Notes to the annual accounts

1. Banks

	2024	2023
Banks	6,039	5,363
Balance at December 31	6,039	5,363

The cash on bank accounts can be freely disposed of. All bank accounts are classified as Stage 1.

2. Short-term deposits

Short-term deposits are liquid accounts and are subject to an insignificant risk of changes in fair value. The Fund has on demand full access to the carrying amounts. Short-term deposits consist of money market funds, which are measured at FVPL. Short-term deposits have a maturity of less than three months.

	2024	2023
Money market funds	58,340	102,200
Balance at December 31	58,340	102,200

3. Loans portfolio

Loans originated by the Fund include loans to the private sector in developing countries for the account and risk of the Fund.

	Loans measured at AC	Loans measured at FVPL	Total 2024
Balance at January 1, 2024	117,166	21,415	138,581
Disbursements	75,051	3,252	78,303
Loan Consolidation	-75	-	-75
Repayments	-43,311	-6,674	-49,985
Write-offs / disposed	-3,736	-913	-4,649
Changes in amortizable fees	-156	-	-156
Changes in fair value	-	2,079	2,079
Changes in accrued income	341	-358	-17
Exchange rate differences	6,808	1,176	7,984
Balance at December 31, 2024	152,088	19,977	172,065
Impairment	-30,750	-	-30,750
Total balance at December 31, 2024	121,338	19,977	141,315

	Loans measured at AC	Loans measured at FVPL	Total 2023
Balance at January 1, 2023	142,984	27,050	170,034
Disbursements	28,973	5,881	34,854
Loan Participation/Sale Post Disbursement	-	-	-
Repayments	-43,647	-8,821	-52,468
Write-offs / disposed	-7,305	-1,592	-8,897
Derecognized and/or restructured loans	-98	-	-98
Changes in amortizable fees	29	-9	20
Changes in fair value	-	-387	-387
Changes in accrued income	-2,285	-3	-2,288
Exchange rate differences	-1,485	-704	-2,189
Balance at December 31, 2023	117,166	21,415	138,581
Impairment	-38,473	-	-38,473
Total balance at December 31, 2023	78,693	21,415	100,108

The following table summarizes the loans segmented by sector:

	2024
Loans segmented by sector	Stage 1	Stage 2	Stage 3	Fair value	Total
Financial Institutions	74,800	19,253	19,867	12,324	126,244
Energy	-	-	-	-	-
Agribusiness	7,418	-	-	7,653	15,071
Net balance at December 31	82,218	19,253	19,867	19,977	141,315

	2023
Loans segmented by sector	Stage 1	Stage 2	Stage 3	Fair value	Total
Financial Institutions	45,358	6,694	20,485	16,384	88,921
Energy	-	-	-	-	-
Agribusiness	6,156	-	-	5,031	11,187
Net balance at December 31	51,514	6,694	20,485	21,415	100,108

	2024
Loans segmented by geographical area	Stage 1	Stage 2	Stage 3	Fair value	Total
Africa	31,302	2,503	12,658	10,457	56,920
Asia	12,909	975	7,209	6,875	27,968
Latin America & the Carribbean	8,416	15,775		-	24,191
Europe & Central Asia	10,471	-	-	-	10,471
Non - region specific	19,120	-	-	2,645	21,765
Net balance at December 31	82,218	19,253	19,867	19,977	141,315

	2023
Loans segmented by geographical area	Stage 1	Stage 2	Stage 3	Fair value	Total
Africa	24,420	2,377	11,119	9,372	47,288
Asia	2,921	4,317	9,221	4,792	21,251
Latin America & the Carribbean	6,533	-	145	-	6,678
Europe & Central Asia	8,743	-	-	6,837	15,580
Non - region specific	8,897	-	-	414	9,311
Net balance at December 31	51,514	6,694	20,485	21,415	100,108


				2024	2023
Gross amount of loans to companies in which FMO has equity investments				-	1,042
Gross amount of subordinated loans				13,137	15,042

For definition and more details on non-performing loans, we refer to section 'Credit Risk' within the Risk Management paragraph.

