Year-End 2004 Financial Overview

Author:

Bernard Rivers

Article Type:

Article Number: 4

ABSTRACT Total contributions paid to the Fund in 2004 were $1,446 m., up from $937 m. in 2003. The Fund estimates that its total needs in 2005 will be $2,310 m.

Total contributions paid to the Fund in 2004 were $1,446 m., up from $937 m. in 2003. The 2004 amount would have been $136 m. more if Italy had paid its 2004 pledge on time.

The Fund estimates that its total needs in 2005 will be $2,310 m. – $1,310 for renewal of various grants approved in Rounds 1-3, and $1,000 m. for the first two years of Round 5 grants. Of this, $1,219 m. (53%) has been pledged thus far.

The US originally pledged $547 m. for 2004. However, this was subject to a cap that the US will not provide more than 33% of total contributions to the Fund. The existence of this cap meant that in the end, the US only gave $459 m. in 2004.

The US pledge for 2005 is $350 m., significantly down from its 2004 maximum of $547 million. However, the “unpaid” part of the 2004 pledge has been added to this, meaning that the US maximum for 2005 will be $435 m. This again will be subject to a cap that the US will not provide more than 33% of total contributions to the Fund.

Pledges to the Fund for 2004 that have not yet been paid are $136 million from Italy, $1 million from the Health Authorities of Taiwan, and $50,000 from Brazil. Pledges for 2003 that have not been paid are $1.9 million from South Africa, $1 million from Nigeria, $100,000 from Cameroon and $100,000 from Mexico.