ADB has a very well-performing loan portfolio due primarily to its sovereign focus and preferred creditor status. As of 31 December 2011, 95% of ADB's outstanding effective loans under ordinary operations have been made to the public sector (members and with the guarantee of the concerned member, government agencies or other public entities) with the remaining 5% to private sector enterprises, financial institutions, and selected nonsovereign public sector entities.
ADB has not suffered any losses of principal on sovereign loans and maintains a position of not taking part in debt rescheduling agreements. In the case of nonsovereign loans, ADB may agree to debt rescheduling only after alternative courses of action have been exhausted.
ADB has a very strict policy with regard to non-accrual loans. If a loan is overdue by 60 days, ADB withholds submission of loan proposals to the Board and signing of new loan documents. After 90 days, disbursements are suspended and after 6 months, the loan is placed in non accrual status. Ordinary Capital Resources (OCR) has not experienced any loan loss from sovereign operations. When countries have delayed payments, they have generally returned their loans to accrual status and ADB has never had to write off a sovereign loan funded from OCR. During 2011, no loan loss provisions were made against outstanding sovereign loans. There was no accumulated loan loss provision for sovereign loans as of 31 December 2011.
One nonsovereign loan was in non-accrual status as of 31 December 2011. The principal outstanding was $22.8 million of which $22.8 million was overdue. Loans in non-accrual status resulted in $1,000 not being recognized as income from nonsovereign loans for the year ended 31 December 2011.
There were no sovereign loans in non-accrual status in 2011 and 2010.
More on ADB’s loans in the 2011 Annual Report, Volume 2.
The breakdown of ADB's outstanding effective loans as of 31 December 2011 can be seen below. This includes loans outstanding at $49.7 billion (gross) and undisbursed effective loans at $18.5 billion.
The breakdown of ADB's total loan portfolio can be seen below:
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Breakdown of Outstanding Effective Loans by Borrower (Sovereign and Nonsovereign) As of 31 December 2011 |
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Breakdown of Outstanding Effective Loans by Sector (Sovereign and Nonsovereign) As of 31 December 2011 |
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