The movements in the gross carrying amounts and ECL allowances for the loans at AC are as follows:

Changes in loans to the private sector at AC in 2024	Stage 1		Stage 2		Stage 3		Total
	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance
At December 31, 2023	52,314	-800	7,346	-652	57,506	-37,021	117,166	-38,473
Additions	74,963	-1,220	-	-159	87		75,050	-1,379
Exposures derecognised or matured / lapsed (excluding write-offs and modifications)	-33,438	598	-1,383	9	-8,491	4,757	-43,312	5,364
Transfers to Stage 1	-	-	-	-	-	-	-	-
Transfers to Stage 2	-1,954	21	1,954	-21	-	-	-	-
Transfers to Stage 3	-	-	-3,081	250	3,081	-250	-	-
Modifications of financial assets (including derecognition)	-13,623	-	13,548	-	-	-	-75	-
Changes in risk profile not related to transfers	-	388	-	182	-	98	-	668
Amounts written off	-	-			-3,736	3,736	-3,736	3,736
Changes in amortizable fees	-114	-	-109	-	67	-	-156	-
Changes in accrued income	1,155	-	186	-	-909	-	432	-
Foreign exchange adjustments	3,997	-69	1,199	-16	1,523	-581	6,719	-666
At December 31, 2024	83,300	-1,082	19,253	-407	49,128	-29,261	152,894	-30,750

Changes in loans to the private sector at AC in 2023	Stage 1		Stage 2		Stage 3		Total
	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance	Gross carrying amount	ECL allowance
At December 31, 2022	75,287	-855	12,956	-275	54,741	-34,238	142,984	-35,368
Additions	20,833	-601	3,089	-139	-	-	23,922	-740
Exposures derecognised or matured / lapsed (excluding write-offs and modifications)	-25,814	32	-6,545	85	-7,086	3,597	-39,445	3,714
Transfers to Stage 1	-	-	-	-	-	-	-	-
Transfers to Stage 2	-2,285	99	2,285	-99	-	-	-	-
Transfers to Stage 3	-13,548	100	-	-	13,548	-100	-	-
Modifications of financial assets (including derecognition)	8	-	-4,307	-	5,051	-	752	-
Changes in risk profile not related to transfers	-	399	-	-235	-	-12,699	-	-12,535
Amounts written off	-	-	-	-	-7,305	7,305	-7,305	7,305
Changes in amortizable fees	-30	-	32	-	28	-	30	-
Changes in accrued income	-188	-	139	-	-2,237	-	-2,286	-
Foreign exchange adjustments	-1,949	26	-303	11	766	-886	-1,486	-849
At December 31, 2023	52,314	-800	7,346	-652	57,506	-37,021	117,166	-38,473

Total impairments on loans in the profit and loss account
	2024	2023
Additions	-1,379	-740
Exposure derecognised or matured/lapsed (excluding write - offs)	5,364	-3,591
Changes in risk profile (including changes in accounting estimates)	-1,433	-5,230
Recoveries (written off loans)	-	-
Other	2,107	96
Balance at December 31	4,659	-9,465

4. ECL allowances - assessment

ECL allowances are calculated for Banks, Loans at private sector at AC (including off balance loan commitments) and Guarantees Given to customers. The movement in ECL allowances for each of these items is presented in their relevant notes.

To demonstrate the sensitivity of the SICR criteria, the tables below present the distribution of stage 2 impairments by the criteria that triggered the migration to stage 2.

December 31, 2024
ECL allowance - Stage 2 trigger assessment	Loans to private sector	Guarantees	Loan commitments	Total

More than 30 days past due	-	-	-	-
Forbearance	-	-	-	-
Deterioration in credit risk rating - financial difficulties	-407	-18	-	-425
Total	-407	-18	-	-425

December 31, 2023
ECL allowance - Stage 2 trigger assessment	Loans to private sector	Guarantees	Loan commitments	Total

More than 30 days past due	-	-	-	-
Forbearance	-	-	-	-
Deterioration in credit risk rating - financial difficulties	-652	-21	-	-673
Total	-652	-21	-	-673

The following table shows the values of the IMF GDP forecasts used in each of the economic scenarios for the ECL calculations for 2024 and 2025. The upside and downside scenario calculations are derived from the base case scenario, adjusted based on an indicator of public debt to GDP in emerging markets.

The macroeconomic scenarios’ model was updated following the publication of the new macroeconomic outlook data by the International Monetary Fund (IMF) in 2024. The updates of the model based on more optimistic GDP forecast, caused new point-in-time adjustments to probability of defaults in the impairment model, leading to a release in combined stage-1 and stage-2 impairment charge.

