January–December 2014: Record-high volume of guarantees to SMEs

The volume of guarantees for SMEs increased by 30 per cent to SEK 3.1 billion in 2014, and the number of guaranteed transactions increased from 575 to 753 during the year. SME recognition for EKN increased to 66 per cent in 2014, in comparison with 48per cent in 2013.

“It is gratifying to see that EKN's focus on SMEs is now generating good results. This focus is important to increase the companies knowledge of how EKN's guarantees can strengthen their exports,” says Director General Karin Apelman.

In total, EKN guaranteed 1 529 transactions during the year, which is slightly higher year-on-year. The total issuing of guarantees fell by 40 per cent to SEK 26.7 billion.

“Greater supply of capital on the financial markets and an increase in the risk appetite of financial market players are the main factors driving the reduction in guarantees to large companies,” says Director General Karin Apelman.

Demand during the year was mainly focused on export transactions to emerging markets and developing countries.

In hindsight, it is clear that our working capital credit guarantees were a success factor for Swedish exports during the financial crisis. Our guarantees made it possible for many large Swedish companies to continue exporting during the financial market situation prevailing at the time. We phased out and settled a large portion of these working capital credit guarantees as we wrapped up 2014. Our losses from this initiative have been lower than expected, in spite of the long, deep crisis. In addition, the initiative strengthened EKN´s capital. EKN will transfer SEK 2.3 billion to the Swedish state’s treasury, a portion of the total surplus primarily related to the high number of guarantees provided during the financial crisis.

EKN's outstanding guarantees were SEK 174.2 billion at the end of the period.

Profit for the period totalled SEK 1.8 billion, which is in line with the previous year.