Abstract
The International Monetary Fund (IMF) approved on February 8, 2023 the applications of the Caribbean Development Bank (CDB), the Development Bank of Latin America (known as Corporacion Andina de Fomento or CAF), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the Inter-American Development Bank (IADB) to become prescribed holders of Special Drawings Rights (SDRs). The SDR is an international reserve asset created by the IMF to supplement the reserves of IMF members that participate in the SDR Department. The IMF’s Articles of Agreement authorize the IMF to prescribe (i.e., approve) as holders of SDRs (i) non-members, (ii) members that are not participants in the SDR Department; (iii) institutions that perform functions of a central bank for one or more IMF member countries, and (iv) other official entities (which all five entities approved on February 8 are). Prescribed holders may acquire, hold and use SDRs in transactions by agreement and in operations. Approval of these five institutions brings the number of prescribed holders to twenty.
Introduction
1. The Special Drawing Right (SDR) is an international reserve asset created to supplement the reserve assets of IMF members. SDRs are generally allocated to IMF members participating in the SDR Department in proportion to their IMF quotas to meet a long-term global need to supplement existing reserve assets.1 Pursuant to Article XVII of the Articles of Agreement, SDRs can be held only by the official sector: Fund members that are participants in the SDR Department (currently all Fund members), the Fund itself (through the General Resource Account, GRA), and other official entities referred to as “prescribed holders.” Prescription (i.e., approval) of such official entities as holders of SDRs requires an Executive Board decision adopted by an 85 percent majority of the total voting power.
2. The Fund has so far prescribed 15 official institutions as holders of SDRs (Box 1). The prescribed holders are four central banks (Bank of Central African States, Central Bank of West African States, Eastern Caribbean Central Bank, and European Central Bank); three intergovernmental monetary institutions (Bank for International Settlements, Latin American Reserve Fund, and Arab Monetary Fund); and eight multilateral financial institutions (African Development Bank, African Development Fund, Asian Development Bank, International Bank for Reconstruction and Development, the International Development Association, International Fund for Agricultural Development, Islamic Development Bank, and Nordic Investment Bank).
3. Mos t prescribed holders were approved in the 1980s (Box 1).2 In the early stages of development of the SDR market, the Fund reached out to some institutions to inquire about their interest in becoming holders of SDRs under Article XVII and subsequently several of them applied. The last application for prescribed holder status was received from the European Central Bank (ECB) following the adoption of the Euro and was approved by the Executive Board in 2000.3
4. Following the 2021 general SDR allocation, several institutions have explored the possibility of becoming prescribed holders of SDRs. The historic SDR allocation, which nearly tripled total allocated SDRs to SDR 660.7 billion, prompted renewed interest among institutions to become prescribed holders and thus be able to receive and use SDRs in transactions and operations.4
5. This paper presents for Executive Board consideration the applications by five official entities to become prescribed holders of SDRs. The five institutions are: the Caribbean Development Bank (CDB), the Development Bank of Latin America (known as Corporacion Andina de Fomento or CAF), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the Inter -American Development Bank (IADB). Staff assesses that all five institutions are eligible under Article XVII, Section 3 (i) of the Articles of Agreement and staff supports their application.
6. The paper is organized as follows. The next section covers the legal framework and requirements for becoming a prescribed holder, as well as the terms for using SDRs. The section that follows discusses the operational experience with existing prescribed holders of SDRs, followed by a section that discusses the eligibility of the applicants and potential implications for the SDR Department of adding the applicants as new prescribed holders. The last section presents the staff’s proposal to prescribe the applicants as holders of SDRs and the proposed decisions.
Legal Framework for Becoming a Prescribed Holder
7. SDR Department and participants. Under the Articles of Agreement, the SDR Department is an entity separate from the General Department as well as trusts and resources administered by the IMF under Article V, Section 2(b). Participation of IMF members in the SDR Department is not mandatory as a condition of Fund membership, but all current Fund members are also participants in the SDR Department. The SDR Department keeps records of SDR allocations to participants and holdings of SDRs by participants and prescribed holders. It is also the entity through which all transactions and operations involving SDRs are conducted and recorded.
8. Qualification criteria for prescribed holders. Under Article XVII, Section 3 (i) of the Articles of Agreement, the Fund ha s broad authority to prescribe certain official entities as holders of SDRs, namely: non-members, members that are not participants, institutions that perform functions of a central bank for one or more than one member, and other official entities.
9. Terms and conditions to hold and use SDRs. In addition to prescribing an entity to hold and transact in SDRs, the Executive Board, pursuant to Article XVII, Section 3(iii), established in 1980 the terms and conditions under which the entity may accept, hold, and use SDRs (See Annex I). Since then, these standard terms and conditions have applied to all prescribed holders and their activities in the SDR Department.
10. Approval process for prescribed holders. When an application for prescription has been received by the Fund, staff performs basic due diligence to determine whether the requirements for prescription are or could be met. Staff also ascertains the applicant’s willingness to accept the standard terms and conditions established by the Executive Board for prescription. If such initial assessment is positive, staff conducts outreach with the Executive Board to determine whether there would be broad support for the application. This is necessary given that approval of the application requires a decision adopted by an 85 percent of the Executive Board’s total voting power. If there appears to be broad support, the application is brought to the Executive Board for its consideration.
11. Prescribed operations and transactions. Prescribed holders may acquire and use SDRs in prescribed operations with participants and other holders. They may elect to take part in the SDR Department’s voluntary trading arrangements (VTA).5 However, unlike participants in the SDR Department, they do not receive allocations of SDRs, may not request an exchange of SDRs in transactions with designation, and may not initiate transactions with the General Resources Account. Under current decisions, the permitted prescribed operations include the use of SDRs in settlement of financial obligations, loans, pledges, transfers as security for the performance of financial obligations, swap operations, forward operations, and donations.
12. Termination of prescribed holder’s status. A prescribed holder’s status ends either with (i) a Board decision terminating such status (with majority of the votes cast) or (ii) the Fund receiving written notice from the prescribed holder seeking to terminate it status.6
Experience with Existing Prescribed Holders
13. Use of SDRs by existing prescribed holders has generally been limited. Since the creation of the SDR Department, total transactions by prescribed holders amount to about SDR 16 billion or approximately 8 percent of total transactions in the SDR Department by volume, and 14 percent by number of transactions. Transaction volumes within the three categories of prescribed holders are as follows: (i) regional central banks (SDR 6.6 billion); (ii) intergovernmental monetary institutions (SDR 8.5 billion), and (iii) development institutions (SDR 0.6 billion). As of November 30, 2022, six of the fifteen prescribed holders hold SDRs.
14. Most of the transactions of prescribed holders have been between regional central banks or intergovernmental monetary institutions and their member states for the settlement of financial obligations and other transactions. Operations by these entities consist mostly of exchanges of SDRs for freely usable currencies through bilateral transactions by agreements or through the VTAs. In addition, the BIS, as the most active prescribed holder, plays an important role in conducting sales on behalf of the trusts and administered accounts that the Fund administers, including to facilitate the disbursement of loans in currencies funded with resources in SDRs.
IMF Prescribed Holders and Year of Approval of Prescribed Holder Status
| Central banks (4) | |
| European Central Bank ( ECB) | November 15, 2000 |
| Bank of Central African States (BEAC) | February 26, 1982 |
| Central Bank of West African States (BCEAO) | June 29, 1981 |
| Eastern Caribbean Central Bank (ECCB) | May 17, 1984 |
| Intergovernmental monetary institutions (3) | |
| Bank for International Settlements (BIS) | January 21, 1974 |
| Latin American Reserve Fund (FLAR) – Former | |
| Andean Reserve Fund | April 18, 1980 |
| Arab Monetary Fund (AMF) | August 26, 1980 |
| Development and other multilateral institutions (8) | |
| African Development Bank (AFDB) | June 25, 1986 |
| African Development Fund (A FDF) | June 25, 1986 |
| Asian Development Bank (ADB) | October 15, 1982 |
| International Bank for Reconstruction and | |
| Development (IBRD) | December 23, 1980 |
| International Development Association (IDA) | December 23, 1980 |
| Islamic Development Bank | April 5, 1982 |
| Nordic Investment Bank | April 18, 1980 |
| International Fund for Agricultural Development | April 18, 1980 |
| Central banks (4) | |
| European Central Bank ( ECB) | November 15, 2000 |
| Bank of Central African States (BEAC) | February 26, 1982 |
| Central Bank of West African States (BCEAO) | June 29, 1981 |
| Eastern Caribbean Central Bank (ECCB) | May 17, 1984 |
| Intergovernmental monetary institutions (3) | |
| Bank for International Settlements (BIS) | January 21, 1974 |
| Latin American Reserve Fund (FLAR) – Former | |
| Andean Reserve Fund | April 18, 1980 |
| Arab Monetary Fund (AMF) | August 26, 1980 |
| Development and other multilateral institutions (8) | |
| African Development Bank (AFDB) | June 25, 1986 |
| African Development Fund (A FDF) | June 25, 1986 |
| Asian Development Bank (ADB) | October 15, 1982 |
| International Bank for Reconstruction and | |
| Development (IBRD) | December 23, 1980 |
| International Development Association (IDA) | December 23, 1980 |
| Islamic Development Bank | April 5, 1982 |
| Nordic Investment Bank | April 18, 1980 |
| International Fund for Agricultural Development | April 18, 1980 |
15. Use of SDRs by multilateral development banks (MDBs) and other multilateral financial institutions has been more sporadic. Most of the transactions by these (non-monetary) institutions are also related to exchange of SDRs for currency by bilateral agreement or through VTAs or the settlement of financial obligations. Of the eight multilateral financial institutions, four have made SDR transactions since becoming prescribed holders.