IMF GDP % Growth Forecasts	2024	2025
Guatemala	3.5%	3.6%
Georgia	7.6%	6.0%
Ethiopia	6.1%	6.5%
Madagascar	4.5%	4.6%
Myanmar	1.0%	1.1%
Zimbabwe	2.0%	6.0%
India	7.0%	6.5%
The Palestine Territories ¹	n/a	n/a
Nicaragua	4.0%	3.8%
Indonesia	5.0%	5.1%

1 IMF had no forecasts of GDP growth rates available for the Palestine Territories.

Note that macroeconomic scenarios have been updated by using the latest available information by the IMF, as published in October 2024.

31-Dec-24	Total unweighted amount per ECL scenario	Probability	Loans to the private Sector	Guarantees	Total
ECL Scenario:
Upside	32,999	2%	648	12	660
Base case	33,618	50%	16,489	320	16,809
Downside	34,680	48%	16,324	323	16,647
Total		100%	33,460	655	34,115

31-Dec-23	Total unweighted amount per ECL scenario	Probability	Loans to the private Sector	Guarantees	Total
ECL Scenario:
Upside	42,281	2%	838	8	846
Base case	42,918	50%	21,256	203	21,459
Downside	44,108	48%	20,965	207	21,172
Total		100%	43,059	418	43,477

5. Equity investments

The equity investments in developing countries are for the Fund's account and risk. The movements in fair value of the equity investments are summarized in the following table. Equity investments are measured at FVPL.

	Equity measured at FVPL
Net balance at January 1, 2024	219,269
Purchases and contributions	26,828
Reclassification from loans	-
Return of Capital	-15,826
Changes in fair value	-24,363
Net balance at December 31, 2024	205,908

	Equity measured at FVPL
Net balance at January 1, 2023	213,593
Purchases and contributions	23,643
Reclassification from loans	-
Return of Capital	-6,727
Changes in fair value	-11,240
Net balance at December 31, 2023	219,269

The following table summarizes the equity investments segmented by sector:

	2024	2023
Financial Institutions	102,923	117,756
Energy	2,005	2,192
Agribusiness	3,614	2,597
Multi-Sector Fund Investments	85,932	82,491
Infrastructure, Manufacturing and Services	11,434	14,233
Net balance at December 31	205,908	219,269

6. Investments in associates

The movements in net book value of the associates are summarized in the following table:

	2024	2023
Net balance at January 1	10,463	9,955
Purchases and contributions	-	-
Share in net results	-2,309	845
Exchange rate differences	635	-337
Net balance at December 31	8,789	10,463

Investments in associates are valued based on the equity accounting method.

The following table summarizes the associates segmented by sector.

	2024	2023
Financial Institutions	8,789	10,463
Net balance at December 31	8,789	10,463

The following table summarizes the share in the total assets, liabilities, total income and total net profit/loss of the associates

Associate	Carrying amount	Economic ownership %	Total assets	Total liabilities	Total income	Total profit/loss
Teak Tree Investments	4,418	40%	4,418	-	-	-
SFC Finance Limited	4,371	31%	10,013	5,640	927	-88

7. Other financial assets

	2024	2023
Other financial assets at FV ¹	21,875	24,601
Balance at December 31	21,875	24,601

1 Other financial assets at FV relate to FMO's Ventures Program

8. Other receivables

	2024	2023
Receivables related to equity disposals and dividends	646	1,183
Fee receivables	145	228
Balance at December 31	791	1,411

9. Accrued income

	2024	2023
Suspense account	3	-
Accrued income guarantee fee	40	19
Balance at December 31	43	19

10. Current accounts (liabilities)

	2024	2023
Current account FMO	694	5
Balance at December 31	694	5

11. Other liabilities

	2024	2023
Amortized costs related to guarantees	49	22
Balance at December 31	49	22

12. Accrued liabilities

	2024	2023
Bank suspense account	136	412
Accrued costs capacity development	9,852	7,019
Prepayments Ventures/Nasira	-	888
Prepayment Market Creation Platform	-	2,000
Balance at December 31	9,988	10,319

13. Provisions

	2024	2023
Allowance for loan commitments	127	232
Allowance for guarantees	640	407
Balance at December 31	767	639

14. Contributed fund capital and reserves

	2024	2023
Contributed Fund Capital	352,840	352,840
Initial contribution FMO	7,778	7,778
Contribution DGIS current year	2,000	-
Balance at December 31	362,618	360,618

The fund capital is revolvable (100% revolvability) when the current value of assets is equivalent or above the sum of the capital put into the fund by shareholders.

