Financial Policy Papers


Diversifying the Bank’s Products to Provide Eligible ADF-Only Countries Access to the ADB Sovereign Window

Since the 1998 review of the Bank Group’s Credit Policy, the macroeconomic performance of most low-income African countries has improved significantly. In particular, many African economies are now characterized by high economic growth, a stable macroeconomic environment and low or moderate risk of debt distress. This turnaround is the result of improved policies, a decade of impressive economic growth, reforms in public financial and debt management and the HIPC/MDRI initiatives. However, Africa needs to invest substantial resources in order to accelerate and sustain high rates of growth and...

Délégation d'Autorité Générale et Règlement Financier du FAD

Dans le cadre du programme de réforme financière du Groupe de la Banque, le Conseil d’administration de la Banque africaine de développement (la « BAD » ou la « Banque ») a approuvé en 1998 une proposition visant à renforcer la structure de gestion actif-passif de la Banque1 , notamment la mise en place d’un Comité de gestion actif-passif (ALCO) en tant que principal comité de gestion des questions financières2 et la première Délégation d’Autorité Générale pour la gestion actif-passif (« la Délégation d’Autorité »). La Délégation d’Autorité définit le cadre général et les principes directeurs...

Amendments to Rules and Procedures for the Procurement of Goods and Works and Rules and Procedures for the Use of Consultants

On 7 September 2006, the African Development Bank Group (the “Bank”), as a member of the International Financial Institutions (“IFI”) Anti-Corruption Task Force, signed the Uniform Framework for Preventing and Combating Fraud and Corruption (the “Framework”) which comprises Principles and Guidelines for Investigations.

Fine-Tuning the Organizational Structure and Business Processes of IACD

This paper sets out proposals to fine-tune the organizational structure and business processes of the Integrity and Anti-Corruption Department (IACD). The proposed improvements will broaden IACD’s current focus on conducting investigations into allegations of fraud, corruption and other sanctionable practices. This will enhance IACD’s capacity to develop and implement strategies to detect and prevent the occurrence of such practices.

Proposal for the Implementation of a Sanctions Process within the AfDB

It will be recalled that on 9 April 2010, the leaders of the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, and the World Bank Group signed the Agreement for Mutual Enforcement of Debarment Decisions (the “Agreement”). This Agreement establishes a framework within which entities or persons found to have engaged in wrongdoing in development projects financed by International Financial Institution (“IFI”) may be sanctioned for the same misconduct by the other participating development banks in circumstances...

Disbursement Handbook

The Disbursement Handbook (the Handbook) sets out the disbursement policies, guidelines, practices, and procedures of the African Development Bank Group (ADB). It serves as a reference guide for Bank staff, Borrowers1, Executing Agencies2, Co-Financiers, Suppliers and other contracting parties in designing, operating disbursement activity and withdrawing loan3 proceeds to ensure efficient and effective project implementation.

2007 - Financial Regulations of the AfDB

The resources of the Bank shall be used in accordance with the decisions of the Board of Directors taken in conformity with the decisions and general directives of the Board of Governors.

Proposal for a Framework for Managing GCI Resources and Large Loans

The primary business of the Bank is to support the social and economic development efforts of its Regional Member Countries (RMCs) through the provision of development financing, advisory and other technical assistance services, to the extent permitted by its financial capacity and established credit risk and exposure management policies. Prior to the global financial and economic crises, the Bank’s financial capacity was deemed adequate to deliver its projected short to medium term operations. However, like other MDBs, the Bank was called upon by both borrowing and non-borrowing members and...

Proposal for a Revision of Loan Pricing for Sovereign and Sovereign-Guaranteed Operations

During the course of the GCI-VI discussions certain shareholders have requested a review of the Bank’s loan pricing terms, to ensure consistency with the shared objective of assuring the long-term financial sustainability of the Bank. This review focuses on the pricing of sovereign-guaranteed loans only, as the pricing of non-sovereign guaranteed (i.e. private sector) loans are risk-based and market-driven and do not currently raise any major concern for shareholders.

Bank Group Credit Policy

The Evolution of the Bank Group Credit Policy 1.1 Prior to the adoption in 1992 of the Country Exposure Policy (Document ADBIBD/WP/92195), the Bank’s lending operations were conducted on the basis of very broadly defined principles rather than on a formal credit policy. These principles were outlined in the Agreement Establishing the African Development Bank (amended in May 1979) which stipulates that: "the Bank should extend lending to borrowing countries paying due regard to the prospects the borrower would meet its obligations on schedule". 1.2 Following the African debt crisis in the late...

Investment Management Guidelines for Heavily Indebted Poor Countries (HIPC) Initiative Resources

The HIPC initiative was established in 1996 to address the problems of external debt in low-income countries and provides a comprehensive debt relief framework for these countries. The main objective of the initiative is to reduce to a sustainable level, the debt of eligible countries with a proven track record of satisfactory implementation of policy reforms. In the HIPC framework, eligibility for debt relief is based on debt stock indicators such as the ratio of net present value (NPV) of debt to exports, or NPV of debt to government revenues. Currently 32 Regional Member Countries (RMCs)...

Updating the Bank’s Policy for Provisioning Public Sector Loans and Guarantees

The Bank’s policy for provisioning public sector loans and guarantees is one of its key financial policies. The provisioning policy helps the Bank to ensure that the Bank’s financial statements fairly reflect the losses that can be reasonably expected from its public sector loan and guarantee portfolio. This policy is part of an integrated framework of prudent credit management policies that helps to support the Bank’s strong credit rating.

Bank Group Financial Sector Policy

The financial sector, as defined in this report, comprises financial policies (monetary, financing of the public sector, provision of financial services), financial infrastructure (legal and regulatory framework, audit systems, accounting and financial procedures, payments systems), and financial institutions (banks, non-bank financial institutions, money and capital markets). The financial sector policy that is proposed in this report for the Bank Group to adopt covers these three aspects. The overarching Vision of the Bank Group highlights development and poverty reduction in Africa as its...

Updating the ADF Asset Management Guidelines

Like the African Development Bank, the African Development Fund (hereafter referred to as the ADF or the Fund) has undertaken a number of important reforms over the past few years to enhance the management of its financial resources. The most significant of these financial reforms include the replenishment-specific and accelerated encashment policies, the liquidity policy, the currency risk management policy, and the adoption of the first ADF asset management guidelines (hereafter referred to as the Guidelines).

Bank Group Credit Policy


Policy and Procedures for the Recovery of Arrears on Loans


Bank Group Policy on Utilization of Savings on Loans


Bank Group Policy and Procedures for Supplementary Financing