AFD_REGISTRATION_DOCUMENT_2017

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AFD’S ANNUAL FINANCIAL STATEMENTS Accounting principles and assessment methods

7.2.14 Guarantee commitments Commitments given for guarantees to credit institutions include, in particular: P guarantees granted by AFD for the Ariz I, Ariz II and Ariz Med procedure (Support for the risk of financing private investment in AFD’s PSZ, in Sub-Saharan Africa and in Mediterranean countries). These guarantees are intended to encourage the creation and development of local businesses; Commitments given for guarantees to clients include, in particular: P the guarantee of the debt of its subsidiary in liquidation, Soderag, bearing in mind that a very large part of this debt was repaid early in 1998band 1999bafter Soderag sold its portfolio to Sodega, Sodema and Sofideg. The portfolio was then taken over by Sofiag; P the guarantee granted to Sofiag accounts for 50% of gross outstandings on the loan portfolio sold by Socredom in 1998bin preparation for its dissolution, which took place on 1bJanuary 1999; P repayment guarantees for the three bonds issued by IFFIM as part of managing the French contribution to the Solidarity Fund for Development (FSD) on behalf of the French State; P sub-participation guarantees granted to Proparco. Commitments received from credit institutions are related to loan transactions conducted by AFD. Other commitments received included the French State’s guarantee of loans to foreign countries. Guarantee commitments for securities include share buyback options offered to Proparco’s minority shareholders as part of the capital increases undertaken in Mayb2008, Mayb2014band

Juneb2014. These buyback options may be exercised for a period of five years following a lock-in period of five years.

7.2.15 Disclosure on non-cooperating States and territories ArticlebL.511-45 of the French Monetary and Financial Code (as amended by Articleb3bof Order 2014-158 of 20bFebruary 2014) requires credit institutions to publish an appendix to their annual financial statements presenting information about their offices in countries or territories that have not signed an administrative assistance agreement with France for the purpose of combating fraud and tax evasion. Act 2013-672 of 26bJuly 2013bon the separation and regulation of banking activities broadens the list of required disclosures from banks regarding their offices in non-cooperative countries or territories. At 31bDecember 2017, AFD did not have any offices in non- cooperative countries or territories. AFD’s financial statements are fully reflected in AFD Group’s consolidated financial statements using the full consolidation method. 7.2.17 Post-closing events No significant events occurred after 31bDecember that have not been taken into account in the preparation of the financial statements at this date. 7.2.16 Other information related to consolidation

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REGISTRATION DOCUMENT 2017

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