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

Components of ADF Resources

1

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

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

3

Payment of Subscriptions

3 equal annual installmentsFrequency

15 January instead of 30 AprilDate

Better management of Commitment Capacity in case of front-loading

4

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

5

6

•Returns on investment

•Loan income and repayments

•Compensation under MDRI

•Loan cancellations

•Transfers from ADB and HIPC

6

Liquidity at the beginning of the year

End of year liquidity > Liquidity thresholdACC

•Loan disbursements

•Administrative expenses

Advance Commitment Authority

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

88

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

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%

9

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

10

(in million UA)

ADF resources under strong pressure

11

Significant efforts

required from Bank

Group and Donors

to enable the Fund

to deliver on its

mandate

ADF-12 Indicative Financing Framework

12

Upper-case scenario (70%)

ADF-11

Baselinescenario for ADF-12

Central case scenario (50%)

(in UA million)

= 5625

= 5878

= 8438

= 9563

Prospective pipeline for each scenario

Baseline scenario

47% of total

63% national

28% multinational

50% Increase

68% du total

90% national

40% multinational

13

70% Increase

77% du total

102% national

45% multinational

336 projects for UA 12billion

7 billion national

5 billion multinational

Deputies are invited to approve :

14

� 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