DIRECTIVES FOR REPORTING TO THE
CREDITOR REPORTING SYSTEM AID ACTIVITY DATABASE

The Directives have been approved by the DAC through written procedure and are applicable as of 1 July 2002.

INTRODUCTION

PART A: CREDITOR REPORTING SYSTEM AID ACTIVITY DATABASE

I. Resource flows covered

II. Overview of the data collected in the CRS Aid Activity Database

II.1 Compiling CRS Form 1

II.1.1 Why report on Form 1?

Sectoral and geographical analyses
Terms analysis - Calculation of the grant element
Verification of the ODA/OA eligibility of an activity
Tying status

II.1.2 What and how to report on Form 1?

Section A. Identification of the activity
Section B. Basic data
Section C. Supplementary data

II.1.3 When to report on Form 1?

II.1.4 Links between Form 1 and the DAC questionnaire

II.1.5 Specific instructions for Form 1 reporting on technical co-operation, contributions to non-governmental organisations, emergency aid and food aid, debt reorganisation and administrative costs

Technical co-operation
Contributions to non-governmental organisations (NGOs)
Emergency aid and food aid
Debt reorganisation
Administrative costs

II.2 Compiling CRS Form 2

II.2.1 Why report Form 2?

Debt statistics
Sectoral and geographical analyses of aid disbursements
Project implementation

II.2.2 What, how and when to report on Form 2?

Section A. Identification of the activity
Section B. Status of implementation
Section C. Debt service and adjustments
Section D. Outstanding debt
Section E. Future debt service

PART B: CREDITOR REPORTING SYSTEM REPORTING ON OTHER OFFICIAL FLOWS (OOF)

I. Resource flows covered

II. Compiling data (CRS Form 1 and 2) on non-export-credit OOF

II.1 Why report non-export-credit OOF?

II.2 What and how to report?

II.3 Links with DAC statistics

REPORTING DIRECTIVES FOR THE CREDITOR REPORTING SYSTEM ANNEXES (All annexes below are available in PDF)
Addendum on Equity investment and ODA loans with variable interest rates

Annex 1. Terms analysis - Calculation of the grant element

1.1 Grant element formula and examples
1.2 Recommendation on Terms and Conditions of Aid (1978)

Annex 2. Tied aid disciplines and Untying Recommendation

2.1  DAC Guiding Principles for Associated Financing and Tied and Partially Untied  Official Development Assistance (1987)
2.2  New Measures in the Field of Tied Aid (1992)
2.3. DAC Recommendation on Untying Official Development Assistance to the Least Developed Countries (2001)

Annex 3. List of DAC Members and agencies

Annex 4. DAC list of Aid Recipients

Annex 5. Reporting on the Purpose of Aid

Annex 5b. List of Channels of delivery

Annex 6. Reporting on the Policy Objectives of Aid

Annex 6b. Rio markers

Annex 7. Derivation of DAC bilateral commitment aggregates from CRS Form 1 data

Annex 8. Overview of reporting on debt reorganisation on Form 1 and Form 2

Annex 9. UNIFIED STANDARD INPUT FORMAT (USIF)

All document footnotes

INTRODUCTION

1. The Creditor Reporting System (CRS) is a database on official development assistance (ODA), official aid (OA) and other lending to developing countries and countries in transition. It consists of two distinct sub-sets: a project database on ODA/OA activities, accessible to the public, and a database on non-ODA/OA lending and officially supported export credits, access to which is restricted.

2. The CRS was established in 1967, jointly by the OECD and the World Bank, with the aim of "supplying the participants with a regular flow of data on indebtedness and capital flows"¹. Calculating capital flows and debt stock remain key functions of the System, but others have evolved in the course of years. In particular, the CRS aid activity database has become the internationally recognised source of data on the geographical and sectoral breakdown of aid and is widely used by governments, organisations and researchers active in the field of development. For DAC Members, the CRS serves as a tool for monitoring specific policy issues, supplementing the information collected at the aggregate level in the annual DAC Statistics.

3. These Reporting Directives for the CRS are presented in three self-contained parts: Part A relating to the aid project database and Part B on other official flows are essentially addressed to DAC Members. Part C on official export credits and private loans and credits under official guarantee or insurance is addressed both to the Members of the DAC and the Members of the Trade Committee Group on Export Credits and Credit Guarantees (TC/ECG).

Figure 1. CRS databases and their main uses

4. The Directives in each Part have a common structure. They first specify the resource flows covered, provide information on the main uses of the requested data and give an overview of reporting by presenting the relevant data collection form². The reporting concepts are defined in a separate section, which also gives instructions on coding, including references to various classifications, and reporting deadlines. Technical specifications on the reporting format (Unified Standard Input Format - USIF) are given in Annex 9. Directives in Parts B and C also specify the rules concerning disclosure of CRS data. CRS data on aid activities are accessible to public, whereas data on other official flows and export credits are confidential³ and made available only in aggregate form.

5. The concepts and terminology used in the CRS conform to those used in DAC statistics. Aggregates of commitments and gross and net disbursements available in the CRS should be equal to, included in, or related in a known way to the corresponding annual aggregates reported in the DAC Questionnaire. Figure 2 below illustrates the links at the most general level (between CRS Forms and the main DAC aggregates reportable in Table DAC1). The links are further elaborated on in a specific section in each Part of the Directives.

Figure 2. Links between the CRS and DAC reporting systems

6. The links between the CRS and the DAC allow the two reporting systems to supplement and reinforce one another. The completeness of CRS data is verified through comparisons with the DAC statistics. Conversely, the quality of DAC statistics - e.g. their conformity with definitions and consistency between Members - can be examined through the CRS, which shows what lies behind the aggregate figures. The CRS-DAC correspondence can also help to clarify the reporting concepts. For example, applying a definition to an individual aid activity can point up gaps or weaknesses in definitions or classifications.

7. Links exist also between the CRS and the statistical reporting systems of some other international organisations. CRS data may be aggregated to yield totals or sub-totals which correspond, for example, to data on official loans collected in the World Bank’s Debtor Reporting System (DRS). CRS and DRS data can be cross-checked for individual countries, but it should be remembered that not all aid recipients are World Bank members, and not all World Bank members are on the DAC List of Aid Recipients. CRS data on ODA grants and loans are provided to several international organisations, which incorporate them in their own databases. However, the definitions, classifications and country groupings used by other agencies may not correspond to those of the DAC. Data comparisons should therefore be made with caution. The Secretariat can provide Members with relevant advice on request.

I. Resource flows covered

8. The CRS aid activity database comprises data on official development assistance (ODA) and official aid (OA) activities in developing countries and countries in transition.

9. DAC Members’ reporting to the CRS covers their bilateral ODA and OA only. Their multilateral aid i.e. contributions to the regular budgets of the multilateral institutions (also called core funding) is excluded. Financing of specific projects executed by multilateral institutions ("non-core funding", also called "extra-budgetary funding") is classified as bilateral. These projects are reportable in the CRS.

10. Data on aid activities financed from multilateral institutions’ regular budgets are included in the database to the extent possible to improve the system’s capacity for sectoral and geographical analysis. Data are collected directly from the agencies concerned. This reporting takes place on a voluntary basis but is highly valued by DAC Members.

11. The CRS excludes private grants from DAC Member countries⁴ and aid from non-DAC bilateral donors.

II. Overview of the data collected in the CRS Aid Activity Database

12. An aid activity can take many forms. It could be a project or a programme, a cash transfer or delivery of goods, a training course or a research project, a debt relief operation or a contribution to an NGO. All bilateral ODA and OA is reportable to the CRS. But the level of detail to be reported varies, in particular between sector-allocable and non-sector-allocable aid.