	2024	2023
Other reserves	68,697	68,697
Balance at December 31	68,697	68,697

Undistributed results	2024	2023
Balance at January 1	22,327	61,095
Net profit / (loss)	-23,487	-38,768
Balance at December 31	-1,160	22,327

15. Net interest income

Interest income

	2024	2023
Interest on loans measured at AC	8,110	4,741
Interest income related to banks	150	422
Total interest income from financial instruments measured at AC	8,260	5,163
Interest on loans measured at FVPL	1,500	862
Interest on short-term deposits	4,030	4,508
Total interest income from financial instruments measured at FVPL	5,530	5,370
Total interest income	13,790	10,533

16. Net fee and commission income

	2024	2023
Administration fees	67	79
Guarantee fees related to unfunded risk participants	153	24
Other fees (arrangement, cancellation and waiver fees)	40	94
Net fee and commission income	260	197

17. Dividend income

Dividend income relates to income from equity investments.

	2024	2023
Dividend income direct investments	1,001	2,739
Dividend income fund investments	190	115
Total dividend income	1,191	2,854

18. Results from equity investments

	2024	2023
Results from equity investments:
Unrealized results from FX conversions - cost price	12,664	-5,607
Unrealized results from FX conversions - capital results	-3,473	539
Unrealized results from capital results	-33,554	-6,175
Results from Fair value re-measurements	-24,363	-11,243

Results from sales & distributions:
Realized results	-13,212	-3,937
Release unrealized results	13,017	4,709
Net results from sales	-195	772
Total results from equity investments	-24,558	-10,471

19. Results from financial transactions

	2024	2023
Results on sales and valuations of FVPL loans	1,165	-1,479
Foreign exchange results	9,312	-5,349
Results on Ventures Program	-5,638	-9,435
Total results from financial transactions	4,839	-16,263

20. Other operating income

	2024	2023
Other operating income	9	-
Total other operating income	9	-

21. Expenses

	2024	2023
Remuneration FMO	-10,775	-10,073
Capacity development expenses	-8,610	-6,299
Evaluation expenses	-497	-178
Other operating expenses	-1,385	-1
Total operating expenses	-21,267	-16,551

Remuneration FMO relates to management fees paid to FMO.

Capacity development expenses relate to contracted contributions to beneficiaries in terms of the fund's objectives.
Evaluation costs relate to expenses made during frequent investigations and controls of existing investments and costs related to due diligence of new projects.

22. Off-Balance Sheet information

To meet the financial needs of borrowers, the Fund enters into various irrevocable commitments (loan commitments, equity commitments and guarantee commitments) and contingent liabilities. These contingent liabilities consist of financial guarantees, which commit the Fund to make payments on behalf of the borrowers in case the borrower fails to fulfill payment obligations. Though these obligations are not recognized on the balance sheet, they do obtain Credit Risk similar to loans to private sector. Therefore, provisions are calculated for financial guarantees and loan commitments according to ECL measurement methodology.

The outstanding amount for financial guarantees issued by the Fund is as follows:

	2024	2023

Contingent liabilities
Effective guarantees issued	5,552	3,636
Total guarantees issued	5,552	3,636

As agreed with the Dutch Ministry of Foreign Affairs, the fund shall maintain 1 euro for each euro of guarantee issued. The total amount of cash as per 31 December 2024 is adequately covering the total guarantees issued and hence meets the requirement set out by the Dutch Ministry of Foreign Affairs.

Nominal amounts for irrevocable facilities are as follows:

	2024	2023

Irrevocable facilities
Contractual commitments for disbursements of:
- Loans	19,430	32,030
- Development contributions	-	45
- Equity investments and associates	53,535	60,445
Contractual commitments for financial guarantees given	4,793	1,917
Total irrevocable facilities	77,758	94,437

The movement in exposure for the financial guarantees issued (including contractual commitments) and ECL allowance is as follows:

Movement financial guarantees in 2024	Stage 1		Stage 2		Stage 3		Total
	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance
At January 1, 2024	4,339	-19	581	-21	633	-367	5,553	-407
Additions	7,323	-34	28	-3	-	-	7,351	-37
Exposures matured (excluding write-offs)	-2,167	3	-426	22	-251	105	-2,844	130
Transfers to Stage 1	-	-	-	-	-	-	-	-
Transfers to Stage 2	-	-	-	-	-	-	-	-
Transfers to Stage 3	-398	3	-	-	398	-3	-	-
Changes to models and inputs used for ECL calculations	-	3	-	-13	-	-297	-	-307
Foreign exchange adjustments	78	4	52	-3	155	-20	285	-19
At December 31, 2024	9,175	-40	235	-18	935	-582	10,345	-640

