AFD - Universal Registration Document 2020

CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH IFRS 6 Notes to the consolidated financial statements

6.2 Notes to the consolidated financial statements

I SOMMAIRE DES NOTES

NOTE 1

Financial assets and liabilities at fair value through profit and loss

150

NOTE 10 Subordinated debt

141

NOTE 11 Income and expenses by accounting category

NOTE 2 Financial hedging derivatives

143

151

NOTE 3 Financial assets at fair value through shareholders’ equity NOTE 4 Financial assets and liabilities at fair value measured according to the level of fair value 146 NOTE 5 Financial instruments at amortised cost 146 NOTE 6 Accruals and miscellaneous assets/ liabilities 147 NOTE 7 Property, plant and equipment and intangible assets 148 NOTE 8 Financial liabilities measured at amortised cost 149 NOTE 9 Provisions 150 145 6.2.1 Signi fi cant events at 31 Ǿ December Ǿ 2020 6.2.1.1 The impact of the health situation linked to the Covid-19 pandemic In the context of the Covid-19 health crisis, strongmeasures were applied. As a result, whole sectors of the economy, particularly in services, have been affected by significant restrictions on working conditions or the closure of establishments. Alongside these measures, the government has announced a number of measures to support the economy in order to mitigate the negative impact of the health measures taken. Similar measures have been taken in all countries affected by the pandemic. Different governments have announced strong health measures to avoid overburdening their health systems, with varying degrees of support for the economy. AFD Group has mobilised to provide responses to the health and economic emergency and to translate the French government’s commitments to support priority countries for French official development assistance.

NOTE 12 Net commissions

151

NOTE 13 Gains or losses on financial instruments at fair value through profit and loss NOTE 14 Net gains or losses on other financial assets recognised at fair value through shareholders’ equity

152

152

NOTE 15 Income from other activities

152

153

NOTE 16 Overheads

NOTE 17 Cost of credit risk

153

NOTE 18 Equity-accounted companies

154

NOTE 19 Corporate income tax

154

NOTE 20 Financing and guarantee commitments

155

Implementation of moratoriums In the context of the Covid-19 global health crisis, the G20 and the Paris Club jointly took the initiative in April Ǿ 2020 to propose a Debt Service Suspension Initiative (DSSI) for the Poorest Countries. It potentially covers 77 Ǿ poor countries and is conditional on the countries already benefiting from IMF programmes or having applied for emergency financing from the IMF. The implementation of the DSSI, for France and other bilateral creditor members, is conducted in the framework of the Paris Club. Each country eligible for the DSSI and wishing to benefit from it must sign a Memorandum of Understanding (MoU) (1) , based on a standard template, with the Paris Club. The MoU provides for a suspension of the debt service in terms of interest for all sums due and unpaid on 30 Ǿ April Ǿ 2020, as well as sums due between the 1 Ǿ May and 31 Ǿ December Ǿ 2020. Under the general terms, the suspended amounts will be deferred and repaid in six instalments between 15 Ǿ June 2022 and 15 Ǿ December 2024. The mechanism also provides for the capitalisation of interest accrued in Ǿ 2020 and aims to preserve the net present value of the original claims.

(1) Memorandum of understanding on the treatment of the debt service.

126

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2020 UNIVERSAL REGISTRATION DOCUMENT