13. Figure 3 presents the CRS Form 1 used in reporting data to describe individual activities. This is only an illustration. In practice, the form as such is not completed as reporting takes place electronically, usually on a spreadsheet where each column corresponds to one data item and each row to one completed form.

14. The form comprises three sections: Section A identifies the activity. Section B requests basic data on the activity. Section C requests supplementary data. Identification and basic data constitute the minimum reporting requirements, whereas supplementary data items are relevant to certain types of aid only. Their main functions are the following:

Identification data items

• distinguish one individual aid activity from another;

• facilitate database management; and

• allow commitment and disbursement data, reported on Forms 1 and 2 respectively, to be linked.

Basic data items are used to

• analyse the sectoral and geographical distribution of aid;

• verify the ODA eligibility of individual reported activities;

• assess DAC Members’ compliance with the 1978 Terms Recommendation and conduct other terms analyses;

• monitor the tying status of aid, including Members’ compliance with the DAC Guiding Principles of Associated Financing and Tied and Partially Untied ODA.

Supplementary data

• facilitate use of the information in the field;

• permit checking the accuracy and consistency of purpose coding;

• permit analysis of cross-sectoral issues and linking aid inputs to specific policy objectives or the broader international development goals;

• permit detailed analysis of tied aid credits.

Figure 3. Aid and other official flows: Activity description (CRS Form 1)

15. The data uses are described in greater detail in section "compiling CRS Form 1" below.

16. Reporting on Form 1 should relate to aid commitments. There are cases, however, where the concept of commitment is difficult to apply or where annual commitments are equal, or very close, to annual disbursements. This may justify reporting disbursement data on Form 1.

17. In general, commitment data are reportable on Form 1 and disbursement data on Form 2. Form 2 reporting increases the analytical value of CRS data by permitting sectoral and geographical analyses of disbursements, or examining rates of implementation of projects. Form 2 data on ODA/OA loans are indispensable for producing statistics on the outstanding debt of aid recipients.

18. The Directives for reporting on individual aid activities on Form 1 are given below. They provide:

1. information on the main uses of the requested data (why report);
2. definitions of reporting concepts (what to report);
3. coding instructions including references to various classifications (how to report); and
4. reporting deadlines (when to report).

A separate section (II.1.4) covers links between CRS and DAC reporting. Specific instructions on reporting certain types of aid are likewise set apart in section II.1.5. Directives for Form 2 are presented in section II.2. Any questions concerning the Directives can be addressed to the DAC Secretariat (send an email to dac.contact@oecd.org).

II.1 Compiling CRS Form 1

II.1.1 Why report on Form 1?

19. The objective of the CRS Aid Activity Database is to provide a set of readily available basic data that enables analysis on where aid goes, what purposes it serves and what policies it aims to implement. The aim is to collect sufficient core information to meet a variety of needs and avoid a proliferation of parallel international reporting systems. Complete and accurate reporting allows the Secretariat to respond to numerous data requests that would otherwise require special surveys by the aid agencies themselves.

20. Prior to any statistical analysis, the coverage ratio of CRS data is assessed in relation to total ODA reported in the DAC.

21. The fact that CRS reporting is based on agreed definitions and classifications permits comparisons between donor countries. Furthermore, the direct link to aggregate DAC data enables statistical analysis and verification of the information.

22. The DAC requires data for consideration of specific policy issues and for monitoring donors’ compliance with various international recommendations in the field of development co-operation. Data are used, for example, in the preparation of Peer Reviews and meetings of the DAC or its subsidiary bodies. Aid agencies seek information on other donors’ activities in their countries/sectors of interest. Outside the DAC, CRS data are mainly used to analyse the sectoral and geographical breakdown of aid for selected years and donors or groups of donors. Requests for data are received from international organisations (e.g. the World Bank, the UNDP and other UN agencies), universities and research institutions, consulting firms, NGOs, and sometimes aid recipients themselves.

23. Paragraph 14 above listed the main functions of the CRS. The examples below illustrate the uses of the basic data items.

Sectoral and geographical analyses

24. Most commonly, sectoral analysis starts with DAC statistics which provide an overall picture of the sectoral distribution of aid and of the relative importance of each sector in the total (e.g. "aid to health" as a share of total sector-allocable bilateral ODA). CRS data are required to examine the sub-sectoral breakdown (e.g. "infectious disease control" as a share of aid to health) and to add a geographical dimension to analysis (e.g. aid to health in "South America"). Similarly, aid by sector to groups of recipients (e.g. aid to health in "Least Developed Countries") can be examined. There are plenty of possibilities for data analysis, varying from simple identification of major recipient countries and sectors to assessing whether aid is targeted to countries most in need.

25. By showing what lies behind the aggregate figures, the CRS allows an assessment of the quality of the sectoral data, in particular their consistency with definitions and comparability among Members. Furthermore, descriptive information on the purpose of individual activities enriches sectoral studies and facilitates use of the data in the field (donor representatives or aid recipients).

Terms analysis - Calculation of the grant element

26. The DAC has addressed the question of financial terms of ODA through a series of terms recommendations. The first dates from 1963 and the most recent, still valid, from 1978. In brief, the 1978 Terms Recommendation urged Members to extend their ODA commitments with an average annual grant element of at least 86% (for Least Developed Countries, at least 86 per cent over three years for each country, or 90 per cent annually for the group) and to harmonise terms at the level of individual recipient countries. Members’ compliance with the Recommendation is assessed each year in the Statistical Annex of the Development Co-operation Report.

Verification of the ODA/OA eligibility of an activity

27. Verification of the ODA/OA eligibility of an activity involves testing its developmental objective and its concessionality. The former requires descriptive information on the purpose of the activity and the latter details on the financial terms of the transaction. Only loans with a grant element above 25 per cent are ODA/OA eligible. In addition, an ODA/OA loan has to be "concessional in character". This means that its interest rate must be below the prevailing market rate. Both the developmental and the concessionality tests are completed as part of CRS Form 1 data entry procedures.

Tying status

28. Since its inception, the DAC has worked with the issue of tying. The 1965 DAC Recommendation on Financial Terms and Conditions suggested "Measures Related to Aid Tying" designed to avoid aid and trade distortion. A strong expansion of the use of ODA in association with export credits (Associated Financing, also called mixed credits) in the early 1980s led the DAC to establish Guiding Principles for the Use of Aid in Association with Export Credits and Other Market Funds in 1983. Their coverage was expanded in 1987 to other tied and partially untied ODA. New Measures including specific requirements with regard to large projects with a value of over SDR 50 million were adopted in 1992 in the so-called Helsinki package. (Cf. Annex 2.)

29. The work on tied aid disciplines has to a large extent been undertaken in parallel with the participants in the Arrangement on Officially Supported Export Credits and the Group on Export Credits and Credit Guarantees of the Trade Committee. The DAC and the Participants in the Arrangement have adopted the same set of disciplines. Monitoring Members’ compliance with the disciplines is based on a system of notification of tied aid offers under the Arrangement and reporting commitments on individual tied aid loans and grants in the CRS.

30. The DAC has worked over the years to promote aid untying. Discussions about untying more aid have taken place in the context of aid effectiveness. It is generally argued that untied aid is a more efficient way to deliver assistance. By limiting competition, tied aid raises the cost of many goods and services. Moreover, tied aid tends to favour projects that require capital intensive imports or donor-based expertise over smaller and more poverty-focused programmes. Untying is seen as a step towards increased involvement of developing countries in the selection, design and implementation of aid projects and programmes, and therefore more effective partnerships. In 2001, the DAC adopted a Recommendation on Untying ODA to Least Developed Countries. (Cf. Annex 2.3.) Monitoring and evaluating the implementation of the Recommendation will draw on statistical reporting to the CRS.

