FMO ( nl, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.) is a Dutch
development bank
A development financial institution (DFI), also known as a development bank or development finance company (DFC), is a financial institution that provides risk capital for economic development projects on a non-commercial basis.
, total commitm ...
structured as a bilateral private-sector
international financial institution based in
the Hague
The Hague ( ; nl, Den Haag or ) is a city and municipality of the Netherlands, situated on the west coast facing the North Sea. The Hague is the country's administrative centre and its seat of government, and while the official capital o ...
, the
Netherlands
)
, anthem = ( en, "William of Nassau")
, image_map =
, map_caption =
, subdivision_type = Sovereign state
, subdivision_name = Kingdom of the Netherlands
, established_title = Before independence
, established_date = Spanish Netherl ...
. FMO manages funds for the
Ministries of Foreign Affairs and Economic Affairs of the
Dutch government
The politics of the Netherlands take place within the framework of a parliamentary representative democracy, a constitutional monarchy, and a decentralised unitary state.''Civil service systems in Western Europe'' edited by A. J. G. M. Bekk ...
to maximize the development impact of private sector investments. It is licensed as a
bank
A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...
and supervised by the
Dutch Central Bank
De Nederlandsche Bank NV (DNB) is the central bank of the Netherlands. Founded by King William I in 1814, it is part of the European System of Central Banks (ESCB). De Nederlandsche Bank is a public limited company ( Dutch: '' naamloze venno ...
.
The Dutch government holds 51% of the shares, but FMO operates as a commercial company. Due to its relationship with the Dutch government, it is able to take risks which commercial financiers are not able or not prepared to take. The FMO has a AAA rating from Standard and Poor's. , the bank's total asset valuation was €8.32 billion (US$9.67 billion), and its shareholders' equity was €2.83 billion (US$3.29 billion).
FMO's mandate is to provide long term capital for projects in countries in which commercial investors do not yet dare to invest. It invests
risk capital
A capital requirement (also known as regulatory capital, capital adequacy or capital base) is the amount of capital a bank or other financial institution has to have as required by its financial regulator. This is usually expressed as a capital ad ...
in companies and financial institutions in developing countries and has a strict policy on maximizing development impact with a methodology designed to make sure that FMO's return on investment is not just financial but also has
positive environmental and social effects. Investments to date include Yoco, WWF and other NGOs in Paraguay's Agricultural sector.
History
FMO was founded in 1970 by the
Dutch Government
The politics of the Netherlands take place within the framework of a parliamentary representative democracy, a constitutional monarchy, and a decentralised unitary state.''Civil service systems in Western Europe'' edited by A. J. G. M. Bekk ...
in conjunction with
commercial bank
A commercial bank is a financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment to make profit.
It can also refer to a bank, or a division of a large bank, which deals with ...
s, the national employers' association, labor unions, and private investors to invest in
private sector
The private sector is the part of the economy, sometimes referred to as the citizen sector, which is owned by private groups, usually as a means of establishment for profit or non profit, rather than being owned by the government.
Employment
The ...
projects in
developing countries
A developing country is a sovereign state with a lesser developed industrial base and a lower Human Development Index (HDI) relative to other countries. However, this definition is not universally agreed upon. There is also no clear agreem ...
and
emerging markets
An emerging market (or an emerging country or an emerging economy) is a market that has some characteristics of a developed market, but does not fully meet its standards. This includes markets that may become developed markets in the future or wer ...
. In March 2008, FMO achieved bank status; the bank has been under the supervision of the Dutch Central Bank (DNB) since then.
Objectives
FMO manages funds for the Ministries of Foreign Affairs and Economic Affairs of the
Dutch government
The politics of the Netherlands take place within the framework of a parliamentary representative democracy, a constitutional monarchy, and a decentralised unitary state.''Civil service systems in Western Europe'' edited by A. J. G. M. Bekk ...
to maximize the development impact of private sector investments. For instance, the Capacity Development Program provides funding with the aim to create access to management and technical know-how.
Controversial investments
In 2009 the FMO invested in a coal
power plant
A power station, also referred to as a power plant and sometimes generating station or generating plant, is an industrial facility for the generation of electric power. Power stations are generally connected to an electrical grid.
Many ...
near Bargny in
Senegal
Senegal,; Wolof: ''Senegaal''; Pulaar: 𞤅𞤫𞤲𞤫𞤺𞤢𞥄𞤤𞤭 (Senegaali); Arabic: السنغال ''As-Sinighal'') officially the Republic of Senegal,; Wolof: ''Réewum Senegaal''; Pulaar : 𞤈𞤫𞤲𞤣𞤢𞥄𞤲𞤣𞤭 ...
, called Sendou I. The project triggered a debate about the impact on the environmental circumstances of the inhabitants. Following this, the Independent Complaints Mechanism of FMO has undertaken a Compliance Review and a Mediation process, in reaction to which the Management Board of FMO has written an official response
Ownership
The stock of FMO is held by individual, corporate and public Dutch entities as outlined in the table below:
See also
*
List of banks in the Netherlands
This is a list of banks in the Netherlands.
Central bank
*De Nederlandsche Bank
Development Bank
* FMO (Netherlands)
Major banks
*ABN Amro
*ING Group
*Rabobank
* De Volksbank
Smaller banks
* Amanah Group Holdings
* Anadolubank Nederland ...
*
Belgian Investment Company for Developing Countries
Belgian Investment Company for Developing Countries (BIO), is a private company, based in Brussels, Belgium.
Overview
BIO works to promote the creation of a strong private sector in emerging economies, to enable them gain access to prosperity a ...
*
German Investment Corporation
*
Danish International Development Agency
Danish International Development Agency (DANIDA) is the brand used by the Ministry of Foreign Affairs of Denmark when it provides humanitarian aid and development assistance to other countries, with focus on developing countries. There is no disti ...
*
French Development Agency
References
{{authority control
Banks established in 1970
Banks of the Netherlands
Development finance institutions
Government-owned companies of the Netherlands
International finance institutions
Dutch companies established in 1970