Notes to the consolidated balance sheet: assets

1. Banks

 

2021

2020

Banks

95,873

46,775

Balance at December 31

95,873

46,775

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

2. Current accounts with State funds and other programs (assets)

 

2021

2020

Current account EIB

231

231

Current account Land Use Facility

-

447

Current account Mobilising Finance for Forests

417

-

Balance at December 31

648

678

Current accounts can be freely disposed of and are classified as stage 1

3. Short-term deposits

 

2021

2020

Collateral delivered (related to derivative financial instruments)

118,594

59,128

Dutch central bank

1,027,997

932,747

Mandatory reserve deposit with Dutch central bank

1,833

2,939

Collateral delivered to European Central Bank

1,453

-

Short term deposits measured at AC

1,149,877

994,814

Commercial paper

149,361

159,425

Money market funds

43,941

143,122

Short term deposits measured at FVPL

193,302

302,547

Balance at December 31

1,343,179

1,297,361

Mandatory reserve deposits are not available for use in FMO’s day-to-day operations.

Fair value results on money market funds and commercial paper portfolio recorded in the profit and loss amounts to a profit of €72k (2020: €59k loss). The amount attributable to change in credit risk is limited.

Short term deposits have a maturity of less than three months except for a part of commercial paper. 

Short term deposits at amortized cost are classified as Stage 1. ECL for interest bearing instruments amounts to €8k

4. Other receivables

 

2021

2020

Receivables related to equity disposals

1,905

1,504

Taxes and social premiums

264

703

To be declared on State guaranteed loans

2,449

2,428

Transaction fee receivables and prepayments

17,859

12,735

Balance at December 31

22,477

17,370

Other receivables are classified as Stage 1.

5. Interest-bearing securities

This portfolio contains marketable bonds with fixed interest rates. All interest-bearing securities (credit quality of AA+ or higher) are classified as Stage 1. An amount of €44k (2020: €101k) is calculated for the ECL as per December 31, 2021.

 

2021

2020

Bonds (listed)

463,971

371,076

Balance at December 31

463,971

371,076

All interest-bearing securities are classified as amortized cost. The movements can be summarized as follows:

 

2021

2020

Balance at January 1

371,076

350,237

Amortization premiums/discounts

113

4,075

Purchases

160,324

104,234

Redemptions

-77,317

-77,463

Changes in ECL allowances

59

-36

Changes in accrued income

53

-1,183

Exchange rate differences

9,663

-8,788

Balance at December 31

463,971

371,076

6. Derivative financial instruments and hedge accounting

Use of derivatives and hedge accounting

Derivatives are held for both economic hedging purposes and for hedge accounting. FMO uses derivatives for hedging purposes in the management of its asset and liability portfolios and structural risk positions. These risks are hedged with interest rate swaps, cross currency swaps and cross currency interest rate swaps. The objective of hedging is to enter into positions with an opposite risk profile to an identified exposure to reduce that exposure. The objective of FMO hedging activities is to optimize the overall cost to the bank of accessing debt capital markets and to mitigate the risk which would otherwise arise from structural imbalances in the duration and other profiles of its assets and liabilities. The accounting treatment of hedge transactions varies according to the nature of the instrument hedged and whether the hedge qualifies under the IFRS hedge accounting rules.

Derivatives that qualify for hedge accounting under IFRS are classified and accounted for in accordance with the nature of the instrument hedged and the type of IFRS hedge model that is applicable. FMO applies fair value hedge accounting to the funding portfolio with interest rate swaps as hedging instruments. To qualify for hedge accounting under IFRS, strict criteria must be met. Certain hedges that are economically effective from a risk management perspective do not qualify for hedge accounting under IFRS. The fair value changes of derivatives relating to such non-qualifying hedges are taken to the statement of profit or loss and recorded under the line results from financial transactions. If hedge accounting is applied under IFRS, it is possible that during the hedge a hedge relationship no longer qualifies for hedge accounting and hedge accounting cannot be continued, even if the hedge remains economically effective. As a result, the volatility arising from undertaking economic hedging in the statement of profit or loss may be higher than would be expected from an economic point of view. With respect to exchange rate and interest rate derivative contracts, the notional or contractual amount of these instruments is indicative of the nominal value of transactions outstanding at the balance sheet date; however they do not represent amounts at risk.

