Corporate information

The 2011 financial statements of Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (hereafter referred to as 'FMO' or the 'company') were prepared by the Management Board and signed by all members of the Management Board and the Supervisory Board on March 8, 2012 and will be submitted for adoption in the General Meeting of Shareholders on May 9, 2012. 

FMO was incorporated in 1970 as a public limited company and is located at Anna van Saksenlaan 71, The Hague, the Netherlands. FMO finances activities in developing countries to stimulate private sector development. In addition, FMO provides services in relation to government funds and programs.

Financing activities

FMO's main activity consists of providing loans, guarantees and equity capital to the private sector in developing countries. A minor part of the investment financing is guaranteed by the Dutch State under the Faciliteit Opkomende Markten (FOM), in which FMO itself participates as a 5% to 20% risk partner. Any losses claimed under the guarantee are reported under 'other receivables'.

Services in relation to government funds and programs

Apart from financing activities from its own resources, FMO provides loans, guarantees and equity finance from special government funds, within the conditions and objectives of those facilities. The funds consist of subsidies provided under the General Administrative Law Act regarding the Infrastructure Development Fund, MASSIF and Access to Energy Fund. FMO also executed the subsidy scheme Capacity Development (hereafter referred to as CD) until December 31, 2011. 

FMO incurs a risk in MASSIF as it has an equity share of 2.66% (2010: 2.66%). With respect to the remaining interest in MASSIF, and the full risk in the remaining government funds, FMO has a contractual right and obligation to settle the results arising from the funds' activities with the State. The economic risks related to these funds are predominantly taken by the State, and FMO has limited control over policy issues regarding these funds. FMO receives a remuneration for managing the funds. Therefore, with the exception of FMO's equity share in MASSIF, the funds' assets and the funds' liabilities are not included in the annual accounts. The segment information paragraph provides more detail on the loans and equity investments managed for the risk of the State.