At its meeting on 12 June 2024, the Government of the Slovak Republic approved the contribution of state financial assets in the amount of EUR 250 million to the share capital of EXIMBANKA SR and the strengthening of the Guarantee Fund and the Non-Tradable Risk Coverage Fund by means of the reduction of its share capital. The capital strengthening of EXIMBANKA SR is in line with the ambition to grow its business and equity exposure.
The increase in Eximbanka’s capital reflects the expected trend of continued growth in direct financing through direct export and import credits, an increase in bank guarantees issued and an increase in insurance exposure from both marketable and non-marketable risk insurance. The increase in Eximbanka’s capital has been assessed by the Value for Money Unit and is in line with the Government’s programme statement, as export growth and participation of Slovak companies in foreign consortia are among the key priorities of Slovakia’s foreign policy.
“The increase of our share capital, in accordance with the Government’s programme declaration, reflects the current situation and upcoming trends in international trade, as well as the Slovak Government’s ambition to strengthen Slovakia’s economic diplomacy, of which Eximbanka is an important part. At the same time, the complementary function of Eximbanka in relation to the commercial financial sector will be strengthened,” said Rastislav Podhorec, CEO of Eximbanka.
The capital increase of Eximbanka will have a positive impact on strengthening its business activities not only in 2024 but also in the following periods, especially in the area of issuing bank guarantees (increasing the guarantee capacity of the Guarantee Fund) and granting new loans. Eximbanka will be able to support more significant projects and thus contribute significantly to the competitiveness of Slovak exports.
Eximbanka supported, through its banking and insurance activities, exports totalling EUR 454.4 million in Q1 2024 and EUR 1 540.0 million in 2023. Eximbank’s equity exposure (sum of banking and insurance exposure) thus reached EUR 1 140.8 million in 2023 and rose to EUR 1 155.2 million as at 31 March 2024, one of the highest values during its existence.
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ABOUT EXIMBANK SR
As the only direct instrument of the state for financing exports, EXIMBANKA SR is an important part of the chain responsible for the promotion of the country’s economic policy in the field of external economic relations. It is an important instrument of state support for exports in the field of financing, provision of guarantees and insurance of credit risks. It offers a wide range of export-related financial products, in particular credit insurance, financing and guarantees. As a state export credit agency, it enables Slovak exporters to enter into trade and investment relations where the commercial financial sector is less interested in taking on risk and therefore performs a complementary function.
Photo source: Eximbanka