For the year ended December 31, 2021, FMO recognized net gain for €1.1 million for hedge ineffectiveness on the micro fair value hedges (2020: €2.8 million net gain). The loss on the hedging instruments amounts to €124.3 million (2020: €72.4 million gain). The profit on hedged items attributable to the hedged risk amounts to €125.4 million (2020: €69.6 million loss). The result is mainly attributed to higher USD average libor rates.

Micro fair value hedge accounting

FMO only applies micro-hedging strategy, hence at hedge inception the test is conducted. FMO’s micro fair value hedges consist of interest rate swaps that are used to protect against changes in the fair value of fixed-rate instruments due to movements in market interest rates. Gains and losses on derivatives designated under fair value hedge accounting and hedged items are recognized in the statement of profit or loss.

The amounts relating to derivatives designated as fair value hedging instruments and hedge ineffectiveness were as follows:

  

Carrying amount

   

December 31, 2021

Notional amount

Assets

Liabilities

Change in fair value used for calculating hedge ineffectiveness

Ineffectiveness recorded in profit or loss

Line item in P&L that includes hedge ineffectiveness

Interest rate swaps

4,383,939

106,328

24,506

-124,252

1,152

Results from financial transactions

       

December 31, 2020

      

Interest rate swaps

3,792,072

207,289

364

72,346

2,776

Results from financial transactions

The amounts relating to items designated as hedged items were as follows:

December 31, 2021

Carrying amount of the hedged item

Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount of the hedged item

  

Balance sheet line item

Liabilities

Assets

Liabilities

Change in fair value used for calculating hedge ineffectiveness

Accumulated amount remaining in the balance sheet for any hedged items that have ceased to be adjusted for hedging gains and losses

Debentures and notes

4,428,818

-

-

125,404

-

      

December 31, 2020

     

Debentures and notes

4,015,469

-

-

-69,571

-

Hedge of debentures and notes December 31, 2021

Maturity

Risk category (interest rate)

Less than 1 month

1-3 months

3 months - 1 year

1-5 years

more than 5 years

Nominal amount (in millions of euro)

-

-

506.0

2,942.0

935.0

Average fixed interest rate (%)

-

-

0.2

1.6

0.8

      

Hedge of debentures and notes December 31, 2020

     

Nominal amount (in millions of euro)

-

-

47.7

2,350.2

1,394.2

Average fixed interest rate (%)

-

-

2.7

1.5

0.9

Derivatives other than hedge accounting instruments

The following table summarizes the notional amounts and the fair values of the ‘derivatives other than hedge accounting instruments’. These derivatives are held to reduce interest rate risks and currency risks but do not meet the specified criteria to apply hedge accounting at reporting period. The following table also includes derivatives related to the asset portfolio.

December 31, 2021

 

Notional amounts

Fair value assets

Fair value liabilities

Derivatives other than hedge accounting instruments:

    

ˑ

Currency swaps

84,217

290

1,486

ˑ

Interest rate swaps

943,510

11,084

23,795

ˑ

Cross-currency interest rate swaps

3,293,367

117,971

133,260

Subtotal

 

4,321,094

129,345

158,541

Embedded derivatives related to asset portfolio

 

-

-

9,178

Total derivative assets (/liabilities) other than hedge accounting instruments

 

4,321,094

129,345

167,719

December 31, 2020

 

Notional amounts

Fair value assets

Fair value liabilities

Derivatives other than hedge accounting instruments:

    

ˑ

Currency swaps

99,773

50

1,570

ˑ

Interest rate swaps

697,241

10,091

24,182

ˑ

Cross-currency interest rate swaps

3,306,196

240,798

101,782

Subtotal

 

4,103,210

250,939

127,534

Derivatives related to asset portfolio

 

-

4,041

1,694

Total derivative assets (/liabilities) other than hedge accounting instruments

 

4,103,210

254,980

129,228

7. Loans to the private sector

These loans to the private sector include:

  • Loans to the private sector in developing countries are for the account and risk of FMO;

  • Loans in developing countries which are individually guaranteed by the Dutch Government for 80% to 95% or other financial guarantors. Any losses will be compensated by the guarantors up to the guaranteed amount. Refer to our Credit Risk Management Chapter for details of these guarantees received. 

