Notes to the consolidated statement of financial position: assets

1. Banks

	2023	2022
Banks	49,273	26,807
Balance at December 31	49,273	26,807

The cash on bank accounts can be freely disposed of. All bank accounts are classified as Stage 1.

2. Current accounts with State funds and other programs (assets)

	2023	2022
Current account EIB	231	231
Current account MFF	204	725
Current account BP	48	-
Current account MASSIF	5	-
Balance at December 31	488	956

Current accounts can be freely disposed of and are classified as Stage 1.

3. Short-term deposits

	2023	2022
Collateral delivered (related to derivative financial instruments)	331,546	521,575
Dutch Central Bank	863,825	598,369
Mandatory reserve deposit with Dutch Central Bank	6,352	2,324
Collateral delivered to European Central Bank	2,946	2,130
Other short-term deposits	15,690	20,403
Short-term deposits measured at AC	1,220,359	1,144,801
Commercial paper	457,794	200,203
Money market funds	155,237	23,372
Short-term deposits measured at FVPL	613,031	223,575
Balance at December 31	1,833,390	1,368,376

Mandatory reserve deposits are not available for use in FMO’s day-to-day operations.

Fair value results on money market funds and commercial paper portfolio recorded in the statement of profit or loss amounts to a profit of €52k (2022: €13k loss). The amount attributable to change in credit risk is limited.

Short-term deposits have a maturity of less than three months. Other short-term deposits consist of an amount FMO provided to Invest International with a maturity of 1 year. FMO holds an equity stake in Invest International that has been recorded as an associate.

Short term deposits at amortized cost are classified as Stage 1.

4. Other receivables

	2023	2022
Receivables related to equity disposals	20,563	6,826
Taxes and social premiums	671	456
To be declared on State guaranteed loans	18	1,081
Transaction fee receivables and prepayments	12,425	8,888
Balance at December 31	33,677	17,251

Other receivables are classified as Stage 1.

5. Interest-bearing securities

This portfolio contains marketable bonds with fixed interest rates. All interest-bearing securities (credit quality of AA+ or higher) are classified as Stage 1. An amount of €82k (2022: €78k) is calculated for the ECL as per December 31, 2023.

	2023	2022
Bonds (listed)	539,708	537,825
Balance at December 31	539,708	537,825

All interest-bearing securities are measured at amortized cost. The movements can be summarized as follows:

	2023	2022
Balance at January 1	537,825	463,971
Amortization premiums/discounts	647	-111
Purchases	137,391	152,653
Redemptions	-132,602	-86,682
Changes in ECL allowances	-4	-34
Changes in accrued income	2,009	565
Exchange rate differences	-5,558	7,463
Balance at December 31	539,708	537,825

6. Derivative financial instruments and hedge accounting

Use of derivatives and hedge accounting

Derivatives are held for both economic hedging purposes and for hedge accounting. FMO uses derivatives for hedging purposes in the management of its asset and liability portfolios and structural risk positions. These risks are hedged with interest rate swaps, cross currency swaps and cross currency interest rate swaps. The objective of hedging is to enter into positions with an opposite risk profile to an identified exposure to reduce that exposure. The objective of FMO hedging activities is to optimize the overall cost to the bank of accessing debt capital markets and to mitigate the risk that would otherwise arise from structural imbalances in the duration and other profiles of its assets and liabilities. The accounting treatment of hedge transactions varies according to the nature of the instrument hedged and whether the hedge qualifies under the IFRS hedge accounting rules.

Derivatives that qualify for hedge accounting under IFRS are classified and accounted for in accordance with the nature of the instrument hedged and the type of IFRS hedge model that is applicable. FMO applies fair value hedge accounting to the funding portfolio with interest rate swaps as hedging instruments. To qualify for hedge accounting under IFRS, strict criteria must be met. Certain hedges that are economically effective from a risk management perspective do not qualify for hedge accounting under IFRS. The fair value changes of derivatives relating to such non-qualifying hedges are taken to the statement of profit or loss and recorded under the line results from financial transactions. If hedge accounting is applied under IFRS, it is possible that during the hedge a hedge relationship no longer qualifies for hedge accounting and hedge accounting cannot be continued, even if the hedge remains economically effective. As a result, the volatility arising from undertaking economic hedging in the statement of profit or loss may be higher than would be expected from an economic point of view. With respect to exchange rate and interest rate derivative contracts, the notional or contractual amount of these instruments is indicative of the nominal value of transactions outstanding at the statement of financial position date. However, they do not represent amounts at risk.