II.1.2 What and how to report on Form 1?

31. Specific reporting instructions are set out below, item by item, in the order the items appear on the Form. Instructions on the reporting format and coding, including references to various classifications, are presented in the form of tables. The reporting concepts are defined, where necessary, in the text.

Section A. Form 1: Identification of the activity

32. Each reporting country or multilateral organisation has its own donor code. DAC Member countries are requested to indicate, in addition, the extending agency i.e. the central, state or local government agency or department administering the activity.

33. The identification number is a six digit number. The first two digits refer to the year in which the activity becomes reportable (e.g. for 1999: 99xxxx, for 2001: 01xxxx). The last four digits are sequential. Where more than one agency reports from the same country, each agency should preferably use its own block of numbers.

34. This item facilitates tracking activities in donors’ internal databases which may be necessary, for example, to respond to the Secretariat’s request to verify the data on certain reported activities or to report disbursement data (see Form 2). Originally, the item was added to the reporting form at the request of the UNDP to facilitate communication in the field.

35. It is recommended that CRS identification numbers are assigned so that there is a one-to-one correspondence with donor project numbers. This simplifies reporting of disbursements on Form 2.

36. When an activity is reported for the first time, it should be marked as a new commitment. If changes (either in the amount or the qualitative information) occur during the original commitment year, report a revision. Fill out all data items including the ones that have not been revised.

37. Increases are amounts added to commitments reported already in previous years. A decrease means that a portion of a commitment reported already in a previous year is cancelled in part or in full. Increases and decreases signify a change only in the amount committed. The qualitative information on the activity (e.g. recipient, sector code, markers) remains unchanged.

38. Total commitments per year reported to the CRS should correspond to total bilateral commitments reported in DAC statistics i.e. comprise new commitments and additions to earlier commitments but exclude any commitments cancelled during the same year. Cancellations and reductions in the year reported on of commitments made in earlier years are not taken into account in the analysis of annual commitments, but are recorded in Form 2 database to allow examining rates of implementation of projects. (Commitments measure donors’ intentions during a reporting year. Cancellation years after the original commitment means that the intention was not realised, not that it was changed.)

39. Since increases and decreases do not affect the qualitative information on the activity, they should preferably be reported on Form 2 once a year. [Report the amount of increase or (the negative amount of) decrease in the column reserved for this purpose. Cf. paragraph 128.] Links between Form 1 and Form 2 databases ensure the accuracy of annual total commitment statistics.

40. Agencies not compiling Form 2 data are requested to report changes on Form 1 by marking the transactions as an increase or decrease. Use the identification number of the original commitment but provide information on the increase/decrease only. In particular, the commitment date should equal the date of decision to increase/decrease the commitment and the amount should correspond to the amount of increase or (the negative amount of) decrease. Other fields can be left blank as the information is already recorded under the original transaction.

41. A revision after the commitment year that affects the qualitative information of the activity should not be reported as an increase or a decrease. It gives rise to a new commitment (on Form 1) and a cancellation (on Form 2).

Section B. Form 1: Basic data

42. The term aid recipient refers to countries and territories in the DAC List of Aid Recipients (see Annex 4). Part I of the list shows developing countries and territories eligible to receive official development assistance and Part II those eligible to receive official aid.

43. Some activities benefit several aid recipients. Regional projects and programmes are reportable under the most specific available "unallocated" category (e.g. use South of Sahara unallocated for West Africa). The category "developing countries, unspecified" is used if an activity benefits several regions.

44. Activities undertaken on the territory of the donor country should be assigned to individual recipient countries/regions where the services performed are for the benefit of those countries/regions. The examples below illustrate this rule:

• Development-related research, studies or seminars undertaken in the donor country but relating to a particular recipient country/region should be coded under the recipient country/region.

• Training courses in the donor country for developing country participants should be coded under the country/countries of origin of the participants.

• Scholarships in the donor country should be allocated to the countries of origin of the students.

45. Commitments are considered to be made at the date a loan or grant agreement is signed or the obligation is otherwise made known to the recipient (e.g. in the case of budgetary allocations to overseas territories, the final vote of the budget should be taken as the date of commitment). For activities reported at semi-aggregate level (e.g. food and emergency aid, see also section II.1.5), the commitment date should be set at 31-12-YYYY.

46. Only currencies listed in Annex 3 can be used. Commitments extended in the currencies of aid recipients should be converted before reporting.

47. Classify the activity by type of flow as follows:

48. In DAC statistics, the term "grants" covers both grants and grant-like flows. Loans and equity investment are reportable as separate items under "non-grant ODA/OA".

49. For loans (ODA/OA and OOF), report the terms of repayment.

50. The terms of repayment may be the following:

• Equal principal payments (EPP) denotes a fixed schedule of equal instalments of principal adding up to the face value of the loan. Interest is charged on outstanding principal and the amount of individual service payments decreases with each payment of principal.
  

• In the annuity method, each service payment is established as an equal amount, within which the interest component declines with time while the principal component increases.

• Lump sum means the loan is repaid in a single amount (principal and interest) at maturity. If interest is paid at various earlier dates, then the repayment schedule is a particular case of equal principal payments and should be reported under that category.

• If the type of repayment does not correspond to any of the three above, use the code "other" and give information on the repayment schedule on a separate form. (See example in Annex 1.)

51. Most loans have a single interest rate which applies throughout the life of the loan. Enter this rate, including in it any charges in addition to the interest that are payable on the disbursed balance over the life of the loan.

52. Where interest is waived during the grace period (i.e. the interval between the commitment date and the first repayment date), report the loan as having two interest rates, zero interest being charged for the grace period.

53. The following types of loans are classified as OOF:

• loans extended at a fixed interest rate which is above, at or near the prevailing market rate; and

• loans extended at a floating interest rate, tied to the prevailing market rate, and above, at or near that rate.

54. State the dates at which the first and the final repayments of principal are due.

55. Where the repayment schedule depends on the date(s) at which disbursements are made, please provide approximate repayment dates to allow the Secretariat to estimate the grace period and the maturity. (Estimation might be based on the standard terms of repayment applied to a given recipient country or country group.)

56. Precise descriptions are particularly valuable to users who undertake detailed sectoral studies or whose task is to co-ordinate aid activities in a country. Provide as much detail as possible within the allocation of 72 characters that will appear in publications.

• Avoid unnecessary wording. (E.g. prefer "Small farmers’ credit scheme" to "The programme aims at improving living standards for small scale farmers through loans to raise agricultural production". Prefer "Voters’ education programme" to "The programme assists in the education of citizens to participate fully in elections.)

• Distinguish the provision of goods from the provision of equipment to produce goods. [E.g., "fertiliser delivery", "fertiliser production equipment", "fertiliser plant rehabilitation (equipment)".

57. The official project title can be used as a description if it is in English or French and does not contain non-standard abbreviations.

58. The CRS sector classification contains the following broad categories:

• social infrastructure and services (covering the sectors of education, health, population, water, government and civil society);

• economic infrastructure and services (covering transport, communications, energy, banking and finance, business services);

• production (covering agriculture, forestry, fishing, industry, mining, construction, trade, tourism);

• multisector/cross-cutting (covering general environmental protection, women in development, other multisector including urban and rural development); and

• non-sector allocable (for contributions not susceptible to allocation by sector such as balance of payments support, actions relating to debt, emergency assistance and internal transactions in the donor country).

