New and extended guarantees from EKN to support exporting companies
The negative economic effects of the Covid-19 pandemic are increasing for Swedish exporting companies. They now urgently need financing.
"EKN's Board of Directors has today decided on new guarantees that will directly support exporting companies," says Anna-Karin Jatko, Director General of EKN.
The measures that EKN is now implementing are more extensive than those during the 2008 financial crisis. The needs are broader and small and medium-sized companies are more affected.
"EKN's new guarantees are both for large companies, their sub-suppliers and to all exporting small and medium-sized companies," says Anna-Karin Jatko.
- Improved access to working capital financing for Small and Medium-sized companies
To make it easier for small and medium-sized companies to obtain working capital financing from their banks, EKN increases risk coverage to 80 per cent. Expected demand: SEK 10 billion.
- New guarantee for sub-suppliers
Sub-suppliers are a central part of Swedish exports. With the new guarantee, sub-suppliers get paid more quickly and securely. Expected demand: SEK 100 billion.
- New guarantee for working capital financing for large companies
EKN will cover 75 per cent of the bank's risk in working capital financing for large companies. Normally this is not required but in times of crisis, it can be crucial. Expected demand: SEK 100 billion.
"EKN's expanded solutions are aimed at supporting banks to solve the acute shortage of financing that many exporting companies are facing and ensure that trade can continue, which is necessary for Sweden," says Anna-Karin Jatko.
Financing is a prerequisite for Swedish exports:
- Exporting companies and their sub-suppliers need working capital financing.
- Their customers need to finance their purchases of Swedish goods and services.
"We have ongoing dialogues with banks and companies of all sizes. The need for financing is increasing rapidly and we continue to adapt our solutions to current needs," says Anna-Karin Jatko.