For the year ended December 31, 2023, FMO recognized a net loss of €4.5 million for hedge ineffectiveness on the micro fair value hedges (2022: €2.6 million net gain). The loss on the hedging instruments amounts to €134.2 million (2022: €339.4 million gain). The loss on hedged items attributable to the hedged risk amounts to €138.7 million (2022: €341.9 million profit). The result is mainly attributed to the mismatch in the valuation curves (e.g. USD SOFR for the hedging instruments and USD LIBOR for hedged items).

Micro fair value hedge accounting

FMO only applies a micro-hedging strategy, hence at hedge inception the test is conducted. FMO’s micro fair value hedges consist of interest rate swaps that are used to protect against changes in the fair value of fixed-rate instruments due to movements in market interest rates. Gains and losses on derivatives designated under fair value hedge accounting and hedged items are recognized in the statement of profit or loss.

Derivatives other than hedge accounting instruments

These derivatives are held to reduce interest rate risks and currency risks but do not meet the specified criteria to apply hedge accounting for the reporting period. The following table also includes derivatives related to the asset portfolio. These derivatives are used to manage FMO interest rate and foreign exchange risks within the risk appetite and are subject to the risk governance and policy framework.

The table below presents the amounts relating to derivatives designated as fair value hedging instruments, hedge ineffectiveness, as well as balances related to derivatives not applied as hedge accounting instruments:

	2023
	Carrying amount
	Notional amount	Assets	Liabilities	Change in fair value used for calculating hedge ineffectiveness	Ineffectiveness recorded in profit or loss	Line item in P&L that includes hedge ineffectiveness
Derivatives hedge accounting instruments:
Interest rate swaps	5,438,525	36,638	186,929	134,237	-4,462	Results from financial transactions

Derivatives other than hedge accounting instruments:
Currency swaps	609,876	355	10,498
Interest rate swaps	1,810,968	48,057	6,610
Cross-currency interest rate swaps	3,030,180	112,100	203,931
Subtotal	5,451,024	160,512	221,039
Embedded derivatives related to asset portfolio		-	10,871
Total derivative assets /(liabilities) other than hedge accounting instruments	5,451,024	160,512	231,910
Balance at December 31	10,889,549	197,150	418,839

	2022
	Carrying amount
	Notional amount	Assets	Liabilities	Change in fair value used for calculating hedge ineffectiveness	Ineffectiveness recorded in profit or loss	Line item in P&L that includes hedge ineffectiveness
Derivatives hedge accounting instruments:
Interest rate swaps	5,004,270	17,685	275,931	-339,323	2,573	Results from financial transactions

Derivatives other than hedge accounting instruments:
Currency swaps	69,999	550	402
Interest rate swaps	950,141	56,697	3,611
Cross-currency interest rate swaps	3,626,236	120,307	317,144
Subtotal	4,646,376	177,554	321,157
Embedded derivatives related to asset portfolio	-	-	13,888
Total derivative assets /(liabilities) other than hedge accounting instruments	4,646,376	177,554	335,045
Balance at December 31	9,650,646	195,239	610,976

The amounts relating to items designated as hedged items were as follows:

	2023
	Carrying amount of the hedged item	Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount of the hedged item
Balance sheet line item	Liabilities	Assets	Liabilities	Change in fair value used for calculating hedge ineffectiveness	Accumulated amount remaining in the balance sheet for any hedged items that have ceased to be adjusted for hedging gains and losses
Debentures and notes	5,301,915	-	-	-138,699	-
Balance at December 31	5,301,915	-	-	-138,699	-


