ADB approves it’s financial statement

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DHAKA, May 22, 2020 (BSS) – The Board of Governors of the Asian
Development Bank (ADB) today approved ADB’s financial statements and the
allocation of its 2019 net income in its first-ever virtual annual meeting
held amid the novel coronavirus (COVID-19) pandemic.

The approval came at the first stage of the 53rd Annual Meeting of the
Board of Governors-a Business Session among the Governors or their designated
representatives from 68 members of ADB.

The second stage of the Annual Meeting, including seminars with Governors
and other senior government officials, members of the private sector,
representatives of international organizations and civil society
organizations, youth, academia, and the media, is currently scheduled for
September 18-21, 2020 in Incheon, Republic of Korea.

“Our immediate priority is to provide vital support to developing member
countries as they confront the COVID-19 pandemic and return their economies
to a path of sustainable growth,” said ADB President Masatsugu Asakawa in his
remarks to the meeting, said an ADB press release.

“Your approval today of the financial statements and allocation of net
income ensure that we have the tools and financial stability to address the
enormous challenges that now affect the lives and economies of millions of
people across our region, he added.

Chair of the Board of Governors, and Deputy Prime Minister and Minister of
Economy and Finance of the Republic of Korea Hong Nam-Ki said, “Our choices
and efforts today will determine whether we can overcome the current health
care and economic crises.”

“The ADB should turn this crisis into an opportunity, while enhancing
knowledge sharing on COVID-19 policy responses and expanding support for low-
income countries and vulnerable groups.”added the Deputy Prime Minister.

The Board of Governors adopted a resolution to allocate $1.069 billion of
net income, the highest in the bank’s history, from ADB’s 2019 ordinary
capital resources.

The 2019 net allocable income is higher than the $841.4 million recorded in
2018, due largely to an increase in income from lending operations and
liquidity investments, as well as a drop in non sovereign loan loss
provisions.

The allocable net income will be distributed as follows: $615.7 million to
the ordinary reserve to support ADB’s capital adequacy and provide an
earnings base to generate net income; $259.5 million to the Asian Development
Fund, which provides grants to ADB’s low-income member countries; $130
million to the Technical Assistance Special Fund, which provides a stable and
predictable funding source for ADB’s technical assistance, as well as
increased support to respond to the COVID-19 pandemic; $30 million to the
Regional Cooperation and Integration Fund; $24 million to the Climate Change
Fund; and $10 million to the Asia Pacific Disaster Response Fund.

The release said Governors also approved the bank’s annual financial
statements. ADB’s ordinary capital resources’ operating income totaled $1.1
billion in 2019, up from $889 million in 2018. The 2019 net income was $1.554
billion, up from $750 million in 2018.

ADB is actively supporting its members as they address the effects of
COVID-19 through its $20 billion response package announced on 13 April. ADB
has approved a series of measures to streamline its operations for quicker
and more flexible delivery of assistance.

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