High demand for EKN’s crisis measures

INTERIM REPORT JANUARY-AUGUST 2020
Regular guarantee operations increased 27 per cent to SEK 52.1 billion, compared with SEK 41.1 billion in the corresponding period for 2019. Temporary crisis measures with working capital credit guarantees for large corporates amounted to SEK 52.1 billion.

In March, EKN started to offer working capital credit guarantees to large corporates covering 75 per cent of the banks’ risk. By the end of August, EKN had issued a total of 46 offers amounting to SEK 135.6 billion for this product. Of these, 26 guarantees have been issued for a total volume of SEK 52.1 billion.

EKN’s standard offering for SMEs includes a working capital credit guarantee that covers 50 per cent of the lending banks’ risk. The cover was raised to 80 per cent as a crisis measure, to encourage continued lending to SMEs. The number of working capital credit guarantees for SMEs increased 20 per cent over the period.

Increased need for payment deferment

Due to the crisis, EKN’s guarantee holders have had customers who have been unable to meet their contractual payments and the short-term need for payment deferment has been substantial. During the period, EKN received 290 applications for payment deferment for transactions totalling SEK 4.2 billion, which were attributable to Covid-19.

Raised statutory limit and strong finances

EKN’s statutory limit for issuing guarantees was raised from SEK 450 billion to SEK 500 billion. Utilisation of the statutory limit for the period increased to SEK 370 billion (SEK 272 billion at 31 December 2019). Profit for the period was SEK 199 million, compared with SEK 586 million in 2019. EKN retains its strong financial position and substantial capacity for future export transactions.

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The period at a glance

  • EKN issued conventional guarantees of SEK 52.1 billion, compared with SEK 41.1 billion in the corresponding period for 2019.
  • Moreover, due to the crisis, EKN started to issue working capital credit guaranteesto large corporates and, as part of this temporary solution, issued 46 guarantee offers of SEK 135.6 billion during the period. Of these, 26 guarantees have been issued for a total guarantee volume of SEK 52.1 billion.
  • EKN’s statutory limit for issuing guarantees was raised to SEK 500 billion as a crisis support measure.
  • During the period, EKN received 290 applications for payment deferment due to the pandemic, for transactions totalling SEK 4.2 billion.
  • Claims payments for the period pertained primarily to transactions for which EKN had previously made claims provisions.
  • Profit for the period was SEK 199 million, compared with SEK 586 million.

New transactions and profit/loss

Jan-Aug 2020

Jan-Aug 2019

New guarantee offers, SEK million

186,477

40,703

New guarantee offers, number

1,464

1,577

New transactions, volume guarantees, SEK million

104,171

41,100

New transactions, numbers

1,330

1,505

Claims paid, SEK million

1,066

1,222

Profi/loss, SEK million

199

586