	2022
	Carrying amount of the hedged item	Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount of the hedged item
Balance sheet line item	Liabilities	Assets	Liabilities	Change in fair value used for calculating hedge ineffectiveness	Accumulated amount remaining in the balance sheet for any hedged items that have ceased to be adjusted for hedging gains and losses
Debentures and notes	4,695,248	-	-	341,896	-
Balance at December 31	4,695,248	-	-	341,896	-

Hedge of debentures and notes:

	2023
Risk category: Interest rate	Maturity
	Less than 1 month	1-3 months	3 months - 1 year	1-5 years	more than 5 years
Nominal amount (in millions of euro)	-	542	539	4,209	149
Average fixed interest rate (%)	-	2.4	2.2	2.6	1.8

	2022
Risk category: Interest rate	Maturity
	Less than 1 month	1-3 months	3 months - 1 year	1-5 years	more than 5 years
Nominal amount (in millions of euro)		-	702	3,887	415
Average fixed interest rate (%)	-	-	0.4	2.0	1.5

7. Loans to the private sector

These loans to the private sector include:

Loans to the private sector in developing economies are for the account and risk of FMO;
Loans in developing economies that are individually guaranteed by the Dutch Government for 80 percent to 95 percent or other financial guarantors. Any losses will be compensated by the guarantors up to the guaranteed amount. Refer to the Credit risk section in the 'Risk Management' chapter for details of these guarantees received.

Loan movements
	Loans measured at AC	Loans measured at FVPL	Total
Balance at January 1, 2023	4,623,568	486,067	5,109,635
Disbursements	1,251,260	145,046	1,396,306
Interest capitalization	8,936	4,266	13,202
Conversion from loan to equity	-	-1,879	-1,879
Part sold	-138,783	-2,700	-141,483
Repayments	-1,249,673	-48,029	-1,297,702
Write-offs / disposals	-41,359	-42,200	-83,559
Derecognized and /or restructured loans	935	-	935
Changes in amortizable fees	824	-495	329
Amortized premium / discount	-44	-	-44
Changes in fair value	-	56,863	56,863
Changes in accrued income	5,939	6,706	12,645
Exchange rate differences	-167,874	-15,705	-183,579
Movement of impairments	1,994	-	1,994
Balance at December 31, 2023	4,295,723	587,940	4,883,663

	Loans measured at AC	Loans measured at FVPL	Total
Balance at January 1, 2022	4,152,713	621,978	4,774,691
Disbursements	1,564,511	13,533	1,578,044
Interest capitalization	1,204	6,746	7,950
Conversion from loan to equity	-	-17,239	-17,239
Part sold	-56,747	-487	-57,234
Repayments	-1,122,096	-139,254	-1,261,350
Write-offs / disposals	-88,347	-1,450	-89,797
Derecognized and /or restructured loans	-49	-	-49
Changes in amortizable fees	2,341	-227	2,114
Amortized premium / discount	45	-	45
Changes in fair value	-	-31,240	-31,240
Changes in accrued income	16,891	4,185	21,076
Exchange rate differences	207,398	29,522	236,920
Movement of impairments	-54,296	-	-54,296
Balance at December 31, 2022	4,623,568	486,067	5,109,635

The contractual amount of assets that were written off during the period are still subject to enforcement activity.

Loans segmented by sector

	2023
	Stage 1	Stage 2	Stage 3	Fair value	Total
Financial Institutions	2,259,763	30,305	15,292	353,658	2,659,018
Energy	745,478	402,029	148,523	66,001	1,362,031
Agribusiness, Food and Water	442,259	13,817	53,485	104,596	614,157
Multi-Sector Fund Investments	32,721	-	-	4,213	36,934
Infrastructure, Manufacturing and Services	96,813	29,640	25,598	59,472	211,523
Balance at December 31	3,577,034	475,791	242,898	587,940	4,883,663


	2022
	Stage 1	Stage 2	Stage 3	Fair value	Total
Financial Institutions	2,369,606	14,967	76,893	215,096	2,676,562
Energy	900,733	209,615	134,738	77,394	1,322,480
Agribusiness, Food and Water	536,759	51,837	64,372	110,005	762,973
Multi-Sector Fund Investments	21,119	-	-	4,327	25,446
Infrastructure, Manufacturing and Services	158,643	45,124	39,162	79,245	322,174
Balance at December 31	3,986,860	321,543	315,165	486,067	5,109,635