59. Each sector is defined through a number of purpose codes. Purpose coding is based on three general principles. (Complete instructions on purpose coding are given in Annex 5.)

• The sector of destination of a contribution is determined by answering the question "which specific area of the recipient’s economic or social structure is the transfer intended to foster ?". The reported purpose code should relate to the sector ultimately targeted by the contribution, and not to the means used to deliver the aid. For example, agricultural education activities should be reported under agriculture, and not under education.

• Within each sector, supplies, equipment and infrastructure should be allocated to the most specific code available. For example, the construction of a tuberculosis clinic should be coded under "infectious disease control" and not "basic health infrastructure".

• Only one CRS purpose code can be assigned to each contribution. When the contribution benefits several sectors, the sector that receives the largest proportion of the contribution should be reported.

60. Reporting agencies using internal purpose classifications are invited to work with the Secretariat to establish correspondence tables between their own systems and the CRS, so as to allow automated reporting.

61. The tying status items should not be completed for administrative costs (activities with purpose code 91010). Transactions are reportable as tied unless the donor has, at the time of the aid offer, clearly specified a range of countries eligible for procurement which meets the definitions of untied or partially untied aid (see para. 29). For activities for which the tying status is reported, the sum of the amounts reported as untied, partially untied and tied should equal the total amount of these activities.

62. For the purposes of monitoring the 2001 DAC Untying Recommendation, Members that can report the tying status of free-standing technical co-operation (FTC; as indicated at item 31) at the level of individual activities in the CRS are invited to do so - in particular for FTC to Least Developed Countries (LDCs). Members without full CRS coverage of the tying status of their bilateral ODA to LDCs should report an annual aggregate of their total bilateral LDC ODA (including FTC) that is untied.

Section C. Form 1: Supplementary data

63. These items, originally added on the reporting form at the request of the UNDP, enhance the value of CRS data in the field. Geographical target area and channel of delivery help to identify a specific activity in the recipient country. (For example, a UNICEF project financed by donor X is generally known in the field as a "UNICEF project" rather a "project by donor X"). The expected starting and completion dates allow identification of activities being implemented at any point of time.

64. Many agencies’ databases contain project summaries or descriptions of the main objectives of the activity. These can be included in the CRS database in a text field of unrestricted length. The information permits the Secretariat to check the accuracy and consistency of purpose coding. In addition, descriptive information is valuable in detailed sectoral studies.

65. These markers seek information on the policy objectives served by the activity. The marking system contains three levels:

• Principal (primary) policy objectives are those which can be identified as being fundamental in the design and impact of the activity and which are an explicit objective of the activity. They may be selected by answering the question "would the activity have been undertaken without this objective?".

• Significant (secondary) policy objectives are those which, although important, were not the prime motivation for undertaking the activity.

• The score "not targeted" means that the activity was examined but found not to target the policy objective.

66. Leave the field blank if the activity has not been screened against the objective.

67. Detailed instructions on reporting on the policy objectives of aid, including definitions, criteria for eligibility and examples of typical activities, are given in Annex 6.

68. These items cover some possible forms of aid, defined as follows:

69. Sector programmes are identified using item 32. All information related to sector programmes is collected in textual form, using item 26 description. The reporting is as follows:

• If the sector programme is originally committed in the form of several components: report each component separately, and indicate in item 26 that they are part of the same programme.

• If the sector programme is committed in the form of a global amount, and its components are known only at a later stage: report the global programme first. Once the different components become known, describe them with more detail (targeted sub-sectors and allocated amounts) by revising item 26 of the original Form 1.

70. ODA extended in association with export credits or other flows at or near market rates is reportable as associated financing. (Also called mixed credits. See definition in para. 29 and Annex 2.) Report the grant or loan as any other aid activity, but fill out item 35 and report the associated export credit amount in item 36. Check that the export credit amount is expressed in the same currency as the ODA amount. If necessary, convert the export credit amount using the annual average rate used for DAC reporting⁸. The sum of the amount committed (item 9) and the amount of export credit (item 36) equals the actual financial flow to the recipient country i.e. the amount of the associated financing package.

71. When an associated financing package includes both an ODA grant and an ODA (or OOF) loan, report the grant and the loan as separate transactions but assign them the same CRS identification number or explain the link in a remark under item 26. Report the export credit amount under the loan transaction only.

72. The ODA component of an associated financing package may be provided in the form of an interest subsidy. Such packages are called "pre-mixed credits", "monobloc" or "single integrated transactions". Report the actual interest subsidy provided by the official sector in item 9⁹. The amount to report in item 36 is the "export credit equivalent" i.e. the value of the export credit less any grant made to subsidise the interest rate¹⁰.

73. Use the description field (item 26) to give information on any other funds injected in the package (e.g. private bank loans, contributions from private investors) and explain how the components of the package are articulated.

74. The export credit components are reportable in further detail on Form 1C. (See Part C of the Directives.)

II.1.3 When to report on Form 1?

75. Data on individual aid activities are reportable continuously throughout the year. Table 1 below gives the recommended data transmission schedule. Observing the schedule will ensure that up-to-date information is available on-line and in regular statistical publications, permit reporters to take advantage of CRS reporting when preparing their annual DAC returns, facilitate data collection and processing by the Secretariat and maximise the utility of the CRS to the wider group of users.

Table 1. Recommended Form 1 data transmission schedule

Aid activities committed during 2000	Should be reported during
New commitments
1st quarter 2000	2nd quarter 2000
2nd quarter 2000	3rd quarter 2000
3rd quarter 2000	4th quarter 2000
4th quarter 2000	1st quarter 2001
Revisions Increases and decreases	1st quarter 2001

76. New commitments should be reported on a quarterly basis so as to provide fresh data to support the work of the DAC and its Members (e.g. peer reviews, consideration of specific policy issues). Electronic data transmission techniques (e.g. CRS On-line) permit fast dissemination of the information also to users outside the DAC¹¹. Aid activities subject to specific reporting instructions (see section II.1.5) can be reported on an annual basis.

77. Revisions should be reported en bloc at the end of the year to facilitate data processing by the Secretariat. Increases and decreases should likewise be reported only once at the end of the year, preferably on Form 2. Agencies not compiling Form 2 data should use Form 1. (See paragraphs 39-40 and 128.)

78. Ideally, reporting on individual aid activities for a commitment year should be completed within three months after the end of the year. This allows for the utilisation of CRS data to compile aggregate commitment tables of the DAC Questionnaire. (Specific instructions are given in section "Links with the DAC reporting system" below.)

79. If reporting on individual aid activities is based on disbursements rather than commitments, annual data transmission during the 1^st quarter of the following year is recommended.

II.1.4 Links between Form 1 and the DAC questionnaire

80. Data on individual aid activities collected on CRS Form 1 correspond to bilateral ODA and OA commitment aggregates reportable in the DAC Questionnaire. Members with complete Form 1 reporting can therefore compile a substantial portion of tables DAC1, 3a, 5, 5a and 6 by aggregating their CRS reports. Alternatively, the Secretariat can assist Members by pre-compiling the requested DAC bilateral commitment aggregates, provided a mechanism "validating" the data is agreed upon in order to ensure their accuracy and completeness as well as to maintain donors’ control over, and responsibility for, those aggregates. Before submitting DAC tables compiled in this way, Members must ensure that all eligible expenditures not reported to the CRS are included.

81. Total bilateral commitments per year reportable in the DAC can be derived from the CRS through items "Nature of submission" (item 5 of Form 1) and "Commitments" (item 9 of Form 2). The examples below illustrate the amounts to include in the calculations. (See also paragraphs 36-41 and 128).

