Corporate information
The 2010 financial statements of Nederlandse
Financierings-Maatschappij voor Ontwikkelingslanden N.V. (hereafter
referred to as 'FMO' or the 'company') were prepared by the
Management Board and were signed by all members of the Management
Board and the Supervisory Board on March 10, 2011 and will be
submitted for adoption in the General Meeting of Shareholders on
May 11, 2011.
FMO was incorporated in 1970 as a public limited company
and is located at 71 Anna van Saksenlaan, The Hague, the
Netherlands. FMO finances activities in developing countries to
stimulate private sector development. In addition, FMO provides
services in relation to government funds and programs.
Financing activities
FMO's main activity consists of providing loans,
guarantees and equity capital to the private sector in developing
countries. A minor part of the investment financing is guaranteed
by the Dutch State under the Faciliteit Opkomende Markten (FOM), in
which FMO itself participates as a 5% to 20% risk
partner. Any losses claimed under the guarantee are reported under
'other receivables'.
Services in relation to government funds and
programs
Apart from financing activities from its own resources,
FMO provides loans, guarantees and equity finance from special
government funds, within the conditions and objectives of those
facilities. The funds consist of subsidies provided under the
General Administrative Law Act regarding the Infrastructure
Development Fund, MASSIF and Access to Energy Fund. FMO also
executes the subsidy scheme Capacity Development (hereafter
referred to as CD).
FMO incurs a risk in MASSIF as it has an equity share of
2.66% (2009: 2.84%). With respect to the remaining interest in
MASSIF, and the full risk in the remaining government funds, FMO
has a contractual right and obligation to settle the results
arising from the funds' activities with the State. The economic
risks related to these funds are predominantly taken by the State,
and FMO has limited control over policy issues regarding these
funds. FMO receives remuneration for managing the funds. Therefore,
with the exception of FMO's equity share in MASSIF, the funds'
assets and the funds' liabilities are not included in the annual
accounts. The business segments paragraph provides more detail on
the loans and equity investments managed for the risk of the
State.
Nederlandse Investeringsbank voor
Ontwikkelingslanden N.V.
De Nederlandse Investeringsbank voor Ontwikkelingslanden
N.V. (hereafter referred to as NIO) administers a portfolio of
concessional loans. The Dutch State guarantees the repayments of
interest, bond and private loans contracted by NIO with third
parties. NIO is reimbursed by the State for operating expenses and
is compensated for the difference between the interest income
earned on loans provided to developing countries and the interest
charges on the funds raised under government guarantee in order to
finance those loans. As per November 17, 2010, FMO transferred its
100% share in NIO to the Ministry of Finance, therefore NIO is not
accounted for in FMO's annual accounts per December 31, 2010. As
the government has set the policies and conditions of the NIO
activities, FMO did not have effective control and the NIO
subsidiary was not consolidated in FMO's annual accounts in the
past (note
10).