Loans segmented by geographical area

	2023
	Stage 1	Stage 2	Stage 3	Fair value	Total
Africa	843,793	208,854	123,257	174,334	1,350,238
Asia	692,757	112,446	9,216	68,921	883,340
Latin America & the Caribbean	1,033,829	152,815	67,062	98,554	1,352,260
Europe & Central Asia	897,315	1,676	43,363	192,349	1,134,703
Non - region specific	109,340	-	-	53,782	163,122
Balance at December 31	3,577,034	475,791	242,898	587,940	4,883,663


	2022
	Stage 1	Stage 2	Stage 3	Fair value	Total
Africa	937,717	212,875	101,415	130,768	1,382,775
Asia	703,671	24,410	112,136	90,340	930,557
Latin America & the Caribbean	1,213,142	74,306	48,756	51,253	1,387,457
Europe & Central Asia	974,077	787	52,858	154,945	1,182,667
Non - region specific	158,253	9,165	-	58,761	226,179
Balance at December 31	3,986,860	321,543	315,165	486,067	5,109,635

Loans to private sector - other information
	2023	2022
Gross amount of loans to companies in which FMO has equity investments	342,031	338,935
Gross amount of subordinated loans	216,192	91,642

The movements in the gross carrying amounts and ECL allowances for loans to the private sector at AC are as follows:

Changes in Loans to the private sector at AC in 2023	Stage 1		Stage 2		Stage 3		Total
	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance
Balance at January 1, 2023	4,019,439	-32,579	338,766	-17,223	521,762	-206,597	4,879,967	-256,399
Additions	1,158,476	-8,839	92,904	-9,840	-	-	1,251,380	-18,679
Exposure derecognized or matured/lapsed (excluding write offs)	-1,216,793	3,162	-85,688	1,605	-85,975	61,637	-1,388,456	66,404
Transfers to Stage 1	42,060	-1,673	-33,812	738	-8,248	935	-	-
Transfers to Stage 2	-225,869	5,116	287,726	-15,003	-61,857	9,887	-	-
Transfers to Stage 3	-38,567	209	-82,672	5,314	121,239	-5,523	-	-
Modifications of financial assets (including derecognition)	-8,059	-	4,743	-	13,069	-	9,753	-
Changes in risk profile (including changes in accounting estimates)	-	7,281	-	674	-	-102,521	-	-94,566
Amounts written off/disposals	-	-	-	-	-41,359	41,359	-41,359	41,359
Changes in amortizable fees	-911	-	703	-	1,032	-	824	-
Premium / discount	-44	-	-	-	-	-	-44	-
Changes in accrued income	11,414	-	1,345	-	-6,821	-	5,938	-
Foreign exchange adjustments	-137,806	1,017	-15,413	924	-14,656	5,535	-167,875	7,476
Balance at December 31, 2023	3,603,340	-26,306	508,602	-32,811	438,186	-195,288	4,550,128	-254,405

Changes in Loans to the private sector at AC in 2022	Stage 1		Stage 2		Stage 3		Total
	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance
Balance at January 1, 2022	3,194,012	-20,486	803,935	-29,522	356,869	-152,095	4,354,816	-202,103
Additions	1,506,232	-8,234	57,714	-3,975	566	-106	1,564,512	-12,315
Exposure derecognized or matured/lapsed (excluding write offs)	-1,020,325	3,171	-98,862	993	-57,067	96,225	-1,176,254	100,389
Transfers to Stage 1	349,377	-11,850	-349,387	11,850	10	-	-	-
Transfers to Stage 2	-74,774	572	77,287	-606	-2,513	34	-	-
Transfers to Stage 3	-133,325	1,469	-151,186	3,771	284,511	-5,240	-	-
Modifications of financial assets (including derecognition)	22,751	-	-22,222	-	-1,961	-	-1,432	-
Changes in risk profile (including changes in accounting estimates)	-	3,706	-	1,936	-	-224,540	-	-218,898
Amounts written off/disposals	-	-	-	-	-88,348	88,348	-88,348	88,348
Changes in amortizable fees	-888	-	1,335	-	1,893	-	2,340	-
Premium / discount	45	-	-	-	-	-	45	-
Changes in accrued income	18,635	-	2,215	-	-3,961	-	16,889	-
Foreign exchange adjustments	157,699	-927	17,937	-1,670	31,763	-9,223	207,399	-11,820
Balance at December 31, 2022	4,019,439	-32,579	338,766	-17,223	521,762	-206,597	4,879,967	-256,399