Assessment of the Eligibility of the Applicants and Implications of their Prescription as SDE Holders
16. The five institutions whose applications are presented to the Board in this paper are well-established official institutions in good standing (see Annex II). 7 Their sovereign shareholders are mostly Fund member s and participants in the SDR Department.8 The institutions have established track records in the provision of development financing and have operations that are similar to other existing prescribed holders. Further, the Fund engages regularly with these five institutions as part of its operational activities, including in the context of ascertaining financing assurances for Fund-supported programs. The institutions are adequately funded, with robust capital structures, and strong credit ratings affirming sound financial credentials. All applicants had technical discussions with staff on the SDR and related operations. Some have been exploring possible vehicles for SDR channeling to leverage their development financing operations and, based on discussions with staff, the potential participation in SDRs channeling is among the motivations for requesting prescription as holders of the SDR.
17. The five new applicants meet the criteria to become prescribed holders. Based on staff’s assessment, these applications are eligible to be prescribed as holders of SDRs in accordance with Article XVII, Section 3 (i) of the Articles of Agreement. All applicants understand and accept that their SDR operations have to conform with the terms and conditions of prescription for SDR operations.
18. In the view of staff, the prescription of these institutions would be in line with the effective functioning of the SDR Department:
Benefits for SDR Department participants. Prescription of the applicants would enlarge the choices of members to use their SDRs, including settling financial obligations and potentially channeling SDRs to them, there by increasing the attractiveness of the SDR as a reserve asset.
Impact on SDR transactions volume. Based on the experience with existing prescribed holders, the prescription of new holders of SDRs is likely to res ult in a modest increase in SDR transactions and related operating costs in the near future. If new prescribed holders get SDRs through settlement of financial obligations by their members (or through channeling, in the future), they could choose to hold the SDRs on their balance sheets or exchange them for currencies in direct exchanges with their members or in the VTA market.
Impact on the VTA market. The impact is likely to be limited in the near term as the applicants would be expected to operate only occasionally in the market. At this point, there is no indication that any of the applicants would become VTA members. The prescription of the applicants as holders of SDRs would not impose any duty on them to acquire SDRs. This, together with the fact that prescribed holders would have no initial holdings of SDRs, makes it difficult for them to become VTA members at the outset. In the longer term, the extent of participation by prescribed holders and impact on the VTA market (and on IMF trusts) would depend on the development of potential SDR channeling options. If such channeling materializes, an expectation could be established that members channeling SDRs to development financing institutions stand ready to exchange freely usable currencies for SDRs in the VTA market. Such an expectation already exists for members channeling SDRs into the PRGT and Resilience and Sustainability Trust (RST). Prescribed holders could also be encouraged to become VTA members if they are expected to maintain sizeable SDR holdings. Participation of any new prescribed holders in the VTA market would be established through an agreement.
19. Potential enterprise risks associated with the approval of the current applications for prescribed holder status are low overall. These risks are as follows:
Operational risk. The nature of financial transactions to be executed by the applicants are expected to be similar to those of existing prescribed holders and would not materially increase operational risk in the near term. On boarding of the new holders and their integration in the Fund’s operating systems would also be relatively straightforward. Over time, operational risks could rise if transactions increase substantially, including from potential channeling of SDRs to prescribed holders. Close monitoring of developments and adequate administrative resources to support financial operations would mitigate these risks.
Financial and reputational risk. Financial and reputational risks to the Fund from prescribing the applicants as holders of SDRs appear low given their characteristics, mandate, and track record, and the expected range and volume of their SDR operations in the near term. Non-prescription could raise questions of evenhanded treatment with similar institutions that are already prescribed holders. Some financial risks could arise over time if substantial amounts of SDRs are channeled to new and existing prescribed holders and these hold on to the SDRs, as this could have a detrimental effect on the liquidity of the VTA market. These risks could be mitigated by encouraging prescribed holders with large SDRs holdings to become VTA members.
Staff Recommendation
20. Staff recommends the approval of the five applications. The applicants are all official entities and have indicated that they accept the standard terms and conditions of prescription. Moreover, the prescription of the five applicants as other holders of SDRs would enhance the attractiveness of the SDR as a reserve asset and be consistent with the effective functioning of the SDR Department. Staff therefore proposes that the Executive Board prescribe these entities as holders of SDRs. Pursuant to Article XVII, Section 3(i), the prescription of any holder of SDRs requires an Executive Board decision adopted by an 85 percent of the total voting power.
Annex I. Terms and Conditions for Acceptance, Holding, and Use of Special Drawing Rights by Other Holders
The terms and conditions on which other holders prescribed by the Fund may accept, hold, or use SDRs are described under Decision No. 6467-(80/71), April 14, 1980:
1. Acceptance, Holding, and Use by Prescribed Holders
(a) Acceptance and use
A prescribed holder may accept or use special drawing rights (i) in exchange for an equivalent amount of a monetary asset other than gold in a transaction entered into by agreement with a participant, or another prescribed holder, or (ii) in an operation entered into by agreement with a participant or another prescribed holder in accordance with and on the same terms and conditions established at that time for participants by decisions of the. Fund under Article XIX, Section 2(c).
(b) Holding
A prescribed holder may hold special drawing rights, subject to the provisions of this decision, accepted in accordance with (a) above or received as interest paid on its holdings of special drawing rights in accordance with Article XX, Section 1.
2. Acceptance and Use by Participants in Transactions and Operations with Prescribed Holders
Participants may enter into transactions and operations by agreement with a prescribed holder in accordance with the prescriptions in paragraph 1(a) of this decision.
3. Application of General Provisions
The holding of special drawing rights and the acceptance and use of them in transactions and operations by a prescribed holder shall be governed by the provisions of the Articles, By-Laws, Rules and Regulations, and decisions of the Fund that apply from time to time to all holders of special drawing rights.
4. Exchange Rates
The Rules and Regulations and decisions of the Fund that determine the exchange rates applicable at the time of each use or acceptance of special drawing rights by a participant shall apply to each use or acceptance of them by a prescribed holder. A prescribed holder shall not levy any charge or commission in respect of a transaction involving special drawing rights.
5. Information and Recording
The Fund shall inform prescribed holders of matters relevant to the acceptance, holding, and use of special drawing rights by them. A prescribed holder shall inform the Fund promptly of the facts necessary to record any transactions or operations in which a prescribed holder accepts or uses special drawing rights.
6. Consultation and Review
(a) Consultation between the Fund and a prescribed holder shall be held at the request of the Fund or the prescribed holder with respect to the application of this decision or the decision prescribing the holder or with respect to transactions or operations entered into involving special drawing rights.
(b) The Executive Board shall review periodically this decision and decisions prescribing holders.
7. General Undertaking
Each prescribed holder shall collaborate with the Fund, participants, and other prescribed holders with respect to its acceptance, holding, and use of special drawing rights in order to facilitate the effective functioning of the Special Drawing Rights Department and the proper use of special drawing rights in accordance with the Articles and the terms and conditions prescribed by the Fund now or in the future for the acceptance, holding, and use of special drawing rights by prescribed holders.
