The demand for guarantees from Swedish export credit agency EKN increased nine-fold during the first half of 2009 compared to the corresponding period in 2008. “This demonstrates that EKN’s role is more important than ever, and strengthens the competitiveness of Sweden's export industries,” says Karin Apelman, EKN’s director-general.
The total amount of offers during the first half of 2009 was just over SEK200bn, compared to SEK22bn for the corresponding period in 2008.
“It is interesting to note in our half-year report that the number of applications for guarantees doubled to 1,029,” says Apelman.
According to the ECA, in the past, companies showed most interest in guarantees for more complex transactions in countries with greater risk. Now the demand is increasingly also for guarantees in transactions with lower risk, in more developed countries.
“The global financial turmoil means that small and medium-sized enterprises are increasingly asking for our guarantees, as their chances of getting guarantees from the private market are lower than previously,” says Apelman.
EKN is continually making risk provisions. The level of losses during the period is a little under SEK45mn on a guarantee volume of SEK134bn.
“A very low level. At the same time, it is worth remembering that the total of outstanding arrears increased from SEK188mn at the year-end, to SEK713mn at the end of June 2009,” adds Apelman.
In order to meet the needs of Sweden's export industries in the future, EKN has applied to the government for a doubling of the limit for export credit guarantees, from SEK350bn to SEK700bn.
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