International organizations
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This group records Canada's subscriptions to the share capital of international banks. It also includes loans and advances to associations and other international organizations.
Canada's subscriptions to the share capital of a number of international banks are composed of both paid-in and callable capital. The majority of subscriptions to international organizations do not provide a return on investment but are repayable on termination of the organization or withdrawal from it.
Paid-in capital subscriptions are made through a combination of cash payments and the issuance of non-interest bearing, non-negotiable notes payable to the organization. Although payable on demand, these notes are typically encashed according to terms of agreements reached between the organization and participating countries.
Callable share capital is composed of resources that are not paid to the banks but act as a guarantee to allow them to borrow on international capital markets to finance their lending program. Callable share capital, which has never been drawn on by the banks, would only be utilized in extreme circumstances to repay loans, should a bank's reserves not be sufficient. It represents a contingent liability of the Government, and is listed with other contingent liabilities related to international organizations in Table 11.6 in Section 11 of this volume.
Most loans and advances to international organizations are made to banks and associations that use these funds to make loans to developing countries at significant concessionary terms. Loans made on a long-term, low-interest or interest-free basis, and investments in organizations that make similar loans, are recorded in full or in part as expenses when the economic value is reduced due to their concessionary terms.
Table 9.12 presents a summary of the balances and transactions for share capital, loans and advances to international organizations. The revaluation amount represents the conversion of foreign currency balances to the year-end closing rates of exchange. Balances denominated in United States dollars were converted to Canadian dollars at year-end exchange rate of $1 USD/$1.2884 CAD.
Table 11.4 and table 11.7 of Section 11 of this volume present additional information on contractual obligations and contingent liabilities for international organizations that are disclosed in the notes to the audited consolidated financial statements in Section 2 of this volume.
The notes payable outstanding at year-end of $240,249,239 ($36,161,313 in 2017) are reported in Table 5.3 in Section 5 of this volume.
| April 1, 2017 | Payments and other charges | Receipts and other credits | March 31, 2018 | |||
|---|---|---|---|---|---|---|
| Participation or other charges |
Revaluation | Reimbursements or other credits |
Revaluation | |||
| Capital subscriptionsLink to footnote 1 | ||||||
| Finance | ||||||
| Department of Finance | ||||||
| Asian Infrastructure Investment Bank | – | 257,200,158 | – | – | – | 257,200,158 |
| European Bank for Reconstruction and Development | 287,521,278 | – | – | – | 8,972,202 | 278,549,076 |
| International Bank for Reconstruction and Development | 572,003,540 | – | – | – | 17,337,680 | 554,665,860 |
| International Development AssociationLink to footnote 2 | 11,614,178,061 | 441,610,000 | – | – | – | 12,055,788,061 |
| International Finance Corporation | 108,176,726 | – | – | – | 3,375,693 | 104,801,033 |
| Multilateral Investment Guarantee Agency | 14,272,819 | – | – | – | 445,388 | 13,827,431 |
| Subtotal | 12,596,152,424 | 698,810,158 | – | – | 30,130,963 | 13,264,831,619 |
| Global Affairs | ||||||
| Department of Foreign Affairs, Trade and Development | ||||||
| African Development Bank | 314,121,553 | 2,744,093 | – | – | 7,861,298 | 309,004,348 |
| Asian Development Bank | 383,996,908 | – | – | – | 5,302,227 | 378,694,681 |
| Caribbean Development Bank | 51,886,041 | – | – | – | 1,424,360 | 50,461,681 |
| Inter-American Development Bank | 328,974,324 | – | – | – | 10,162,208 | 318,812,116 |
| Inter-American Investment Corporation | 1,994,850 | 35,364,017 | 1,051,622 | – | – | 38,410,489 |
| Subtotal | 1,080,973,676 | 38,108,110 | 1,051,622 | – | 24,750,093 | 1,095,383,315 |
| Total | 13,677,126,100 | 736,918,268 | 1,051,622 | – | 54,881,056 | 14,360,214,934 |
