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 9.12.

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/$1.3299 CAD.

Table 11.4 and Table 11.6 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 $36,161,313 ($35,312,954 in 2016) are reported in Table 5.3 in Section 5 of this volume.

Table 9.12
International organizations
(in dollars)

  April 1, 2016 Payments and other charges Receipts and other credits March 31, 2017
Participation
or
other charges
Revaluation Reimbursements
or
other credits
Revaluation
Capital subscriptionsLink to footnote 1
Finance
Department of Finance
European Bank for Reconstruction and Development 280,775,910 6,745,368 287,521,278
International Bank for Reconstruction and Development 558,968,948 13,034,592 572,003,540
International Development AssociationLink to footnote 2 11,172,558,061 441,620,000 11,614,178,061
International Finance Corporation 105,638,855 2,537,871 108,176,726
Multilateral Investment Guarantee Agency 13,937,973 334,846 14,272,819
Subtotal 12,131,879,747 454,654,592 9,618,085 12,596,152,424
Global Affairs
Department of Foreign Affairs, Trade and Development
African Development Bank 305,176,856 3,034,134 5,910,563 314,121,553
Asian Development Bank 380,010,655 3,986,253 383,996,908
Caribbean Development Bank 50,815,196 1,070,845 51,886,041
Inter-American Development Bank 321,334,302 7,640,022 328,974,324
Inter-American Investment Corporation 1,948,050 46,800 1,994,850
Subtotal 1,059,285,059 3,034,134 18,654,483 1,080,973,676
Total 13,191,164,806 457,688,726 28,272,568 13,677,126,100
Loans and advances
Finance
Department of Finance
Global Environment FacilityLink to footnote 2 10,000,000 10,000,000
International Finance Corporation
Financial Mechanism for Climate Change Facility 322,286,187 14,039,394 308,246,793
Global Agriculture and Food Security Program 46,252,481 5,531,274 40,721,207
International Monetary Fund
Poverty Reduction and Growth TrustLink to footnote 1 272,007,432 10,314,130 3,719,054 257,974,248
Subtotal 650,546,100 29,884,798 3,719,054 616,942,248
Global Affairs
Department of Foreign Affairs, Trade and Development
International financial institutionsLink to footnote 2
African Development Bank 593,895 125,000 468,895
African Development Fund 2,770,023,377 103,100,000 2,339,998 2,875,463,375
Andean Development Corporation 937,500 125,000 812,500
Asian Development Bank—Special 27,027,000 27,027,000
Asian Development Fund 2,305,885,132 47,690,124 2,353,575,256
Caribbean Development Bank
Agricultural Development Fund 2,000,000 2,000,000
Commonwealth Caribbean Regional 5,194,800 124,800 5,319,600
Special 338,389,060 16,705,000 391,560 355,485,620
Central American Bank for Economic Integration 114,780 76,500 38,280
Global Environment Facility Trust Fund 835,820,000 54,750,000 890,570,000
Inter-American Development Bank
Fund for Special Operations 395,285,252 732,686 5,637,159 401,655,097
International Bank for Reconstruction and Development 25,974,000 624,000 26,598,000
International Fund for Agriculture Development 429,383,396 12,500,000 441,883,396
International Monetary Fund 14,246,002 342,246 14,588,248
Montreal Protocol Multilateral Fund 114,121,047 5,294,831 832,555 120,248,433
Multilateral Investment Fund 49,308,294 49,308,294
Subtotal 7,314,303,535 240,772,641 10,292,318 326,500 7,565,041,994
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 7,971,435,814 240,772,641 10,292,318 30,211,298 3,719,054 8,188,570,421
Subtotal 21,162,600,620 698,461,367 38,564,886 30,211,298 3,719,054 21,865,696,521
Less: portion expensed due to concessionary terms 1,253,325 169,232 1,084,093
Total 21,161,347,295 698,461,367 38,564,886 30,042,066 3,719,054 21,864,612,428

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 per cent 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, 2017, 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, 2017, 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, 2016–2017). 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, 2017, Canada's total participation in IDA amounted to $11,614,178,061 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, 2017, 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, 2017, 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, 2017, Canada's participation to the paid-in capital is $314,121,553 CAD for 17,998 paid-in shares and of these paid-in shares, 13,470 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 $4,385,720,490 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, 2017, Canada's participation to the paid-in capital is $383,996,908 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 $8,462,653,230 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, 2017, Canada's participation to the paid-in capital is $51,886,041 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 $162,790,574 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, 2017, Canada's participation to the paid-in capital is $328,974,324 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 $8,775,688,037 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, 2017, Canada's participation to the paid-in capital is $1,994,850 CAD 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, 2017, advances to the GEF amounted to $10,000,000 CAD.

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, 2017, advances to the IFC-FMCC amounted to $308,246,793 CAD. 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, 2017, advances to the IFC-FSI amounted to $40,721,207 CAD.

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, and in the current year this limit was increased to SDR 1.7 billion.

As at March 31, 2017, Canada has lent a total of SDR 851,520,000 to the Poverty Reduction and Growth Trust. Of this amount, SDR 708,556,000 has been repaid.

The outstanding balance of SDR 142,964,000 was translated into Canadian dollars at the year-end closing rate of exchange (1 SDR /$1.80447 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 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 20 and L25).

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.

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