Foreign exchange rate developments

Foreign exchange rate developments within the financial structure of the programme reduced the overall budget by approximately 13 % as of mid-2015. Subsequently, a 1.5 million Euro budget buffer was introduced to cushion future decline in the EUR/GBP rate until remaining disbursements were made to KfW and converted in EUR. Reference is made to previous GET FiT annual reports for more details on these issues.

A limited amount of undisbursed donor funds remains at this stage, currently equivalent to approximately 8% of the total GET FiT budget. As the established buffer still leaves room for a significant level of decline in the EUR/GBP rate, the associated risk is not considered particularly high. Nonetheless, the exchange rate developments are monitored to enable measures if needed.