The movements of these loans can be summarized as follows: 

 

Loans measured at AC

Loans measured at FVPL


Total 2021

Balance at January 1, 2021

4,405,969

585,716

4,991,685

Disbursements

822,792

105,411

928,203

Loan Consolidation

62

-

62

Interest Capitalization

2,621

7,602

10,223

Conversion from loan to equity

-

-

-

Part sold

-94,387

-13,718

-108,105

Repayments

-979,952

-74,759

-1,054,711

Write-offs / disposals

-46,427

-3,817

-50,244

Derecognized and/or restructured loans

293

-

293

Changes in amortizable fees

4,063

-278

3,785

Amortized Premium Discount

98

-

 

Changes in fair value

-

-16,741

-16,741

Changes in accrued income

42

-606

-564

Exchange rate differences

239,642

33,168

272,810

Balance at December 31, 2021

4,354,816

621,978

4,976,794

Impairment

-202,103

-

-202,103

Total balance at December 31, 2021

4,152,713

621,978

4,774,691

 

Loans measured at AC

Loans measured at FVPL


Total 2020

Balance at January 1, 2020

4,574,050

696,513

5,270,563

Disbursements

1,286,275

25,360

1,311,635

Loan Consolidation

12,574

-322

12,252

Interest Capitalization

5,074

8,808

13,882

Conversion from loan to equity

-

-

-

Part sold

-143,291

-4,793

-148,084

Repayments

-882,127

-85,287

-967,414

Write-offs / disposals

-62,673

-1,610

-64,283

Derecognized and/or restructured loans

1,325

29

1,354

Changes in amortizable fees

3,144

-

3,144

Changes in fair value

-

-7,486

-7,486

Changes in accrued income

6,900

-1,981

4,919

Exchange rate differences

-395,282

-43,515

-438,797

Balance at December 31, 2020

4,405,969

585,716

4,991,685

Impairment

-233,221

-

-233,221

Total balance at December 31, 2020

4,172,748

585,716

4,758,464

The contractual amount of assets that were written off during the period are still subject to enforcement activity.

The following tables summarize the loans segmented by sector and areas of geography.

Loans segmented by sector

2021

 

Stage 1

Stage 2

Stage 3

Fair value

Total

Financial Institutions

1,797,460

216,998

30,949

260,838

2,306,245

Energy

677,834

383,145

111,667

107,617

1,280,263

Agribusiness

537,968

75,674

17,469

153,491

784,602

Multi-Sector Fund Investments

2,009

10,671

-

4,901

17,581

Infrastructure, Manufacturing and Services

158,255

87,925

44,689

95,131

386,000

Total balance at December 31

3,173,526

774,413

204,774

621,978

4,774,691

      
      

Loans segmented by sector

2020

 

Stage 1

Stage 2

Stage 3

Fair value

Total

Financial Institutions

1,491,118

336,364

23,890

212,729

2,064,101

Energy

1,008,764

250,165

70,369

115,014

1,444,312

Agribusiness

542,220

73,915

17,894

119,433

753,462

Multi-Sector Fund Investments

15,171

5,764

-

40,047

60,982

Infrastructure, Manufacturing and Services

191,865

102,284

42,965

98,493

435,607

Total balance at December 31

3,249,138

768,492

155,118

585,716

4,758,464

      
      

Loans segmented by geographical area

2021

 