| Loans and advances | ||||||
| Finance | ||||||
| Department of Finance | ||||||
| Global Environment FacilityLink to footnote 2 | 10,000,000 | – | – | – | – | 10,000,000 |
| International Finance Corporation | ||||||
| Catalyst Fund | 75,000,000 | – | – | – | – | 75,000,000 |
| Financial Mechanisms for Climate Change Facility | 233,246,793 | – | – | 233,246,793 | – | – |
| Global Agriculture and Food Security Program | 40,721,207 | – | – | 40,721,207 | – | – |
| International Monetary Fund | ||||||
| Poverty Reduction and Growth TrustLink to footnote 1 | 257,974,248 | – | 9,592,000 | 10,491,648 | – | 257,074,600 |
| Subtotal | 616,942,248 | – | 9,592,000 | 284,459,648 | – | 342,074,600 |
| Global Affairs | ||||||
| Department of Foreign Affairs, Trade and Development | ||||||
| International Finance Corporation | ||||||
| Financial Mechanisms for Climate Change Facility | – | 224,422,003 | – | – | – | 224,422,003 |
| Global Agriculture and Food Security Program | – | 35,621,732 | – | – | – | 35,621,732 |
| International financial institutionsLink to footnote 2 | ||||||
| African Development Bank | 468,895 | – | – | 125,000 | – | 343,895 |
| African Development Fund | 2,875,463,375 | 108,533,333 | – | – | 3,112,498 | 2,980,884,210 |
| Andean Development Corporation | 812,500 | – | – | 125,000 | – | 687,500 |
| Asian Development Bank—Special | 27,027,000 | – | – | – | – | 27,027,000 |
| Asian Development Fund | 2,353,575,256 | 32,956,918 | – | – | – | 2,386,532,174 |
| Caribbean Development Bank | ||||||
| Agricultural Development Fund | 2,000,000 | – | – | – | – | 2,000,000 |
| Commonwealth Caribbean Regional | 5,319,600 | – | – | – | 166,000 | 5,153,600 |
| Special | 355,485,620 | 17,585,000 | – | – | 520,825 | 372,549,795 |
| Central American Bank for Economic Integration | 38,280 | – | – | 38,280 | – | – |
| Global Environment Facility Trust Fund | 890,570,000 | 54,750,000 | – | – | – | 945,320,000 |
| Inter-American Development Bank | ||||||
| Fund for Special Operations | 401,655,097 | 631,869 | – | – | 7,498,144 | 394,788,822 |
| International Bank for Reconstruction and Development | 26,598,000 | – | – | – | 830,000 | 25,768,000 |
| International Fund for Agriculture Development | 441,883,396 | 12,500,000 | – | – | – | 454,383,396 |
| International Monetary Fund | 14,588,248 | – | – | – | 455,231 | 14,133,017 |
| Montreal Protocol Multilateral Fund | 120,248,433 | 5,294,830 | – | – | 1,107,405 | 124,435,858 |
| Multilateral Investment Fund | 49,308,294 | – | – | – | – | 49,308,294 |
| Subtotal | 7,565,041,994 | 492,295,685 | – | 288,280 | 13,690,103 | 8,043,359,296 |
| International organizations and associationsLink to footnote 1 | ||||||
| Berne Union of the World Intellectual Property Organization | 39,192 | – | – | – | – | 39,192 |
| Customs Co-operation Council | 9,662 | – | – | – | – | 9,662 |
| Food and Agriculture Organization | 1,051,200 | – | – | – | – | 1,051,200 |
| General Agreement on Tariffs and Trade | 48,806 | – | – | – | – | 48,806 |
| International Atomic Energy Agency | 447,110 | – | – | – | – | 447,110 |
| International Civil Aviation Organization | 200,429 | – | – | – | – | 200,429 |
| International Maritime Organization | 2,202 | – | – | – | – | 2,202 |
| Paris Union of the World Intellectual Property Organization | 100,989 | – | – | – | – | 100,989 |
| United Nations Educational, Scientific and Cultural Organization | 872,987 | – | – | – | – | 872,987 |
| United Nations organizations | 3,632,480 | – | – | – | – | 3,632,480 |
| World Health Organization | 181,122 | – | – | – | – | 181,122 |
| Subtotal | 6,586,179 | – | – | – | – | 6,586,179 |
| Total | 8,188,570,421 | 492,295,685 | 9,592,000 | 284,747,928 | 13,690,103 | 8,392,020,075 |
| Subtotal | 21,865,696,521 | 1,229,213,953 | 10,643,622 | 284,747,928 | 68,571,159 | 22,752,235,009 |
| Less: portion expensed due to concessionary terms | 1,084,093 | – | – | 212,924 | – | 871,169 |
| Total | 21,864,612,428 | 1,229,213,953 | 10,643,622 | 284,535,004 | 68,571,159 | 22,751,363,840 |
Table notesThe dash means that the amount is 0 or is rounded to 0. | ||||||
Asian Infrastructure Investment Bank
Effective March 19, 2018, Canada became a member to the Asian Infrastructure Investment Bank (AIIB) pursuant to the Asian Infrastructure Investment Bank Agreement Act, and various appropriation acts. The AIIB commenced operations in January 2016.
