Transfers from ADB and HIPC
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Liquidity at the beginning of the year
End of year liquidity > Liquidity thresholdACC
•Loan disbursements
•Administrative expenses
Advance Commitment Authority
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77
Impact of factors external to ADF on the ACC
1.42
1.81
2.06
CEA en milliards d'UC
ADF-11 level
Decline in liquidity from 2007 to 2009
Decline in interest rates
-252
-395
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Impact of factors under Bank control
+200
+252
Loan cancellations
+31
Transfers to ADF (ADB, FSF and Zimbabwe)
Early utilization of the yield curve
5% decrease in the projection factor for non-
performing loans
-137
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Advance commitment capacity
Level of MDRI compensation received at the end of ADF-12 consultations will be used to determine the final ACC
(in UA million)
+72%-16%
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Resources carried over from previous replenishments
Source of carry-overs
�Qualified subscriptions
�Late subscriptions
�Late payments
Carry-over from previous
replenishments
ADF-10 UA 359 million
ADF-11 UA 294 million
ADF-12 UA 343 million
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(in million UA)
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ADF resources under strong pressure
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Significant efforts
required from Bank
Group and Donors
to enable the Fund
to deliver on its
mandate
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ADF-12 Indicative Financing Framework
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Upper-case scenario (70%)
ADF-11
Baselinescenario for ADF-12
Central case scenario (50%)
(in UA million)
= 5625
= 5878
= 8438
= 9563
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Prospective pipeline for each scenario
Baseline scenario
47% of total
63% national
28% multinational
50% Increase
68% du total
90% national
40% multinational
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70% Increase
77% du total
102% national
45% multinational
336 projects for UA 12billion
7 billion national
5 billion multinational
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Deputies are invited to approve :
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� 1 December 2009 to 31 May 2010
or 1 February 2010 to 31 July 2010,
depending on the completion date of ADF-
12 consultations
� 15 January of each year
� Standard encashment calendar
� CIRR as of 15 April 2010, for credits up to 5
years less 100 bps
� Financial parameters