Basel Committee newsletter No. 10

24 October 2006

The Basel Committee on Banking Supervision issued a newsletter on risk weight for International Finance Facility for Immunization. The Committee agreed that supervisors may allow banks to apply a 0% risk weight to claims on the International Finance Facility for Immunization (IFFIm) in a similar way as a multilateral development bank in accordance with paragraph 59 of the document International Convergence of Capital Measurement and Capital Standards, A Revised Framework, June 2004 (Basel II Framework).

The Committee is of the view that claims on the IFFIm could be assigned a 0% risk weight given that, among fulfilling other criteria set out in paragraph 59 of the Basel II Framework,

The World Bank acts as its Treasury Manager responsible for managing IFFIm's funding, liquidity and other treasury operations;

IFFIm has received a AAA rating from Moody's Investors Service, Standard & Poor's and Fitch Ratings; and

Its donor structure is comprised of sovereigns that have made legally binding grant commitments to IFFIm. The majority of the donors have long-term issuer credit assessments of AAA.

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