8. Suspension
During any period in which a suspension is in effect under Article XXIII, Section 1 with respect to participants, the suspension shall apply to the same extent to prescribed holders.
9. Termination
(a) The prescription of a holder of special drawing rights may be terminated by the Fund by a decision of the Executive Board or by a notice from the prescribed holder in writing to the Fund at its principal office. Termination shall become effective on the date specified in the decision of the Executive Board but not earlier than the date of the decision, or when notice from the prescribed holder is received by the Fund at its principal office.
(b) A prescribed holder whose status as such has been terminated may continue to hold the special drawing rights it held on termination and to receive special drawing rights as interest on its holdings and may continue to use special drawing rights to dispose of them in transactions or operations in accordance with paragraph 1(a) above. A prescribed holder whose status has been terminated shall make arrangements, with the concurrence of the Fund, to dispose of its holdings of special drawing rights as expeditiously as possible and shall exchange special drawing rights for a freely usable currency selected by the prescribed holder when requested by the Fund.
Annex II. Summary Information on the Applicants
A. European Bank for Reconstruction and Development (EBRD)
The letter of application (see Annex III.A) indicates that the EBRD wishes to be authorized to receive and use SDRs in accordance with the terms and conditions governing the acceptance, holding, and use of SDRs by holders generally.
Membership
The EBRD is owned by 71 countries from five continents, as well as the European Union and the European Investment Bank. These shareholders have each made a capital contribution, which forms the core source of funding (see Annex III.A).
The ERBD has its headquarters in London.
Establishment and Functions
Establishment:
The EBRD was established in 1991 to help build a new, post-Cold War era in Central and Eastern Europe. The Bank’s governing constituent document is the Agreement Establishing the European Bank for Reconstruction and Development. The EBRD is committed to furthering progress towards market-oriented economies and the promotion of private and entrepreneurial initiative.
Functions:
Since its inception, the Bank has invested over EUR 180 billion in a total of more than 6,500 projects in its countries of operations to support the systemic change that promotes this transition and private sector development. The E BRD invests in economies across three continents, including Central Asia, Europe and Baltic States, and Mediterranean countries.
The Bank engages primarily in Banking and Treasury activities. Banking activities represent investments in projects that, in accordance with the Agreement Establishing the European Bank for Reconstruction and Development, are made for the purpose of assisting the economies in which the Bank invests in their transition to open, market economies whilst fostering sustainable and inclusive growth and applying sound banking principles. The main investment products are loans, share investments and guarantees.
Treasury activities include raising debt finance, investing surplus liquidity, managing the Bank’s foreign exchange and interest rate risks and assisting clients in asset and liability management.
Financial Structure
Share capital:
As of the end of 2021, the Bank’s authorized share capital is EUR 30.0 billion, of which subscribed capital amounts to EUR 29.8 billion. Of the subscribed amount, paid-in capital constitutes EUR 6.2 billion.
Credit rating:
The EBRD’s credit rating is AAA/Aaa/AAA (stable) credit rating. See https://www.ebrd.com/work-with-us/capital-markets/investor-information.html
Balance sheet information:
The balance sheet information (Annex III.A) was excerpted from EBRD’ Annual Report. The full document can be accessed via www.ebrd.com.
B. Inter-American Development Bank (IADB)
The letter of application (see Annex III.B) indicates that the IADB wishes to be authorized to receive and use SDRs in accordance with the terms and conditions governing the acceptance, holding, and use of SDRs by holders generally.
Membership
Currently, 48 countries are members of the IADB and own entirely its capital stock (see Annex III. B).
The IADB has its headquarters in Washington D.C.
Establishment and Functions
Establishment:
The IADB was established in 1959 to contribute to the acceleration of the process of economic and social development in Latin America and the Caribbean.
Functions:
The IADB’s principal activities are providing loans, credit guarantees, and technical assistance to support development projects in its 48 developing member countries. Since its founding, it has approved more than USD 333 billion in loans for projects in key sectors such as transportation, energy, education, health, and water and sanitation, with an emphasis on poverty reduction.
Financial Structure
Share capital:
Shareholders’ support for the Bank is reflected in the capital backing it has received from its members. At December 31, 2021, subscribed capital stock, net of subscriptions receivable, was USD 170.9 billion, of which USD 6 billion is paid-in, USD 5.8 billion is additional paid-in capital, and USD 164.9 billion is callable.
Credit rating:
The Bank is rated AAA/Stable/A-1+ by Standard & Poor’s, Aaa/Stable/P1 by Moody’s Investor Services and AAA/Stable/F1+ by Fitch Ratings. https://www.iadb.org/en/investors/investors
Balance sheet information:
The balance sheet information (Annex III.B) was excerpted from IADB’s Annual Report. The full document can be accessed via IADB’s website: www.iadb.org.
C. Development Bank of Latin America (known as Corporacion Andina de Fomento or CAF)
The letter of application (Annex III.C) indicates that the CAF wishes to be authorized to receive and use SDRs in accordance with the terms and conditions governing the acceptance, holding, and use of SDRs by holders generally.
Membership
CAF current membership includes 20 shareholder countries in Latin America, the Caribbean, Spain and Portugal, as well as 13 private banks (see Annex III.C).
CAF’s official headquarters are located in Caracas, Venezuela.
Establishment and Functions
Establishment:
The CAF was established in 1968 pursuant to the Agreement establishing Corporación Andina de Fomento for the purpose of seeking to foster and promote economic development within Latin America and the Caribbean. CAF may operate under the trade name “Development Bank of Latin America” (Banco de Desarrollo de América Latina). CAF is a multilateral financial institution, created and operating under international public law.
Functions:
CAF offers financial and related services to the governments of, and public and private institutions, corporations and joint ventures operating in, its shareholder countries. Primarily, CAF provides short, medium, and long-term loans and guarantees. To a lesser extent, CAF also participates as a limited equity investor in corporations and investment funds and provides technical and financial assistance, as well as administrative services for certain regional funds.
CAF promotes a sustainable development model through credit, non-refundable resources, and support in the technical and financial structuring of projects in the public and private sectors of Latin America. CAF offers financial and related services to the governments of its stockholder countries, as well as their public and private institutions, corporations and joint ventures.
CAF’s principal activity is to provide short, medium and long-term loans to finance projects, working capital, trade activities and to undertake feasibility studies for investment opportunities in stock hold er countries. Furthermore, CAF manages and supervises third-party cooperation funds owned and sponsored by other countries and organizations, destined to finance programs agreed upon with donor countries and organizations which are in line with CAF’s policies and strategies.
Financial Structure
Share capital:
The current authorized capital of CAF is USD 25 billion. The subscribed capital of CAF as of December 31, 2021 amounted to USD 7.7 billion of which USD 1.6 billion is callable capital shares, distributed among Series “A”, “B” and “C” shares. In December 2021, CAF’s Board of Directors approved a USD 7 billion capital increase, the largest in CAF’s history. This decision was ratified during the CAF’s Shareholders Assembly meeting in March 2022.
Series “A” shares may be owned only by the Member Countries. Series “B” shares are currently owned by the Member Countries and are held by the governments either directly or through designated governmental entities, except for certain Series “B” shares constituting approximately 0.03 percent of outstanding shares, which are owned by 13 private sector financial institutions in the Member Countries. Series “C” shares are currently owned by eight associated shareholder countries: Barbados, Chile, Costa Rica, Dominican Republic, Jamaica, Mexico, Portugal and Spain.
Credit rating:
On June 17, 2022, Standard and Poor’s (S&P Global) raised its long-term credit rating for CAF fr om AA- to A+ with positive outlook, as well as its short-term credit rating from A-1 to A-1+. Other ratings are as follows:
In January 2022, Fitch Ratings revised the Outlook on CAF’s Long-Term Issuer Default Rating (IDR) to Positive from Stable and affirmed the IDR at ‘A+’ Fitch Ratings A+.
In September 2022, Japan Credit Rating Agency upgraded CAF’s rating to AA+ from AA.
Moody’s Investor Service rates CAF in Aa3 (See credit ratings | CAF).
Balance sheet information:
The balance sheet information (Annex III.C) was excerpted from CAF’s Annual Report. The full document can be accessed via CAF’s website: https://www.caf.com/media/3682179/caf-annual-ingles31–12-2021conelinformedelosauditoresindependientes.pdf
D. European Investment Bank (EIB).
The letter of application (Annex III.D) indicates that the EIB wishes to be authorized to receive and use SDRs in accordance with the terms and conditions governing the acceptance, holding, and use of SDRs by holders generally.
