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. 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. Canada's subscriptions to the paid‑in capital of these organizations are reported in Table 9.13.

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 (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 9.13 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 US/1.2666 Cdn).

Table 11.4 and Table 11.6 (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 $34,440,123 ($471,669,652 in 2014) are reported in Table 5.3 (Section 5 of this volume).

Table Summary

The table presents, to the nearest dollar, a summary of the balances and transactions for share capital, loans and advances to international organizations. It consists of five columns: a detailed listing of components; April 1 of the current year; payments and other charges divided into two columns, participation or other charges and revaluation; receipts and other credits divided into two columns, reimbursements or other credits and revaluation; March 31 of the current year. The first series of rows presents the capital subscriptions by departments, then by international organization. A subtotal is presented if there is more than one international organization under the same department. The following row presents the total for capital subscriptions. The second series of rows presents the loans and advances by departments, then by international organization. A subtotal is presented if there is more than one international organization under the same department. The next row presents the total for loans and advances. The next row presents a subtotal for capital subscriptions and loans and advances. The next row presents the portion expensed due to concessionary terms. The last row presents the total.

Table 9.13
International Organizations

  April 1, 2014
($)
Payments and other charges Receipts and other credits March 31, 2015
($)
Participation
or
other charges
($)
Revaluation
($)
Reimbursements
or
other credits
($)
Revaluation
($)
Capital subscriptionsLink to footnote 1 —            
Finance —            
European Bank for Reconstruction and Development 239,006,522   34,829,444     273,835,966
International Bank for Reconstruction and Development 478,254,744 67,303,615       545,558,359
International Development AssociationLink to footnote 2 10,289,338,061 441,610,000       10,730,948,061
International Finance Corporation 89,923,581   13,104,196     103,027,777
Multilateral Investment Guarantee Agency 11,864,502   1,728,966     13,593,468
Subtotal 11,108,387,410 508,913,615 49,662,606     11,666,963,631
Foreign Affairs, Trade and Development —            
African Development Bank 237,880,844   25,464,411     263,345,255
Asian Development Bank 314,701,135 40,625,416 20,582,863     375,909,414
Caribbean Development Bank 44,184,199   5,529,263     49,713,462
Inter‑American Development Bank 243,938,642 16,829,855 35,454,794     296,223,291
Inter‑American Investment Corporation 1,645,200   254,700     1,899,900
Subtotal 842,350,020 57,455,271 87,286,031     987,091,322
Total 11,950,737,430 566,368,886 136,948,637     12,654,054,953
Loans and advances —            
Finance —            
Global Environment FacilityLink to footnote 2 10,000,000         10,000,000
International Finance Corporation — Financial Mechanism for Climate Change Facility 328,854,800     1,213,018   327,641,782
International Finance Corporation — Global Agriculture and Food Security Program 48,000,000     279,000   47,721,000
International Monetary Fund — Poverty Reduction and Growth TrustLink to footnote 1 75,140,070 60,328,962 667,667 17,241,335   118,895,364
Subtotal 461,994,870 60,328,962 667,667 18,733,353   504,258,146
Foreign Affairs, Trade and Development —            
International financial institutionsLink to footnote 2 —            
African Development Bank 843,895     125,000   718,895
African Development Fund 2,549,333,388 103,100,000 12,082,491     2,664,515,879
Andean Development Corporation 1,187,500     125,000   1,062,500
Asian Development Bank — Special 27,027,000         27,027,000
Asian Development Fund 2,210,504,883 47,690,125       2,258,195,008
Caribbean Development Bank — Agricultural Development Fund 2,000,000         2,000,000
Caribbean Development Bank — Commonwealth Caribbean Regional 4,422,000   644,400     5,066,400
Caribbean Development Bank — Special 302,554,400 16,705,000 2,021,805     321,281,205
Central American Bank for Economic Integration 267,780     76,500   191,280
Global Environment Facility Trust Fund 726,320,000 54,750,000       781,070,000
Inter‑American Development Bank — Fund for Special Operations 358,511,200 886,997 29,107,253     388,505,450
International Bank for Reconstruction and Development 22,110,000   3,222,000     25,332,000
International Fund for Agriculture Development 366,883,396 12,500,000       379,383,396
International Monetary Fund 12,126,707   1,767,176     13,893,883
Montreal Protocol Multilateral Fund 99,393,278 4,277,502 4,298,865     107,969,645
Multilateral Investment Fund 49,308,294         49,308,294
Subtotal 6,732,793,721 239,909,624 53,143,990 326,500   7,025,520,835
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 7,201,374,770 300,238,586 53,811,657 19,059,853   7,536,365,160
Subtotal 19,152,112,200 866,607,472 190,760,294 19,059,853   20,190,420,113
Less: portion expensed due to concessionary terms 1,586,308     166,491   1,419,817
Total 19,150,525,892 866,607,472 190,760,294 18,893,362   20,189,000,296

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 percent 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, 2015, Canada's total cash contributions into the "paid‑in" capital of the EBRD total $216,197,668 US.

