Examples of using Variable tranches in English and their translations into Slovenian
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BS is paid in fixed and variable tranches.
Variable tranches are additionally linked to progress against specific conditions.
Budget support paymentsare made in the form of either fixed or variable tranches.
Variable tranches have a maximum value specified in advance in the financing agreement.
The indicators accounted for a substantial portion(10-20% overall) of the relevant variable tranches.
The amounts paid from variable tranches depend on the performance achieved by partner countries, which is measured by pre-defined indicators.
The Commission has concentrated itsdialogue on the government's compliance with the indicators used for the variable tranches.
The letters sent by the Commission to governments to inform them what amount from the variable tranches is to be disbursed are used as part of the dialogue.
The financing agreement for the SBS lays out 12 specific conditions,which have to be fulfilled for the disbursement of its three variable tranches.
Fixed tranches are linked to the fulfilment of general conditions and variable tranches are additionally linked to progress against specific indicators.
Funding modality: general budget support(GBS)with social sector performance indicators linked to variable tranches.
Variable tranches are linked to progress against specific conditions: they create incentives for improved performance because partial performance is matched with partial payment.
Fur-thermore, inasignificantnumberofthe GBSprogrammes, particularlyin Asian and Latin Americancountries, variable tranches are not used.
(a) EuropeAid should ensure that the specific conditions for performance-based variable tranches clearly specify the indicators, targets, calculation methods and verification sources;
The progress that a country makes towards meeting such targetsis the basis on which the European Commission disburses variable tranches of budget support.
In the programmes with several variable tranches, the second tranche generally had a lower fulfilment rate than the first one also reflected the lack of momentum in the reform process.
EN EN A total of Ű147 million was paid for the programmes audited of which Ű140million for the BS component(including Ű88 million of variable tranches payments).
The disbursement rate for the variable tranches subject to specific PFM and FAC conditions ranged from 67% for the Energy I programme to only 25% for the Energy Efficiency and Border Management programmes.
In this respect, the Commission appropriately applied the 2017 BSguidelines on indicators to be used for the disbursement of variable tranches(section 4.4.3 and Annex VIII).
Variable tranches often paid when conditions were neither met nor verified 58 The disbursement of the variable tranches17 was based on sources of verification stipulated in the financing agreement and agreed at design stage between the Commission and the ministries, as well as other official sources provided by the government.
The technical assistance objectives include facilitating sector dialogue between ministries and development partners andhelping the government to achieve the performance indicator targets linked to the variable tranches of the GBS programme.
The Commission has nocriteria for deciding on the allocation of funds between fixed and variable tranches, which leads to significant differences between regions and countries in the proportions allocated39. indeed the mix of fixed and variable tranches can also vary significantly between two consecutive programmes in the same country and without a clear explanation being given for this change.
External factors, such as the economic crisis that hit Moldova in 2009 and political instability in the country, coupled with the weak institutions in the water sector and the absence of technical assistance, meant that the conditionshad only been partially fulfilled for all variable tranches.
We noted the following weaknesses in the selection and use of indicators:(a)Indicators of the variable tranches were not appropriate to monitor progress of the specific objectives.(b) Nearly all indicators related to outputs or process(e.g. the proposal to draft a law), not to outcomes.(c) Two indicators were not sufficiently relevant as they did not measure the BS programme objectives.
Ukraine: Sector budget support frontloading(initially allocated amounts) 38 For example, budget support guidelines suggest a sector budget support fixed-variable tranche mix of 60-40%;with higher variable tranches for countries with greater risk and a poorer implementation record.
The Commission has concentrated itsdialogue on the government's compliance with the indicators used for the variable tranches. as a result, it paid little attention to the overall implementation of the social protection network and did not seize the opportunity for a wider debate on the quality of social services. in fact, the Commission's limited monitoring of the implementation of the social protection network and the pfm action plan places limits on the possible extent of the dialogue.
The Commission considers that the proportion of gbs allocated to the variable tranche should be higher in countries where it has more concerns about their commitment to poverty reduction and reforms. however, this approach is not referred to in the Commission's internal guidelines or individual programme documents. furthermore, in a significant number of the gbs programmes,particularly in asian and latin american countries, variable tranches are not used.
It recommends a clearer definition of country-specific objectives to facilitate the assessment of impact; the use of a complete risk management framework to mitigate financial management and development risks;more transparency and a rationale for allocations to budget support and to fixed and variable tranches; strengthened management of performance-related conditionality and policy dialogue; and more regular reporting on performance, covering benefits as well as risks.
Sector budget supportprogrammes are usually a mix of fixed and variable instalments(tranches).
The disbursement of variable budget support tranches relies on a set of indicators with definition of the targets to be achieved within a given year.