ADB approves to allocate 690 mln USD ordinary reserve to support its operation
MANILA, May 5 (Xinhua) -- The Asian Development Bank's (ADB) Board of Governors adopted on Saturday a resolution to allocate 690.1 million U.S. dollars in net allocable income of its 2017 Ordinary Capital Resources (OCR) at ADB's 51st annual meeting in the Philippine capital.
The ordinary reserve will be allocated 350.7 million U.S. dollars to support ADB's capital adequacy and provide an earnings base to generate net income, the ADB said in a statement.
It said the Asian Development Fund (ADF), which provides grants to ADB's low-income members, will get 259.4 million U.S. dollars.
The ADB said the Technical Assistance Special Fund, which provides a stable and predictable funding source for ADB's technical assistance (TA), will receive 80.0 million U.S. dollars. TA is one of ADB's primary operational instruments for delivering assistance to its developing members.
ADB's financial position strengthened following the merger of the bank's concessional ADF lending operations with the OCR balance sheet on Jan. 1, 2017, the ADB said.
The ADB said the merger increased ADB's equity base from 17 billion U.S. dollars to 48 billion U.S. dollars, and the equity-to-loan ratio from 25.9 percent at the end of 2016 to 51.0 percent on Jan. 1, 2017.
"This provides ADB a solid capital base to support its operations going forward. ADB's financial assistance of 20.1 billion U.S. dollars in 2017 represented a 39 percent increase from the average annual commitments during 2014 to 2016, the ADB said.
The bank said the ADB Governors also approved the bank's annual financial statements.
"The operating income for OCR reached 725 million U.S. dollars in 2017. The 2017 net income, after the allocation of the one-time income from the ADF asset transfers to ordinary reserve, was 774 million U.S. dollars," the ADB said.