The Asian Development Bank's Board of Governors has adopted a resolution to allocate $690.1 million in net allocable income of its 2017 Ordinary Capital Resources (OCR) at ADB's 51st Annual Meeting in Manila.
The ordinary reserve will be allocated $350.7 million to support ADB's capital adequacy and provide an earnings base to generate net income, reports BSS.The Asian Development Fund (ADF), which provides grants to ADB's low-income member countries, will get $259.4 million, said a press release today.
The Technical Assistance Special Fund, which provides a stable and predictable funding source for ADB's technical assistance (TA), will receive $80.0 million. TA is one of ADB's primary operational instruments for delivering assistance to its developing member countries. ADB's financial position strengthened following the merger of the bank's concessional ADF lending operations with the OCR balance sheet on 1 January 2017. The merger increased ADB's equity base from $17 billion to $48 billion, and the equity-to-loan ratio from 25.9 percent at the end of 2016 to 51.0 percent on 1 January 2017.
This provides ADB a solid capital base to support its operations going forward. ADB's financial assistance of $20.1 billion in 2017 represented a 39 percent increase from the average annual commitments during 2014-2016.
ADB Governors also approved the bank's annual financial statements. The operating income for OCR reached $725 million 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.