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Commitments and Disbursements of Foreign Loans and Grants in 2003

By Tyler Lee,2014-05-07 17:55
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Commitments and Disbursements of Foreign Loans and Grants in 2003

Commitments and Disbursements of Foreign Loans and Grants in 2003

    Foreign financing mobilized in the form of loan and grant from multilateral/ bilateral donors, export credit agencies and other sources is recorded as commitments. The commitments are denominated in different currencies depending on the donor/creditor agency. Utilization of committed funds is recorded as disbursements and reported in different loan/grant currencies of the donor/creditor. Therefore, the analysis of commitments and disbursements requires conversion of loans/grants into a common currency either Sri Lanka Rupees or US Dollars.

    The software used in foreign aid recording and debt management (CS-DRMS) database at ERD first converts loans/grants into local currency (Rupees) at transaction date exchange rate. Thereafter, total rupee value is converted into US Dollars at the annual average exchange rate. The attached Annex shows commitments and disbursements in loan/grant currency, and the converted value in US Dollar and Rupee. In addition, committed undisbursed balance (CUB) of foreign funds as at 01.01.2003 is shown donor/creditor wise and loan grant basis.

Commitments

    The total amount of foreign aid committed by the bilateral and multilateral donors, lenders for export credit and commercial banks in 2003 was equivalent to US$ 1058 million. This amount was committed in the form of project loans, program loans, grants and technical assistance and it includes US$ 100 million commercial loan raised from the City Bank. The US$ 1058 million was mobilized in 9 currencies of which SDR, Yen, US$ and Euro accounted for about 95%.

    Japan was the largest donor in 2003 committing Yen 35.1 billion for both loan and grant, which is equivalent to US$ 292 million. The World Bank, the second largest donor, committed SDR 171 million (US$ 244 million) while ADB committed equivalent to US$ 196 million. Other funding sources include, the City Bank Commercial loan of US$ 100 million, export credit lenders i.e. Bank Austria & HSBC (US$ 69 million), Indian line of credit (US$ 30 million) and China (US$ 24 million). Commitments from those major sources accounted for 90% of the funds mobilized. A significant feature of aid mobilization in 2003 is that US$ 306 million was raised in the form of program loans. Major grant providers of 2003 were the World Bank (US$ 57 million), Sweden (US$ 15 million), UN Agencies (US$ 15 million), Japan (US$ 13 million) and USA (US$ 12 million).

    When categorized according to multilateral and bilateral donor basis multilateral donors provided 44% of the funds mobilized in 2003 while 39% was provided by bilateral donors. The rest was committed by Commercial Banks (10%) and export credit lenders (7%). ERD has concluded 24 loan agreements and 38 grant aid agreements in 2003. In addition, 13 existing grant agreements were enhanced through further commitment. Aid commitments increased by 19% in 2003 in comparison to 2002. The loan funds are comprised of 86% of the total amount mobilized in 2003 compared to 88% in 2002.

Disbursements

    The utilization of loans and grants during 2003 was equivalent to US$ 991 million converted at annual average exchange rate. This amount in very close to the revised forecast of US$ 1 billion. Of the total disbursement, US$ 908 million was from loans and the balance US$ 83 million from grants. Loan disbursements were made up of US$ 565 million (including US$ 68 million from export credits) for projects financing and US$ 343 million for budget support as program funding. The foreign funding was disbursed in 11 currencies of which SDR, Yen, US$, Euro and Korean Won were the top five currencies.

    As in the past 6 years, the highest disbursements of funds in 2003 were from Japan. The amount disbursed was Yen 29.3 billion which is equivalent to US$ 251 million. Disbursement of funds from the ADB and World Bank are US$ 215 million and US$ 209 million respectively. The three major donors accounted for 68% of the total disbursement. The disbursement of top three donors has shown significant increase in 2003. Disbursement of funds under Japan, ADB and the World Bank increased by 35%, 40% and 120% respectively compared to 2002. The balance of the disbursement was made up of Commercial Banks (US$ 106 million), Export Credit Lenders (US$ 68 million), Indian Line of Credit (US$ 44 million), UN agencies (US$ 20 million), and Korea (US$ 18 million) which accounted for 26% of total aid utilization. While disbursement under multilateral agencies exceeded the target (revised forecast) for 2003, export credit and Commercial Bank categories met the target. However, disbursement under bilateral donors were below the target.

    Foreign funds were disbursed from 122 loan projects, 5 program loans and 139 grants in 2003. The significant increases in disbursement were recorded under program financing, i.e. ADB program loans on SME, and Private Sector Reform, World Bank Poverty Reduction Support Credit (PRSC), JBIC Power Sector Reform and Indian loan for Economic Reform. The total amount disbursed under program loans including City Bank commercial loan is US$ 343 million.

    Disbursement of funds increased by 73% in 2003 compared with 2002. Disbursement of loan funds accounted for 92% of total disbursement in 2003 in comparison to 87% in 2002. In Rupee terms 95.5 billion was disbursed in 2003 of which Rs. 87.5 billion was in loan funds and the balance Rs. 7.9 billion in grant funds. There could be a further upward revision in the final disbursement figure in 2003 due to the late reporting by few donors mainly in respect of grants. The final disbursement figure will be available by mid 2004.

