1. Public support from the Netherlands to the financial sector Wiert Wiertsema, Senior Policy Advisor, Both ENDS

2. Trends in NL Minister for Foreign Trade & Development Cooperation  Aid budget cut by € 1.000.000.000 (ODA level < 0.7% GNI)  Policy focus on International Public Goods (trade, financial system, food and water, migration, climate, security)  More aid via and for the private sector  More ODA-money for international security  Climate finance in ODA  Active efforts to dilute ODA definition at OECD-DAC

3. Mechanisms for private sector development (PSD) - I Agentschap.NL: PPP-facility for Sustainable Entrepreneurship and Food Security (FDOV ) Sustainable Water Fund (FDW) Facility for Infrastructure Development (ORIO, annual budget: 90.000.000) Partners for International Business (PIB, annual budget: 7.150.000) Partners for Water (annual budget: 9.500.000) Pilot 2g@there-OS (Ethiopia, Kenya, Uganda) Private Sector Investment Program (PSI, annual budget: 90.000.000) Subsidy program for demonstration projects, feasibility studies, and knowledge acquisition (annual budget: 4.000.000) Transition facility (Colombia, South Africa, Vietnam)

4. Mechanisms for private sector development (PSD) - II FMO: “entrepreneurial development bank” 51% government, 49% private banks & trade unions Products: o Equity o Loans & garantees o Project finance o Mezzanine finance / tailor made solutions o Capital market transactions o Access to expertise, network & partnerships Total portfolio: € 6.300.000.000 Net profit 2012: € 146.000.000 Government funds and programs: o MASSIF (Financial Intermediaries, € 430.000.000) o Infrastructure Development Fund (IDF, € 340.000.000) o Access to Energy Fund (AEF, € 53.000.000) o Emerging Markets Fund (FOM OS - still new - target € 40.000.000 by 2015)

5. Mechanisms for private sector development (PSD) - III Dutch Good Growth Fund -Revolving fund: € 750.000.000 -ODA money -Concessional trade finance -Subsidy for trade finance of (private) banks Atradius Dutch State Business: export credit insurance -€ 8.200.000.000 (2011) -More than 200 applications per year Trade missions Institutional investments of public pension funds: -ABP (€ 265.000.000.000) -PFZW (before PGGM, € 130.000.000.000) -Several smaller pension funds (more than € 250.000.000.000)

6. Safeguards OECD guidelines for MNEs o Also applicable to financial sector (since 2011) o Minority investment shares also considered ‘business relationship’ o Soft law IFC Performance Standards o Usually used as a benchmark Common Approaches (Atradius DSB) o considered benchmark by Agentschap.NL FMO: o Disclosure (limited) o Anti Bribery & Corruption Statement (“zero tolerance”) o KYC & Anti Money Laundering o Exclusion list o Corporate governance policy o Human Right Policy o Environmental & Social Policy

7. Concerns No independent accountability mechanisms Regular independent evaluation not taken care of Limited political oversight Gap between policies on paper and the reality on the ground No guarantees that PSD benefits the poor

8. Thank You !