82. Both the CRS and the DAC systems divide ODA/OA flows into grants and non-grants. The DAC sector classification is defined through the CRS purpose codes. Both systems request data on the same policy objectives and use the same recipient codes. A one-to-one correspondence between the CRS and the DAC can therefore be defined for most requested bilateral commitment aggregates. Figure 4 below illustrates the aggregation technique. Annex 7 contains complete instructions on how to derive the DAC bilateral commitment aggregates from the CRS for each table.

Figure 4. Derivation of DAC bilateral commitment aggregates from CRS Form 1 data
                  Example: Table DAC3a

II.1.5 Specific instructions for Form 1 reporting on technical co-operation, contributions to non-governmental organisations, emergency aid and food aid, debt reorganisation and administrative costs

83. Paragraphs 12-16 above (Overview of the data collected in the CRS Aid Activity Database) explain that Members’ CRS reporting should cover all of their bilateral ODA/OA activities but that the level of detail of reporting could vary for different forms of aid. The general principle is that, as a minimum, reporting should comprise identification and basic data (sections A and B of CRS Form 1) whereas supplementary data (section C of Form 1) are required for certain forms of aid only. There are cases, however, where attaining the objective of complete CRS coverage necessitates further simplification of reporting and thereby justifies exceptions to the general reporting rules. For example:

• Members may not be able to compile data on all individual technical co-operation activities as this would mean reporting thousands of transactions of relatively small value. Semi-aggregate reporting can be recommended.

• Information available at the commitment stage may be too general for the purposes of the CRS. Ex-post reporting (e.g. on aid in support of NGOs) based on disbursements can be preferred to commitments data.

• Reporting may be feasible only if use is made of the reporting format readily available in agencies’ internal systems.

84. The following expands these points, giving guidance on reporting on those forms of aid that may require exceptional treatment. Members who have no problem reporting 100 % of their bilateral ODA/OA to the CRS following the general instructions do not need to change their procedures.

Technical co-operation

85. Complete coverage of technical co-operation is necessary to ensure the accuracy of CRS-based sectoral and geographical analyses (cf. para. 24-25). Data gaps restrict analysis, in particular in sectors or policy areas where a large share of aid is extended in the form of technical co-operation, e.g. education, health and PD/GG¹².

86. The term technical co-operation (see para. 68 for definition) covers a large variety of aid activities. Some technical co-operation is extended in the form of projects. As their administration does not differ from that of other project aid, they should be reported individually following instructions in section II.1.2 above, preferably on a quarterly basis.

87. Non-project technical co-operation comprises activities such as the supply of volunteers or experts, and provision of scholarships. These are usually funded through specific TC budget lines, which may or may not be administered by the main aid agency. The exact use of funds is seldom known at the commitment stage. Consequently, data on the sectoral and geographical breakdown of such TC programmes are often collected on disbursement basis only. As disbursement data can be very detailed (one "activity" corresponding to one individual expert or student), aggregation by recipient and sector (purpose code) is recommended prior to reporting to the CRS.

88. Table 2 below presents an example of how the reporting procedure might vary between different TC programmes.

Table 2. Reporting of technical co-operation to the CRS Form 1. Example.

Typical executing agency	Form of technical co-operation	Reporting procedure
Main aid agency	TC projects Feasibility studies	Quarterly reports on individual activities (commitments)
Main aid agency or sector ministries	Experts and volunteers Scholarships programmes Trainees	Annual report on disbursements aggregated by sector (purpose code) and by recipient
Development research institute	Research	Annual report on disbursements aggregated by sector (purpose code) and by recipient

89. While reporting on technical co-operation to the CRS can imply using different procedures for different agencies and Members, data transmission should follow the instructions given in section II.1.2 above. Semi-aggregated data should be reported, as all other CRS data, electronically on a spreadsheet where each column corresponds to one CRS data item. Each row represents one aggregate transaction. All identification and basic data items should be compiled (with the exception of tying status). Supplementary data items may be omitted, since aggregating individual activities will normally preclude assessment of the relevance of items such as the various policy markers. Semi-aggregate data on technical co-operation should be transmitted annually, preferably within three months after the end of the year.

Contributions to non-governmental organisations (NGOs)

90. In DAC statistics, contributions to NGOs are classified under two categories: aid to NGOs and aid through NGOs.

91. Aid to NGOs means official contributions to programmes and activities which NGOs have developed themselves, and which they implement on their own authority and responsibility. Aid through NGOs means payments by the official sector for NGOs to implement projects and programmes which the official sector has developed, and for which it is ultimately responsible. The latter includes "joint financing" schemes where government agencies and NGOs consult about activities, jointly approve them and/or share their funding.

92. When an activity could fit into either category, examine the characteristics of the activity approval process and the degree of control by the official sector in the allocation of funds so as to determine whether the NGO acts, or not, on behalf of the official sector. The examples below provide some further guidance.

• Funding of NGOs’ programme aid should be classed as aid to NGOs: Subsidies to a general programme of assistance, without endorsement by the official sector of the specific activities to be undertaken, could not be regarded as having been provided for use on the official sector’s behalf.

• Funding of project activities where the NGO contributes its own funds and where the official sector has essentially no say in the design or implementation of the project should be classed as aid to NGOs: This covers cases in which the official sector makes either a direct contribution to an existing NGO project, or a block grant to be used at the NGO’s discretion on either general administrative overheads, or specific projects of the NGO’s choice. These modes of funding cannot plausibly be viewed as supporting activities carried out on the official sector’s behalf.

• Funding of project activities where the NGO does not contribute any of its own funds to the same activity should be classed as aid through NGOs: If the NGO is not contributing any of its own funds to an activity financed by the official sector, this is a clear indication that the NGO is acting on the official sector’s behalf, and the expenditure should therefore be classed as aid through NGOs.

• Funding of project activities jointly financed by the official sector and the NGOs, and approved after consultation between the two, should normally be reported as aid through NGOs: In most "joint financing" schemes, official and NGO representatives meet to review proposed projects and agree on those that will receive official funding. The original proposals will normally be drawn up by NGOs, but in response to guidelines as to the type of projects likely to receive official support. Officially funded projects will in principle meet these guidelines. During the review process, the official sector may in effect alter project design by making suggestions or imposing conditions on its support. It is also likely that most projects in this category would not take place unless official funding were received. In this context, it seems reasonable to regard such joint financing schemes as aid through NGOs, although the final determination depends on the degree of official sector influence in practice¹³.

93. In the CRS, report aid to NGOs under purpose codes 92010, 92020 or 92030. The total of the amounts reported under such purpose codes should be the same as the amount reported under code 920 (Support to NGOs) in Table DAC5. The individual activities carried out by NGOs with these funds need not be reported to the CRS, unless requested in the context of a special study.

94. Report aid through NGOs individually in accordance with section II.1.2. (Only the official grant should be reported, not the total cost of the project.) While reporting may entail providing detailed qualitative information on many small activities, it is usually easier and more informative to report these individually than to attempt to aggregate the data. Where it is more convenient, reporting on individual activities may be carried out ex post on the basis of disbursements.

Emergency aid and food aid

95. Emergency aid may be reported to the CRS as an aggregated total by recipient and purpose code (71010, 72010, 72020 and 72030); and where possible by channel of delivery. Knowing the channel of delivery enables a distinction to be made between aid delivered directly by the donor and aid channelled through a multilateral organisation. (For instructions on reporting semi-aggregate data, see paragraph 89.)

96. Emergency aid activities include various types of supplies (blankets, tents, medicines) and food (wheat, milk products). Individual activities may be monitored by specialised agencies (WFP for food aid) and their reporting may be too detailed for the CRS and the sectoral studies for which it is the source. Furthermore, some items in Form 1 relating to policy objectives and other markers are not as relevant for emergency aid as for other forms of aid.

