Asset Quality

ADB has a very well-performing loan portfolio due primarily to its sovereign focus and preferred creditor status. As of 31 December 2012, 94% 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 6% 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. Occasional delays have occurred in loan service payments on its sovereign loans but these have not been material to ADB's operations.  During 2012, no loan loss provisions were made against outstanding sovereign loans (nil in 2011). There was no accumulated loan loss provision for sovereign loans as of 31 December 2012 (nil in 2011). 

ADB places loans in non-accrual status when they are past due by six months.

One nonsovereign loan was in non-accrual status as of 31 December 2012 with principal outstanding and overdue of $18.4 million. There was a recovery of unrecognized income amounting to $58,000 from nonsovereign loans for the year ended 31 December 2012.  

There were no sovereign loans in non-accrual status in 2012 and 2011.

More on ADB’s loans in the 2012 Financial Report.

The breakdown of ADB's outstanding effective loans as of 31 December 2012 can be seen below.  This includes loans outstanding at $52.8 billion (gross) and undisbursed effective loans at $21.8 billion.

The breakdown of ADB's total loan portfolio can be seen below:

Breakdown of Outstanding Effective Loans by Borrower
(Sovereign and Nonsovereign)
As of 31 December 2012
ICT = Information and Communication Technology
Note: Percentages may not total 100% because of rounding.

Breakdown of Outstanding Effective Loans by Sector
(Sovereign and Nonsovereign)
As of 31 December 2012
Note: Percentages may not total 100% because of rounding.

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