Total impairments on loans in the consolidated profit and loss account
	2023	2022
Additions	-18,679	-12,315
Exposure derecognized or matured / lapsed (excluding write - offs)	66,404	100,389
Changes in risk profile (including changes in accounting estimates)	-94,566	-218,898
Recoveries (written off loans)	-11,181	-4,108
Other	19,400	8,298
Total at December 31	-38,622	-126,634

ECL allowances across sectors remain largely consistent between 2022 and 2023. However, ECL allowances in 2023 as a result of stage 3 classification showed a significant regional shift from Asia to South America. The reason is that the banking sector in Latin America is following a difficult 2023. The Asia-Pacific region on the other hand remained a key driver of economic growth. Refer to the Credit risk section in the 'Risk Management' chapter for more details.

8. ECL allowances - assessment

FMO calculates ECL allowances for interest-bearing securities, loans to the private sector at AC (including off-balance loan commitments) and guarantees given to customers. The movement in ECL allowances for each of these items is presented in their relevant notes.

To demonstrate the sensitivity of the 'Significant Increase in Credit Risk' criteria, the tables below present the distribution of Stage 2 impairments by the criteria that triggered the migration to Stage 2.

	Loans to private Sector	Guarantees	Loan Commitments	Total

More than 30 days past due	-	-	-	-
Deterioration in credit risk - financial difficulties	-32,811	-507	-6,458	-39,776
Total at December 31, 2023	-32,811	-507	-6,458	-39,776

	Loans to private Sector	Guarantees	Loan Commitments	Total

More than 30 days past due	-17	-	-	-17
Deterioration in credit risk - financial difficulties	-17,206	-	-6,185	-23,391
Total at December 31, 2022	-17,223	-	-6,185	-23,408

The table below shows the values of the IMF GDP forecasts used in each of the economic scenarios for the ECL calculations for 2022 and 2023. The upside and downside scenario calculations are derived from the base case scenario, adjusted based on an indicator of public debt to GDP in emerging markets.

The macro-economic scenarios’ model was updated following the publication of the new macro- economic outlook data by the IMF in October 2023. The updates of the model based on more recent GDP forecast, caused new point-in-time adjustments to probability of defaults in the impairment model, leading to a slight increase in combined Stage-1 and Stage-2 impairment charge.

IMF GDP % Growth Forecasts (the figures are based on the latest forecast in October 2023)

	2023	2022
Turkey	3.18	4.97
India	6.33	6.84
Georgia	5.20	8.98
Argentina	3.25	4.04
Nigeria	3.06	3.17
Uganda	7.47	4.41
Bangladesh	6.60	7.25
Ghana	4.59	3.59
Armenia	4.50	6.98
Costa Rica	3.19	3.81

The following tables outline the impact of multiple scenarios on the ECL allowance. The probabilities of macro-economic scenarios (making point-in-time adjusted probability of default) were updated using the data provided by the IMF, as published in October 2023.

