Increase in guaranteed transactions
Business activity was high in the first four months of 2019 with EKN issuing more new guarantees and more offers year-on-year. In terms of volumes, guarantees increased 19 per cent and offers 21 per cent. Moreover, the number of small and medium-sized enterprises (SMEs) using EKN continued to grow.
Guarantee volumes continued to increase during the first four months of the year.
“The trend we have witnessed in recent years is holding firm and we are guaranteeing more transactions for exporting companies of all sizes,” says Director General, Anna-Karin Jatko.
The guarantee volume for the period amounted to SEK 23.2 billion, with this high level partially attributable to a single major transaction. The guarantee volume for SME transactions increased from SEK 688 million to just over SEK 1 billion.
“What sets EKN apart is that we combine very large transactions with many small ones. Irrespective of the size of the transaction, we can handle it – something all of Sweden’s exporters need to know,” says Anna-Karin Jatko.
One new substantial claim arose during the period and EKN paid compensation of SEK 625 million in transactions for which the agency had previously made provisions.
Provisions for claims pertaining to already established distressed debt declined and recoveries rose. Profit for the period totalled SEK 452 million.
EKN’s financial position remains strong and the agency has substantial capacity to guarantee new transactions to support Swedish exports.