Press Release

OPEC Fund Ministerial Council holds 26th Annual Session

63/2005 June 15, 2005, Seefeld, Tyrol, Austria
Press inquiries:

The Ministerial Council of the OPEC Fund for International Development, the institution's highest policy-making body, held its 26th Annual Session in Seefeld, Austria, today.

1. Addressing the Council, Chairman H.E. Dr. Mohamed Khalfan Bin Khirbash, Minister of State for Finance and Industry of the United Arab Emirates, noted with satisfaction the contribution of the Fund over almost three decades to global poverty alleviation efforts: “The Fund has worked hard with beneficiary countries to assist their social and economic development, providing support where these countries need it most.” In general, however, progress had been slow in implementing the commitments made in the March 2002 Monterrey Consensus: “Donor countries need to move more forcefully toward meeting the UN target of devoting 0.7% of Gross National Product (GNP) to aid,” he stated. He recalled that Fund Member Countries, as a donor group, had met, and on occasion, exceeded this target.
   
   The Chairman touched on the recently intensified discussions on the cancellation of the sovereign debt of selected developing countries. He recalled the Fund's longstanding commitment to heavily indebted poor countries and said that long-term debt sustainability would depend on a combination of sound debt, investment and macro-economic management policies.



2. In his own statement to the Council, H.E. Mr. Jamal Nasser Lootah, Chairman of the Fund's Governing Board, gave a brief overview of developments in the world economy during 2004. Global economic growth had reached its highest level in four years, resulting in widespread economic gains for the South. He noted, however, that economic expansion had become vulnerable to risks, and more moderate growth was expected in 2005.
   
   Mr. Lootah paid tribute to OPEC Fund Member Countries for living up to the commitments they had made at the OPEC Summit of almost 30 years ago, in Algiers, Algeria, by making available financing for development through the OPEC Fund. He regretted the lack of recognition for these efforts, but expressed the hope that the Fund's Public Information Campaign, now under way, would bring greater acknowledgement of Member States' contributions to poverty reduction.



3. Mr. Suleiman J. Al-Herbish, Director-General of the Fund, presented the Council with an overview of the institution's operational status. Cumulatively, and to the end of 2004, he reported, direct commitments had reached US$6.5 billion. Particularly gratifying was the successful completion of the Fund's 15th Lending Program (2001 - 2004). The Director-General also highlighted the Fund's new Corporate Plan (2006 - 2015), which he described as "crafting a vision for the way ahead and shaping a new, more innovative and progressive OPEC Fund."
   
   Mr. Al-Herbish stressed the need for partnership and harmonization in achieving the Millennium Development Goals: "As we strive to move toward their accomplishment, we would need to increase harmonization of our efforts with others, including strengthening of relations with partner countries and institutions." In this regard, and over the past 12 months, the Fund had held productive discussions both with several partner countries and with other donors.



4. The Council re-elected the United Arab Emirates to the Chair and the Federal Republic of Nigeria as Vice-Chair for a period of one year.



5. The Ministerial Council considered and adopted the Fund's Annual Report for 2004 (see separate press release no. 64/2005). It also reviewed and approved the audited financial statements of the Fund for the fiscal year 2004.



6. The Council approved a US$15 million replenishment of the Fund's Special Grant Account for Palestine (see press release 65/2005); together with US$15 million in additional resources for the Fund's HIV/AIDS Special Grant Account (see press release 66/2005).



7. Also at the meeting: The Council approved a new Corporate Plan for the period 2006-2015; took note of progress achieved in the implementation of the Private Sector Facility; and endorsed the Fund's continued support to, as well as collaboration with other institutions in, global efforts to combat desertification. Ministers also considered a report on provisioning for public sector loans; and approved the establishment of a Special Account for Emergency Relief Operations.



8. The 27th Session of the Ministerial Council, which will mark the 30 th Anniversary of the Fund, will take place in the middle of June, 2006, in Saudi Arabia.