	Total unweighted amount per ECL scenario	Probability	Loans to the private Sector	Guarantees	Bonds and cash	Total
ECL scenario:
Upside	249,680	2%	4,778	213	2	4,994
Base case	€275,327	50%	€131,977	5,640	47	€137,664
Downside	307,082	48%	141,513	5,840	45	147,399
Total at December 31, 2023			277,397	11,693	94	289,186

	Total unweighted amount per ECL scenario	Probability	Loans to the private Sector	Guarantees	Bonds and cash	Total
ECL scenario:
Upside	256,484	2%	4,899	229	2	5,130
Base case	277,089	50%	132,486	6,015	43	138,544
Downside	309,902	48%	142,522	6,190	41	148,753
Total at December 31, 2022			279,907	12,434	86	292,427

The total unweighted amount for the base scenario of €275 million (2022: €277 million) is an aggregation of €254 million (2022: €256 million) ECL allowances related to Loans to private sector (refer to Note 7), €11 million (2022: €12 million) ECL off balance items for financial guarantees (refer to Note 34), €10 million (2022: €9 million) ECL off balance for loan commitments (refer to Note 34).

Loans to private sector in the tables above include amounts related to ECL allowances for off balance loan commitments (refer to Note 34).

Reference is made to the 'Accounting policies' chapter on macro-economic scenarios on PD estimates.

9. Equity investments

Equity investments in developing countries are for FMO’s account and risk. The movements in fair value of the equity investments are summarized in the following table. Equity investments of FMO are measured at FVPL or at FVOCI.

	Equity measured at FVOCI	Equity measured at FVPL	Total
Balance at January 1, 2023	150,733	2,130,903	2,281,636
Purchases and contributions	-	333,825	333,825
Conversion of loans to equity	-	1,879	1,879
Transfer associate/FVPL	-	-	-
Return of capital (including sales)	-	-224,513	-224,513
Changes in fair value	16,341	-48,323	-31,982
Other changes	-	-	-
Balance at December 31, 2023	167,074	2,193,771	2,360,845

	Equity measured at FVOCI	Equity measured at FVPL	Total
Balance at January 1, 2022	140,425	1,876,825	2,017,250
Purchases and contributions	-	279,815	279,815
Conversion of loans to equity	-	938	938
Transfer associate/FVPL	-	-18,923	-18,923
Return of capital (including sales)	-	-105,019	-105,019
Changes in fair value	10,308	49,808	60,116
Other changes	-	47,459	47,459
Balance at December 31, 2022	150,733	2,130,903	2,281,636

Other changes relate to consolidation of FMO's Ventures Program (refer to the section group accounting and consolidation in the accounting policies chapter).

Equity investments segmented by sector
	2023	2022
Financial Institutions	682,684	627,292
Energy	287,203	270,532
Agribusiness	142,965	148,585
Multi-Sector Fund Investments	966,915	984,765
Infrastructure, Manufacturing and Services	281,078	250,462
Balance at December 31	2,360,845	2,281,636

FMO has designated the investments shown in the following table as equity investments at FVOCI. The FVOCI designation was made because the investments are expected to be held for long-term strategic purposes.

	2023		2022
	Fair value	Dividend income	Fair value	Dividend income
The Currency Exchange Fund N.V.	157,118	-	139,904	-
Seed Capital	9,916	-	10,789	-
EDFI Management Company	40	-	40	-
Total at December 31	167,074	-	150,733	-

10. Investments in associates and joint ventures

Movements carrying amounts of the Associates and Joint ventures
	2023	2022
Balance at January 1	297,960	298,737
Purchases and contributions	14,260	14,715
Conversion from loans to equity	-	16,770
Conversion Associates/FVPL		18,924
Return of capital (including sales)	-6,657	-10,929
Share in net results	26,065	-58,596
Exchange rate differences	-23,449	18,339
Balance at December 31	308,179	297,960

All investments in associates and joint ventures are measured based on the equity accounting method. Cash dividends received from associates amount to €12.4 million (2022: €2.7 million).

The following tables summarize FMO’s share in the total assets, liabilities, total income and total net profit/loss of the associates and segments the associates by sector.