Movement financial guarantees in 2023	Stage 1		Stage 2		Stage 3		Total
	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance
At January 1, 2023	3,966	-23	-	-	-	-	3,966	-23
Additions	4,023	-23	-	-	187	-	4,210	-23
Exposures matured (excluding write-offs)	-1,978	10	-53	-	-	-	-2,031	10
Transfers to Stage 1	-	-	-	-	-	-	-	-
Transfers to Stage 2	-743	5	743	-5	-	-	-	-
Transfers to Stage 3	-467	4	-	-	467	-4	-	-
Changes to models and inputs used for ECL calculations	-	4	-	-16	-	-363	-	-375
Foreign exchange adjustments	-462	4	-109	-	-21	-	-592	4
At December 31, 2023	4,339	-19	581	-21	633	-367	5,553	-407

The movement in exposure for the loan commitments is as follows:

Movement of loans commitments in 2024	Stage 1		Stage 2		Stage 3		Total
	Nominal amount	ECL allowance	Nominal amount	ECL allowance	Nominal amount	ECL allowance	Nominal amount	ECL allowance
At January 1, 2024	25,316	-232	-	-	-	-	25,316	-232
Additions	100,118	-429	-	-112	-	-	100,118	-541
Exposures derecognised or matured (excluding write-offs)	-111,991	587	-	110	-	-	-111,991	697
Transfers to Stage 1	-	-	-	-	-	-	-	-
Transfers to Stage 2	-	-	-	-	-	-	-	-
Transfers to Stage 3	-	-	-	-	-		-	-
Changes to models and inputs used for ECL calculations	-	-44	-	1	-		-	-43
Amounts written off	-	-	-	-	-	-	-	-
Foreign exchange adjustments	965	-9	-	1	-	-	965	-8
At December 31, 2024	14,408	-127	-	-	-	-	14,408	-127

Movement of loans commitments in 2023	Stage 1		Stage 2		Stage 3		Total
	Nominal amount	ECL allowance	Nominal amount	ECL allowance	Nominal amount	ECL allowance	Nominal amount	ECL allowance
At January 1, 2023	16,291	-175	120	-2	-	-	16,411	-177
Additions	44,261	-363	4,942	-58	-	-	49,203	-421
Exposures derecognised or matured (excluding write-offs)	-31,381	302	-8,150	158	-	-	-39,531	460
Transfers to Stage 1	-	-	-	-	-	-	-	-
Transfers to Stage 2	-3,085	52	3,085	-52	-	-	-	-
Transfers to Stage 3	-	-	-	-	-	-	-	-
Changes to models and inputs used for ECL calculations	-	-55	-	-44	-	-	-	-99
Amounts written off	-	-	-	-	-	-	-	-
Foreign exchange adjustments	-770	7	3	-2	-	-	-767	5
At December 31, 2023	25,316	-232	-	-	-	-	25,316	-232

23. Analysis of financial assets and liabilities by measurement basis

The significant accounting policies summary describes how the classes of financial instruments are measured and how income and expenses, including fair value gains and losses, are recognized. The following table gives a breakdown of the carrying amounts of the financial assets and financial liabilities by category as defined in under IFRS 9 and by balance sheet heading.

December 31, 2024	FVPL - mandatory	Amortized cost	Total
Financial assets measured at fair value
Short-term deposits	58,340	-	58,340
Loans to the private sector	19,977	-	19,977
Equity investments	205,908	-	205,908
Other financial assets at FV	21,875	-	21,875
Total	306,100	-	306,100
Financial assets not measured at fair value
Banks	-	6,039	6,039
Loans to the private sector		121,338	121,338
Other receivables	-	791	791
Accrued income	-	43	43
Total	-	128,211	128,211
Financial liabilities not measured at fair value
Current accounts	-	694	694
Other liabilities	-	49	49
Accrued liabilities	-	9,988	9,988
Provisions	-	767	767
Total	-	11,498	11,498