97. The commitment concept may be difficult to apply to some components of emergency aid (for example aid to refugees in the donor country). Some emergency aid is held in reserve at the beginning of the year, to be allocated as needs arise (natural disasters, conflicts). Emergency aid may therefore be reported on a disbursement basis, so as to show its actual geographical distribution.

98. If developmental food aid and food security assistance (purpose code 52010) are an integral part of the government’s co-operation programme, they may be reported as individual activities according to section II.1.2 above, where necessary on a disbursement basis.

Debt reorganisation

99. Reporting on debt reorganisation in the CRS is consistent with the principles of reporting on debt reorganisation in DAC statistics. Consult the DAC Handbook for Reporting Debt Reorganisation in the DAC Questionnaire [DCD/DAC/STAT(2000)16] for the definitions of all debt reorganisation operations. This section gives guidance on how to apply the definitions in CRS Form 1 reporting. An overview of the CRS data requirements (both Form 1 and Form 2) is given in Annex 8.

100. Debt reorganisation that leads to new amounts of ODA in DAC statistics is reportable on CRS Form 1. The data are required for sectoral and geographical analyses which consider aid to a specific sector in relation to total bilateral ODA. Debt reorganisation that does not give rise to new ODA should not be reported on Form 1¹⁴.

101. Debt reorganisation may be reported as an aggregated total by recipient and purpose code (60010, 60020, 60030, 60040, 60061, 60062, 60063).

a. Debt cancellation [cf. DAC Handbook, para. 8-24]

102. Debt cancellation (with a developmental motive) is reportable as a debt forgiveness grant. Report commitments on CRS Form 1 using purpose code 60020 and, if possible, indicate in the activity description whether ODA, OOF or private debt has been cancelled.

103. For cancellation of ODA debt, report only forgiven interest¹⁵. For cancellation of OOF or private debt, report both forgiven principal and interest. Report the commitment in a lump sum during the year in which the agreement to cancel debt legally comes into force. (This applies equally to Options 1 and 2 of the DAC Handbook¹⁶.)

104. Relief of multilateral debt under the HIPC Initiative should be reported as other action on debt (see para. 115), not under this item.

b. Rescheduling of ODA debt [cf. DAC Handbook, para. 25-28]

105. ODA debt rescheduling is reportable on CRS Form 1 only if new amounts of ODA are committed i.e. if interest is capitalised. Report the amount of capitalised interest (and not the total amount of the rescheduling) using purpose code 60040 and type of flow 13. The terms of repayment (items 11-16) do not need to be specified since ODA loan reschedulings remain ODA regardless of the new repayment terms.

106. Agencies that no longer extend new ODA loans are exempted from compiling Form 1 on debt rescheduling. The Secretariat will derive the necessary commitment data from Form 2 where debt rescheduling is reported as an adjustment (items 15-16 and 19-20 of Form 2).

107. One rescheduling operation may comprise loans in several currencies. For simplicity, report on Form 1 preferably only one transaction which is the sum of the amounts of capitalised interest reported on Form 2 with several currencies, converted to the reporting currency.

c. Rescheduling of OOF debt as ODA [cf. DAC Handbook, para. 29-33]

108. Rescheduling that consists of transforming OOF loans (other than export credits) into ODA loans outside the framework of the Paris Club is reportable on Form 1 using purpose code 60040 and type of flow 13. Report both principal and interest rescheduled (including any principal and interest to be rescheduled in the future) in the year in which the agreement to reschedule legally comes into force.

d. Paris Club debt reorganisation [cf. DAC Handbook, para. 38-52]

109. In DAC statistics, Paris Club concessional agreements are reportable under two categories: the element of debt relief (i.e. reduction in the net present value of the borrower’s obligations) as a debt forgiveness grant under ODA, and a rescheduling under OOF. In CRS Form 1, report the debt forgiveness grant only. Use purpose code 60020 and specify in activity description the type of concessional agreement (e.g. "Paris Club debt reduction" or "Paris Club debt service reduction"). The notional OOF component of the operation does not have to be reported on CRS Form 1¹⁷.

110. Paris Club non-concessional debt reorganisation involves no ODA. Do not report these operations, as only new ODA resulting from debt reorganisation is reportable on CRS Form 1.

e. Debt conversions [Cf. DAC Handbook, para. 53-66]

111. Direct conversions are reportable as ODA if they are the subject of a bilateral agreement between debtor and creditor governments and they have a developmental motive. Indirect conversions are not reportable on Form 1 as they involve no outflow of resources from the public sector.

112. For direct conversion of ODA debt, report only converted interest. (See footnote 15). For conversion of OOF or private debt, report both converted principal and interest. Report them on Form 1 as ODA grants (flow code 11) using purpose code 60061. The additional grant of debt forgiveness to reflect the eventual discount granted by the official sector should be reported separately using purpose code 60020.

113. Information on the sectoral allocation of the counterpart funds is reportable in the activity description (item 26). State, for example, "debt for environment" or "debt for education". Use this text field also to indicate the total value of debt converted.

f. Service payments to third parties [cf. DAC Handbook, para. 67]

114. Service payments to third parties i.e. debt service paid by a donor to a third party creditor on behalf of the debtor country are reportable on Form 1. Use purpose code 60010 to report service payments to private sector bodies and 60030 for those to multilateral organisations (e.g. payments to cover arrears owed by an aid recipient to the African Development Bank).

g. Contributions to the HIPC Initiative [cf. DAC Handbook, para. 71-72]

115. Relief of multilateral debt under the HIPC Initiative, if earmarked to a specific recipient country, is also reportable under purpose code 60030. Do not use code 60020 (debt forgiveness, relates only to debt owed to the donor country).

Administrative costs

116. Administrative costs are included in the CRS database (purpose code 91010) in order to have complete coverage of bilateral ODA, but the detail of such costs (embassy staff costs, for example) are not sought by CRS. Reporting should be as follows¹⁸:

• If the donor’s reporting system allows identification of administrative costs by recipient country and such costs are actually distributed among these countries in Table DAC3a, the CRS report should also give total administrative costs for each recipient country;

• If the geographical distribution of administrative costs is not reported in Table DAC3a then the total should be reported to the CRS as a single transaction.

117. The table below gives the optimal level of detail for reporting the forms of aid covered by specific instructions.

Table 3. Summary of specific instructions for Form 1 reporting

Forms of aid		Purpose-codes	Level of detail of reporting
Technical co-operation	Projects	Various	Individual activities
	Other forms	Various	Aggregates by purpose code and by recipient (disbursements where necessary)
Contributions to NGOs	Aid to NGOs	92010 92020 92030	One transaction per NGO
	Aid channelled through NGOs	Various	Individual activities (disbursements where necessary)
Food aid and emergency aid	Emergency aid	71010 72010 72020 72030	Aggregates by purpose code, recipient and where possible by channel of delivery (disbursements where necessary)
	Developmental food aid/Food security assistance	52010	Individual activities (disbursements where necessary)
Debt reorganisation			See Annex 8
Administrative costs		91010	Aggregates by recipient or an overall total

II.2 Compiling CRS Form 2

II.2.1 Why report Form 2?

118. In addition to providing data on individual aid commitments, the CRS aid activity database is designed to yield an annual record of the actual international transfer of financial resources - commitments, disbursements, repayments, interest payments - to enable:

• compilation of statistics on the outstanding debt of aid recipients;
• sectoral and geographical analyses of aid disbursements; and
• monitoring project implementation.

