| (8) LOANS OUTSTANDING AND GUARANTEE COMMITMENTS |
|
| |
| Loans outstanding were distributed as follows over the Bank's three loan facilities: |
|
| |
| (Amounts in EUR million) |
|
2010 |
|
2009 |
| Ordinary Loans |
|
|
|
|
| |
Investment loans in the member countries |
|
10,920 |
|
10,841 |
| |
Investment loans in other countries |
|
486 |
|
429 |
| |
Regional loans in the Nordic countries |
|
6 |
|
9 |
| |
Adjustment to hedge accounting |
|
97 |
|
46 |
| Total |
|
11,508 |
|
11,325 |
| |
|
|
|
|
| Project Investment Loans (PIL) |
|
|
|
|
| |
Africa |
|
237 |
|
244 |
| |
Asia |
|
943 |
|
916 |
| |
Europe and Eurasia |
|
373 |
|
506 |
| |
Latin America |
|
522 |
|
563 |
| |
Middle East |
|
94 |
|
102 |
| |
Adjustment to hedge accounting |
|
- |
|
2 |
| Total |
|
2,170 |
|
2,334 |
| |
|
|
|
|
| Environmental Investment Loans (MIL) |
|
93 |
|
104 |
| Total, loans outstanding |
|
13,771 |
|
13,763 |
| |
| |
| |
|
|
|
|
|
|
|
|
The figure for loans outstanding, EUR 13,771 (13,763) million, includes medium-term notes (MTN) of EUR 1,828 (1,929) million. These are held at amortised cost unless they form a part of a qualifying hedging relationship with a derivative. In a hedge accounting relationship, the MTNs are recognised at fair value.
Loans outstanding at floating interest rates amounted to EUR 12,215 (12,476) million, while those at fixed interest rates amounted to EUR 1,459 (1,238) million. The nominal amount of the guarantee commitments under Ordinary Lending totalled EUR 8.3 (12.5) million as of 31 December 2010.
| Impairment of loans and lending claims |
|
| |
|
|
|
|
|
|
|
|
A total of EUR 152.0 (101.3) million has been deducted from the Bank's loans outstanding and from lending claims in “other assets”. All allowances for impairment were specific allowances. The Bank recorded no collective allowances for impairments. On 31 December 2010, lending claims worth EUR 0.4 million were converted into debt securities under the item "financial placements" in the statement of financial position. On 31 December 2009, loans worth EUR 8.6 million were converted into investment property and shares under the item “Other financial placements” in the statement of financial position. The following changes in specific allowances for impairment and effects of foreign currency movements are recognised in the statement of comprehensive income under impairment of loans and foreign exchange gains and losses.
| Specific allowances for impairment |
|
| |
| (Amounts in EUR million) |
|
2010 |
|
2009 |
| Balance at 1 January |
|
101.3 |
|
79.4 |
| Allowances for impairment |
|
56.6 |
|
44.0 |
| Reversals of previously recorded allowances for impairment |
|
-5.9 |
|
-22.1 |
| Balance at 31 December |
|
152.0 |
|
101.3 |
| |
|
|
|
|
|
|
|
|
| See also Note 6. |
|
| |
| The distribution of allowances for impairment was as follows: |
|
| |
| (Amounts in EUR million) |
|
2010 |
|
2009 |
| Distribution by loan facility |
|
|
|
|
| Ordinary Loans |
|
73.1 |
|
31.9 |
| Project Investment Loans (PIL) |
|
|
|
|
| |
Africa |
|
- |
|
- |
| |
Asia |
|
- |
|
- |
| |
Europe and Eurasia |
|
9.0 |
|
9.2 |
| |
Latin America |
|
0.2 |
|
0.3 |
| |
Middle East |
|
- |
|
- |
| Allowances for impairment, loans outstanding |
|
82.4 |
|
41.3 |
| Impairment losses on defaulted loan customers, other assets |
|
69.7 |
|
59.9 |
| Total |
|
152.0 |
|
101.3 |
| |
| |
|
|
|
|
|
|
|
|
As of 31 December 2010 the Bank categorised two loans totalling EUR 22.1 million as non-performing. As of 31 December 2009 the Bank categorised three loans totalling EUR 24.1 million as non-performing.
