Crisis Response of Asian Development Fund - Allocation of Additional Liquidity

Institutional Document | May 2009

The purpose of this paper is to seek the approval of the Board of Directors of the Asian Development Bank (ADB) to allocate additional Asian Development Fund (ADF) commitment authority to ADF-only countries to help them respond to the global economic crisis.

The purpose of this paper is to seek the approval of the Board of Directors of the Asian Development Bank (ADB) to allocate additional Asian Development Fund (ADF) commitment authority to ADF-only countries to help them respond to the global economic crisis. As of 31 March 2009, about 55% of the outstanding ADF legacy loans had been converted to special drawing rights, reducing the currency risk. As a result, SDR270 million (about $400 million) from the prudential minimum liquidity (PML) of ADF that was originally provided to cover the currency risks can now be released and added to the ADF commitment authority.

Contents 

  • Introduction
  • Additional ADF Assistance
  • Country Allocations and Revised 2009-2010 Performance Based Allocation
  • Front Loading of 2009-2010 Performance Based Allocation
  • Recommendation