Membership
The members of the European Investment Bank are the 27 Member States of the European Union (see Annex III.D).
The EIB is headquartered in Luxembourg.
Establishment and Functions
Establishment:
The EIB was established in 1958. The EIB performs its functions and carries out its activities in accordance with the provisions of the EU Treaties and of its Statute.
Functions:
The EIB is a Multilateral Development Bank.
The task of the EIB, as set out in Article 309 of the Treaty on the Functioning of the European Union (TFEU), is “to contribute, by having recourse to the capital market and utilizing its own resources, to the balanced and steady development of the internal market in the interest of the Union.”
The EIB works closely with other EU institutions to foster European integration, promote the development of the EU,
and support EU policies, including development cooperation policy, with operations in over 160 countries around the world.
The TFEU further specifies the ElB’s tasks. In particular, Article 175 of the TFEU provides that the EIB shall contribute to the promotion of economic, social and territorial cohesion in the Union and Article 209 of the TFEU provides that the EIB shall support the implementation of measures outside the EU which support the development cooperation policy of the Union. The role of the EIB is also referenced in the Protocol No 28 on Economic, Social and Territorial Cohesion, annexed to the Treaties.
The EIB is the European Union’s long-term lending institution, and as such provides finance and expertise for economically, technically, financially and environmentally sound investment projects in Europe and beyond, which contribute to EU policy objectives and priorities.
Financial Structure
Share capital:
The Bank’s membership comprises the EU Member States. The subscribed capital for each Member State is laid down in Article 4 of the EIB Statute, which is annexed as Protocol No 5 to the EU Treaties.
Subscriptions are denominated in absolute euro a mounts. The total subscribed capital of the EIB amounts to EUR 248.8 billion (as of 31 December 2021). The subscribed capital is composed of callable and paid-in capital.
Credit rating:
The EIB’s credit rating is AAA rating (see credit rating EIB).
Balance sheet information:
The balance sheet information (Annex III.D) was excerpted from EIB’s Annual Report. These documents may be accessed via EIB’s website. https://www.eib.org/en/publications/financial-report-2021
E . Caribbean Development Bank (CDB)
The letter of application (see Annex III.E) indicates that the CDB wishes to be authorized to receive and use SDRs in accordance with the terms and conditions governing the acceptance, holding, and use of SDRs by holders generally.
Membership
CDB has a total of 28 member countries, including 19 regional borrowing members, 4 regional non-borrowing members, and 5 non-regional, non-borrowing members (see Annex III.E).
The Bank is located in St. Michael, Barbados.
Establishment and Functions
Establishment:
The CDB was established by an Agreement signed in Kingston, Jamaica, on October 18, 1969, and entered into force on January 26, 1970.
Functions:
Article 1 of CDB’s Charter states that the purpose of CDB is to contribute to the harmonious economic growth and development of the 28 member countries in the Caribbean and to promote economic co-operation and integration among them, having special and urgent regard for the needs of the less developed members of the region.
The CDB’s principal activities are providing loans, guarantees, investments, borrowing programs, technical assistance, and policy advice to support its member countries’ strategic, economic, social and developmental goals and initiatives.
Since its founding, it has approved approximately USD 5.6 billion in loans for projects in key sectors such as agriculture and rural development; manufacturing and industry; power, energy, water and sanitation; social infrastructure and services; and environmental sustainability and disaster reduction.
Financial Structure
Share capital:
The Bank’s capital stock is divided into paid-in shares and callable shares. Payment of the amount subscribed to the callable capital is subject to call by the Bank to meet its obligations as and when required by the Bank subject to certain conditions. Payment for paid-in shares subscribed by its members is made over six annual instalments.
At the fortieth meeting of the Board of Governors in May 2010, a general capital increase of 150 percent was approved. The Bank’s capital as at December 31 2021 was as follows: subscribed capital USD 1.8 billion, callable capital USD 1.4 billion.
Credit rating:
The Bank is rated AA+/Stable/A-l+ by Standard & Poor’s, Aal Stable by Moody’s Investor Services and AA+/Stable/F1+ by Fitch Ratings. https://www.caribank.org/about-us/investors
Balance sheet information:
The balance sheet information (Annex III.E) was excerpted from CDB’s Annual Report. These documents may be accessed via CDB’s website. https://www.caribank.org/publications-and-resources/resource-library/annual-reports
Annex III. Letters Submitted by Applicants
Annex III.A
Listing of Members
| Member | Date joined | Capital subscription (€ 000) |
| Albania | 18 Dec 1991 | 30,010 |
| Algeria | 19 Oct 2021 | 2,030 |
| Armenia | 7 Dec 1992 | 14,990 |
| Australia | 30 Mar 1991 | 300,140 |
| Austria | 28 Mar 1991 | 684,320 |
| Azerbaijan | 25 Sep 1992 | 30,010 |
| Belarus | 10 Jun 1992 | 60,020 |
| Belgium | 10 Apr 1991 | 684,320 |
| Bosnia and Herzegovina | 17 Jun 1996 | 50,710 |
| Bulgaria | 28 Mar 1991 | 237,110 |
| Canada | 28 Mar 1991 | 1,020,490 |
| China | 15 Jan 2016 | 29,000 |
| Croatia | 15 Apr 1993 | 109,420 |
| Cyprus | 28 Mar 1991 | 30,010 |
| Czech Republic | 1 Jan 1993 | 256,110 |
| Denmark | 28 Mar 1991 | 360,170 |
| Egypt | 28 Mar 1991 | 21,010 |
| Estonia | 28 Feb 1992 | 30,010 |
| European Investment Bank | 28 Mar 1991 | 900,440 |
| European Union | 28 Mar 1991 | 900,440 |
| Finland | 28 Mar 1991 | 375,180 |
| France | 28 Mar 1991 | 2,556,510 |
| Georgia | 4 Sep 1992 | 30,010 |
| Germany | 28 Mar 1991 | 2,556,510 |
| Greece | 29 Mar 1991 | 195,080 |
| Hungary | 28 Mar 1991 | 237,110 |
| Iceland | 29 May 1991 | 30,010 |
| India | 11 July 2018 | 9,860 |
| Ireland | 28 Mar 1991 | 90,040 |
| Israel | 28 Mar 1991 | 195,080 |
| Italy | 28 Mar 1991 | 2,556,510 |
| Japan | 2 Apr 1991 | 2,556,510 |
| Jordan | 29 Dec 2011 | 9,860 |
| Kazakhstan | 27 Jul 1992 | 69,020 |
| Korea, Republic of | 28 Mar 1991 | 300,140 |
| Kosovo | 17 Dec 2012 | 5,800 |
| Kyrgyz Republic | 5 Jun 1992 | 21,010 |
| Latvia | 18 Mar 1992 | 30,010 |
| Lebanon | 17 Jul 2017 | 9,860 |
| Libya | 16 July 2019 | 9,860 |
| Liechtenstein | 28 Mar 1991 | 5,990 |
| Lithuania | 5 Mar 1992 | 30,010 |
| Luxembourg | 28 Mar 1991 | 60,020 |
| Malta | 28 Mar 1991 | 2,100 |
| Mexico | 28 Mar 1991 | 45,010 |
| Moldova | 5 May 1992 | 30,010 |