Stage 1

Stage 2

Stage 3

Fair value

Total

Africa

850,355

267,300

65,458

146,552

1,329,665

Asia

691,791

123,526

64,425

132,421

1,012,163

Latin America & the Caribbean

809,997

135,707

60,857

66,951

1,073,512

Europe & Central Asia

666,645

235,444

14,034

204,051

1,120,174

Non - region specific

154,738

12,436

-

72,003

239,177

Total balance at December 31

3,173,526

774,413

204,774

621,978

4,774,691

      
      

Loans segmented by geographical area

2020

 

Stage 1

Stage 2

Stage 3

Fair value

Total

Africa

911,401

177,169

18,661

145,095

1,252,326

Asia

706,644

83,678

40,925

165,708

996,955

Latin America & the Caribbean

694,880

334,639

67,493

66,768

1,163,780

Europe & Central Asia

776,409

129,801

28,039

142,426

1,076,675

Non - region specific

159,804

43,205

-

65,719

268,728

Total balance at December 31

3,249,138

768,492

155,118

585,716

4,758,464

      

Loans to private sector - other information

   


2021


2020

Gross amount of loans to companies in which FMO has equity investments

   

259,131

202,327

Gross amount of subordinated loans

   

343,993

272,588

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

Changes in Loans to the private sector at AC in 2021

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 January 1, 2021

3,289,746

-40,608

814,362

-45,870

301,861

-146,743

4,405,969

-233,221

Additions

745,218

-7,528

77,575

-2,967

-

-

822,793

-10,495

Exposure derecognised or matured/lapsed (excluding write offs)

-794,539

3,373

-251,804

4,677

-27,996

307

-1,074,339

8,357

Transfers to Stage 1

230,450

-10,585

-230,450

10,585

-

-

-

-

Transfers to Stage 2

-401,759

6,359

410,816

-8,066

-9,057

1,707

-

-

Transfers to Stage 3

-38,256

635

-67,544

9,108

105,800

-9,743

-

-

Modifications of financial assets (including derecognition)

-17,648

-

14,878

-

5,746

-260

2,976

-260

Changes in risk profile (including changes in accounting estimates)

-

29,649

-

5,077

-

-33,147

-

1,579

Amounts written off/disposals

-

-

-

-

-46,427

46,427

-46,427

46,427

Changes in amortizable fees

1,818

-

1,479

-

765

-

4,062

-

Premium/Discount

98

-

-

-

-

-

98

-

Changes in accrued income

-262

-

-2,630

-

2,934

-

42

-

Foreign exchange adjustments

179,146

-1,781

37,253

-2,066

23,243

-10,643

239,642

-14,490

At December 31, 2021

3,194,012

-20,486

803,935

-29,522

356,869

-152,095

4,354,816

-202,103

Changes in Loans to the private sector at AC in 2020

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 January 1, 2020

3,666,093

-32,524

527,065

-25,227

380,892

-182,190

4,574,050

-239,941

Additions

1,199,867

-15,555

98,982

-9,513

-

-

1,298,849

-25,068

Exposure derecognised or matured/lapsed (excluding write offs)

-833,313

7,360

-150,523

3,838

-41,582

6,009

-1,025,418

17,207

Transfers to Stage 1

60,029

-1,257

-60,029

1,257

-

-

-

-

Transfers to Stage 2

-476,239

5,734

521,281

-9,520

-45,042

3,786

-

-

Transfers to Stage 3

-41,592

593

-46,441

4,600

88,033

-5,193

-

-

Modifications of financial assets (including derecognition)

1,541

-

1,209

-

3,649

-1,751

6,399

-1,751

Changes in risk profile (including changes in accounting estimates)

-

-8,849

-

-16,917

-

-42,305

-

-68,071

Amounts written off/disposals

-

-

-

-

-62,673

62,673

-62,673

62,673

Changes in amortizable fees

1,549

-

984

-

611

-

3,144

-

Changes in accrued income

3,268

-

-101

-

3,733

-

6,900

-

Foreign exchange adjustments

-291,457

3,890

-78,065

5,612

-25,760

12,228

-395,282

21,730

At December 31, 2020

3,289,746

-40,608

814,362

-45,870

301,861

-146,743

4,405,969

-233,221

Total impairments on loans in the consolidated profit and loss account

  
 


