Off-balance sheet information

31. Commitments and contingent liabilities

The company issued guarantees regarding principal and interest repayments for a number of projects. The nominal amount of the guarantees is valued at the exchange rate as per December 31, 2011 and December 31, 2010.

2011

2010

Contingent liabilities

Effective guarantees issued

129,489

143,202

Less: provisions, amortized costs and obligations for guarantees (presented under other liabilities)

-14,188

-28,376

Total contingent liabilities

115,301

114,826

Effective guarantees received

-97,407

-59,964

Total net contingent liabilities

17,894

54,862


Of the liabilities for guarantees €0 (2010: €0) is covered by a counter guarantee of the State.

2011

2010

Irrevocable facilities

Contractual commitments for disbursements of:

  • Loans

738,348

646,137

  • Equity investments

380,468

408,916

  • Contractual commitments for guarantees

69,940

81,865

Total irrevocable facilities

1,188,756

1,136,918

32. Lease and rental commitments

The future lease payments under non-cancelable operating leases are based on contractual terms and can be summarized as follows:

2011

≤ 1 year

>1 - ≤ 5 years

> 5 years

Total

Buildings

2,204

9,246

8,680

20,130

Cars

578

559

-

1,137

Total lease and rental commitments

2,782

9,805

8,680

21,267

2010

≤ 1 year

>1 - ≤ 5 years

> 5 years

Total

Buildings

2,215

9,167

11,058

22,440

Cars

592

582

-

1,174

Total lease and rental commitments

2,807

9,749

11,058

23,614

33. Related parties

FMO defines the Dutch State, subsidiaries, associated companies, the Management Board and Supervisory Board as related parties.

Dutch State

The Dutch State holds 51% of FMO's share capital. The remaining 49% is held by banks and others. In 2005, FMO received its last contribution to the development fund from the Dutch State for the amount of €37,260. FMO has a guarantee provision from the State, which is detailed in 'other information'.

FMO stimulates the development of small and medium Dutch-sponsored enterprises in selected emerging markets through the 'Faciliteit Opkomende Markten'. This facility is a joint initiative with the Dutch Ministry of Economic Affairs. The State acts as a guarantor for 80% to 95% of the outstanding loans. These loans are included in the consolidated annual accounts under 'loans guaranteed by the State'.

FMO executes several government funds and programs at the risk and expense of the State. Below is a description of the different funds and programs:

  1. MASSIF
    MASSIF extends risk capital and local currency financing to financial intermediaries in developing countries who in turn serve micro- and small-scale entrepreneurs and lower income households. FMO has a 2.66% (2010: 2.66%) stake in this fund. For 2011, FMO received a fixed remuneration of €10,508.
  2. Infrastructure Development Fund
    Through this fund, FMO concentrates on the development of the social and economic infrastructure in least developed countries. FMO aims to stimulate private investors to invest in private or public-private infrastructure projects in these countries. By providing risk capital, the Infrastructure Development Fund decreases risk for other financiers. As a result, additional private funds are attracted. For 2011, FMO received a fixed remuneration of €3,696 in accordance with the subsidy order.
  3. Capacity Development (CD)
    The CD program provides clients with financial support to realize their internal business endeavors in areas such as management development, organizational development, corporate governance, environmental and social performance and product development. The program was financed by the Dutch Minister for Development Cooperation and ran from 2006 through 2011. In line with the recent evaluation of the CD program, it is the intention of both the Ministry and FMO to continue the CD program through 2015, mainly benefitting MASSIF and FMO-A clients. For 2011, FMO received a fixed remuneration of €900.
  4. Access to Energy Fund (AEF)
    FMO agreed with the Dutch Minister for Development Cooperation to execute the subsidy scheme, Access to Energy Fund. Through this fund, FMO provides risk and concessional financing through equity, local currency loans, subordinated debt and grants to facilitate projects that generate, transmit or distribute sustainable energy. For 2011, FMO received a fixed remuneration of €1,836.

Subsidiaries

The consolidated subsidiaries FMO Antillen N.V. and Nuevo Banco Comercial Holding B.V. are used for intermediate holding purposes. The consolidated subsidiary Blauser S.A. is an Ecuadorian fruit processor and exporter.

During 2011, FMO's stake in Blauser S.A. increased from 63.125% to 70.500%.

The transactions during the year are summarized in note 3 of the company balance sheet. At December 31, 2011, FMO has a loan exposure to Blauser S.A. of €8,452 (2010: €5,738).

Remuneration of the Management Board

On December 31, 2011, the Management Board consisted of three statutory members (2010: three). The members of the Management Board have no shares, options or loans related to the company. The performance-related pay shown in the following table relates to the performance year and not to the year in which they are paid. Payments regarding the general profit-sharing scheme, social security, company car and life-course savings scheme are included in other instead of fixed remuneration and performance-related pay.

The total remuneration of the Management Board in 2011 amounts to €1,105 (2010: €1,122) and is specified as follows:

Fixed remuneration

Performance-related pay1)

Pension

Other2)

Total 2011

Nanno Kleiterp

265

51

76

37

429

Nico Pijl

202

39

63

51

355

Jurgen Rigterink

202

39

40

40

321

Total

669

129

179

128

1,105

Fixed remuneration3)

Performance-related pay

Pension

Other2)

Total 2010

Nanno Kleiterp

263

58

93

40

454

Nico Pijl

177

45

80

33

335

Jurgen Rigterink

201

45

41

46

333

Total

641

148

214

119

1,122

1) The reported performance-related pay related to 2011 will be partly deferred in line with the guidelines on remuneration policies and practices.
2) Includes contributions to company car, fixed expense allowance, general profit-sharing, life-course savings scheme, compensation of interest on mortgages, compensation for the return of leave allowances (ADV), and anniversary benefits. This is in line with the general fringe benefits within FMO.
3) Nico Pijl's fixed remuneration includes a six-week unpaid leave in 2010.

The annual remuneration of the members of the Supervisory Board is as follows:

Remuneration 2011

Committees 2011

Total 2011

Total 2010

Jean Frijns2), Chairman

19.8

5.0

24.8

12.5

Rein Willems

15.0

3.0

18.0

18.0

Bert Bruggink

15.0

4.0

19.0

19.0

Dolf Collee

15.0

3.0

18.0

18.0

Agnes Jongerius

15.0

2.0

17.0

17.0

Pier Vellinga

15.0

3.0

18.0

18.0

Willy Angenent1)

8.2

1.8

10.0

27.5

Total

103.0

21.8

124.8

130.0

1) Willy Angenent resigned his position in May 2011
2) Jean Frijns was appointed to the Supervisory Board in 2010, and appointed as chairman of the Supervisory Board in May 2011

The members of the Supervisory Board have no shares, options or loans related to the company.