| Mongolia | 9 Oct 2000 | 2,990 |
| Montenegro | 3 June 2006 | 5,990 |
| Morocco | 28 Mar 1991 | 24,640 |
| Netherlands | 28 Mar 1991 | 744,350 |
| New Zealand | 19 Aug 1991 | 10,500 |
| North Macedonia | 21 Apr 1993 | 17,620 |
| Norway | 28 Mar 1991 | 375,180 |
| Poland | 28 Mar 1991 | 384,180 |
| Portugal | 5 Apr 1991 | 126,050 |
| Romania | 28 Mar 1991 | 144,070 |
| Russian Federation | 9 Apr 1992 | 1,200,580 |
| San Marino | 7 Jun 2019 | 2,030 |
| Serbia | 19 Jan 2001 | 140,310 |
| Slovak Republic | 1 Jan 1993 | 128,070 |
| Slovenia | 23 Dec 1992 | 62,950 |
| Spain | 28 Mar 1991 | 1,020,490 |
| Sweden | 28 Mar 1991 | 684,320 |
| Switzerland | 29 Mar 1991 | 684,320 |
| Tajikistan | 16 Oct 1992 | 21,010 |
| Tunisia | 29 Dec 2011 | 9,860 |
| Turkey | 28 Mar 1991 | 345,150 |
| Turkmenistan | 1 Jun 1992 | 2,100 |
| Ukraine | 13 Apr 1992 | 240,110 |
| United Arab Emirates | 23 Sep 2021 | 2,030 |
| United Kingdom | 28 Mar 1991 | 2,556,510 |
| United States of America | 28 Mar 1991 | 3,001,480 |
| Uzbekistan | 30 Apr 1992 | 44,120 |
| Member | Date joined | Capital subscription (€ 000) |
| Albania | 18 Dec 1991 | 30,010 |
| Algeria | 19 Oct 2021 | 2,030 |
| Armenia | 7 Dec 1992 | 14,990 |
| Australia | 30 Mar 1991 | 300,140 |
| Austria | 28 Mar 1991 | 684,320 |
| Azerbaijan | 25 Sep 1992 | 30,010 |
| Belarus | 10 Jun 1992 | 60,020 |
| Belgium | 10 Apr 1991 | 684,320 |
| Bosnia and Herzegovina | 17 Jun 1996 | 50,710 |
| Bulgaria | 28 Mar 1991 | 237,110 |
| Canada | 28 Mar 1991 | 1,020,490 |
| China | 15 Jan 2016 | 29,000 |
| Croatia | 15 Apr 1993 | 109,420 |
| Cyprus | 28 Mar 1991 | 30,010 |
| Czech Republic | 1 Jan 1993 | 256,110 |
| Denmark | 28 Mar 1991 | 360,170 |
| Egypt | 28 Mar 1991 | 21,010 |
| Estonia | 28 Feb 1992 | 30,010 |
| European Investment Bank | 28 Mar 1991 | 900,440 |
| European Union | 28 Mar 1991 | 900,440 |
| Finland | 28 Mar 1991 | 375,180 |
| France | 28 Mar 1991 | 2,556,510 |
| Georgia | 4 Sep 1992 | 30,010 |
| Germany | 28 Mar 1991 | 2,556,510 |
| Greece | 29 Mar 1991 | 195,080 |
| Hungary | 28 Mar 1991 | 237,110 |
| Iceland | 29 May 1991 | 30,010 |
| India | 11 July 2018 | 9,860 |
| Ireland | 28 Mar 1991 | 90,040 |
| Israel | 28 Mar 1991 | 195,080 |
| Italy | 28 Mar 1991 | 2,556,510 |
| Japan | 2 Apr 1991 | 2,556,510 |
| Jordan | 29 Dec 2011 | 9,860 |
| Kazakhstan | 27 Jul 1992 | 69,020 |
| Korea, Republic of | 28 Mar 1991 | 300,140 |
| Kosovo | 17 Dec 2012 | 5,800 |
| Kyrgyz Republic | 5 Jun 1992 | 21,010 |
| Latvia | 18 Mar 1992 | 30,010 |
| Lebanon | 17 Jul 2017 | 9,860 |
| Libya | 16 July 2019 | 9,860 |
| Liechtenstein | 28 Mar 1991 | 5,990 |
| Lithuania | 5 Mar 1992 | 30,010 |
| Luxembourg | 28 Mar 1991 | 60,020 |
| Malta | 28 Mar 1991 | 2,100 |
| Mexico | 28 Mar 1991 | 45,010 |
| Moldova | 5 May 1992 | 30,010 |
| Mongolia | 9 Oct 2000 | 2,990 |
| Montenegro | 3 June 2006 | 5,990 |
| Morocco | 28 Mar 1991 | 24,640 |
| Netherlands | 28 Mar 1991 | 744,350 |
| New Zealand | 19 Aug 1991 | 10,500 |
| North Macedonia | 21 Apr 1993 | 17,620 |
| Norway | 28 Mar 1991 | 375,180 |
| Poland | 28 Mar 1991 | 384,180 |
| Portugal | 5 Apr 1991 | 126,050 |
| Romania | 28 Mar 1991 | 144,070 |
| Russian Federation | 9 Apr 1992 | 1,200,580 |
| San Marino | 7 Jun 2019 | 2,030 |
| Serbia | 19 Jan 2001 | 140,310 |
| Slovak Republic | 1 Jan 1993 | 128,070 |
| Slovenia | 23 Dec 1992 | 62,950 |
| Spain | 28 Mar 1991 | 1,020,490 |
| Sweden | 28 Mar 1991 | 684,320 |
| Switzerland | 29 Mar 1991 | 684,320 |
| Tajikistan | 16 Oct 1992 | 21,010 |
| Tunisia | 29 Dec 2011 | 9,860 |
| Turkey | 28 Mar 1991 | 345,150 |
| Turkmenistan | 1 Jun 1992 | 2,100 |
| Ukraine | 13 Apr 1992 | 240,110 |
| United Arab Emirates | 23 Sep 2021 | 2,030 |
| United Kingdom | 28 Mar 1991 | 2,556,510 |
| United States of America | 28 Mar 1991 | 3,001,480 |
| Uzbekistan | 30 Apr 1992 | 44,120 |
Balance sheet
| Note | € million | 31 Dec 2010 € million | |||
|---|---|---|---|---|---|
| Placements with and advances to credit institutions | 12 | 18,368 | |||
| 13 | |||||
| At fair value through profit or loss | 1,789 | ||||
| At amortised cost | 11,840 | ||||
| 31,997 | |||||
| 14 | |||||
| Derivative financial instruments | 4,300 | ||||
| Other financial assets | 456 | ||||
| 4,756 | |||||
| Loans at amortised cost | 15 | 24,118 | |||
| Less: Provisions tor impairment | 10 | (946) | |||
| Loans at fair value through other comprehensive income | 16 | 2,494 | |||
| Loans at fair value through profit or loss | 17 | 409 | |||
| 26,075 | |||||
| At fair value through profit or loss | 18 | 5,070 | |||
| Treasury portfolio: | |||||
| Share investments at fair value through other comprehensive income | 19 | 112 | |||
| 5,182 | |||||
| Intangible assets | 20 | 69 | |||
| Property and equipment | 21 | 122 | |||
| 63,201 | |||||
| Amounts owed to credit institutions and other third parties | 22 | 1,669 | |||
| Debts evidenced by certificates | 23 | 45,821 | |||
| 47,490 | |||||
| Other financial liabilities | 24 | ||||
| Derivative financial instruments | 1,935 | ||||
| Other financial liabilities | 946 | ||||
| 2,881 | |||||
| 50,371 | |||||
| Paid-in capital | 25 | 6,217 | |||
| Reserves and retained earnings | 26 | 11,613 | |||
| 17,830 | |||||
| 68,201 | |||||
| Undrawn commitments | 27 | 14,254 |
| Note | € million | 31 Dec 2010 € million | |||
|---|---|---|---|---|---|
| Placements with and advances to credit institutions | 12 | 18,368 | |||
| 13 | |||||
| At fair value through profit or loss | 1,789 | ||||
| At amortised cost | 11,840 | ||||
| 31,997 | |||||
| 14 | |||||
| Derivative financial instruments | 4,300 | ||||
| Other financial assets | 456 | ||||
| 4,756 | |||||
| Loans at amortised cost | 15 | 24,118 | |||
| Less: Provisions tor impairment | 10 | (946) | |||
| Loans at fair value through other comprehensive income | 16 | 2,494 | |||
| Loans at fair value through profit or loss | 17 | 409 | |||
| 26,075 | |||||
| At fair value through profit or loss | 18 | 5,070 | |||
| Treasury portfolio: | |||||
| Share investments at fair value through other comprehensive income | 19 | 112 | |||
| 5,182 | |||||
| Intangible assets | 20 | 69 | |||
| Property and equipment | 21 | 122 | |||
| 63,201 | |||||
| Amounts owed to credit institutions and other third parties | 22 | 1,669 | |||
| Debts evidenced by certificates | 23 | 45,821 | |||
| 47,490 | |||||
| Other financial liabilities | 24 | ||||
| Derivative financial instruments | 1,935 | ||||
| Other financial liabilities | 946 | ||||
| 2,881 | |||||
| 50,371 | |||||
| Paid-in capital | 25 | 6,217 | |||
| Reserves and retained earnings | 26 | 11,613 | |||
| 17,830 | |||||
| 68,201 | |||||
| Undrawn commitments | 27 | 14,254 |
Annex III.B
Listing of Members
| Regional developing members | Non-borrowing member countries |
|---|---|
| Argentina | Austria |
| Bahamas | Belgium |
| Barbados | Canada |
| Belize | China |
| Bolivia | Croatia |
| Brazil | Denmark |
| Chile | Finland |
| Colombia | France |