2021


2020

Additions

-10,495

-25,068

Exposure derecognised or matured/lapsed (excluding write - offs)

8,357

17,207

Changes in risk profile (including changes in accounting estimates)

1,579

-68,071

Recoveries (written off loans)

5,045

2,674

Other

-1,229

-3,147

Balance at December 31

3,257

-76,405

8. ECL allowances - assessment

FMO calculates ECL allowances for Interest bearing Securities, 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 presents the distribution of stage 2 impairments by the criteria that triggered the migration to stage 2.

December 31, 2021

    

ECL allowance Stage 2 - Trigger assessment

Loans to private Sector

Guarantees

Loan Commitments

Total

     

More than 30 days past due

-

-

-

-

Deterioration in credit risk - financial difficulties

-29,522

-36

-880

-30,438

Total

-29,522

-36

-880

-30,438

December 31, 2020

    

ECL allowance Stage 2 - Trigger assessment

Loans to private Sector

Guarantees

Loan Commitments

Total

     

More than 30 days past due

-

-

-

-

Deterioration in credit risk - financial difficulties

-45,870

-2,630

-1,748

-50,248

Total

-45,870

-2,630

-1,748

-50,248

The table show the values of the IMF GDP forecasts used in each of the economic scenarios for the ECL calculations for 2020 and 2021. 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 2021. 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 (the figures are based on the latest forecast in October 2021)

2021

2020

Turkey

8.95

-4.99

India

9.50

-10.29

Georgia

7.69

-5.00

Argentina

7.50

-11.78

Nigeria

2.64

-4.28

Uganda

4.71

-0.29

Bangladesh

4.60

3.80

Ghana

4.71

0.93

Armenia

6.46

-4.46

Costa Rica

3.90

-5.50

The following tables outline the impact of multiple scenarios on the ECL allowance. Given the developments due to COVID -19 in 2020 leading to modified macroeconomic forecasts, the probabilities of macroeconomic scenarios (making point-in-time adjusted probability of default) were updated using the data provided by the International Monetary Fund (IMF).

Note that macroeconomic scenarios have been updated by using the latest available information by the IMF, as published in October 2021. Considering that no update has been made available after Russia invaded Ukraine on February 21, 2022, the impact following current events in Ukraine cannot be assessed at this stage.

December 31, 2021

Total unweighted amount per ECL scenario

Probability

Loans to the private Sector2)

Guarantees

Bonds and Cash

Total

ECL Scenario:

      

Upside

187,575

2%

3,740

10

1

3,752

Base case1)

206,192

50%

102,690

380

26

103,096

Downside

237,678

48%

113,508

553

25

114,085

Total

  

219,938

942

52

220,933

  • 1 The total unweighted amount for the base case scenario of €210 million is an aggregation of €206 million (ECL amount - note 7), €4 million (ECL off balance items including loan commitments - note 31)
  • 2 Loans to private sector in this table include amounts related to ECL allowances for off balance loan commitments (refer to note 31)

December 31, 2020

Total unweighted amount per ECL scenario

Probability

Loans to the private Sector2)

Guarantees

Bonds and Cash

Total

ECL Scenario:

      

Upside

204,023

2%

4,021

58

2

4,080

Base case1)

242,737

50%

119,065

2,252

51

121,368

Downside

296,666

48%

139,413

2,938

49

142,400

Total

  

262,499

5,248

102

267,849

  • 1 The total unweighted amount for the base case scenario of €242 million is an aggregation of €233 million (ECL Note 7), 10 million (ECL off balance items including loan commitments - Note 3).
  • 2 Loans to private sector in this table include amounts related to ECL allowances for off balance loan commitments (refer to note 31

Refer to the 'Accounting policies' chapter on macro-economic scenarios on PD estimates.

