The Government's objectives for EKN’s activities in 2008
EKN shall promote Swedish exports by offering competitive export credit guarantees and investment guarantees.
EKN’s export credit guarantees are often a pre-requisite for export transactions to take place. During the year, we offered export credit guarantees for 1,496 transactions in 124 countries. There was no demand for the investment guarantee during the year. More information can be found on chapters Export potential, Small and medium-sized enterprises, and Large corporates. For an overview of the total number and volume of the different offers and guarantees issued, please see table Scope of guarantee operations.
The business shall achieve break-even in the long term.
The result for the year was SEK 820 million. This strengthens our already stable position. More information on the result can be found in chapter Results and reserves, in the Income statement, and in the Balance sheet.
EKN shall work to encourage competitive neutrality between different government-supported export credit and investment guarantee systems internationally.
EKN’s guarantees stand up well in comparison with those of other export credit agencies. In the OECD and the EU, we have championed issues concerning competitive neutrality, including competition between companies in countries not covered by OECD rules and regulations.
More information on EKN’s work to achieve competitive neutrality can be found in chapter International cooperation.
EKN shall ensure that the promotion of Swedish exports by means of guarantees, is carried out in collaboration with other Swedish export-promoting bodies, and is presented as part of Sweden's overall export promotion.
EKN works in collaboration with the Swedish Export Credit Corporation, Almi, the Swedish Trade Council and Swedfund to provide comprehensive and integrated export promotion.
- We have run seminars with Almi and the Swedish Trade Council.
- Almi’s subsidiaries can now supply EKN counter guarantees and working capital guarantees.
- In 2008, export loans totalling over SEK 150 million were granted to 29 companies.
- We have taken part in delegations arranged by the Swedish Trade Council.
- EKN, Swedfund, the Swedish Export Credit Corporation, Almi, the Swedish Trade Council, Nutek and Swentec work together in the environment technology export group.
More information on Sweden’s overall export promotion can be found on section Small and medium-sized enterprises and section Large corporates.
EKN shall endeavour to increase interest in and awareness of the agency’s activities, and adapt its products and services to customer demand. EKN shall invest more in guarantees for small and medium-sized enterprises and work actively to broaden its customer base.
Small and medium sized enterprises’ awareness of EKN increased compared with the previous year. Companies’ knowledge about EKN has increased by 16 percent over the last three years. The influx of new customers has continued. EKN obtained 100 new customers in 2008. In the second half of the year, there was a rise in customer demand for products which include risk sharing with financing banks. We therefore expanded the area of application for the working capital guarantee.
More information on the broadened customer base and the focus on small and medium-sized companies can be found in section Small and medium-sized enterprises.
More information on adaptation of products can be found in section Large corporates.
EKN shall limit the risks associated with issued guarantees by risk sharing. EKN shall aim to spread the risks in its exposure, and limit the concentration of risks. In new transactions, EKN’s current risk exposure shall be taken into consideration.
As a result of reinsurance in the private market and with governmental export credit agencies, it has been possible to reduce the provision in the annual accounts by approximately SEK 1.7 billion. In new transactions, we assess the concentration risk.
EKN shall develop its loss prevention and recovery activities, with the aim of limiting losses.
This year too we have had few problem transactions and a low level of indemnifications. In a small number of transactions we have, among other measures, renegotiated the financing, visited debtors, engaged lawyers on site and engaged representatives in an attempt to recover claims.
EKN shall work closely with customers to make the indemnification process more efficient.
Indemnifications have been at a very low level in recent years. With risks of loss increasing, the organisation has taken measures to ensure it is prepared for a possible increase in the number of claims. Internally, we have improved our system support for recovery work.
EKN shall develop its work in addressing ethical considerations (environment, bribery and social issues) associated with the issuing guarantees. EKN shall keep customers informed about the Global Responsibility initiative and the OECD guidelines for multinational companies. EKN shall comply with regulations and guidelines issued by the OECD concerning anti-bribery and environmental/social issues. EKN shall also strive towards a sustainable debt situation. Particular consideration must be made when issuing guarantees to heavily indebted least developed poor countries, and EKN shall follow OECD’s Guidelines to Promote Sustainable Lending Practices. EKN’s business activities shall contribute to Sweden’s primary goals on fair and sustainable global development.
During the year, EKN adopted a new policy which summarises the ethical considerations it makes when issuing guarantees. One new development is that more social issues are now included. The policy is in line with OECD’s regulations on anti-bribery, environmental and social issues and sustainable lending. More information on corporate responsibility in guarantee issuing can be found in section Corporate responsibility.
EKN shall work to provide a good level of service to the public and companies by means of service obligations and dialogue with users. All services which can be provided electronically with equal or increased cost-efficiency, shall be provided electronically and in a user-friendly way.
We have launched a new online customer web. Customers can log on with e-identification and access the basic guarantee. The next guarantee to become available electronically will be the loss on claim guarantee for long credit periods. On-line guarantee management brings improved efficiency for export companies, banks and EKN itself.
More information on the new customer web can be found in chapter Export opportunities.
EKN shall participate in international activities affecting its operations.
We participate in the activities of the Berne Union export credit association, the OECD, the EU and the Nordic Cooperation.
More information on EKN’s participation in international networks can be found in chapter International cooperation.
EKN shall report on the measures it has taken to ensure it has the right expertise to achieve the objectives for its activities.
Our new recruitments have increased the size of the organisation to 115 full-time equivalents. A large-scale training programme has been implemented.
More information can be found in chapter Employees.