adf-13: financing framework and long-term financial …
TRANSCRIPT
Tunis – February 2013
ADF-13: Financing Framework and Long-Term Financial Capacity Charles Boamah
Vice President, FNVP
Tunis - 22 February 2013
Tunis – February 2013
1 755 1 912 2 489
3 562 3 787 438 638
1 200
2 063 2 007
0
1 000
2 000
3 000
4 000
5 000
6 000
ADF : Growing support for Africa’s neediest
In Million UA
2,193 2,550
3,689
5,625 5,794
ADF-8 ADF-9 ADF-10 ADF-11 ADF-12
Donor Subscriptions Internally Generated Resources
Tunis – February 2013
Self-adjusting mechanisms built into the ACA model minimize the risk of over-commitment
950
1 443
1 452
1 894
Impact of new interest rates
Impact of new cancelation policy
ADF-13 ACC
Potential ADF-13 ACC with dated parameters Million UA
Million UA
Million UA
Million UA
Tunis – February 2013
Measures to improve financial performance
Enhanced Liquidity Management – ACE Portfolio
Mitigation of currency translation losses
Continued stringent cost controls and budgetary discipline
…But more needs to be done
Tunis – February 2013
Inclusiveness
In line with ADF priorities
Strengthening financial capacity
AHIDI Index UNDP
education and health component
of HDI
ADB’s Africa Infrastructure Development
Index
-
0,50
1,00
1,50
2,00
2,50
3,00
Current Terms AHIDI Differentiation
ACC Level
+36%
ADF-13 ADF-16 ADF-13 ADF-16
In Billion UA
Differentiated and hardened lending
terms commensurate with economic
situation and debt sustainability
Tunis – February 2013
Management carefully reviewed and explored all alternatives to boost ACC in ADF-13
950 990 1 021 1 157 1 198
0
200
400
600
800
1 000
1 200ACC Level
+40 +71
+207 +248 In Million UA
Low scenario Accelerated Repayment
Timely MDRI
payments
Shorter 4 year
encashment Calendar
Voluntary Prepayment
Tunis – February 2013
Leveraging ADF Resources
Loans & Grants Default Loss Guarantee
Partial Credit Guarantee
DFI Facility Mod.Fram. Assistance
Private Sector MF
4 x 4 x 6 x
9 x
3 x 1 x
5 x average leverage
Increase capacity of ADB to fund projects in
LIC
Protect commercial lenders against default
by government
Strengthen the capital position of DFI and Improve
their cost of funding
ADB provides volume of ADF PBA allocation to creditworthy countries
Boost PPP/private sector investments in small
countries and LICs
Leveraging impact of new financing instruments
Tunis – February 2013
• Low : subscriptions increase by the SDR inflation rate
• Consolidation : flat real growth in total ADF resources
• Transformation : 10% real growth in total ADF resources
Indicative Financing Framework
3 787 4027 5185 5771
2007 950
1018 1052
0
1 500
3 000
4 500
6 000
7 500
Subscriptions ACC
In Million UA ADF-13 Pipeline
ADF-12 Low Consolidation Transformation
Tunis – February 2013
What do we expect from Deputies today?
Item for Decision/Item for Endorsement Management’s Proposal
Exchange rate reference period : February 1 to July 31 2013
Standard Encashment Calendar : 10 Year as in ADF-12 or shorter calendar
Replenishment Technical Gap : 5%
Advance Commitment Capacity : Core Assumptions
Accelerated Encashment : Fully Hedged Proposal
Differentiation :
AHIDI plus Debt Sustainability Analysis
Regular : from 50/10 to 40/10
Advance : from 50/10 to 40/5
Blend : from 30/8 to 30/5
Additional measures to enhance financial sustainability :
Accelerated repayment clause and voluntary repayment framework
Decisions / Endorsement at this February meeting
Tunis – February 2013
What do we expect from Deputies today?
For guidance now and decision in the June meeting
• Innovative financing instruments
• Indicative financing framework