Notes to the consolidated statement of financial position: liabilities

13. Short-term credits

Short-term credits reflect the cash collateral received for derivative contracts held with positive value. Refer also to the section 'Counterparty credit risk' in the 'Risk management' chapter.

14. Current accounts with State funds and other programs (liability)

15. Other financial liabilities

The following table shows the movement on other liabilities measured at fair value through profit or loss:

• 1 Other changes relate to consolidation of FMO's Ventures Program (refer to section Group accounting and consolidation; 'Other financial liabilities' in the accounting policies chapter).

16. Debentures and notes

Debentures and notes include issued debt instruments in various currencies under FMO's debt issuance programs. In addition, a subordinated note of €250 million is also included in the debentures and notes. Under IFRS this note is classified as financial liability, but for regulatory purposes it is considered Tier 2 capital. This note was issued on July 15, 2020 with a maturity date of January 15, 2031. The note is issued at 99.764 percent of the aggregated nominal amount at a fixed coupon rate of 0.625 percent. The note is non-convertible and can be called on first call date after five years till July 15, 2026.

The movements can be summarized as follows:

Line item 'Changes in fair value' represents the fair value changes attributable to the hedge risk in connection with the debentures and notes used for hedge accounting purposes.

The following table summarizes the carrying value of the debentures and notes.

The nominal amounts of the debentures and notes are as follows:

17. Accrued liabilities

18. Other liabilities

• 1 Other liabilities 2022 relates to an outstanding payment for the equity transfer of JSCB Hamkorbank from MASSIF to FMO of €32 million. 

Lease liabilities relate to IFRS 16 leases. For a breakdown of the lease liabilities, refer to the 'Property, plant and equipment' note.

19. Provisions

The amounts recognized in the statement of financial position are as follows.

The movements in allowance for loan commitments and liabilities for guarantees are set out in 'Off-balance sheet information' section.

Pension schemes

FMO’s pension schemes cover all its employees. Up to 2022 the pension schemes were according to defined benefit plans and were mostly based on average-pay-schemes. FMO has a contract with a well-established insurer, by which all nominal pension obligations are guaranteed.

Due to the expiration on December 31, 2021, of FMO's pension agreement and taking into account upcoming changes in regulations impacting defined benefit pension plans, FMO made the decision during 2021 to amend its pension plan for existing and future employees. Starting from January 1, 2022, employees participate in a defined contribution plan. The defined benefit obligation reflects the net pension liability attributable to members of the defined benefit plan that ended on December 31, 2021.

From January 1, 2022, the pension entitlements of existing and future employees accumulate in the new pension plan. Therefore, the present value of future defined benefit obligations relating to the original defined benefit plan were remeasured to account for the migration of entitlements from future contributions into the new plan. In 2021 this resulted in a decrease in the defined benefit obligation from €297,881k to €275,888k. The reduction of €21,993k in the defined benefit obligation was classified as a 'Past service cost' in terms of IAS 19 and resulted in a gain in the statement of profit or loss.

The amounts recognized in the statement of financial position are as follows:

The movements in the present value of the defined benefit obligations can be summarized as follows:

The movements in the fair value of plan assets can be summarized as follows:

The actuarial profit on the pension liability amounts to €1,212 (2021: €12,857 profit). This profit is mainly due to the increase of the discount rate, almost completely offset by the increase of the expected indexations.

No direct asset allocation is held in relation to the new pension insurance contract. Therefore, the fair value of the plan assets can no longer be determined based on a certain asset allocation. Due to this, paragraph 115 of IAS 19 has been applied in estimating the fair value of plan assets based on accrued pension rights and actuarial rates.

The movement in the liability recognized in the statement of financial position is as follows:

The amounts recognized in the statement profit or loss account as net periodic pension cost are as follows:

The principal assumptions used for the purpose of the actuarial valuations at year-end are as follows:

Significant actuarial assumptions are the discount rate and indexation for active participants. Reasonably possible changes to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

Other provisions 

Other provisions mainly consists of legal provisions. 

Legal provisions are based on the assessments of individual uncertain issues and are determined on the best estimate of the individual most likely outcome

20. Shareholders’ equity

Share capital

The authorized capital amounts to €45,380k, consisting of A shares of €22.69 each, which are held by the Dutch Government, and B shares of €22.69 each, which are for held by commercial banks and private investors. The Dutch Government holds 51 percent of the total shares of FMO, while commercial banks and private investors hold the remaining 49 percent . The voting rights for A shares and B shares are equal. In addition, the equity of the company comprises of three reserves, in line with the Agreement State-FMO of November 16, 1998. These are the share premium reserve, the development fund and the contractual reserve. As long as the company continues its activities, these reserves are not available to the shareholders. Upon liquidation of FMO these reserves fall to the Dutch Government, after settlement of the contractual return to the shareholders.

Share premium reserve

Share premium reserve is sole contributed by shareholders of A shares on the transfer to the company of investments administrated on behalf of the Dutch Government at the time of the financial restructuring and amounts to €29,272k (2021: €29,272k).

Contractual reserve

The addition relates to that part of the annual profit that FMO is obliged to reserve under the Agreement State-FMO of November 16, 1998 (see section ‘Additional information’).

Development fund

This special purpose reserve contains the allocation of risk capital provided by the Dutch Government to finance the portfolio of loans and equity investments. 

Fair value reserve

Actuarial result pensions

Translation reserve

Other reserves

Non-controlling interests