| Costa Rica | Germany |
| Dominican Republic | Israel |
| Ecuador | Italy |
| El Salvador | Japan |
| Guatemala | Korea, Republic of |
| Guyana | Netherlands |
| Haiti | Norway |
| Honduras | Portugal |
| Jamaica | Slovenia |
| Mexico | Spain |
| Nicaragua | Sweden |
| Panama | Switzerland |
| Paraguay | United Kingdom |
| Peru | United States of America |
| Suriname | |
| Trinidad and Tobago | |
| Uruguay | |
| Venezuela |
| Regional developing members | Non-borrowing member countries |
|---|---|
| Argentina | Austria |
| Bahamas | Belgium |
| Barbados | Canada |
| Belize | China |
| Bolivia | Croatia |
| Brazil | Denmark |
| Chile | Finland |
| Colombia | France |
| Costa Rica | Germany |
| Dominican Republic | Israel |
| Ecuador | Italy |
| El Salvador | Japan |
| Guatemala | Korea, Republic of |
| Guyana | Netherlands |
| Haiti | Norway |
| Honduras | Portugal |
| Jamaica | Slovenia |
| Mexico | Spain |
| Nicaragua | Sweden |
| Panama | Switzerland |
| Paraguay | United Kingdom |
| Peru | United States of America |
| Suriname | |
| Trinidad and Tobago | |
| Uruguay | |
| Venezuela |
Balance Sheet
In USD million)
| Dec. 31, 2019 | Dec. 31, 2020 | ||
| Assets | |||
| Cash and Investments | 35,504 | 39,372 | |
| Net Development Assets | 96,532 | 104,667 | |
| Accrued Interest & Other Charges | 841 | 857 | |
| Currency and Interest Rate Swaps | 2,166 | 5,524 | |
| Other Assets | 1,315 | 1,317 | |
| Total Assets | 136,358 | 151,737 | |
| Liabilities and Equity | |||
| Liabilities | |||
| Borrowings | 97,011 | 109,959 | |
| Currency and Interest Rate Swaps | 2,273 | 3,357 | |
| Other Liabilities | 3,203 | 4,744 | |
| Advance Payment of Contribution Quotas | |||
| Total Liabilities | 102,487 | 118,060 | |
| Equity | |||
| Paid-in Capital + Additional Paid-in | 11,852 | 11,853 | |
| Retained Earnings | 22,781 | 23,243 | |
| Accumulated Translation Adjustment + Other | (762) | (1,419) | |
| Total Equity | 33,871 | 33,677 | |
| Total Liabilities and Equity | 136,358 | 151,737 | |
| Dec. 31, 2019 | Dec. 31, 2020 | ||
| Assets | |||
| Cash and Investments | 35,504 | 39,372 | |
| Net Development Assets | 96,532 | 104,667 | |
| Accrued Interest & Other Charges | 841 | 857 | |
| Currency and Interest Rate Swaps | 2,166 | 5,524 | |
| Other Assets | 1,315 | 1,317 | |
| Total Assets | 136,358 | 151,737 | |
| Liabilities and Equity | |||
| Liabilities | |||
| Borrowings | 97,011 | 109,959 | |
| Currency and Interest Rate Swaps | 2,273 | 3,357 | |
| Other Liabilities | 3,203 | 4,744 | |
| Advance Payment of Contribution Quotas | |||
| Total Liabilities | 102,487 | 118,060 | |
| Equity | |||
| Paid-in Capital + Additional Paid-in | 11,852 | 11,853 | |
| Retained Earnings | 22,781 | 23,243 | |
| Accumulated Translation Adjustment + Other | (762) | (1,419) | |
| Total Equity | 33,871 | 33,677 | |
| Total Liabilities and Equity | 136,358 | 151,737 | |
Annex III.C
Balance Sheet
As of December 31, 2020 and December 31, 2021 (In thousands of U.S. dollars).
| 2021 | 2020 | ||||
| ASSETS | |||||
| Cash and due from banks | 112,047 | 123,204 | |||
| Deposits with banks | 3,210,216 | 2,825,086 | |||
| Cash and due from banks and deposits with banks | 3,322,263 | 2,948,290 | |||
| Marketable securities: | |||||
| Trading | 12,503,067 | 10,961,847 | |||
| Other investments | 292,392 | 811,205 | |||
| Loans (US$ 2,389,651 and US$ 2,088,750 at fair value | |||||
| as of December 31, 2021 and 2020 respectively) | 29,595,386 | 28,117,867 | |||
| Less loan commissions, net of origination costs | 153,955 | 134,011 | |||
| Less allowance for loan losses | 76,650 | 95,015 | |||
| Loans, net | 29,364,781 | 27,888,841 | |||
| Accrued interest and commissions receivable | 357,836 | 386,625 | |||
| Equity investments | 433,350 | 432,600 | |||
| Derivative financial instruments | 512,383 | 1,766,932 | |||
| Property and equipment, net | 105,987 | 111,734 | |||
| Other assets | 700,291 | 1,537,829 | |||
| TOTAL | 47,592,350 | 46,845,903 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| LIABILITIES: | |||||
| Deposits (US$ 106,119 and USS 24,101 at fair value | |||||
| as of December 31. 2021 and 2020 respectively), net | 4,002,626 | 3,337,574 | |||
| Commercial paper | 2,813,646 | 1,598,696 | |||
| Borrowings from other financial institutions (USS 740,028 and USS 792,217 at | |||||
| fair value as of December 31, 2021 and 2020 respectively), net | 1,772,171 | 1,672,301 | |||
| Bonds (US$ 24,074,774 and USS 24,706,736 at fair value | |||||
| as of December 31. 2021 and 2020 respectively), net | 24,260,537 | 24,882,419 | |||
| Accrued interest payable | 288,233 | 308,986 | |||
| Derivative financial instruments | 842,958 | 404,842 | |||
| Accrued expenses arid other liabilities | 312,540 | 1,646,184 | |||
| Total liabilities | 34,292,711 | 33,851,002 | |||
| STOCKHOLDERS’ EQUITY: | |||||
| Subscribed capital | 7,716,975 | 7,867,755 | |||
| Less callable capital portion | 1,589,660 | 1,589,660 | |||
| Less capital subscriptions receivable | 690,940 | 912,045 | |||
| Paid-in capital | 5,436,375 | 5,366,050 | |||
| Additional paid-in capital | 4,091,298 | 3,961,900 | |||
| Reserves | 3,666,951 | 3,427,129 | |||
| Retained earnings | 105,015 | 239,822 | |||
| Total stockholders’ equity | 13,299,639 | 12,994,901 | |||
| TOTAL | 47,592,350 | 46,845,903 | |||
| 2021 | 2020 | ||||
| ASSETS | |||||
| Cash and due from banks | 112,047 | 123,204 | |||
| Deposits with banks | 3,210,216 | 2,825,086 | |||
| Cash and due from banks and deposits with banks | 3,322,263 | 2,948,290 | |||
| Marketable securities: | |||||
| Trading | 12,503,067 | 10,961,847 | |||
| Other investments | 292,392 | 811,205 | |||
| Loans (US$ 2,389,651 and US$ 2,088,750 at fair value | |||||
| as of December 31, 2021 and 2020 respectively) | 29,595,386 | 28,117,867 | |||
| Less loan commissions, net of origination costs | 153,955 | 134,011 | |||
| Less allowance for loan losses | 76,650 | 95,015 | |||
| Loans, net | 29,364,781 | 27,888,841 | |||
| Accrued interest and commissions receivable | 357,836 | 386,625 | |||
| Equity investments | 433,350 | 432,600 | |||
| Derivative financial instruments | 512,383 | 1,766,932 | |||
| Property and equipment, net | 105,987 | 111,734 | |||
| Other assets | 700,291 | 1,537,829 | |||
| TOTAL | 47,592,350 | 46,845,903 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| LIABILITIES: | |||||
| Deposits (US$ 106,119 and USS 24,101 at fair value | |||||
| as of December 31. 2021 and 2020 respectively), net | 4,002,626 | 3,337,574 | |||
| Commercial paper | 2,813,646 | 1,598,696 | |||
| Borrowings from other financial institutions (USS 740,028 and USS 792,217 at | |||||
| fair value as of December 31, 2021 and 2020 respectively), net | 1,772,171 | 1,672,301 | |||
| Bonds (US$ 24,074,774 and USS 24,706,736 at fair value | |||||
| as of December 31. 2021 and 2020 respectively), net | 24,260,537 | 24,882,419 | |||
| Accrued interest payable | 288,233 | 308,986 | |||
