Export Credit Norway Q2 2020:

Anticipating the pandemic’s long-term effects

Export Credit Norway registers a good influx of loan applications in the second quarter of 2020 but expects the pandemic to influence negatively in the coming quarters.

17 September 2020 – Export Credit Norway paid out NOK 380 million in new loans in the second quarter of 2020. At the end of the quarter, the company’s loan portfolio totals NOK 67 billion.

As per 30 June 2020, the loans are allocated as follows: Shipping, 68.7 %, Energy and Industry, 26.6 % and Fisheries and Aquaculture, 4.7 %.

Fisheries and aquaculture dominate the quarter

Loans to the fisheries and aquaculture segment represented 92% of the disbursement value for the quarter. The loans for disbursement are dominated by various types of special vessels, as well as equipment for fish farming and cleaning technologies for vessels. Export Credit Norway anticipates more disbursements in fisheries and aquaculture and shipping throughout 2020, but this will of course depend on market developments.

Corona-effect on loan applications

Export Credit Norway received 49 loan applications in the second quarter, compared with 41 applications in the first quarter. The application influx is considered good given the global and national situation the pandemic has created.  The company still stresses that the long-term effects of the pandemic had not still hit in the second quarter.

– The full effect of the pandemic will be visible in the coming quarters. Therefore, we expect that the total amount of applications received in 2020 will be fewer than in 2019, said Otto Søberg, Export Credit Norway’s CEO.

– The pandemic has hit Norwegian export industry hard. The situation is especially difficult for the shipyards and maritime and offshore supply industries, said Søberg.

For the export industry excluding oil and gas, the pandemic and the falling oil price may cause a loss of up to 55 000 jobs by the end of the year*.

– In addition to the threat of significant job losses, the negative consequence of a prolonged pandemic is that important value chains and business ecosystems are shattered. We are facing a highly necessary restructuring of our export-oriented industry, so this is very worrying, both for present and future export businesses, said Søberg.

– Our main mission is to assist the export businesses in handling these challenging times as best they can. We are in close contact with export businesses, banks and industry organisations, and are together with guarantors continuously processing deferment requests to relieve liquidity challenges, said Søberg.

See the Q2 report here

Ellen B. Svaheim
Ellen B. Svaheim Head of Communication +47 482 24 093 +47 482 24 093

Published 18. Sep 2020