| As of 31 December 2010, loans agreed but not yet disbursed amounted to the following: |
|
| |
| (Amounts in EUR million) |
|
2010 |
|
2009 |
| Loans agreed but not yet disbursed |
|
|
|
|
| |
Ordinary Loans |
|
646 |
|
286 |
|
Project Investment Loans |
|
469 |
|
417 |
| |
Environmental Investment Loans |
|
64 |
|
63 |
| Total, loans agreed but not yet disbursed |
|
1,179 |
|
765 |
| |
| |
|
|
|
|
|
|
|
|
The amounts set forth above for loans agreed but not yet disbursed include loans in considerable amounts, where certain conditions, primarily interest rate conditions, may not yet have been finally approved.
| Currency distribution of loans outstanding |
|
| |
Ordinary loans |
PIL loans |
Total ¹ |
| (Nominal amounts in EUR million) |
2010 |
2009 |
2010 |
2009 |
2010 |
2009 |
| Currency |
|
|
|
|
|
|
| Nordic currencies |
3,445 |
3,325 |
- |
- |
3,445 |
3,325 |
| EUR |
6,836 |
6,981 |
650 |
731 |
7,535 |
7,771 |
| USD |
940 |
820 |
1,460 |
1,578 |
2,443 |
2,444 |
| Other currencies |
191 |
152 |
60 |
22 |
251 |
175 |
| Total |
11,412 |
11,279 |
2,169 |
2,331 |
13,674 |
13,714 |
|
|
|
|
|
|
|
| Adjustment to hedge accounting |
97 |
46 |
- |
2 |
97 |
49 |
| Total, loans outstanding |
11,508 |
11,325 |
2,170 |
2,334 |
13,771 |
13,763 |
| |
|
|
|
|
|
|
|
|
¹ The total amount also includes EUR 93 (104) million in Environmental Investment Loans (MIL).
| Sectoral distribution (according to NACE standard) |
|
| |
|
2010 |
|
2009 |
| (Amounts in EUR million) |
Share, in % |
Share, in % |
| Loans outstanding as of 31 December |
|
|
|
|
| Manufacturing |
4,013 |
29% |
4,277 |
31% |
| Energy |
4,335 |
31% |
4,113 |
30% |
| Transport and communications |
1,814 |
13% |
1,976 |
14% |
| Trade and services |
1,410 |
10% |
1,306 |
10% |
| Banking and finance ² |
832 |
6% |
850 |
6% |
| Regional loans |
6 |
- |
9 |
- |
| Other |
1,263 |
9% |
1,184 |
9% |
| Adjustments to hedge accounting |
97 |
1% |
49 |
0% |
| Total |
13,771 |
100% |
13,763 |
100% |
|
|
|
|
|
| Loans disbursed |
|
|
|
|
| Manufacturing |
378 |
30% |
307 |
16% |
| Energy |
424 |
33% |
565 |
29% |
| Transport and communications |
161 |
13% |
407 |
21% |
| Trade and services |
73 |
6% |
355 |
18% |
| Banking and finance ² |
91 |
7% |
75 |
4% |
| Other |
147 |
12% |
245 |
13% |
| Total |
1,274 |
100% |
1,954 |
100% |
| |
|
|
|
|
|
|
|
|
² Including the Bank's financial intermediaries.
