Capital Subscriptions—International organizations

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This group records Canada’s subscriptions to the share capital of international banks.

Canada's subscriptions to the share capital of a number of international banks are composed of both paid-in and callable capital. The majority of subscriptions to international organizations do not provide a return on investment but are repayable on termination of the organization or withdrawal from it.

Paid-in capital subscriptions are made through a combination of cash payments and the issuance of non-interest bearing, non-negotiable notes payable to the organization. Although payable on demand, these notes are typically encashed according to terms of agreements reached between the organization and participating countries.

Callable share capital is composed of resources that are not paid to the banks but act as a guarantee to allow them to borrow on international capital markets to finance their lending program. Callable share capital, which has never been drawn on by the banks, would only be utilized in extreme circumstances to repay loans, should a bank's reserves not be sufficient. It represents a contingent liability of the government, and is listed with other contingent liabilities related to international organizations in Table 11.7 in Section 11 of this volume.

Table 9.11 presents a summary of the balances and transactions for share capital to international organizations. The revaluation amount represents the conversion of foreign currency balances to the year-end closing rates of exchange. Balances denominated in United States dollars were converted to Canadian dollars at year-end exchange rate of $1 USD/$1.3516 CAD.

Table 11.4 and Table 11.7 of Section 11 of this volume present additional information on contractual obligations and contingent liabilities for international organizations that are disclosed in the notes to the audited consolidated financial statements in Section 2 of this volume.

The notes payable outstanding at year-end of $90,567,804 ($83,773,804 in 2022) are reported in Table 5.3 in Section 5 of this volume.

Table 9.11
International organizations
(in dollars)
  April 1, 2022Link to table note 1 Payments and other charges Receipts and other credits March 31, 2023
Participation or other charges Revaluation Reimbursements or other credits Revaluation
Capital subscriptionsLink to table note 2
Finance
Department of Finance
Asian Infrastructure Investment Bank 257,200,158 – – – – 257,200,158
European Bank for Reconstruction and Development 278,549,076 – – – – 278,549,076
International Bank for Reconstruction and Development (World Bank) 805,062,415 – – – – 805,062,415
International Development AssociationLink to table note 3 13,785,498,061 911,436,000 – – – 14,696,934,061
International Finance Corporation 325,644,045 – – – – 325,644,045
Multilateral Investment Guarantee Agency 13,827,431 – – – – 13,827,431
Subtotal 15,465,781,186 911,436,000 – – – 16,377,217,186
Global Affairs
African Development Bank 479,852,588 138,833,728 34,979,538 – – 653,665,854
Asian Development Bank 373,807,687 – 12,955,322 – – 386,763,009
Caribbean Development Bank 49,148,867 – 3,480,244 – – 52,629,111
Inter-American Development Bank 309,445,744 – 24,830,069 1 – 334,275,812
Inter-American Investment Corporation 78,746,863 2,870,776 6,533,938 – – 88,151,577
Subtotal 1,291,001,749 141,704,504 82,779,111 1 – 1,515,485,363
Subtotal—Capital subscriptions 16,756,782,935 1,053,140,504 82,779,111 1 – 17,892,702,549
Less: allowance for valuation 16,756,782,935 1,053,140,504 82,779,111 1 – 17,892,702,549
Total—Capital subscriptions – – – – – –

Asian Infrastructure Investment Bank

Effective March 19, 2018, Canada became a member to the Asian Infrastructure Investment Bank (AIIB) pursuant to the Asian Infrastructure Investment Bank Agreement Act, and, as noted in various appropriation acts. The AIIB commenced operations in January 2016.

Canada’s investment, like that of all other shareholders in the bank, is in the form of 20% paid-in capital and 80% callable capital. As of March 31, 2023, Canada has subscribed to 9,954 shares (9,954 in 2022). The total value of these shares is $995.4 million USD ($995.4 million USD in 2022), of which $199.1 million USD ($199.1 million USD in 2022) is paid-in and the remaining portion is callable. To date, Canada has made four equal payments of $39.8 million USD.

European Bank for Reconstruction and Development

This account records Canada's subscriptions to the capital of the European Bank for Reconstruction and Development (EBRD), as authorized by the European Bank for Reconstruction and Development Agreement Act, and various appropriation acts.

At year end, Canada has subscribed to 102,049 shares of the EBRD's authorized capital valued at 1,020,490,000 EUR.

Only 212,850,000 EUR ($216,197,668 USD as of March 31, 2023) or about 21% of Canada’s share subscription is considered "paid-in". The balance is callable meaning the institution can request the resources in the unlikely event that it requires them to meet its financial obligations to bondholders. Payments for the share subscription are authorized by the Act. Each payment to the EBRD is comprised of cash and a promissory note.

Canada’s contingent liability for the callable portion of its shares was 807,640,000 EUR.

