ANNUAL REPORT 2011 - IFAD

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66 Managing IFAD’s liquidity, cash flow and financial policies IFAD manages investments worth US$2.5 billion for our regular programme of work, together with US$0.7 billion on behalf of supplementary programmes and trust funds, and all related operational cash flows. In 2011, cash flow operations reached record levels of US$3.9 billion for the regular programme and US$2.1 billion for supplementary programmes, registering an overall increase of 33 per cent compared with 2010. The level of the overall cash flow increase was driven mainly by a considerable expansion of supplementary fund activities. During the year, we completed a comprehensive review of our investment policy and presented an Investment Policy Statement to the Executive Board, setting out the broad framework for IFAD’s investments. As part of the review, a riskbudgeting approach will be introduced for investments in 2012 and in-house risk management will be strengthened through the use of an enhanced risk management tool. In preparation for the Consultation on the Ninth Replenishment of IFAD’s Resources (see page 58), the impact of different programme levels on our financial resources was analysed using the asset liability management framework. We also reviewed the long-term financial approach to IFAD’s sustainability and analysed alternatives to the Advance Commitment Authority. This is a facility that allows IFAD to use expected future loan reflows as an additional basis on which to make new loan and grant commitments. It was first used at IFAD in 2001. IFAD is committed to continuing to make financial risk management and fiduciary and transparency issues a priority during the Ninth Replenishment period 2013-2015. TABLE 11 Loan disbursement by region and lending terms under the Regular Programme, 1979-2011 a Amounts in US$ million Highly concessional Intermediate Ordinary Hardened Total West and Central Africa Amount 1 063.4 60.3 14.2 - 1 137.9 Percentage of effective commitment East and Southern Africa 70.6 100.0 79.2 - 71.9 Amount 1 317.2 93.1 1.2 - 1 411.4 Percentage of effective commitment Asia and the Pacific 69.2 90.8 12.0 - 70.0 Amount 2 357.6 390.5 - - 2 748.1 Percentage of effective commitment Latin America and the Caribbean 74.5 84.0 - - 75.0 Amount 337.3 396.1 520.1 - 1 253.6 Percentage of effective commitment Near East, North Africa and Europe 82.5 87.6 66.2 - 76.3 Amount 763.8 365.0 219.0 2.0 1 349.8 Percentage of effective commitment 87.8 64.5 74.6 4.5 76.2 Total amount Total percentage of 5 839.3 1 305.0 754.4 2.0 7 900.7 effective commitment 74.4 79.5 65.7 4.5 74.0 Source: Loans and Grants System. a Loan disbursements relate solely to Regular Programme loans and exclude the Special Programme for Sub-Saharan African Countries Affected by Drought and Desertification, and DSF financing.
As part of efforts to mobilize resources for IFAD’s mandate, we evaluated and structured financing alternatives, including funds to be borrowed from Member States. We also provided support to country offices to facilitate local payments and manage special commitments for operational procurements. As co-chair of the Finance and Budget Network Working Group on Common Treasury Services, IFAD continues to play a leadership role in United Nations system-wide efforts to increase the operational efficiency of United Nations treasuries. We host and administer the dedicated United Nations Treasuries Community of Practice website, which has become the principal forum for interaction among United Nations treasuries. IFAD’s approach and support to debt relief and debt management Since 1996, with the introduction of the Heavily Indebted Poor Countries (HIPC) Debt Initiative, debt relief has been employed to aid many of the world’s poorest developing countries. In 1999, the HIPC debt-burden thresholds were adjusted downward, enabling a broader group of countries to qualify for larger volumes of debt relief. During 2011, IFAD continued to give full support to these efforts. We also used our debt sustainability framework to ensure that vulnerable countries did not accumulate future debt. Since the HIPC Debt Initiative was set up, many countries have made substantial progress in accessing debt relief. Over 93 per cent of eligible countries (35 out of 39) have passed their decision points, qualifying for IFAD assistance under the HIPC Debt Initiative. Thirty-one countries have reached the completion point – at which they get full and irrevocable debt reduction – and four are in the interim period between the decision and completion points. At its December 2011 session, the IFAD Executive Board approved debt relief top-ups at completion point for the Democratic Republic of the Congo, Guinea-Bissau and Togo. The Comoros is expected to reach completion point in late 2012 together with Côte d’Ivoire and Guinea. Our total commitments so far amount to approximately US$718.0 million of debt service relief in nominal terms. As at 31 December 2011, IFAD has FINANCING DATA AND RESOURCE MOBILIZATION provided US$373.1 million in debt relief to