Asian Development Bank

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Valuation and Maintenance of Value of Capital Stock

The amount of a member’s subscription to ADB’s capital must be maintained at a fixed value that is calculated in terms of the US dollar in effect on 31 January 1966. In the event of a change in the exchange value of a member’s currency, an appropriate adjustment (involving payment of that member’s currency by ADB to the member or vice versa) will be made to maintain the value of the paid-in portion of the member’s subscribed capital that has been paid in the member’s currency and held by ADB. The value of the callable portion of a member’s capital subscription, being fixed in terms of the 1966 US dollar, will be unaffected by changes in the exchange value of the member’s currency.

Before 1 April 1978, ADB translated the 1966 dollar into the current US dollar (ADB’s unit of account) on the basis of its par value in terms of gold. Since 1 April 1978, at which time the Second Amendment to the Articles of Agreement of the International Monetary Fund (IMF) came into effect, currencies no longer have par values in terms of gold. Pending ADB’s selection of the appropriate successor to the 1966 dollar, ADB’s capital stock has been valued for purposes of its financial statements, in terms of special drawing rights at the value in current US dollars, as computed by IMF. The mutual obligations of each member and ADB for maintaining the value of currency holdings are also measured by the same standard, but settlement of such obligations is being held in abeyance.

(See also Asian Development Bank; Board of Governors; Capital Structure; Creditworthiness; and Voting Power)

Go to Viet Nam, Socialist Republic of

VIE

Viet Nam

Go to Viet Nam Resident Mission

Viet Nam Resident Mission

(See Departments and Offices.)

Voting Power

The total voting power of each member consists of the sum of its basic votes and proportional votes. The basic votes of each member consist of such number of votes as results from the equal distribution among all members of 20 percent of the aggregate sum of the basic votes and proportional votes of all members. The number of proportional votes of each member equals the number of shares of the capital stock of ADB held by that member.

(See also Capital Structure)

VRM

(See Viet Nam Resident Mission.)

Vulnerable Groups

(See Indigenous Peoples; Japan Fund for Poverty Reduction; Poverty Reduction Strategy; Project Selection Criteria; Protection of Vulnerable Groups; and Thematic Priorities)