Canada's investment, like that of all other shareholders in the bank, is in the form of 20% paid in capital and 80% callable capital. As at March 31, 2018, Canada has subscribed to 9,954 shares (nil in 2017). The total value of these shares is $995.4 million USD (nil in 2017), of which $199.1 million USD (nil in 2017) is paid in and the remaining portion is callable. The paid in capital will be paid in equal installments over five years with an initial payment of $39.8 million USD in March 2018.
European Bank for Reconstruction and Development
This account records Canada's subscriptions to the capital of the European Bank for Reconstruction and Development (EBRD), as authorized by the European Bank for Reconstruction and Development Agreement Act, and various appropriation acts.
At year end, Canada has subscribed to 102,049 shares of the EBRD's authorized capital valued at 1,020,490,000 EUR.
Only 212,850,000 EUR or about 21% of Canada's share subscription is considered "paid-in". The balance is callable meaning the institution can request the resources in the unlikely event that it requires them to meet its financial obligations to bondholders. Payments for the share subscription are authorized by the Act. Each payment to the EBRD is comprised of cash and a promissory note.
Canada's contingent liability for the callable portion of its shares was 807,640,000 EUR.
Up to and including March 31, 2018, Canada's total cash contributions into the "paid-in" capital of the EBRD total $216,197,668 USD.
International Bank for Reconstruction and Development
This account records Canada's subscriptions to the capital of the International Bank for Reconstruction and Development (World Bank), as authorized by the Bretton Woods and Related Agreements Act, and various appropriation acts.
As at March 31, 2018, Canada has subscribed to 58,354 shares. The total value of these shares is $7,039,534,790 USD, of which $417,775,385 USD plus $16,404,055 CAD has been paid-in. The remaining portion is callable.
The callable portion is subject to call by the World Bank under certain circumstances. Canada's contingent liability for the callable portion of its shares is $6,606 million USD.
International Development Association
This account records Canada's contributions and subscriptions to the International Development Association (IDA), as authorized by the Bretton Woods and Related Agreements Act, and various appropriation acts (including the Department of Finance Vote 5, Appropriation Act No. 2, 2017–2018). The contributions and subscriptions to IDA, which is part of the World Bank Group, are used to lend funds to the poorest developing countries for development purposes, on highly favourable terms (no interest, with a 35 to 40 year maturity and 10 years of grace).
As at March 31, 2018, Canada's total participation in IDA amounted to $12,055,788,061 CAD.
International Finance Corporation
This account records Canada's subscriptions to the capital of the International Finance Corporation, which is part of the World Bank Group, as authorized by the Bretton Woods and Related Agreements Act, and various appropriation acts.
As at March 31, 2018, Canada has subscribed to 81,342 shares. These shares have a total value of $81,342,000 USD, all of which has been paid-in.
Multilateral Investment Guarantee Agency
This account records Canada's subscriptions to the capital of the Multilateral Investment Guarantee Agency, as authorized by the Bretton Woods and Related Agreements Act, and various appropriation acts.