the 31 countries that have reached the completion point. Enabling countries to maintain debt sustainability beyond completion point remains a concern, particularly during the current financial crisis. This highlights the need to implement sound borrowing policies and strengthen their capacity to manage public debt. Multilateral creditors that participate in the HIPC Initiative together monitor the levels of debt relief through the annual survey carried out by the World Bank. We participate in the survey, reporting all debt information as part of our responsibilities under the DSF and in liaison with the World Bank and regional development banks. During 2011, 22.9 per cent of the total value of approved financing for investment programmes and projects was in the form of grants under the DSF. Nineteen DSF grants were approved, for a total value of US$216.0 million (Table 7). 67
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ANNUAL REPORT 2011 Enabling poor ru
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a, b IFAD at a glance, 1978-2011 TA
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Table of contents President’s for
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Under the agreement reached at the
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fl Facing challenges - sharing solu
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export to Central Asia, Europe and
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Environment and Climate Division in
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Projects funded by it are helping t
Page 20 and 21: 16 Number of ongoing programmes and
Page 22 and 23: 18 Story from the field Sowing the
Page 24 and 25: 20 An IFAD grant to the Vu-Windeshe
Page 26 and 27: 22 Over the medium term (2011-2015)
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Page 30 and 31: 26 Asia and the Pacific 34 countrie
Page 32 and 33: 28 Story from the field A school on
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Page 38 and 39: 34 America is another IFAD priority
Page 40 and 41: 36 Portfolio management highlights
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Page 47 and 48: uild the capacity of communities to
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Page 51 and 52: strengthens coordination of partner
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Page 55 and 56: complementary. Two workshops were h
Page 57 and 58: namely policy dialogue, partnership
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Page 65 and 66: CHART 11 Cofinancing of IFAD-initia
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Page 69: Disbursements Disbursements of IFAD
Page 73 and 74: CÔTE D’IVOIRE: Support to Agricu
Page 75 and 76: Loan amount: SDR 20.2 million (appr
Page 77 and 78: Loan amount: SDR 11.6 million (appr
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Page 81 and 82: promoting technological innovation
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Page 89 and 90: Table 12 Summary of grant financing
Page 91 and 92: Membership and representation As of
Page 93 and 94: Swaziland Tajikistan Togo Thailand
Page 95 and 96: CAMBODIA Chan Sarun - CAMEROON Clé
Page 97 and 98: IRAN (ISLAMIC REPUBLIC Mahmoud Bari
Page 99 and 100: PAKISTAN Nazar Muhammad Gondal (Jan
Page 101 and 102: TURKEY - Mehmet Mehdi Eker (April 2
Page 103 and 104: SAUDI ARABIA Bandar Bin Abdel Mohsi
Page 105 and 106: IFAD occasional papers No. 2: Resp
Page 107 and 108: Nwanze K.F., G. Thapa, and A. Seth.
Page 109 and 110: Consolidated financial statements F
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Page 119 and 120: Appendix D Level 3: Financial asset
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Appendix D Table 1 Asset class and
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Appendix D Table 8 Alignment of ass
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Appendix D (b) Non-accrual status H
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Appendix D 31 December 876 527 The
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Appendix D NOTE 22 GRANT EXPENSES T
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Appendix D1 Statement of complement
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Appendix E Statement of IFAD-only r
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Appendix G Statement of contributio
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Appendix H Statement of loans 1. IF
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Appendix H Statement of loans 2. IF
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Appendix H Statement of loans 6. Sp
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Appendix H1 IFAD-only statement of
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Appendix I Summary of the Heavily I
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Appendix K IFAD-only statement of o
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International Fund for Agricultural
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ANNUAL REPORT 2011 - IFAD

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