In response to (a) EDC's General Allowance includes allowances for practically all loans and commitments on our books. We can advise that approximately 413 obligors are included in the total loans receivable for which we have provisioned for only in the event of a loss.
The amount of the allowance varies depending on the risk involved. For highly rated counterparties in OECD markets, the allowance will be very small. For loans with lower credit ratings, the allowance amount will be higher. This allowance represents amounts set aside to be used only in the event that there may be a loan loss.
Write offs as outlined in EDC's annual reports, 1998 to 2002--see page 79 of EDC'S current annual report are
2002 $194 million
2001 $191 million
2000 $105 million
1999 None
1998 None
1997 $18 million
1996 None
1995 None
In 2002 the allowances set aside per item (a) above totalled $4.5 billion and in addition, EDC'S total paid-in capital, retained earnings plus allowances, was $6.6 billion.
The write offs are very small in comparison to the size of EDC'S loan portfolio, $194 million v. $26 billion or .007% as at Dec. 31, 2002.
EDC has made profit in all but one year in almost 60 years of existence.
With respect to b) No recoveries to date on write offs.