| Derivative financial instruments | 842,958 | 404,842 | |||
| Accrued expenses arid other liabilities | 312,540 | 1,646,184 | |||
| Total liabilities | 34,292,711 | 33,851,002 | |||
| STOCKHOLDERS’ EQUITY: | |||||
| Subscribed capital | 7,716,975 | 7,867,755 | |||
| Less callable capital portion | 1,589,660 | 1,589,660 | |||
| Less capital subscriptions receivable | 690,940 | 912,045 | |||
| Paid-in capital | 5,436,375 | 5,366,050 | |||
| Additional paid-in capital | 4,091,298 | 3,961,900 | |||
| Reserves | 3,666,951 | 3,427,129 | |||
| Retained earnings | 105,015 | 239,822 | |||
| Total stockholders’ equity | 13,299,639 | 12,994,901 | |||
| TOTAL | 47,592,350 | 46,845,903 | |||
ANNEX III.D
Listing of Members – Total subscribed capital
| Germany | €46,722,369,149 |
| France | €46,722,369,149 |
| Italy | €46,722,369,149 |
| Spain | €28,033,421,847 |
| Netherland | €12,951,115,777 |
| Belgium | €12,951,115,777 |
| Poland | €11,366,679,827 |
| Sweden | €8,591,781,713 |
| Denmark | €6,557,521,657 |
| Austria | €6,428,994,386 |
| Finland | €3,693,702,498 |
| Greece | €3,512,961,713 |
| Portugal | €2,263,904,037 |
| Czech Rep | €2,206,922,328 |
| Hungary | €2,087,849,195 |
| Ireland | €1,639,379,073 |
| Romania | €1,639,379,073 |
| Croatia | €1,062,312,542 |
| Slovakia | €751,236,149 |
| Slovenia | € 697,455,090 |
| Bulgaria | €510,041,217 |
| Lithuania | € 437,633,208 |
| Luxembourg | €327,878,318 |
| Cyprus | €321,508,011 |
| Latvia | € 267,076,094 |
| Estonia | € 206,248,240 |
| Malta | €122,381,664 |
| Germany | €46,722,369,149 |
| France | €46,722,369,149 |
| Italy | €46,722,369,149 |
| Spain | €28,033,421,847 |
| Netherland | €12,951,115,777 |
| Belgium | €12,951,115,777 |
| Poland | €11,366,679,827 |
| Sweden | €8,591,781,713 |
| Denmark | €6,557,521,657 |
| Austria | €6,428,994,386 |
| Finland | €3,693,702,498 |
| Greece | €3,512,961,713 |
| Portugal | €2,263,904,037 |
| Czech Rep | €2,206,922,328 |
| Hungary | €2,087,849,195 |
| Ireland | €1,639,379,073 |
| Romania | €1,639,379,073 |
| Croatia | €1,062,312,542 |
| Slovakia | €751,236,149 |
| Slovenia | € 697,455,090 |
| Bulgaria | €510,041,217 |
| Lithuania | € 437,633,208 |
| Luxembourg | €327,878,318 |
| Cyprus | €321,508,011 |
| Latvia | € 267,076,094 |
| Estonia | € 206,248,240 |
| Malta | €122,381,664 |
Balance sheet
as at 31 December 2021 (in EUR 000)
| Assets | 31,12,2021 | 31,12,2020 | |||
| 1. | Cash in hand, balances with central banks and post office banks | 1,483,285 | 835,163 | ||
| 2. | Treasury bills and other bills eligible for refinancing with central banks | 35,678,436 | 31,180,452 | ||
| 3. | Loans and advances to credit institutions | ||||
| a) repayable on demand | 562,513 | 463,568 | |||
| b) ether loans and advances | 74,551,456 | 60,182,631 | |||
| c) loans | 93,556,227 | 103,714,971 | |||
| d) value adjustments | -57,842 | -80,237 | |||
| 168,614,354 | 164,280,933 | ||||
| 4. | Loans and advances to customers | ||||
| a) other loans and advances | 677,437 | 900,604 | |||
| b) loans | 322,374,311 | 321,119,208 | |||
| c) value adjustments | -381,166 | -567,532 | |||
| 322,670,582 | 321,452,280 | ||||
| 5. | Debt securities including fixed-income securities | ||||
| a) issued by public bodies | 4,891,107 | 5,148,031 | |||
| b) issued by other borrowers | 5,891,460 | 7,045,395 | |||
| 10,782,567 | 12,193,426 | ||||
| 6. | Shares and other variable-yield securities | 8,397,569 | 8,063,429 | ||
| 7. | Participating interests | 318,380 | 334,410 | ||
| 8. | Shares in affiliated undertakings | 1,549,444 | 813,083 | ||
| 9. | Intangible assets | 57,183 | 38,638 | ||
| 10. | Tangible assets | 242,445 | 248,471 | ||
| 11. | Other assets | 157,323 | 40,490 | ||
| 12. | Subscribed capital and reserves, called but not paid | 1,118,348 | 1,438,648 | ||
| 13. | Prepayments and accrued income | 14,405,318 | 13,371,184 | ||
| Total assets | 565,476,446 | 554,290,673 | |||
| Liabilities | 31,12,2021 | 31,12,2020 | |||
| 1. | Amounts owed to credit institutions | ||||
| a) repayable en demand | 4,777,422 | 4,199,057 | |||
| b) with agreed maturity or periods of notice | 18,895,071 | 12,316.334 | |||
| 23,672,493 | 16,515,391 | ||||
| 2. | Amounts owed to customers | ||||
| a) repayable on demand | 1,648,539 | 1,682,533 | |||
| b) with agreed maturity or periods of notice | 175,542 | 20,951 | |||
| 1,824,081 | 1,703,484 | ||||
| 3 | Debts evidenced by certificates | ||||
| a) debt securities in issue | 431,104,111 | 425,622,598 | |||
| b) others | 9,010,748 | 9,641,151 | |||
| 440,114,859 | 435,263,749 | ||||
| 4. | Other liabilities | 4,373,509 | 4,581,947 | ||
| 5. | Accruals and deferred income | 15,233,362 | 19,165,727 | ||
| 6. | Provisions | ||||
| a) pension plans and health insurance scheme | 4,161,030 | 3,546,431 | |||
| b) prevision in respect of guarantee operations | 27,916 | 10,746 | |||
| 4,188,946 | 3,557,177 | ||||
| 7. | Subscribed capital | ||||
| a) subscribed | 248,795,607 | 248,795,607 | |||
| b) uncalled | -226,604,892 | -226,604,892 | |||
| 22,190,715 | 22,190,715 | ||||
| 8. | Reserves | ||||
| a) reserve fund | 24,879,561 | 24,328,415 | |||
| b) additional reserves | 12,258,631 | 11,398,958 | |||
| c)special activities reserve | 12,152,954 | 11,736,896 | |||
| d) general loan reserve | 2,021,337 | 2,135,891 | |||
| 51,312,483 | 49,600,160 | ||||
| 9. | Profit for the financial year | 2,565,998 | 1,712,323 | ||
| Total liabilities | 565,476,446 | -554,290,673 | |||
| Assets | 31,12,2021 | 31,12,2020 | |||
| 1. | Cash in hand, balances with central banks and post office banks | 1,483,285 | 835,163 | ||
| 2. | Treasury bills and other bills eligible for refinancing with central banks | 35,678,436 | 31,180,452 | ||
| 3. | Loans and advances to credit institutions | ||||
| a) repayable on demand | 562,513 | 463,568 | |||
| b) ether loans and advances | 74,551,456 | 60,182,631 | |||
| c) loans | 93,556,227 | 103,714,971 | |||
| d) value adjustments | -57,842 | -80,237 | |||
| 168,614,354 | 164,280,933 | ||||
| 4. | Loans and advances to customers | ||||
| a) other loans and advances | 677,437 | 900,604 | |||
| b) loans | 322,374,311 | 321,119,208 | |||
| c) value adjustments | -381,166 | -567,532 | |||
| 322,670,582 | 321,452,280 | ||||
| 5. | Debt securities including fixed-income securities | ||||
| a) issued by public bodies | 4,891,107 | 5,148,031 | |||
| b) issued by other borrowers | 5,891,460 | 7,045,395 | |||
| 10,782,567 | 12,193,426 | ||||
| 6. | Shares and other variable-yield securities | 8,397,569 | 8,063,429 | ||
| 7. | Participating interests | 318,380 | 334,410 | ||
| 8. | Shares in affiliated undertakings | 1,549,444 | 813,083 | ||
| 9. | Intangible assets | 57,183 | 38,638 | ||
| 10. | Tangible assets | 242,445 | 248,471 | ||
| 11. | Other assets | 157,323 | 40,490 | ||
| 12. | Subscribed capital and reserves, called but not paid | 1,118,348 | 1,438,648 | ||
| 13. | Prepayments and accrued income | 14,405,318 | 13,371,184 | ||