9. Equity investments

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

 

Equity measured at FVOCI

Equity measured at FVPL


Total

Total balance at January 1, 2021

115,504

1,688,437

1,803,941

Purchases and contributions

31,064

228,245

259,309

Conversion of loans to equity

-

-

-

Conversion Associate/FVPL

-

-

-

Return of Capital (including sales)

-31,909

-321,758

-353,667

Changes in fair value

25,766

281,901

307,667

Total balance at December 31, 2021

140,425

1,876,825

2,017,250

 

Equity measured at FVOCI

Equity measured at FVPL


Total

Total balance at January 1, 2020

122,921

1,756,644

1,879,565

Purchases and contributions

40

230,366

230,406

Conversion of loans to equity

-

-

-

Conversion Associate/FVPL

-

17,066

17,066

Return of Capital (including sales)

-

-112,982

-112,982

Changes in fair value

-7,457

-202,657

-210,114

Total balance at December 31, 2020

115,504

1,688,437

1,803,941

The following table summarizes the equity investments segmented by sector:

 


2021


2020

Financial Institutions

538,768

459,922

Energy

256,053

271,626

Agribusiness

180,646

119,132

Multi-Sector Fund Investments

801,294

635,006

Infrastructure, Manufacturing and Services

240,489

318,255

Net balance at December 31

2,017,250

1,803,941

FMO has designated the investments shown in the following table as equity investments at FVOCI.  The FVOCI designation was made because the investments are expected to be held for long-term strategic purposes.

  

Fair value at December 31, 2021

Dividend income recognized during 2021

Fair value at December 31, 2020

Dividend income recognized during 2020

TCX Investment Company

 

-

-

27,552

-

The Currency Exchange Fund N.V.

 

130,109

-

78,153

-

Seed Capital

 

10,276

-

9,759

-

EDFI Management Company

 

40

-

40

-

Balance at December 31

 

140,425

-

115,504

-

In 2021, the investment in TCX Investment Company has been disposed off to The Currency Exchange Fund N.V. with no result recognized in the profit and loss.

Amount recognized on fair value reserve related to TCX Investment Company is reclassified to other reserves in FMO's Shareholders' equity.
 

10. Investments in associates

The movements in the carrying amounts of the associates are summarized in the following table.

 


2021


2020

Net balance at January 1

179,955

285,867

Purchases and contributions

38,006

13,977

Conversion from loans to equity

-

-

Conversion Associates/FVPL

-

-17,066

Return of capital (including sales)

-636

-20,779

Share in net results

63,902

-66,416

Exchange rate differences

17,510

-15,628

Net balance at December 31

298,737

179,955

All investments in associates from FMO are measured based on the equity accounting method. Cash dividend for associates amounts to €2.7 million (2020: €7.8 million).

The following tables summarize FMO’s share in the total assets, liabilities, total income and total net profit/loss of the associates and segments the associates by sector.

Associate

Carrying amount

Economic ownership %

Total assets

Total liabilities

Total income

Total profit/loss

Banyantree Growth Capital LLC

7,450

27%

-

-

-

-

Cooperatief Climate Fund Managers

2,722

50%

4,419

1,748

5,419

1,184

Arise BV

254,492

27%

266,258

7,018

888

26,101

Be C&I Solutions Holding Pte. Ltd.

30,073

27%

39,782

9,709

2,182

-1,979

Invest International B.V.

4,000

49%

4,000

-

-

-

Total

298,737

     
       
     

2021

2020

Financial Institutions

    

258,492

158,083

Energy

    

32,795

16,732

Multi-Sector Fund Investments

    

7,450

5,140

Net balance at December 31

    

298,737

179,955

Invest International is a new associate, established on July 28, 2021. Share capital is split between A-shares where the Dutch Government owns 51% and FMO 49% and B-shares which are owned for 100% by the Dutch Government.

Arise B.V. is a private limited liability company incorporated in the Netherlands whose statutory seat is registered at Croeselaan 18, 3521 CB Utrecht, the Netherlands and registered in the Dutch commercial register under number 64756394. FMO’s share and voting rights in Arise B.V. is 27%.