As at March 31, 2018, Canada has subscribed to 5,225 shares. The total value of these shares is $56,534,500 USD, of which $10,732,250 USD is paid-in and the remaining portion is callable.
The callable portion is subject to call by the Multilateral Investment Guarantee Agency under certain circumstances. Canada's contingent liability for the callable portion of its shares is $45,802,250 USD.
African Development Bank
This account records Canada's subscriptions to the capital of the African Development Bank, as authorized by the International Development (Financial Institutions) Assistance Act, and various appropriation acts.
At year end, authority had been granted for subscriptions of 18,146 paid-in shares and 232,814 callable shares. Paid-in shares are purchased using direct payments.
As at March 31, 2018, Canada's participation to the paid-in capital is $309,004,349 CAD for 18,146 paid-in shares and of these paid-in shares, 13,618 were issued in US dollars.
The callable shares are subject to call by the African Development Bank under certain circumstances. Canada's contingent liability for callable shares has a current value of $984,917,646 CAD and $2,557,186,890 USD for a total value of $4,282,154,422 CAD.
Asian Development Bank
This account records Canada's subscriptions to the capital of the Asian Development Bank, as authorized by the International Development (Financial Institutions) Assistance Act, and various appropriation acts.
At year end, authority had been granted for subscriptions of 27,768 paid-in shares and 527,490 callable shares. Paid-in shares are purchased using direct payments.
As at March 31, 2018, Canada's participation to the paid-in capital is $378,694,680 CAD for 27,768 paid-in shares. Of these paid-in shares, 25,398 were issued in US dollars.
The callable shares are subject to call by the Asian Development Bank under certain circumstances. Canada's contingent liability for callable shares has a current value of $6,363,375,615 USD for a total value of $8,204,936,518 CAD.
Caribbean Development Bank
This account records Canada's subscriptions to the capital of the Caribbean Development Bank, as authorized by the International Development (Financial Institutions) Assistance Act, and various appropriation acts.
At year end, authority had been granted for subscriptions of 5,710 paid-in shares and 20,294 callable shares. Paid-in shares are purchased using direct payments.
As at March 31, 2018, Canada's participation to the paid-in capital is $50,461,681 CAD for 5,710 paid-in shares. These shares were issued in US dollars.
The callable shares are subject to call by the Caribbean Development Bank under certain circumstances. Canada's contingent liability for callable shares has a current value of $122,408,132 USD for a total value of $157,833,045 CAD.
Inter-American Development Bank
This account records Canada's subscriptions to the capital of the Inter-American Development Bank, as authorized by the International Development (Financial Institutions) Assistance Act, and various appropriation acts.
At year end, authority had been granted for subscriptions of 20,034 paid-in shares and 547,005 callable shares. Paid-in shares are purchased using direct payments.
As at March 31, 2018, Canada's participation to the paid-in capital is $318,812,116 CAD for 20,034 paid-in shares. These shares were issued in US dollars.
The callable shares are subject to call by the Inter-American Development Bank under certain circumstances. Canada's contingent liability for callable shares has a current value of $6,598,757,829 USD for a total value of $8,508,438,345 CAD.
Inter-American Investment Corporation
This account records Canada's subscriptions to the capital of the Inter-American Investment Corporation, as authorized by the International Development (Financial Institutions) Assistance Act, and various appropriation acts.
At year end, authority had been granted for subscriptions of 4,088 paid-in shares. Paid-in shares are purchased using direct payments.
As at March 31, 2018, Canada's participation to the paid-in capital is $38,410,489 CAD for 1,900 paid-in shares. These shares were issued in US dollars.
Global Environment Facility
This account records the funding of a facility for environmental funding in developing countries in the areas of ozone, climate change biodiversity and international waters as authorized by the Bretton Woods and Related Agreements Act, and various appropriation acts. Advances to the Global Environment Facility (GEF) are made in non-negotiable, non-interest bearing demand notes that are later encashed.
As at March 31, 2018, advances to the GEF amounted to $10,000,000 CAD.