These data are collected on Form 2, an illustration of which is given below in Figure 5.

Debt statistics

119. CRS Form 2 data on ODA/OA and OOF loans are used to compile the OECD’s creditor-based statistics on the outstanding debt of aid recipient countries. Form 2 is the only international source of ODA/OA debt data. The data serve multiple purposes, including measuring debt sustainability and vulnerability, assessing credit risk, and informing initiatives on debt relief.

Sectoral and geographical analyses of aid disbursements

120. Commitment data are sufficient for most sectoral and geographical analyses of aid undertaken from a donor perspective. Commitments measure donors’ intentions and thereby permit monitoring the targeting of resources to specific purposes and recipient countries¹⁹. Commitments fluctuate as aid policies change, reflecting donors’ responses to political upheavals or international recommendations in the field of development co-operation. Disbursement data show the realisation of donors’ intentions and the implementation of policies, allowing donors’ actual performance to be assessed. In general, disbursement data better describe aid flows from a recipient’s point of view.

Project implementation

121. While there is always some lag between commitments and disbursements, unexpected delays in execution of aid activities are also common. Some commitments never result in disbursements and are eventually cancelled. Problems in project implementation can arise from many causes, and may be generalised or specific to one donor, sector, or form of aid. Disbursement data allow comparisons to be made at various levels to help to quantify these problems. Data on project implementation are also requested at the field level (especially by UNDP) for programming and co-ordination purposes.

Figure 5. Aid and other official flows: Annual status of activity implementation and outstanding debt (CRS Form 2)

II.2.2 What, how and when to report on Form 2?

122. All loans, grants and equity investments by the official sector (other than direct and rescheduled export credits) are reportable on Form 2, regardless of which government agency extends them. Reporting takes place electronically, usually on a spreadsheet where each column corresponds to one data item and each row to one activity.

123. Specific reporting instructions are set out below, item by item, in the order the items appear on the Form. As in the case of Form 1, instructions on the reporting format and coding, including references to various classifications, are presented in the form of tables. The reporting concepts are defined, where necessary, in the text.

124. The reporting items are presented in five sections. Sections A and B (Identification of the activity and Status of implementation) apply equally to all types of flows. Sections C, D and E relate to loans only, and can therefore be ignored by reporters dealing only with grants and equity investments.

125. Form 2 on ODA/OA and OOF loans should be transmitted to the Secretariat three months after the end of the reporting year. The deadline for grants and other flows is end-June. Loans and grants data should be transmitted in separate files to facilitate their processing. In any case, compilation of disbursement data on grants should not delay reporting on loans which is needed to meet strict publication deadlines.

Reporting items relevant to all types of flows

Section A. Form 2: Identification of the activity

126. Section A of Form 2 identifies the activity and the reporting year. Items 1-4 are common to Forms 1 and 2 and permit linkages between the two data sets. Items 5-7 are included for quality control purposes. (See paragraphs 32-35 and 42-47 for detailed instructions.) Item 8 records the reporting year.

Section B. Form 2: Status of implementation

127. The implementation of an aid activity can go on for several years. Section B requests data on annual disbursements, cumulative disbursements and funds that remain to be disbursed. During implementation it may become necessary to increase the funding for the activity or, conversely, a part of an activity could be cancelled releasing funds for other purposes. Section B therefore also requests data on annual commitments.

Operations during the year

128. Commitments: For the original commitment year, report the initial commitment taking account of any revisions of the commitment that occurred during the year. After the original commitment year, report only the annual increases (net amounts added to earlier years’ commitments) or decreases (net reductions in earlier years’ commitments). Report only one (positive or negative) amount for each activity per year. Disbursements: Report the amount disbursed during the year, net of any recoveries on grants.

129. Item 9 commitments on Form 2 and item 9 amount committed on Form 1 correspond as follows:

• for a new commitment, the same amount (including revisions of the current year) is reported on both forms (see example below) ;

• for an increase or a decrease of a previous commitment, the amount is reported preferably on Form 2 only (see para. 39-40).

Status, end of year

130. Report as undisbursed the portion of the total commitment that remains to be disbursed or to be drawn as of the end of the reporting year (i.e. the amount which has not yet been put at the direct disposal of the recipient). Report as disbursed the cumulative amount disbursed of the total commitment (i.e. add up annual disbursements from the original commitment year up to the end of the reporting year). The sum of undisbursed and disbursed amounts should equal the total commitment.

131. Data on the implementation status reported in successive Forms 2 should correspond as follows:

132. Omit fully disbursed grants from subsequent Forms 2. Loans should be reported on Form 2 until no outstanding principal or interest remains (see Section D below), regardless of whether the agency continues to extend new loans.

Reporting for loans only

133. Sections C, D and E of Form 2 request data on the outstanding loans of aid recipients, including details of debt service, debt reorganisation and other adjustments.

Section C. Form 2: Debt service and adjustments

Debt service payments received during the year

134. Report as amortisation principal payments received from the aid recipient during the reporting year, including any payments of arrears of principal. Interest received corresponds to the amount of interest and/or other charges received from the aid recipient, including payments to expunge or reduce interest due or in arrears.

135. Debt service payments received during the year should be taken into account when reporting the status of outstanding debt at the end of the year in Section D. Before turning to Section D, check whether any debt reorganisation operations or other adjustments were implemented or agreed on during the year. If yes, fill out items 15-23 requesting data on adjustments. Otherwise move directly to item 24 (principal disbursed and still outstanding) in paragraph 147.

Adjustments (including debt reorganisation) during the year

136. Most of this section concerns debt reorganisation. Debt reorganisation usually affects the composition or amounts of individual loans. For example, individual loans may be combined or the outstanding principal increased or reduced through debt cancellation, rescheduling or conversion²⁰. These amounts should be reported as adjustments on Form 2, and taken into account when reporting the status of outstanding debt at the end of the year in Section D.

137. Reporting on debt reorganisation on Form 2 is consistent with the principles of reporting on debt reorganisation in DAC Statistics, but the level of detail is different. Consult the DAC Handbook for Reporting Debt Reorganisation on the DAC Questionnaire [DCD/DAC(2000)16] for the definitions of all debt reorganisation operations. An overview of the CRS reporting requirements for the main debt reorganisation categories of the DAC Handbook is given in Annex 8.

Added to loan as a result from rescheduling

138. Amounts added to a loan during the year through rescheduling or refinancing are reportable under items principal rescheduled from another loan and capitalised interest; the latter can originate from the same or another loan. Although these items are combined to make up the new consolidated principal, it is necessary to report each element separately according to its origin (former principal and former interest) so as to permit the identification of new amounts of ODA/OOF used in the operation²¹. The capitalised interest should include any additional late interest or penalties that are capitalised under the rescheduling as well as the interest transferred from the old loan. The rescheduling of each maturity should be reported in the year in which the rescheduling is implemented. This may happen all at once when the agreement legally comes into force, or over time, for example, as maturities on the old loan fall due.

139. No entry is required for reschedulings which simply involve deferred payments on existing loans without any transfer of principal from one loan to another or any capitalisation of interest.

Deducted from loan

140. Amounts deducted from a loan during the year through debt forgiveness, rescheduling or conversion are reportable under items 17-22. Any amount of principal forgiven, rescheduled to another loan or converted during the year reduces the amount of principal disbursed and still outstanding at the end of the year. Where there are arrears of interest at the end of the previous year, these will be reduced if any of this interest is forgiven, rescheduled to another loan or converted during the year.

141. Principal and interest forgiven are reportable as adjustments during the year in which the agreement to forgive legally comes into force²². Report only forgiveness resulting from cancellation due to a development motive under these items. Report cancellation due to write-off under item 23²³.