In 2016 FMO signed an agreement to set up an investment vehicle, Arise B.V., together with Norfund and Rabobank. This investment vehicle is set up to invest in African financial institutions. FMO's initial commitment amounts to US$211 million. As of 31 December 2021 our remaining commitment towards Arise B.V. amounts to US$17 million.

11. Property, plant and equipment

Property, plant and equipment (PP&E) includes tangible assets which are used by FMO. These assets include buildings, office equipment and vehicles which are rented by FMO from third parties. These leases have been recognized on the balance sheet following the implementation of IFRS 16.

Furthermore, PP&E includes furniture owned by FMO and expenses related to leasehold improvements.

 

Furniture

Leasehold improvement

Right-of-use assets

Total

     

Cost at December 31, 2020

8,497

8,695

27,357

44,549

Accumulated amortization at December 31, 2020

-8,042

-411

-6,592

-15,045

Balance at December 31, 2020

455

8,284

20,765

29,504

     

Carrying amount at January 1, 2021

455

8,284

20,765

29,504

Investments

889

-

1,278

2,167

Depreciation

-218

-882

-3,257

-4,357

Disposals

-

-

-71

-71

Accumulated depreciation on disposals

-

-

-

-

Balance at December 31, 2021

1,126

7,402

18,715

27,243

     

Cost at December 31, 2021

9,386

8,695

28,564

46,645

Accumulated amortization at December 31, 2021

-8,260

-1,293

-9,849

-19,402

Balance at December 31, 2021

1,126

7,402

18,715

27,243

Right-of-use assets consists of operational leases and include building, vehicles and office equipment. 

 

Buildings

Office equipment

Vehicles

Total right-of-use assets

Lease liabilities

      

January 1, 2020

21,060

602

1,762

23,424

23,509

Additions

80

-

1,113

641

641

Disposals

-503

-

-49

-

-

Depreciation

-2,327

-127

-845

-3,299

-

Finance costs

-

-

-

-

168

Payments

-

-

-

-

-3,402

December 31, 2020

18,310

475

1,981

20,766

20,916

Additions

331

-

947

1,278

1,278

Disposals

-

-

-71

-71

-71

Depreciation

-2,365

-126

-767

-3,258

-

Finance costs

-

-

-

-

159

Payments

-

-

-

-

-3,366

December 31, 2021

16,276

349

2,090

18,715

18,916

The following table presents the maturity breakdown of the leases

December 31, 2021

< 1 year

1-5 years

>5 years

Total

Buildings

2,331

9,347

4,780

16,458

Office Equipment

109

218

24

351

Vehicles

686

1,421

-

2,107

Total

3,126

10,986

4,804

18,916

     
     

December 31, 2020

< 1 year

1-5 years

>5 years

Total

Buildings

2,283

9,145

7,017

18,445

Office Equipment

127

325

26

478

Vehicles

672

1,321

-

1,993

Total

3,082

10,791

7,043

20,916

12. Intangible assets

Intangible assets include expenditures associated with identifiable and unique software products or internally developed software, controlled by FMO. For internally developed software, only expenses related to development phase are capitalized. Expenses related to research phase are immediately recognized in the P&L under 'Temporary Staff Expenses'.

 

ICT software

Internally developed software

Total

    

Cost at December 31, 2020

5,622

28,116

33,738

Accumulated amortization at December 31, 2020

-4,104

-8,767

-12,872

Balance at December 31, 2020

1,518

19,349

20,867

    

Carrying amount at January 1, 2021

1,518

19,349

20,867

Investments

1,002

3,661

4,663

Amortization

-793

-5,998

-6,791

Impairment/disposals

-

972

972

Accumulated depreciation on disposals

-

-1,753

-1,753

Balance at December 31, 2021

1,727

16,231

17,958

    

Cost at December 31, 2021

6,624

32,749

39,373

Accumulated amortization at December 31, 2021

-4,897

-16,518

-21,415

Balance at December 31, 2021

1,727

16,231

17,958

Impairment relates to software which is not in use anymore.