In the beginning of the year, EKN issued guarantees for major transactions to wind power off the coast of the UK, solar power in Angola, railways in Tanzania and telecoms in the US. In the summer, guarantees were issued pertaining to a major shipping line transaction. These five transactions accounted for a major portion of the guarantee volume. The export markets within the OECD and Africa dominated issued guarantees.
Offers issued during the period totaled SEK 56.7 billion and encompassed telecoms and shipping in the OECD as well as railways and hospitals in Africa.
Increasing number of SME customers
The number of SME customers grew to 334, compared with 308 in the year-earlier period. The demand for working capital credit guarantees declined toward the end of the period as a result of favourable access to financing.
Decreasing need for payment deferment
The need of exporters’ customers for payment deferment, which arose as an effect of the pandemic, has gradually decreased over the period. Guarantee holders wishing to accept a payment deferment must apply for EKN’s consent to do so. During the first eight months of 2021, EKN approved 61 applications , compared with 167 in the year-earlier period.
Strong financial position
Profit for the period was SEK 1 billion (SEK 200 million). No new major claim arose. EKN retains its strong financial position after many years of positive results.
The period at a glance
- The guarantee volume totaled SEK 49.2 billion, compared with SEK 52.0 billion for the year-earlier period.
- New guarantee offers amounted to SEK 56.7 billion, compared with SEK 50.8 billion for the year-earlier period.
- The pandemic led to an increased need for payment deferments and, as a result, guarantee extensions. During the period, EKN approved 61 applications for guarantee extensions.
- Since March 2020, as a result of an exception in the EU regulations due to the pandemic, EKN can temporarily offer guarantees to cover short-term supplier credits pertaining to high-risk countries, which will remain possible throughout 2021. During the period, EKN issued 91 guarantees totaling SEK 1 billion.
- Working capital credit guarantees for large corporates, which comprised a temporary solution to counter the effects of the pandemic, were discontinued from the end of June. From March 2020 to June 2021, the period in which the guarantees were offered, a total of 41 guarantees amounting to SEK 61 billion in aggregate were issued on behalf of 27 exporters. These guarantees are not included in the compilations in this report.
- Claims payments for the period totaled SEK 0.4 billion, compared with SEK 1.0 billion in the year-earlier period.
- Profit for the period amounted to SEK 1.0 billion (SEK 0.2 billion).
Malin Alm Gerentz