Commitment and Disbursement of Foreign Funded Loans/Grants - 2003

In L/G Currency , US$ & Rupee Million CUB as at 01/01/2003 Commitment Disbursement Type Loan Revised Actual Project CurrenForecast Donor/ Lender In L/G (PJL) cy In L/G In US$ CurrencIn US$ Program Currency In L/G y In US$ In US$ In Rs. (PGL) Currency Grant (G) 34,851 Bilateral 1,770.8 417.7 399.0 361.0 Japan 168,100.26,19019,516 PJL YEN 1,400.0 217.2 229.0 23,572.0 202.2 0 .0 7,440.3,036 PGL YEN 0.0 0.0 61.7 31.0 3,720.0 31.4 0 1,519.1,643 G YEN 2,200.0 18.3 12.7 18.5 1,993.0 17.0 0 India 2,321 PJL US$ 66.5 66.5 30.0 30.0 35.0 24.1 24.1 1,935 PGL US$ 20.0 20.0 0.0 0.0 20.0 20.0 20.0 China 0 PJL CNY 50.0 6.0 199.2 24.1 1.0 0.0 0.0 0 G CNY 38.9 4.7 0.0 0.0 0.0 0.0 0.0 Germany 891 PJL EUR 70.2 72.8 2.5 3.1 7.0 7.8 9.2 1,167 G EUR 20.2 21.0 7.6 8.9 11.0 10.4 12.1 Korea 1,750 WON 39,300.0 33.0 0.0 0.0 18.0 21,662.0 18.1 PJL 0 US$ 0.0 0.0 17.6 17.6 0.0 0.0 0.0 Netherlands 1,175 EUR 14.8 15.4 3.0 3.4 12.0 10.8 12.2 G 37 LKR 0.0 0.0 318.0 3.3 0.0 37.0 0.4 USA 0 G US$ 26.6 26.6 11.6 11.6 1.0 0.0 0.0 Norway 449 G NOK 167.3 24.1 17.0 2.3 5.0 32.9 4.7 Sweden 389 G SEK 63.7 7.2 121.8 15.5 4.0 31.3 4.0 Kuwait 253 PJL KWD 9.3 31.1 0.0 0.0 2.5 0.8 2.6 France 83 PJL EUR 5.4 5.6 0.0 0.0 1.0 0.8 0.9 Australia 204 G AU$ 3.2 1.8 10.6 6.4 2.5 3.1 2.1 Saudi Fund 1 PJL SAR 62.4 16.6 0.0 0.0 0.5 0.1 0.0 Multilatera 44,010 1,200.0 465.5 442.9 456.2 l - ADB 12,369 SDR 462.9 629.4 121.4 169.3 113.0 90.7 128.2 1,755 PJL US$ 53.4 53.4 0.0 0.0 20.0 18.4 18.4 65 YEN 1,200.0 10.0 726.4 6.2 0.0 74.7 0.7 4,747 SDR 35.0 47.6 0.0 0.0 49.0 35.0 49.2 PGL 1,430 US$ 44.3 44.3 14.9 14.9 14.9 14.9 14.9 317 G US$ 20.1 20.1 5.6 5.6 4.0 3.3 3.3 World Bank 7,132 PJL SDR 164.5 223.7 41.0 57.3 80.0 52.7 73.9 12,342 PGL SDR 0.0 0.0 90.7 129.8 125.0 90.7 127.9 561 SDR 8.5 11.6 38.5 54.6 5.0 4.2 5.8 G 99 US$ 1.0 1.0 1.9 1.9 1.0 1.0 1.0 European 570 Investment PJL EUR 40.0 41.5 0.0 0.0 6.0 5.0 5.9 Bank Nordic Fund 192 PJL SDR 14.4 19.6 0.0 0.0 2.0 1.4 1.9 IFAD 388 PJL SDR 10.6 14.4 0.0 0.0 3.0 2.9 4.0 OPEC 128 PJL US$ 17.9 17.9 8.5 8.5 2.0 1.3 1.3 UN Agencies 1,916 G US$ 65.5 65.5 15.1 15.1 18.0 19.9 19.9 European 0 G EUR 0.0 0.0 2.0 2.5 0.0 0.0 0.0 Commission Export 6,548 92.2 69.3 65.0 67.8 Credit

AB Svenska 64 SEK 13.3 1.5 0.0 0.0 1.0 5.1 0.7 PJL 4 US$ 10.0 10.0 0.0 0.0 1.0 0.04 0.04 ABN-AMRO 280 PJL SEK 27.9 3.2 0.0 0.0 3.0 23.1 2.9 ANZ Invest 1,857 PJL YEN 4,100.0 34.1 0.0 0.0 18.0 2,250.0 19.2 Bank Bank Austria 926 PJL EUR 0.0 0.0 32.6 37.7 9.0 8.5 9.6 HSBC 3,740.755 PJL YEN 0.0 0.0 31.6 8.0 863.0 7.8 0 Societe 8 General PJL EUR 0.2 0.2 0.0 0.0 0.0 0.07 0.08 (French) EXIM Bank 2,464 PJL US$ 37.5 37.5 0.0 0.0 23.0 25.5 25.5 China EXIM Bank 190 PJL US$ 5.7 5.7 0.0 0.0 2.0 2.0 2.0 Korea Commercial Bank 10,08 0.0 105.6 106.0 105.8 4 City Bank 9,523 PGL US$ 0.0 0.0 100.0 100.0 100.0 100.0 100.0 (NEXI) HSBC 561 PJL YEN 0.0 0.0 660.0 5.6 6.0 660.0 5.8 Total 87,536 2,845.7 914.3 930.9 908.3 Loans Project 54,524 Loans 2,733.8 608.0 591.0 565.0 (PJL) Program 33,012 Loans 111.9 306.3 339.9 343.3 (PGL) Grants 7,957 217.2 143.8 82.0 82.5 (G) Grand 1,0581,01295,493 3,063.0 990.8 Total .1 .9

Note : * Various loan/grant currencies are converted in to Rupee as at transaction date exchange rate and reconverted in to US$ at annual average rate 1 $ = 96.52092 * CUB - Committed Undisbursed Balance as of 1/1/2003 converted at exchange rate prevailed on 31/12/2002 for loan/grant currencies to Rupee and Rupee to US$

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