International Finance Corporation—Catalyst Fund
This account records Canada's financial support of the International Finance Corporation's (IFC)—Catalyst Fund as authorized by the Bretton Woods and Related Agreements Act, and various appropriation acts (including Finance Vote L12b, Appropriation Act No. 4, 2010–2011 and Vote L17c, Appropriation Act No. 5, 2012–2013). The Catalyst fund supports private sector engagement in climate change mitigation and adaptation activities through the provision of concessional and commercial financing arrangements.
The balance at March 31, 2017 of $308,246,790 CAD of the Financial Mechanisms for Climate Change Facility (FMCC) was distributed the following way: $75,000,000 CAD to the Catalyst Fund and $233,246,793 CAD to the FMCC.
As at March 31, 2018, advances to the IFC-Catalyst Fund amounted to $75,000,000 CAD.
International Monetary Fund—Poverty Reduction and Growth Trust
This account records the loan to the International Monetary Fund's Poverty Reduction and Growth Trust (formerly the Poverty Reduction and Growth Facility) in order to provide assistance to qualifying low-income countries as authorized by the Bretton Woods and Related Agreements Act, and various appropriation acts.
The total loan authority pursuant to the Bretton Woods and Related Agreements Act was set at $550 million or such greater amount as may be fixed by the Governor in Council. The Governor in Council subsequently increased the limit to SDR 1.2 billion, and in the current year this limit was increased to SDR 1.7 billion.
As at March 31, 2018, Canada has lent a total of SDR 851,520,000 to the Poverty Reduction and Growth Trust. Of this amount, SDR 714,260,000 has been repaid.
The outstanding balance of SDR 137,260,000 was translated into Canadian dollars at the year-end closing rate of exchange (1 SDR /$1.8729 CAD). During the year, transactions included repayments and an exchange valuation adjustment.
Separately, Canada has also made budgetary contributions towards an interest subsidy amounting to SDR 215,157,946, which do not appear in Table 9.12.
International Finance Corporation—Financial Mechanisms for Climate Change Facility
This account records Canada's financial support of the International Finance Corporation's (IFC)—Financial Mechanisms for Climate Change (FMCC) facility as authorized by the Bretton Woods and Related Agreements Act, and various appropriation acts. The FMCC supports private sector engagement in climate change mitigation and adaptation activities through the provision of concessional and commercial financing arrangements.
In accordance with Section 178 (1) of the Budget Implementation Act 2017, No. 2, the responsibility for Financial Mechanisms for Climate Change (FMCC) Facility program has been transferred during the fiscal year, by order in council, to the Minister of Foreign Affairs.
As at March 31, 2018, advances to the IFC-FMCC amounted to $224,422,003 CAD.
International Finance Corporation—Global Agriculture and Food Security Program
This account records Canada's financial assistance to the International Finance Corporation (IFC) for participation in the G8 Food Security Initiative (FSI) as authorized by the Bretton Woods and Related Agreements Act, and various appropriation acts.
In accordance with Section 178 (1) of the Budget Implementation Act 2017, No. 2, the responsibility for the program has been transferred during the fiscal year, by order in council, to the Minister of Foreign Affairs.
As at March 31, 2018, advances to the IFC-Global Agriculture Food and Security Program amounted to $35,621,732 CAD.
International financial institutions
This account records loans and advances for assistance to international financial institutions, as authorized by the International Development (Financial Institutions) Assistance Act, and various appropriation acts (including the Department of Foreign Affairs, Trade and Development Votes 20c and L25c).
Loans and advances are made using direct payments. During the year, transactions included loans and advances made through direct payments and revaluations for foreign currency fluctuations.
International organizations and associations
These items represent the value of payments established in 2006 made by the Canadian Government to working capital funds maintained by international organizations of which Canada is a member. Participation in the financing of these working capital funds, on the basis of the scale of assessments, is prescribed by financial regulations for membership in the organizations. Payments into the funds are not subject to interest or repayment schedules, but are recorded by the organizations as credits from member states. Payments by Canada were authorized by appropriation acts.