About ADB

Spotlight Loan Disbursement Handbook

Financial Resources

ADB borrows and lends prudently. It

• maintains adequate net income, liquidity, and reserves
• monitors the creditworthiness of borrowers
• requires borrowers to justify thoroughly the economic, financial, and technical viability of their projects for which they seek ADB loans

As required in its Charter, its loans, equity investments, and guarantees do not exceed its paid-in and callable capital, plus its ordinary reserve and surplus.

The financial resources of ADB consist of ordinary capital resources (subscribed capital, reserve and surplus, and borrowed funds) and special funds (mostly contributions of members for ADB's concessional loan and technical assistance programs).

View Statement of ADB Operations in 2006.

Instruments

ADB provides different forms of assistance to governments and private enterprises in its developing member countries based on a member’s priorities.

The financing instruments are:

• loans
• technical assistance
• grants
• guarantees (credit-and political risk-based)
• equity investments