FMO manages a number of specific funds and facilities for the Dutch government. Initiated by the needs of our clients, the government provided the finance with which FMO offered solutions to those clients. Now, many of the same funds and facilities still exist, meaning that other clients can benefit from them. This money covers financial risks that FMO cannot take – it therefore allows us to take on higher risk projects with greater development impact.
Current government funds and facilities include:
We represent a good investment opportunity for commercial capital-market players looking to invest in emerging markets. External funding allows us to continue to finance our risk portfolio. For investors, we offer good return on investment, strong risk coverage and a partner who knows their playing field. For our clients, it means access to more capital than one single investor could provide alone.
We comply with the capital requirements of Basel II; we also have an internal procedure to assess the risk weighting of our loans and equity portfolio in emerging markets, which is more conservative than Basel II. FMO acquired its banking license in March 2008. We are officially required to report the BIS-ratio to the Dutch Central Bank on a quarterly basis.
It is FMO's business to finance financial institutions in developing countries. For this FMO attracts external funding. Our Financial markets department is responsible.
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