December 31, 2023	FVPL - mandatory	Amortized cost	Total
Financial assets measured at fair value
Short-term deposits	102,200	-	102,200
Loans to the private sector	21,415	-	21,415
Equity investments	219,269	-	219,269
Other financial assets at FV	24,601	-	24,601
Total	367,485	-	367,485
Financial assets not measured at fair value
Banks	-	5,363	5,363
Loans to the private sector	-	78,693	78,693
Current accounts	-	-	-
Other receivables	-	1,411	1,411
Accrued income	-	19	19
Total	-	85,486	85,486
Financial liabilities not measured at fair value
Current accounts		5	5
Other liabilities	-	22	22
Accrued liabilities	-	10,319	10,319
Provisions	-	639	639
Total	-	10,985	10,985

Fair value hierarchy

All financial instruments for which fair value is recognized or disclosed are categorized within the fair value hierarchy, based on lowest level input that is significant to the fair value measurement as a whole, as follows:
Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable;
Level 3 – Valuation technique for which the lowest level input that is significant to the fair value measurement is unobservable.

Valuation process

For recurring and non-recurring fair value measurements categorized within Level 3 of the fair value hierarchy, the Fund has a valuation process in place to decide its valuation policies and procedures and analyze changes in fair value measurement from period to period.

The Fund’s fair value methodology and governance over its methods includes a number of controls and other procedures to ensure appropriate safeguards are in place to ensure its quality and adequacy. The responsibility of ongoing measurement resides with the relevant departments. Once submitted, fair value estimates are also reviewed and challenged by the Financial Risk Committee (FRC). The FRC approves the fair values measured including the valuation techniques and other significant input parameters used.

Valuation technique

When available, the fair value of an instrument is measured by using the quoted price in an active market for that instrument (level 1). A market is regarded as active if transactions of the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

If there is no quoted price in an active market, valuation techniques are used that maximize the use of relevant observable inputs and minimize the use of unobservable inputs.

Valuation techniques include:

Recent broker / price quotations
Discounted cash flow model
Option-pricing models

The techniques incorporate current market and contractual prices, time to expiry, yield curves and volatility of the underlying instrument. Inputs used in pricing models are market observable (level 2) or are not market observable (level 3). A substantial part of fair value (level 3) is based on net asset values.

Equity investments are measured at fair value when a quoted market price in an active market is available or when fair value can be estimated reliably by using a valuation technique. The main part of the fair value measurement related to equity investments (level 3) is based on net asset values of investment funds as reported by the fund manager and are based on advanced valuation methods and practices. When available, these fund managers value the underlying investments based on quoted prices, if not, multiples are applied as input for the valuation. For the valuation process of the equity investments we further refer to the accounting policies within these Annual Accounts as well as section 'Equity Risk', part of the Risk Management chapter. The determination of the timing of transfers is embedded in the quarterly valuation process, and therefore recorded at the end of each reporting period.

Other financial assets carried at FVPL represent amounts attributable to the Dutch State in return for their co-investment in the FMO Ventures Program. The amount attributable to co-investors is based on a predefined value sharing waterfall which utilizes the values of the underlying investments in the program. The underlying investments in the program are valued using the existing equity investment fair valuation techniques described in the paragraphs above. The waterfall calculation defines the timing and amount of distributions to respective co-investors and is therefore applied to estimate the fair values of the related financial asset.

The table below presents the carrying value and estimated fair value of financial assets and liabilities not measured at fair value.

Carrying value financial assets	2024		2023
At December 31	Carrying value	Fair value	Carrying value	Fair value
Banks	6,039	6,039	5,363	5,363
Loans to the private sector at AC	121,338	112,385	78,693	76,266
Total non fair value financial assets	127,377	118,424	84,056	81,629

The following table gives an overview of the financial instruments measured at fair value using a fair value hierarchy that reflects the significance of the inputs used in making the measurements.

December 31, 2024	Level 1	Level 2	Level 3	Total
Financial assets at FVPL
Short-term deposits mandatory at FVPL	58,340	-	-	58,340
Loans to the private sector mandatory at FVPL	-	-	19,977	19,977
Equity investments	13,041	-	192,867	205,908
Other financial assets at FV	-	-	21,875	21,875
Total financial assets at fair value	71,381	-	234,719	306,100

1 The valuation of the Other financial assets is related to VC and the valuation is derived from the waterfall.

December 31, 2023	Level 1	Level 2	Level 3	Total
Financial assets at FVPL
Short-term deposits mandatory at FVPL	102,200	-	-	102,200
Loans to the private sector mandatory at FVPL	-	-	21,415	21,415
Equity investments	13,036	-	206,233	219,269
Other financial assets at FV	-	-	24,601	24,601
Total financial assets at fair value	115,236	-	252,249	367,485

The following table shows the movements of financial assets measured at fair value based on level 3.