| Distribution of loans outstanding and guarantees by various types of security |
|
| |
|
|
|
|
|
|
|
|
The following table shows loans outstanding, including guarantee commitments, distributed by type of security:
| (Amounts in EUR million) |
Amount |
Total amount |
Share, in % |
| As of 31 December 2010 |
|
|
|
|
|
|
| Loans to or guaranteed by governments |
|
|
|
|
|
|
| |
Loans to or guaranteed by member countries |
|
340 |
|
|
|
|
|
Loans to or guaranteed by other countries |
|
1,502 |
|
1,842 |
|
13.5% |
| Loans to or guaranteed by local authorities in member countries |
|
|
|
410 |
|
3.0% |
| Loans to or guaranteed by companies owned 50% or more by member countries or local authorities in member countries |
|
|
|
638 |
|
4.7% |
| Loans to or guaranteed by banks |
|
|
|
1,034 |
|
7.6% |
| Other loans |
|
|
|
|
|
|
| |
Backed by a lien or other security in property |
|
440 |
|
|
|
|
| |
With a guarantee from the parent company and other guarantees |
|
1,393 |
|
|
|
|
| |
With a negative pledge clause and other covenants |
|
7,913 |
|
|
|
|
| |
Without formal security |
|
12 |
|
9,758 |
|
71.3% |
| Total |
|
|
|
13,683 |
|
100.0% |
|
|
|
|
|
|
|
| Adjustment to hedge accounting |
|
|
|
97 |
|
|
| Total, loans outstanding (including guarantees) |
|
|
|
13,780 |
|
|
| |
| |
| (Amounts in EUR million) |
Amount |
Total amount |
Share, in % |
| As of 31 December 2009 |
|
| Loans to or guaranteed by governments |
|
| |
Loans to or guaranteed by member countries |
340 |
|
|
|
|
|
Loans to or guaranteed by other countries |
1,483 |
|
1,823 |
|
13.3% |
| Loans to or guaranteed by local authorities in member countries |
361 |
|
2.6% |
| Loans to or guaranteed by companies owned 50% or more by member countries or local authorities in member countries |
727 |
|
5.3% |
| Loans to or guaranteed by banks |
888 |
|
6.5% |
| Other loans |
|
| |
Backed by a lien or other security in property |
461 |
|
|
|
|
| |
With a guarantee from the parent company and other guarantees |
1,670 |
|
|
|
|
| |
With a negative pledge clause and other covenants |
7,793 |
|
|
|
|
| |
Without formal security |
4 |
|
9,928 |
|
72.3% |
| Total |
13,727 |
|
100.0% |
| |
|
|
|
|
|
|
|
|
| Adjustment to hedge accounting |
49 |
|
|
| Total, loans outstanding (including guarantees) |
13,775 |
|
|
| |
| According to NIB's Statutes, the member countries shall cover the Bank's losses arising from failure of payment in connection with PIL loans up to the following amounts: |
| (Amount in EUR 1,000) |
2010
Amount of
guarantee |
2010
Share,
in % |
2009
Amount of guarantee |
2009 Share, in % |
| Member country |
|
|
|
|
| Denmark |
377,821 |
21.0% |
377,821 |
21.0% |
| Estonia |
13,139 |
0.7% |
13,139 |
0.7% |
| Finland |
344,860 |
19.2% |
344,860 |
19.2% |
| Iceland |
15,586 |
0.9% |
15,586 |
0.9% |
| Latvia |
19,058 |
1.1% |
19,058 |
1.1% |
| Lithuania |
29,472 |
1.6% |
29,472 |
1.6% |
| Norway |
329,309 |
18.3% |
329,309 |
18.3% |
| Sweden |
670,755 |
37.3% |
670,755 |
37.3% |
| Total |
1,800,000 |
100.0% |
|
1,800,000 |
100.0% |
| |
| |
|
|
|
|
|
|
|
|
| According to NIB's Statutes, the member countries shall cover 100% of the Bank's losses arising from failure of payment in connection with MIL loans up to the following amounts: |
| |
|
|
|
|
| (Amount in EUR 1,000) |
2010
Amount of
guarantee |
2010
Share,
in % |
2009
Amount of
guarantee |
2009
Share,
in % |
| Member country |
|
|
|
|
| Denmark |
70,113 |
23.4% |
70,113 |
23.4% |
| Estonia |
2,190 |
0.7% |
2,190 |
0.7% |
| Finland |
51,377 |
17.1% |
51,377 |
17.1% |
| Iceland |
3,187 |
1.1% |
3,187 |
1.1% |
| Latvia |
3,176 |
1.1% |
3,176 |
1.1% |
| Lithuania |
4,912 |
1.6% |
4,912 |
1.6% |
| Norway |
61,324 |
20.4% |
61,324 |
20.4% |
| Sweden |
103,720 |
34.6% |
103,720 |
34.6% |
| Total |
300,000 |
100.0% |
|
300,000 |
100.0% |
| |
| |
|
|
|
|
|
|
|
|
Nordic Investment Bank – Annual Report 2010