| Total assets | 565,476,446 | 554,290,673 | |||
| Liabilities | 31,12,2021 | 31,12,2020 | |||
| 1. | Amounts owed to credit institutions | ||||
| a) repayable en demand | 4,777,422 | 4,199,057 | |||
| b) with agreed maturity or periods of notice | 18,895,071 | 12,316.334 | |||
| 23,672,493 | 16,515,391 | ||||
| 2. | Amounts owed to customers | ||||
| a) repayable on demand | 1,648,539 | 1,682,533 | |||
| b) with agreed maturity or periods of notice | 175,542 | 20,951 | |||
| 1,824,081 | 1,703,484 | ||||
| 3 | Debts evidenced by certificates | ||||
| a) debt securities in issue | 431,104,111 | 425,622,598 | |||
| b) others | 9,010,748 | 9,641,151 | |||
| 440,114,859 | 435,263,749 | ||||
| 4. | Other liabilities | 4,373,509 | 4,581,947 | ||
| 5. | Accruals and deferred income | 15,233,362 | 19,165,727 | ||
| 6. | Provisions | ||||
| a) pension plans and health insurance scheme | 4,161,030 | 3,546,431 | |||
| b) prevision in respect of guarantee operations | 27,916 | 10,746 | |||
| 4,188,946 | 3,557,177 | ||||
| 7. | Subscribed capital | ||||
| a) subscribed | 248,795,607 | 248,795,607 | |||
| b) uncalled | -226,604,892 | -226,604,892 | |||
| 22,190,715 | 22,190,715 | ||||
| 8. | Reserves | ||||
| a) reserve fund | 24,879,561 | 24,328,415 | |||
| b) additional reserves | 12,258,631 | 11,398,958 | |||
| c)special activities reserve | 12,152,954 | 11,736,896 | |||
| d) general loan reserve | 2,021,337 | 2,135,891 | |||
| 51,312,483 | 49,600,160 | ||||
| 9. | Profit for the financial year | 2,565,998 | 1,712,323 | ||
| Total liabilities | 565,476,446 | -554,290,673 | |||
Annex III.E
Listing of Members
| Borrowing Member Countries | Non-Borrowing Member Countries |
| Anguilla | Brazil |
| Antigua and Barbuda | Canada |
| The Bahamas | China |
| Barbados | Colombia |
| Belize | Germany |
| British Virgin Islands | Italy |
| Cayman Islands | Mexico |
| Commonwealth of Dominica | United Kingdom |
| Grenada | Venezuela |
| Guyana | |
| Haiti | |
| Jamaica | |
| Montserrat | |
| Saint Kitts and Nevis | |
| Saint Lucia | |
| Saint Vincent and the Grenadines | |
| Suriname | |
| Trinidad and Tobago | |
| Turks and Caicos Islands |
| Borrowing Member Countries | Non-Borrowing Member Countries |
| Anguilla | Brazil |
| Antigua and Barbuda | Canada |
| The Bahamas | China |
| Barbados | Colombia |
| Belize | Germany |
| British Virgin Islands | Italy |
| Cayman Islands | Mexico |
| Commonwealth of Dominica | United Kingdom |
| Grenada | Venezuela |
| Guyana | |
| Haiti | |
| Jamaica | |
| Montserrat | |
| Saint Kitts and Nevis | |
| Saint Lucia | |
| Saint Vincent and the Grenadines | |
| Suriname | |
| Trinidad and Tobago | |
| Turks and Caicos Islands |
Balance Sheet
(In USD million)
| December 31,2021 | December 31,2020 | ||
| Assets | |||
| Cash and investments | 789.8 | 633.3 | |
| Loans receivable | 1,332.8 | 1,332.1 | |
| Members’ receivables | 24.6 | 28.1 | |
| Derivative instruments | 35.3 | 94.3 | |
| Other Assets | 34.6 | 33.5 | |
| Total Assets | 2,217.1 | 2,121.3 | |
| Liabilities | |||
| Accounts payable and other liabilities | 52.1 | 58.8 | |
| Borrowings | 1,188.3 | 1,094.1 | |
| Derivative instruments | 27.3 | ||
| Total Liabilities | 1,267.7 | 1,152.9 | |
| Equity | |||
| Subscriptions matured | 388.2 | 388.2 | |
| Retained earnings and reserves | 561.2 | 580.2 | |
| Total Equity | 949,4 | 968.4 | |
| Total Liabilities and Equity | 2,217.1 | 2,121.3 | |
| December 31,2021 | December 31,2020 | ||
| Assets | |||
| Cash and investments | 789.8 | 633.3 | |
| Loans receivable | 1,332.8 | 1,332.1 | |
| Members’ receivables | 24.6 | 28.1 | |
| Derivative instruments | 35.3 | 94.3 | |
| Other Assets | 34.6 | 33.5 | |
| Total Assets | 2,217.1 | 2,121.3 | |
| Liabilities | |||
| Accounts payable and other liabilities | 52.1 | 58.8 | |
| Borrowings | 1,188.3 | 1,094.1 | |
| Derivative instruments | 27.3 | ||
| Total Liabilities | 1,267.7 | 1,152.9 | |
| Equity | |||
| Subscriptions matured | 388.2 | 388.2 | |
| Retained earnings and reserves | 561.2 | 580.2 | |
| Total Equity | 949,4 | 968.4 | |
| Total Liabilities and Equity | 2,217.1 | 2,121.3 | |
According to the Articles of Agreement, a general allocation of SDRs is distributed to participants in proportion to their quota shares at the Fund. A one-time special SDR allocation was made in 2009 in the context of the Fourth Amendment of the Articles of Agreement. This special allocation aimed to provide members who had become participants in the SDR Department after its creation—including many members from the former Soviet Union—with the same cumulative allocation in terms of quota as if they had been original participants. It thereby allowed members that joined the SDR Department after the first two general SDR allocations to participate equitably in the SDR system.
To date, all the applications for prescribed holder status were approved by the Executive Board on a lapse-of-time basis.
While the euro started on January 1, 1999 as the single currency of the European Economic and Monetary Union, the ECB applied for prescribed holder status only in October 2000.
The use of the SDR as a unit of account does not require prescription by the Executive Board.
The VTAs are bilateral arrangements between the Fund and SDR participants, in which the VTA members agree to buy and sell SDRs within certain limits. The ECB is currently the only prescribed holder that is also a VTA member.
Prior to Switzerland becoming a member of the Fund, the Swiss National Bank was a prescribed holder in the SDR Department. Once Switzerland joined the Fund and became a participant in the SDR Department, the Swiss National Bank notified the Fund that it had terminated its status as a prescribed holder.
The applicants submitted the necessary documents to enable staff to conduct its assessment. Submitted documents include: (i) description of the type of institution and nature of operations, (ii) description of when institution was established and its functions, including current location of its headquarters and offices, and (iii) organizational structure, governance, and decision-making bodies, and membership. Applicants also submitted a copy of the balance sheet and income statements from most recently published annual reports.
The EBRD has a single non-IMF member sovereign (Liechtenstein) among its shareholders, with 0.02 percent capital share. The EIB is also a shareholder of the EBRD. The CDB has five small islands as shareholders that are not IMF members, all British Overseas Territories (Anguilla, British Virgin Islands, Cayman Islands, Montserrat, and Turks & Caicos Islands). The CDB classifies the last four as a single member with a 0.19 percent capital share while Anguilla’s capital share is 0.16 percent. The CAF, an international legal entity created by states, also includes private institutions as shareholders (13 banks), representing 0.03 percent of the voting power.
