Improving Governance in Africa

What are the AfDB's lending limits? There are several limits applicable to the Bank's operations with the ultimate objective of ensuring that the Bank is protected from a risk perspective. There are three fundamental limits: 45% of the total risk capital for Public Sector operations 45% of total risk capital for Non-Sovereign operations 10% of the total risk capital for market risk and operational risk Some other limits are: Limits Country limit Sector Limit Single name limit Equity limit Lines of credit limit Definition Total capital allocated to a single country Total Capital allocated to a single sector Total capital allocated to a single counterparty Equity participations Lines of Credit Risk capital is defined as paid-in capital and reserves Percentage 15% of the Bank's risk capital 25% of the risk capital allocated to private sector operations for any sector. 35% of the risk capital allocated to private sector operations for the financial services sector. 6% of the private sector risk capital 15% of total risk capital Participation limited to 50% of the equity of the borrowing bank 78

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