On June 2, 2012, development credits made to, or guaranteed by, the Syrian Arab Republic were placed into nonaccrual status. Development credit income for the fiscal year ended June 30, 2012 would have been higher by $0.1 million, had these development credits not been placed into nonaccrual status. On March 15, 2012, development credits made to, or guaranteed by, Eritrea were placed into nonaccrual status. Development credit income for the fiscal year ended June 30, 2012 would have been higher by $3 million, had these development credits not been placed into nonaccrual status. During the fiscal year ended June 30, 2011, Guinea cleared all of its overdue principal and charges due to IDA and the development credits to Guinea were restored to accrual status. As a result of this event, income from development credits increased by $17 million, including $9 million that would have been accrued in the previous fiscal year had these credits not been in nonaccrual status. During the fiscal years ended June 30, 2012, June 30, 2011, and June 30, 2010 no service charge income was recognized on credits in nonaccrual status. Guarantees Guarantees of $299 million were outstanding at June 30, 2012 ($258 million—June 30, 2011). This amount represents the maximum potential undiscounted future payments that IDA could be required to make under these guarantees, and is not included on the Balance Sheet. The guarantees issued
by IDA have original maturities ranging between 10 and 23 years, and expire in decreasing amounts through 2035. At June 30, 2012, liabilities related to IDA’s obligations under guarantees of $26 million (June 30, 2011—$18 million), have been included in Accounts payable and miscellaneous liabilities on the Balance Sheet. These include the accumulated provision for guarantee losses of $7 million (June 30, 2011—$6 million). During the fiscal years ended June 30, 2012 and June 30, 2011, no guarantees provided by IDA were called. Segment Reporting Based on an evaluation of its operations, management has determined that IDA has only one reportable segment. Charge income comprises service charges and interest charges on outstanding development credit balances and guarantee fee income. For the fiscal year ended June 30, 2012, charge income from one country totaling $203 million was in excess of ten percent of total charge income. The following table presents development credits outstanding and associated charge income as of and for the fiscal years ended June 30, 2012 and June 30, 2011, by geographic region.
In millions of U.S. dollars
Africa East Asia and Pacific Europe and Central Asia Latin America and the Caribbean Middle East and North Africa South Asia Total
June 30, 2012 Development Credits Outstanding Charge Income $ 36,604 $244 20,555 154 8,080 62 1,872 14 3,729 29 52,736 411 $123,576 $914
Buydown of Development Credits During the fiscal year ended June 30, 2012, two development credits (Nil—fiscal year ended June 30, 2011) with outstanding nominal value of $87 million were purchased for a present value equivalent of $42 million under the buydown mechanism by the Global Program to Eradicate Poliomyelitis Trust Funds, resulting in a $45 million write-off.
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THE WORLD BANK ANNUAL REPORT 2012
June 30, 2011 Development Credits Outstanding Charge Income $ 34,983 $241 22,212 157 8,240 59 1,745 12 3,958 29 54,149 399 $125,287 $897
Discount on Development Credits prepaid under IDA16 During the fiscal year ended June 30, 2012, two IDA graduate countries prepaid development credits with outstanding nominal values totaling $1,053 million as part of IDA16 (Nil—fiscal year ended June 30, 2011). The total amount prepaid of $940 million reflected the present value of the development credits as of the date of the prepayment, resulting in an aggregate discount of $113 million.