Guarantee volume remains high in the first four months of 2022
Interim report Jan-Apr 2022: During the period, the Swedish Export Credit Agency (EKN) issued guarantees for exports to a value of SEK 28 billion. While down on last year’s record, it matched the high level recorded in 2020. Russia’s invasion of Ukraine and the outbreak of war prompted EKN to immediately halt guarantees for export deliveries to Russia, Belarus and Ukraine.
The largest industries encompassed by issued guarantees in the period were telecoms and power, followed by the transport sector. Two large transactions in OECD countries accounted for 60 per cent of the guarantees issued in the period.
Recovery and concern among SMEs
Sweden’s SME exporters recovered quickly in the wake of the pandemic and, in February, had a very positive outlook. Following the outbreak of war, SMEs’ demand for export credit guarantees with short risk periods declined.
“In just a short period of time, the combination of war in Europe, rising inflation and challenging supply chains have increased concern among exporters, especially SMEs. I would like to encourage exporters who are currently hesitant about a transaction or concerned about not receiving payment to contact EKN, either directly or through their bank. Many years of positive results means EKN has the capacity and scope to continue to help exporters and their subcontractors to invest, in these troubled times,” says Anna-Karin Jatko, Director General, EKN.
Halt for Russia has little impact on total guarantees issued
On 24 February, EKN halted issuing guarantees for transactions pertaining to Russia, Belarus and Ukraine. The halt had limited impact on EKN’s total guarantees issued since demand for export guarantees to these countries has been low in the past few years. At the end of the period, EKN’s guarantees outstanding for exports to Russia, Ukraine and Belarus amounted to SEK 4.2 billion. Provisions were made during the period for these undertakings.
Low claims payments and high recoveries
EKN’s claims payments remained low during the period. Recoveries amounted to SEK 0.4 billion, of which the majority pertained to a bus transaction in Chile.
The loss for the period amounted to SEK 0.02 billion. After many years of positive results, EKN has a strong financial position, capacity and scope for future export transactions.
The period at a glance
- EKN issued guarantees amounting to SEK 28.0 billion (SEK 38.1 billion).
- The number of transactions guaranteed by EKN was lower than last year. During the period, EKN issued guarantees for 601 new transactions (650 new transactions).
- On 24 February, EKN halted issuing guarantees for transactions pertaining to Russia, Belarus and Ukraine.
- On 30 April, EKN’s guarantees outstanding for exports to Russia, Ukraine and Belarus amounted to SEK 4.2 billion. Provisions were made during the period for these undertakings.
- Claims payments amounted to SEK 0.3 billion (SEK 0.2 billion). From a historical perspective, this is a low level, albeit up slightly on last year.
- Recoveries amounted to SEK 0.4 billion (SEK 0.1 billion).
- The loss for the period was SEK 0.02 billion (profit: SEK 0.6 billion).
The figures in parentheses pertain to the corresponding period last year.
For more information please contact
Malin Alm Gerentz, Press Officer
Phone: +46 8 788 01 66, e-mail: email@example.com