	Loans to the private sector	Equity investments	Total
Balance at January 1, 2024	21,415	206,233	227,648
Total gains or losses		-
ˑ In profit and loss (changes in fair value)	2,079	-33,426	-31,347
Purchases/disbursements	3,252	26,828	30,080
Sales/repayments	-6,674	-15,823	-22,497
Write-offs	-913	-	-913
Accrued income	-358	-	-358
Exchange rate differences	1,176	9,055	10,231
Changes in amortizable fees	-	-	-
Reclassification Loans versus Equity	-	-	-
Other	-	-	-
Balance at December 31, 2024	19,977	192,867	212,844

	Loans to the private sector	Equity investments	Total
Balance at January 1, 2023	27,050	207,716	234,766
Total gains or losses
ˑ In profit and loss (changes in fair value)	-387	-13,299	-13,686
Purchases/disbursements	5,881	23,643	29,524
Sales/repayments	-8,821	-6,724	-15,545
Write-offs	-1,592	-	-1,592
Accrued income	-12	-	-12
Exchange rate differences	-704	-5,103	-5,807
Changes in amortizable fees	-	-	-
Reclassification Loans versus Equity	-	-	-
Other	-	-	-
Balance at December 31, 2023	21,415	206,233	227,648

Type of debt investment	Fair value at December 31, 2024	Valuation technique	Range (weighted average) of significant unobservable inputs	Fair value measurement sensitivity to unobservable inputs

Loans	2,645	Discounted cash flow model	Based on client spread	A decrease/increase of the used spreads with 1% will result is a higher/lower fair value of approx. €0.3m
	2,500	ECL measurement	Based on client rating	An improvement / deterioration of the Client Rating with 1 notch will result 1.7% increase/decrease
	162	Credit impairment	n/a	n/a
Debt Funds	14,670	Net Asset Value	n/a	n/a
Total	19,977

Type of equity investment	Fair value at Dec 31, 2023	Valuation technique	Range (weighted average) of significant unobservable inputs	Fair value measurement sensitivity to unobservable inputs

Private equity fund investments	117,471	Net Asset Value	n/a	n/a
Private equity direct investments	43,509	Book multiples	1.0	A decrease/increase of the book multiple with 10% will result in a lower/higher fair value of €4 million.
	-	Put option	The guaranteed floor depends on several unobservable data such as IRR, EBITDA multiples, book multiples and Libor rates	A decrease/increase of the used unobservable data with 10% will result in a lower/higher fair value of €0 million.
	31,887	Firm offers	Based on offers received from external parties	n/a
Total	192,867

24. Related party information

Dutch Government:

The Dutch Ministry of Foreign Affairs, Directoraat-generaal internationale Samenwerking sets up and administers the investments funds (“State Funds”), including MASSIF, according to the Dutch Government’s development agenda. Directoraat-generaal internationale Samenwerking is the main contributor to MASSIF, providing funding upon FMO’s request.

The Dutch development bank FMO supports sustainable private sector growth in developing and emerging markets by leveraging its expertise in agribusiness, food & water, energy, financial institutions, Dutch business focus areas to invest in impactful businesses. FMO is a public-private partnership, with 51% of FMO’s shares held by the Dutch State and 49% held by commercial banks, trade unions and other members of the private sector. FMO has a triple A rating from both Fitch and Standard & Poor’s.

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (“FMO”)

FMO has been entrusted by the Dutch Government to execute the mandates of the State Funds: Currently MASSIF, Building Prospects, Access to Energy – I and Dutch Fund for Climate and Development Land Use Facility are under FMO’s direct management; the execution of Access to Energy – II and the other facilities of the Dutch Fund for Climate and Development are performed by third parties under FMO’s supervision.

FMO charges a management fee to the Dutch Ministry of Foreign Affairs and it is reimbursed accordingly from MASSIF’s subsidy amount (2024: €10.1 million; 2023: €10.1 million). FMO is also a minor contributor to the fund with a total contribution of €7.8 million in 2024 (2023: €7.8 million).

25. Subsequent events

There has been no significant subsequent event between the balance sheet date and the date of approval of these accounts which should be reported by the Fund.