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, 2015, Canada has subscribed to 58,354 shares. The total value of these shares is $7,039,534,790 US, of which $417,775,385 US plus $16,404,055 Cdn 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 US.

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 Finance Vote 6b, Appropriation Act No. 4, 2014–2015). 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, 2015, Canada's total participation in IDA amounted to $10,730,948,061 Cdn.

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, 2015, Canada has subscribed to 81,342 shares. These shares have a total value of $81,342,000 US, 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, 2015, Canada has subscribed to 5,225 shares. The total value of these shares is $56,534,500 US, of which $10,732,250 US 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 US.

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 18,016 paid‑in shares and 227,656 callable shares. Paid‑in shares are purchased using cash and notes payable that are later encashed.

As at March 31, 2015, Canada's participation to the paid‑in capital is $263,345,255 Cdn for 15,793 paid‑in shares and of these paid‑in shares, 11,265 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 Cdn and $2,480,149,065 US for a total value of $4,126,274,451 Cdn.

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 cash and notes payable that are later encashed.

As at March 31, 2015, Canada's participation to the paid‑in capital is $375,909,414 Cdn 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 US for a total value of $8,059,851,554 Cdn.

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 cash and notes payable that are later encashed.

As at March 31, 2015, Canada's participation to the paid‑in capital is $49,713,462 Cdn 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 US for a total value of $155,042,139 Cdn.

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 571,655 callable shares. Paid‑in shares are purchased using cash and notes payable that are later encashed.

As at March 31, 2015, Canada's participation to the paid‑in capital is $296,223,291 Cdn for 18,905 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 $6,896,121,437 US for a total value of $8,734,627,412 Cdn.

Inter-American Investement 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 150 paid‑in shares. Paid‑in shares are purchased using cash and notes payable that are later encashed.

As at March 31, 2015, Canada's participation to the paid‑in capital is $1,899,900 Cdn for 150 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, 2015, advances to the GEF amounted to $10,000,000 Cdn.

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 (including Finance Vote L12b, Appropriation Act No. 4, 2010–2011 and Vote L17c, Appropriation Act No. 5, 2012–2013 ). The FMCC supports private sector engagement in climate change mitigation and adaptation activities through the provision of concessional and commercial financing arrangements.

As at March 31, 2015, advances to the IFC-FMCC amounted to $327,641,782 Cdn. During the year, amounts were recovered through the FMCC trust mechanism based on the terms and conditions of project funding which is administered by the IFC in accordance with the administration agreement signed between the IFC and the Government of Canada.

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.

As at March 31, 2015, advances to the IFC-FSI amounted to $47,721,000 Cdn.

During the year, amounts for front-end and commitment fees, interest and capital were repaid in accordance with the administration agreement signed between the IFC and the Government of Canada.

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.

As at March 31, 2015, Canada has lent a total of 762,895,000 SDR to the Poverty Reduction and Growth Trust. Of this amount, 694,848,250 SDR has been repaid.

The outstanding balance of 68,046,750 SDR was translated into Canadian dollars at the year‑end closing rate of exchange (1 SDR /$1.74726 Cdn). During the year, transactions included repayments and an exchange valuation adjustment.

Separately, Canada has also made budgetary contributions towards an interest subsidy amounting to 215,157,946 SDR, which do not appear in Table 9.13.

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 Foreign Affairs, Trade and Development Votes L20b and L25).

In certain cases, loans and advances are made using notes payable that are later encashed. During the year, transactions included loans and advances made in cash and through note issuances, encashments of notes issued in previous years 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.

Footnotes

Footnote 1

Loans and investments made prior to April 1, 1986 which were authorized by non‑budgetary authorities.

Return to footnote 1 referrer

Footnote 2

Loans and investments made since April 1, 1986 which were authorized by budgetary authorities.

Return to footnote 2 referrer

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