10 Мировая экономика 145

ment with one borrower, China. As of June 30, 2004, China had not exceeded the single borrower

exposure limit and therefore, activation of the arrangement was not required.

Vocabulary Notes to Text 10.7.1.3.

1. contractual obligations — договорные обязательства

2. creditworthiness — платежеспособность, кредитоспособность

3. lending operations — кредитные операции

4. provisions for losses on loans and guarantees — обеспечение мер предосторожности на

случай потерь по займам и гарантиям

5. income — generating capacity — возможность давать доход

6. risk-bearing capital — рисковый капитал

7. single borrower exposure limit — предел незащищенности от одного заемщика

8. disbursement — выплаты

10.7.1.4. Read and translate the text "IDA's Role in Reducing Poverty" and make an annotation of it.

IDA's Role in Reducing Poverty

IDA helps to reduce poverty by collaborating with other development partners, as well as through

its own programs. IDA has learned from experience that development programs are most successful

when the borrower country — not just the government, but non-governmental organizations (NGOs)

and other representatives of civil society — acquires a sense of ownership of the programs through

deep involvement in their design and execution. The borrow country now leads in preparing the

Poverty Reduction Strategy (PRS) that establishes priorities for IDA support. In each country, IDA

works with local development partners to ensure that the PRS is carried out in a coherent way and

that IDA focuses on areas where it has comparative advantage. In the 12 months to June 30, 2003,

Ida targeted human-development projects in areas like education, health, social safety nets, water

supply and sanitation (44%), infrastructure (26%), and agriculture and rural development (11%).

IDA emphasizes broad-based growth, including

— Sound economic policies, rural development, private business and sustainable environmental

practices

— Investment in people, in education and health, especially in the struggle against HIV/AIDS,

malaria and ТВ

— Expansion of borrower capacity to provide basic services and ensure accountability for public

resources

— Recovery from civil strife, armed conflict and natural disaster, and

— Promotion of trade and regional integration

IDA carries out analytical studies to build the knowledge base that allows intelligent design of

policies to reduce poverty. IDA also advises governments on ways to broaden the base of economic

growth and protect the poor from economic shocks.

The one billion children who live in countries that receive funds from IDA are the main beneficiaries

of IDA-backed investments in basic health, primary education, literacy and clean water. IDA is

now the single largest source of donor funds for basic social services in the poorest countries.

IDA also coordinates donor assistance to provide relief for poor countries that cannot manage

their debt-service burden.

Vocabulary Notes

1. to reduce poverty — снизить уровень бедности

2. borrower-country — страна-заемщик

3. Poverty Reduction Strategy (PRS) — стратегия снижения уровня бедности

4. HIV/AIDS (human immunodeficiency virus) — вирус иммунодефицита человека, ВИЧ

5. accountability — подотчетность

6. recovery from civil strife — восстановление после гражданских волнений (войн)

7. beneficiary — лицо, пользующееся пожертвованиями или благодеяниями

8. IDA-backed investments — инвестиции, поддержанные Международной ассоциацией

развития

9. debt-service burden — бремя обслуживания долга

146

10.7.1.5. Read and translate the text "Commercial Credit Risk" in writing. Answer the questions:

1. What kind of risk does the IBRD control? 2. How are credit limits calculated and monitored?

Commercial Credit Risk

Commercial credit risk is the risk of loss due to a counterparty not honoring its contractual

obligations.

IBRD’s commercial credit risk is concentrated in investments in debt instruments issued by

sovereign governments, agencies, banks and corporate entities. The majority of these investments

are in AAA and AA rated instruments.

In the normal course of its business, IBRD utilizes various derivatives and foreign exchange

financial instruments to meet the financial needs of its borrowers, to generate income through its

investment activities and to manage its exposure to fluctuations in interest and currency rates.

Derivate and foreign exchange transactions involve credit risk. The effective management of credit

risk is vital to the success of IBRD's funding, investment and asset/liability management activities. The

monitoring and managing of these risks is a continuous process due to changing market environments.

IBRD controls the credit risk arising from investments, derivatives and foreign exchange transactions

through its credit approval process, the use of collateral agreements and risk limits, and monitoring

procedures. The credit approval process involves evaluating counterparty creditworthiness, assigning

credit limits and determining the risk profile of specific transactions. Credit limits are calculated and

monitored on the basis of potential exposures taking into consideration current market values, estimates

of potential future movements in those values and collateral agreements with counterparties.