142. Principal and interest rescheduled are reportable as adjustments during the year in which rescheduling or refinancing is implemented. Report any amounts of principal and interest removed from the loan and transferred to another loan (or repayment stream). Check that, for any given recipient, the sum of amounts under item 19 equals the sum of amounts under item 15. Similarly, check that, for any given recipient, the sum of amounts under item 16 is greater or equal to the sum of amounts under item 20.

143. No entry is required for reschedulings which simply involve deferred payments on existing loans without any transfer of principal from one loan to another or any capitalisation of interest.

144. Principal and interest converted are reportable separately as adjustments during the year in which the debt conversion is implemented.

145. Conversions are associated with forgiveness when they have a developmental motive and involve a discount granted by the official sector. For such operations, report the forgiven and converted amounts of principal and interest separately under the appropriate headings. The amount to report as debt forgiveness (items 17 and 18) is the discount granted by the official sector. The amount to report as a conversion is the value of the local counterpart funds, real estate or equity provided by the debtor. Any amounts paid to the creditor’s official sector by the private sector in order to purchase the loan under an indirect conversion should be reported as amortisation (item 13).

Other adjustments

146. Other adjustments may arise for a variety of reasons including write-off, movements in exchange rates and previous reporting errors. Only adjustments to principal disbursed and still outstanding should be reported. Report positive or negative amounts, depending on whether the adjustment increases or decreases the principal disbursed and still outstanding at the end of the year.

Section D. Form 2: Outstanding debt

147. Total debt outstanding at the end of the year is defined as the sum of principal disbursed and still outstanding and arrears of interest.

148. Report under principal disbursed and still outstanding the amount of principal owed on the loan at the end of the reporting year. Report separately any arrears of principal and interest at the end of the reporting year, including arrears that have arisen during the reporting year. Arrears of principal are part of the principal owed on the loan and should be included in the amount reported under item 24 (i.e. item 25 is an "of which" item of 24). Arrears of interest, by contrast, are not part of this amount. Any past due or overdue late interest (interest which accrues on arrears) should be treated as arrears of interest.

149. Entries in sections B, C and D of successive Forms 2 should be consistent as follows:

Reporting on outstanding debt on Form 2. Example 3. Debt service and adjustments for debt reorganisation.

At the end of 2000 a loan with a 2% rate of interest, and annual amortisation of 100 units, has outstanding amounts of principal of 640 units of which 40 units are arrears of principal. (See Box A below.) In 2001 there is an agreement to reschedule arrears and amounts falling due from 2001 to 2003 at an interest rate of 1% at the time amounts fall due under on the original loan. In 2004 the remaining loan is forgiven in its entirety. Box B shows the reporting of the original loan. Box C shows the resulting rescheduled amounts to be reported from 2001 to 2008. N.B. No adjustment item is reported to reflect the reduction in the interest rate as this does not affect the outstanding amounts on the loans.

Section E . Form 2: Future debt service

150. Report the amounts of principal and interest due on debt outstanding, including arrears, during the first, second and third year following the end of the reporting period. The amounts should reflect any changes from the original schedule arising from rescheduling. Arrears are due immediately and should therefore be reported as due in the first year. Service (principal and interest) due in the future of undisbursed amounts should not be included.

I. Resource flows covered

151. In DAC statistics, other official flows are classified under four categories: export-related transactions, investment-related transactions, rescheduling, and other bilateral securities and claims. Only the latter three categories are reportable as OOF on Forms 1 and 2. Export credits are reportable on CRS Form 1C and Form 3 (see Part C of the Directives)²⁴.

152. It may sometimes be difficult to distinguish OOF extended for commercial purposes from official export credits. When in doubt, recall that export credits are granted to promote the export of specific goods (as opposed to general finance for productive investment), their funding requests are initiated by the exporter (as opposed to the aid recipient) and they are not represented by a negotiable instrument.

153. Investment-related OOF covers official equity and portfolio investment, including joint ventures, with aid recipients (which does not qualify as ODA/OA). The primary purpose of such transactions is the creation and management of viable (usually private sector) enterprises in aid recipient countries. Loans and subsidies by the official sector to a private company in the donor country to help finance a specified investment in an aid recipient country are also part of investment-related OOF.

154. Debt rescheduling is another main category of OOF. Rescheduling of non-export credit OOF is reportable in Form 2²⁵. When the rescheduling is a Paris Club concessional rescheduling, a grant for debt forgiveness will also be reportable in Form 1.

155. Most of the remainder of non-export-credit OOF consists of official loans with a grant element below 25%. Agencies that extend aid in the form of loans typically provide concessional and non-concessional financing. Most non-concessional lending is targeted to infrastructure projects, but loans to financial intermediaries to set up credit schemes are also common. The process to identify and prepare projects is similar to that of ODA/OA loans. The funding request comes from the aid recipient. It relates to a specific project or an investment scheme which is then prepared and appraised for its developmental effects according to donor procedures. Policy objectives such as aid to environment may also be addressed.

II. Compiling data (CRS Form 1 and 2) on non-export-credit OOF

II.1 Why report non-export-credit OOF?

156. Analyses that focus on a recipient’s total resource receipts generally distinguish between official development finance (ODF), export credits and private flows. Non-export-credit OOF constitutes part of ODF.

157. Reporting on CRS Form 1 (Activity description) permits sectoral and geographical analyses to cover ODF. In the sectors of economic infrastructure and services (e.g. transport, banking and financial services) or production (e.g. industry), OOF can represent a considerable share of ODF. Its exclusion would result in statistics giving a partial view of official sector involvement in financing these sectors in aid recipient countries.

158. Reporting on CRS Form 2 (Annual status of activity implementation and outstanding debt) is required to compile statistics on the outstanding debt of aid recipients and to undertake sectoral and geographical analyses of ODF on the basis of disbursements.

Confidentiality

159. Data reported to the CRS on non-export-credit OOF are confidential at the level of individual activities. No restriction is placed on the disclosure of commitment data on non-export-credit OOF aggregated by DAC5 sector within a recipient from each donor provided they combine at least three activities.

II.2 What and how to report?

160. Data on non-export-credit OOF commitments are reportable on CRS Form 1 (Activity description) following instructions in part A, section II.1.2 of the Directives. It is sufficient to report identification and basic data items only. (See sections A and B of Form 1, para. 31-62.) OOF disbursements and the status of outstanding debt are reportable on Form 2 following instructions in Part A, section II.2.2 of the Directives. (See para. 122-151.) The instructions as regards reporting deadlines are the same as for ODA/OA.

II.3 Links with DAC statistics

161. Aggregate data for non-export-credit OOF are requested in Tables DAC1, DAC2b and DAC5. Data reported on CRS Form 1 cannot be directly linked with the headings of Table DAC1 as the classification in DAC1 is more detailed than the one in the CRS²⁶. By contrast, Members with complete Form 1 reporting on OOF can compile the sectoral aggregates on OOF in Table DAC5 by aggregating their CRS reports. The CRS is the only source of information on the geographical breakdown of OOF commitments.

3. "Confidential" means that non-ODA transaction level data may be made available only to:

• authorised staff of the OECD, BIS and, for developing countries only, the World Bank;

• the OECD Trade Committee Group on Export Credits and Export Credit Guarantees;

• for the exclusive purpose of cross-checking debt statistics by the World Bank, officials of the borrowing country, providing the authority of the reporting country to do so is sought and obtained beforehand in each instance (in this case, the source of information may not be revealed).

As regards Form 1C, the information and reports are also shared with the Berne Union.