Financial statements for 1996, the first financial year

Download all the 1996 financial statements

Balance sheet

BALANCE SHEET (in FF)	Opening balances 01/01/96	Closing balances 31/12/96
ASSETS
Cash in hand, central banks, post office banks (note 1)		5,951,492.95
Treasury bills and similar securities Loans and advances to credit institutions (note 1) . Repayable on demand . Repayable at maturity		235.95 4,145,688,720.15
Loans and advances to customers . Other advances to customers
Bonds and other fixed-income securities
Shares and other variable-yield securities
Intangible assets (note 2)		546,943.74
Tangible assets (note 2)		778,336.33
Other assets (note 3)		256,820.00
Accrued income and prepaid expenses(note 4)		4,582,401,453.69

TOTAL ASSETS		8,735,624,002.81
LIABILITIES
Amounts owed to credit institutions (note 5)
. Payable on demand . Payable at maturity	137,000,000,000.00	694,940.49
Amounts owed to customers - Other debt . Payable on demand . Payable at maturity
Debts evidenced by certificates (note 6)
. Negotiable debt instruments		76,860,644,400.00
. Debenture loans		69,296,548,359.98
. Other debts evidenced by certificates

Other liabilities (note 7)		569,727.66
Accrued expenses and deferred income (note 8)		749,969,537.54

Sub-total Liabilities	137,000,000,000.00	146,908,426,965.67

Loss brought forward	-137,000,000,000.00	-137,000,000,000.00
Loss for the year ended		-1,172,802,962.86

Net Liability position Reserves	-137,000,000,000.00	-138,172,802,962.86

TOTAL LIABILITIES (AND RESERVES)		8,735,624,002.81

Income statement

The significance of CADES' annual financial statements has to be put into perspective. It is important to remember the special purpose for which CADES has been established, namely, to amortise debt over a period of 18 years and one month.

PROFIT AND LOSS ACCOUNT
(in FF)

To 31/12/96

INCOME AND CHARGES FROM BANKING OPERATIONS

-6,719,817,445.89

Interest receivable and similar income (note 10)

. Interest receivable and similar income on transactions with credit institutions

. Interest receivable and similar income on transactions with customers

. Interest receivable and similar income on bonds and other fixed-income securities

. Other interest receivable and similar income

Interest payable and similar charges (note 9)

. Interest payable and similar charges arising from transactions with credit institutions

. Interest payable and similar charges arising from transactions with customers

. Interest payable and similar charges on bonds and other fixed-income securities

. Other interest payable and similar charges

Commissions payable (note 9)

Net profit on financial transactions (note 11)

. Net profit on transactions in trading securities

. Net profit on transactions in securities held for sale

. Net profit on foreign exchange transactions

. Net profit on transactions in financial instruments

Net loss on financial operations

. Net profit on transactions in trading securities

. Net profit on transactions in securities held for sale

. Net profit on foreign exchange transactions

. Net profit on transactions in financial instruments

568,695,786.41
547,536,640.14

412,000.00
20,747,146.27

-6,973,224,323.53
-3,341,360,470.48

-3,631,863,853.05


-384,437,647.95
69,148,739.18


65,699,207.22
3,449,531.96

OTHER ORDINARY INCOME AND CHARGES

5,547,014,483.03

Other non-banking operating income: CRSD (note 12)

General operating charges (note 14)

. Staff costs

. Other administrative expenses

Depreciation and provisions for depreciation of intangible and tangible assets

Other non-banking operating charges

. Other operating charges arising from banking operations

. Other non-banking operating charges (note 13)

- Payment to the State

- Payment to CANAM

- Costs on CRSD revenues

- Other

21,205,244,879.36

-13,610,462.02
-560,821.20
-13,049,640.82

-135,904.37

-15,644,484,029.94
-329,099.36

-12,500,000,000.00
-3,000,000,000.00
-144,098,50.58
-56,280.00

LOSS ON ORDINARY ACTIVITIES

-1,172,802,962.86

Exceptional income

Exceptional charges

NET LOSS FOR YEAR ENDED

1,172,802,962.86

Off balance sheet

By way of compensation for the FRF110 billion worth of social security debt taken over by the French state in 1993, CADES makes an annual payment to the state budget amounting to FRF12.5 billion. These payments will be made until the year 2009.

OFF BALANCE SHEET (in FF)	31/12/96	01/01/96
COMMITMENTS GIVEN
Financing commitments
. Commitments in favour of credit institutions
. Commitments in favour of customers
. Annual payment to the State (Section 4 of Ordinance No. 96-50 of 24th January 1996)	150,000,000,000	162,500,000,000

Guarantees
. Guarantees in favour of credit institutions
. Guarantees in favour of customers

Commitments in respect of securities
. Securities purchased with sale or repurchase options
. Other commitments given


COMMITMENTS RECEIVED

Financing commitments
. Commitments received from credit institutions	60,000,000,000

Guarantees
. Guarantees received from credit institutions

Commitments in respect of securities
. Securities sold with sale or repurchase options
. Other commitments received

Receipts from CRDS contributions

OTHER NON-BANKING INCOME NET REVENUES FROM THE REPAYMENT OF THE SOCIAL DEBT (CRSD) (in FF)	1996

NET CRSD REVENUES IN RESPECT OF YEAR ENDED:	21,061,146,228.78

CRSD revenues on emoluments and salaries (ACOSS)	19,394,173,823.12
CRSD revenues on assets	1,014,207,130.85
CRSD revenues on investment income	90,080,156.29
CRSD revenues on sales of jewellery and precious metals	4,062,236.87
CRSD revenues on gambling gains	78,728,280.72
CRSD revenues before allocation (1)	479,894,600.93

NET CRSD REVENUES IN RESPECT OF PRIOR YEARS:

CRSD revenues on emoluments and salaries (ACOSS)
Other CRSD revenues

TOTAL CRSD REVENUES	21,061,146,228.78

CRSD revenues are presented net of all costs, including assessment and collection costs.

(1) The allocation of the CRSD revenues, other than those from ACOSS and CRSD revenues on assets, was implemented from 1st December onwards.

These 480 million of CRSD revenues correspond therefore to the CRSD revenues on investment income, revenues on sales of jewellery and precious metal and revenues on gambling gains concerning the months of February to November 1996.

The Ernst & Young audit report

AUDIT REPORT ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER, 31st 1996

June, 24 th 1997

For the attention of Mr Benoît JOLIVET ( Chairman of CADES).

Pursuant to the mission entrusted to us in your letter dated March, 17th 1997, following our letter of engagement of February, 21st 1997. We present to you our report on the audit of financial satements of Caisse d'Amortissement de la Dette Sociale (CADES) for the year ended December, 31st 1996, as appended to this report.

We performed those procedures described in our letter of engagement. We also carried out an overall analysis review.

On the basis of the audit procedures that have been performed. We have not noted any items susceptible of bringing into question :

- The truth and fairness of the transactions recorded in the accounts in relation to the accounting rules described in the notes to the accounts in Section II "Acounting principles and methods", as approved by the supervisory authorities at meeting of Board of Directors held on June, 23rd 1997;
- Compliance of the transactions with the founding texts of CADES and the limits set by its Board of Directors.

Furthermore, we have addessed to management a numbers of recommendations with a view to improving internal control and/or the effiency of CADE'S organisation. our recommendations do not bring into question the conclusions expressed above.

We remain at your dsiposal should you require any additional information.

ERNST & YOUNG