	Carrying amount	Economic ownership %	Total assets	Total liabilities	Total income	Total profit/loss
Banyantree Growth Capital LLC	2,781	27%	-	-	-	-
Arise BV	234,985	27%	241,349	6,364	2,661	46,562
JCM Power Corporation	14,172	24%	-	-	-	-
BE C&I Solutions Holding Pte. Ltd.	32,564	24%	58,039	25,488	-	-
Invest International B.V.	2,040	49%	161,197	-	-	70
Balance at December 31, 2023	286,542

	Carrying amount	Economic ownership %	Total assets	Total liabilities	Total income	Total profit/loss
Banyantree Growth Capital LLC	1,819	27%	-	-	-	-
Arise BV	233,096	27%	214,049	2,521	2,853	-10,932
JCM Power Corporation	16,327	24%	-	-	-	-
BE C&I Solutions Holding Pte. Ltd.	37,238	24%	46,333	11,146	2,062	-2,013
Vinca Developer Private Limited	2,047	34%	9,160	7,113	-	-1
Invest International B.V.	-	49%	2,040	-	-	-2,484
Balance at December 31, 2022	290,527

	2023	2022
Financial Institutions	237,026	233,095
Energy	46,735	60,999
Multi-Sector Fund Investments	2,781	3,866
Net balance at December 31	286,542	297,960

Invest International was established on July 28, 2021. Share capital is split between A-shares where the Dutch Government owns 51 percent and FMO 49 percent and B-shares which are owned 100 percent by the Dutch Government.

During the course of the year FMO deposited €15.6 million (2022: €20.4 million) with Invest International. The deposit has a 1-year maturity and accrues interest at a market-based rate after adjusting for non-applicable internal costs. Expected credit loss is not expected to be material taking into account the support offered to Invest International from the Dutch State. The deposit is presented in the short-term deposits statement of financial position line item, refer to Note 3.

JCM Power Corporation was transferred from the equity investments to investments in associates in 2022. This is due to a reorganization of JCM Power Corporation in October 2022 in which FMO has acquired significant influence through a 24% economical ownership. The transfer took place at fair value.

In 2016 FMO signed an agreement to set up an investment vehicle, Arise B.V., together with Norfund and Rabobank. This investment vehicle is set up to invest in African financial institutions. FMO's commitment amounts to US$266 million. As of December 31, 2023, our remaining commitment towards Arise B.V. amounts to US$12.5 million.

Arise B.V. is a private limited liability company incorporated in the Netherlands whose statutory seat is registered at Croeselaan 18, 3521 CB Utrecht, the Netherlands and is registered in the Dutch commercial register under number 64756394. FMO’s share and voting rights in Arise B.V. is 27 percent .

The following tables summarize FMO’s share in the total assets, liabilities, total income and total net profit/loss in joint ventures.

	Carrying amount	Economic ownership %	Total assets	Total liabilities	Total income	Total profit/loss
Climate Fund Managers B.V.	9,946	50%	15,051	5,105	12,876	2,363
SDG Loan Fund S.C.A SICAV-SIF	11,691	10%	11,954	186	11	-5
Balance at December 31, 2023	21,637

	Carrying amount	Economic ownership %	Total assets	Total liabilities	Total income	Total profit/loss
Climate Fund Managers B.V.	7,433	50%	13,988	6,286	15,594	5,576
Balance at December 31, 2022	7,433

For material joint ventures, the above amounts of assets and liabilities include the following:

	SDG Loan Fund S.C.A SICAV SIF
	2023	2022
Cash and cash equivalents	28,440	-
Current financial liabilities (excluding trade and other payables and provisions)	-	-
Non-current financial liabilities (excluding trade and other payables and provisions)	-	-

For material joint ventures, the above profit and loss amounts include the following:

	SDG Loan Fund S.C.A SICAV SIF
	2023	2022
Interest income	122	-
interest expense	-	-
Income tax expense	-	-

Reconciliation of summarized financial information to carrying amount for material joint ventures:

	SDG Loan Fund S.C.A SICAV SIF
	2023	2022
Net assets of joint venture	130,161	-
Economic ownership	10%	-
Goodwill	-	-
Carrying amount	11,691	-

During the current financial year FMO made an initial investment of US$13 million into the SDG Loan Fund S.C.A. SICAV SIF. This investment is treated as a joint venture in accordance with IAS 28 and IFRS 11 as FMO exercises joint control over the Fund, in cooperation with the other co-investors via the Fund investment committee and shareholders advisory committee. FMO also has rights to the net assets of the Fund. FMO's share of the capital of the Fund is 10%. FMO's total commitment to the Fund is US$111 million.

