ADB approves corporate financial issues over virtual meeting
The Board of Governors of the Asian Development Bank (ADB) on Friday approved its financial statements and allocation of its 2019 net income in its first-ever virtual annual meeting held amid the coronavirus pandemic.
According to a press release, the approval came at the first stage of the 53rd annual meeting of the Board, or their designated representatives from 68 members of ADB.
Meanwhile, the second stage of the Annual Meeting is scheduled for September 18-21 in Incheon, Korea.
Governors, other senior government officials, members of the private sector, representatives of international organisations and civil society organisations, youth, academia, and the media will attend the Annual Meeting.
ADB President Masatsugu Asakawa in his remarks to the meeting, said, "Our immediate priority is to provide vital support to developing member countries as they confront the COVID-19 pandemic and return their economies to a path of sustainable growth."
The approval of the financial statements and allocation of net income ensure that ADB has the tools and financial stability to address the enormous challenges that now affect the lives and economies of millions of people across this region, he added.
"Our choices and efforts today will determine whether we can overcome the current
health care and economic crises," said the Chair of the Board of Governors, and Deputy Prime Minister and Minister of Economy and Finance of the Republic of Korea Hong Nam-Ki.
"The ADB should turn this crisis into an opportunity, while enhancing knowledge sharing on COVID-19 policy responses and expanding support for low-income countries and vulnerable groups," he added.
The Board of Governors adopted a resolution to allocate $1.069 billion of net income, the highest in the bank's history, from ADB's 2019 ordinary capital resources.
The 2019 net allocable income is higher than the $841.4 million recorded in 2018, due largely to an increase in income from lending operations and liquidity investments, as well as a drop in non-sovereign loan loss provisions.
The allocable net income will be distributed as follows: $615.7mn to the ordinary reserve to support ADB's capital adequacy and provide an earnings base to generate net income; $259.5mn to the Asian Development Fund, which provides grants to ADB's low-income member countries; $130mn to the Technical Assistance Special Fund, which provides a stable and predictable funding source for ADB's technical assistance, as well as increased support to respond to the COVID-19 pandemic; $30mn to the Regional Cooperation and Integration Fund; $24mn to the Climate Change Fund; and $10mn to the Asia Pacific Disaster Response Fund.
Governors also approved the bank's annual financial statements. ADB's ordinary capital resources' operating income totaled $1.1bn in 2019, up from $889mn in 2018. The 2019 net income was $1.554bn, up from $750mn in 2018.
ADB is actively supporting its members as they address the effects of COVID-19 through its $20bn response package announced on April 13.
ADB has also approved a series of measures to streamline its operations for quicker and more flexible delivery of assistance.