International Bank for Reconstruction and Development

This account records Canada's subscriptions to the capital of the International Bank for Reconstruction and Development (World Bank), as authorized by the Bretton Woods and Related Agreements Act, and various appropriation acts.

As of March 31, 2023, Canada has subscribed to 70,455 shares. The total value of these shares is $8,499,338,925 USD, of which $604,197,476 USD plus $16,404,055 CAD has been paid-in. The remaining portion is callable.

The callable portion is subject to call by the World Bank under certain circumstances. Canada's contingent liability for the callable portion of its shares is $7,879.8 million USD.

International Development Association

This account records Canada's contributions and subscriptions to the International Development Association (IDA), as authorized by the Bretton Woods and Related Agreements Act, and various appropriation acts (including the Department of Finance Vote 5, Appropriation Act No. 1, 2018–2019). The contributions and subscriptions to IDA, which is part of the World Bank Group, are used to lend funds to the poorest developing countries for development purposes, on highly favourable terms (very low interest rates, with a 25 to 40 year maturity and 5 to 10 years of grace).

As of March 31, 2023, Canada’s total participation in IDA amounted to $14,696,934,061 CAD.

International Finance Corporation

This account records Canada's subscriptions to the capital of the International Finance Corporation, which is part of the World Bank Group, as authorized by the Bretton Woods and Related Agreements Act, and various appropriation acts.

The 2020 general capital increase at the International Finance Corporation included a re-basing of the shareholding by converting $17 billion USD from its retained earnings into new shares. These new shares were provided on a pro rata basis at no charge to all shareholders, increasing Canada’s shareholding from 81,342 shares to 620,199 shares.

As of March 31, 2023, Canada has subscribed to 796,137 shares (796,137 as at March 31, 2022). These shares have a total value of $796,137,000 USD, of which $257,280,000 USD has been paid-in.

Multilateral Investment Guarantee Agency

This account records Canada's subscriptions to the capital of the Multilateral Investment Guarantee Agency, as authorized by the Bretton Woods and Related Agreements Act, and various appropriation acts.

As of March 31, 2023, Canada has subscribed to 5,225 shares. The total value of these shares is $56,534,500 USD, of which $10,732,250 USD is paid-in and the remaining portion is callable.

The callable portion is subject to call by the Multilateral Investment Guarantee Agency under certain circumstances. Canada's contingent liability for the callable portion of its shares is $45,802,250 USD.

African Development Bank

This account records Canada's subscriptions to the capital of the African Development Bank, as authorized by the International Development (Financial Institutions) Assistance Act, and various appropriation acts.

As at March 31, 2023, Canada’s participation to the paid-in capital is $653,665,854 CAD for 36,412 shares, including 31,884 issued in US dollars.

The callable shares are subject to call by the African Development Bank under certain circumstances. Canada's contingent liability for callable shares has a current value of $984,917,646 CAD and $6,526,068,555 USD for a total value of $9,805,225,600 CAD.

Asian Development Bank

This account records Canada's subscriptions to the capital of the Asian Development Bank, as authorized by the International Development (Financial Institutions) Assistance Act, and various appropriation acts.

As at March 31, 2023, Canada’s participation to the paid-in capital is $386,763,009 CAD for 27,768 shares, including 25,398 issued in US dollars.

The callable shares are subject to call by the Asian Development Bank under certain circumstances. Canada’s contingent liability for callable shares has a current value of $6,363,375,615 USD for a total value of $8,600,420,312 CAD.

Caribbean Development Bank

This account records Canada's subscriptions to the capital of the Caribbean Development Bank, as authorized by the International Development (Financial Institutions) Assistance Act, and various appropriation acts.

As at March 31, 2023, Canada's participation to the paid-in capital is $52,629,111 CAD for 5,710 shares issued in US dollars.

The callable shares are subject to call by the Caribbean Development Bank under certain circumstances. Canada's contingent liability for callable shares has a current value of $122,408,132 USD for a total value of $165,440,710 CAD.

Inter-American Development Bank

This account records Canada's subscriptions to the capital of the Inter-American Development Bank, as authorized by the International Development (Financial Institutions) Assistance Act, and various appropriation acts.

As at March 31, 2023, Canada’s participation to the paid-in capital is $334,275,812 CAD for 20,034 shares issued in US dollars.

The callable shares are subject to call by the Inter-American Development Bank under certain circumstances. Canada’s contingent liability for callable shares has a current value of $6,598,757,829 USD for a total value of $8,918,551,144 CAD.

Inter-American Investment Corporation

This account records Canada's subscriptions to the capital of the Inter-American Investment Corporation, as authorized by the International Development (Financial Institutions) Assistance Act, and various appropriation acts.

As at March 31, 2023, Canada’s participation to the paid-in capital is $88,151,577 CAD for 4,088 shares issued in US dollars.

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