The Fund is an investment fund which co-invests with FMO in loans in emerging markets. It is incorporated under the laws of the Grand Duchy of Luxembourg, having its registered office at 6A, route de Trèves, L-2633 Senningerberg, Luxembourg and registered under number B259701 with the Luxembourg Trade and Companies’ Register.

11. Property, plant and equipment

Property, plant and equipment (PP&E) includes tangible assets that are used by FMO. These assets include buildings, office equipment and vehicles that are rented by FMO from third parties. These leases have been recognized on the statement of financial position following the implementation of IFRS 16.

Furthermore, PP&E includes furniture owned by FMO and costs related to leasehold improvements.

	Furniture	Leasehold improvement	Other	Right-of-use assets	Total

Cost at December 31, 2022	9,462	8,695	38	29,023	47,218
Accumulated amortization at December 31, 2022	-8,600	-2,186	-2	-13,109	-23,897
Balance at December 31, 2022	862	6,509	36	15,914	23,321

Carrying amount at January 1, 2023	862	6,509	36	15,914	23,321
Investments	193	-	-	881	1,074
Depreciation	-331	-894	-8	-3,274	-4,507
Disposals				-29	-29
Accumulated depreciation on disposals	-	-		-	-
Balance at December 31, 2023	724	5,615	28	13,492	19,859

Cost at December 31, 2023	9,655	8,695	38	29,875	48,263
Accumulated amortization at December 31, 2023	-8,931	-3,080	-10	-16,383	-28,404
Balance at December 31, 2023	724	5,615	28	13,492	19,859

Right-of-use assets consist of operational leases and include buildings, vehicles and office equipment.

	Buildings	Office equipment	Vehicles	Total right-of-use assets	Lease liabilities

Balance at January 1, 2022	16,276	349	2,090	18,715	18,915
Additions	85	18	367	470	470
Disposals	-	-	-11	-11	-11
Depreciation	-2,374	-118	-768	-3,260	-
Finance costs	-	-	-	-	139
Payments	-	-	-	-	-3,369
Balance at December 31, 2022	13,987	249	1,678	15,914	16,144
Additions	474	24	382	880	880
Disposals	-	-	-29	-29	-29
Depreciation	-2,428	-122	-723	-3,273	-
Finance costs	-	-	-	-	122
Payments	-	-	-	-	-3,385
Balance at December 31, 2023	12,033	151	1,308	13,492	13,732

Maturity breakdown of the leases
	< 1 year	1-5 years	>5 years	Total
Buildings	2,422	9,832	-	12,254
Office Equipment	76	61	20	157
Vehicles	620	701	-	1,321
Total at December 31, 2023	3,118	10,594	20	13,732


	< 1 year	1-5 years	>5 years	Total
Buildings	2,325	9,461	2,410	14,196
Office Equipment	96	135	22	253
Vehicles	690	1,005	-	1,695
Total at December 31, 2022	3,111	10,601	2,432	16,144

12. Intangible assets

Intangible assets include costs associated with identifiable and unique software products or internally developed software, controlled by FMO. For internally developed software, only costs related to the development phase are capitalized. Expenses related to the research phase are immediately recognized in the statement of profit or loss under 'Temporary staff expenses'.

	ICT software	Internally developed software	Total

Cost at December 31, 2022	7,195	33,130	40,325
Accumulated amortization at December 31, 2022	-5,606	-22,764	-28,370
Balance at December 31, 2022	1,589	10,366	11,955

Carrying amount at January 1, 2023	1,589	10,366	11,955
Investments	803	7,839	8,642
Amortization	-718	-4,494	-5,212
Impairment/disposals	-	-60	-60
Accumulated depreciation on disposals	-	-	-
Accumulated amortisation at December 31, 2023	1,674	13,651	15,325

Cost at December 31, 2023	7,998	40,909	48,907
Accumulated amortization at December 31, 2023	-6,324	-27,258	-33,582
Balance at December 31, 2023	1,674	13,651	15,325

Impairment relates to software that is not in use anymore.