Off-balance sheet information

34. Irrevocable and contingent liabilities

To meet the financial needs of borrowers, FMO enters into various irrevocable commitments (loan commitments, equity commitments and guarantee commitments) and contingent liabilities. These contingent liabilities consist of financial guarantees, which oblige FMO to make payments on behalf of the borrowers in case the borrower fails to fulfill payment obligations. Though these obligations are not recognized on the statement of financial position, they are subject to credit risk similar to loans to the private sector. Therefore, provisions are calculated for financial guarantees and loan commitments according to the ECL measurement methodology.

Furthermore, the contingencies include an irrevocable payment commitment (IPC) to the Single Resolution Board (SRB) in Brussels. In April 2016, the SRB provided credit institutions with the option to fulfill part of their obligation to pay the annual ex-ante contributions to the Single Resolution Fund through IPCs.

Moreover, FMO receives guarantees from various guarantors, which participate in the risk FMO takes. For more details refer to section 'Credit risk' within the 'Risk management' chapter.

The outstanding amount for financial guarantees issued by FMO and the amount of guarantees received by FMO is as follows:

	2024	2023

Contingent liabilities
Encumbered funds (Single Resolution Fund)	2,946	2,946
Effective guarantees issued	193,176	154,675
Total guarantees issued	196,122	157,621

Effective guarantees received	-503,519	-403,008
Total guarantees received	-503,519	-403,008

Nominal amounts for irrevocable facilities are as follows:

		2024	2023

Irrevocable facilities
Contractual commitments for disbursements of:
ˑ	Loans	923,553	751,393
ˑ	Equity investments and associates	980,534	875,906
ˑ	Contractual commitments for financial guarantees given	263,172	195,733
Total irrevocable facilities		2,167,259	1,823,032

The movement in exposure for the financial guarantees issued (including contractual commitments) and ECL allowance is as follows:

Movement financial guarantees in 2024

	Stage 1		Stage 2		Stage 3		Total
	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance
Balance at January 1, 2024	303,741	-935	20,853	-507	25,814	-9,837	350,408	-11,279
Additions	240,775	-993	-	-	-	-	240,775	-993
Exposures matured (excluding write-offs)	-97,542	533	-20,681	557	-40,973	7,589	-159,196	8,679
Transfers to Stage 1	-	-	-	-	-	-	-	-
Transfers to Stage 2	-26,673	160	26,673	-160	-	-	-	-
Transfers to Stage 3	-29,782	148	-	-	29,782	-148	-	-
Changes to models and inputs used for ECL calculations	-	-33	-	-82	-	1,334	-	1,219
Foreign exchange adjustments	10,657	-17	3,774	-104	9,930	-324	24,361	-445
Balance at December 31, 2024	401,176	-1,137	30,619	-296	24,553	-1,386	456,348	-2,819

	Stage 1		Stage 2		Stage 3		Total
	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance	Outstanding exposure/Nominal amount	ECL allowance
Balance at January 1, 2023	305,172	-1,314	-	-	14,023	-10,717	319,195	-12,031
Additions	193,805	-1,084	978	-3	-	-	194,783	-1,087
Exposures matured (excluding write-offs)	-112,260	515	-16,376	28	-	-	-128,636	543
Transfers to Stage 1	-	-	-	-	-	-	-	-
Transfers to Stage 2	-42,260	210	42,260	-210	-	-	-	-
Transfers to Stage 3	-8,414	29	-	-	8,414	-29	-	-
Changes to models and inputs used for ECL calculations	-	540	-	-327	4,255	580	4,255	793
Foreign exchange adjustments	-32,302	169	-6,009	5	-878	329	-39,189	503
Balance at December 31, 2023	303,741	-935	20,853	-507	25,814	-9,837	350,408	-11,279

Financial guarantees represent €193m (2023: €154m) classified as contingent liabilities and €263m (2023: €196m) classified as irrevocable facilities.

Movement of loan commitments and ECL allowances in 2024

	Stage 1		Stage 2		Stage 3		Total
	Nominal amount	ECL allowance	Nominal amount	ECL allowance	Nominal amount	ECL allowance	Nominal amount	ECL allowance
Balance at January 1, 2024	565,739	-3,092	126,642	-6,457	4,509	-	696,890	-9,549
Additions	3,290,691	-7,358	-	-	-	-	3,290,691	-7,358
Exposures derecognized or matured (excluding write-offs)	-3,220,099	6,108	-41,814	4,148	-4,293	-	-3,266,206	10,256
Transfers to Stage 1	9,390	-421	-9,390	421	-	-	-	-
Transfers to Stage 2	-25,181	267	25,181	-267	-	-	-	-
Transfers to Stage 3	-	-	-6,510	510	6,510	-510	-	-
Changes to models and inputs used for ECL calculations	-	88	-	-3,280	-	133	-	-3,059
Consolidation of group entities	15,823	-135	-	-	-	-	15,823	-135
Changes due to modifications not resulting in derecognition	-	-	-	-	-	-	-	-
Amounts written off	-	-	-	-	-	-	-	-
Foreign exchange adjustments	35,334	-199	7,038	-518	662	-20	43,034	-737
Balance at December 31, 2024	671,697	-4,742	101,147	-5,443	7,388	-397	780,232	-10,582

	Stage 1		Stage 2		Stage 3		Total
	Nominal amount	ECL allowance	Nominal amount	ECL allowance	Nominal amount	ECL allowance	Nominal amount	ECL allowance
Balance at January 1, 2023	426,057	-2,387	127,071	-6,185	5,504	-	558,632	-8,572
Additions	2,043,510	-5,183	13,665	-994	-	-	2,057,175	-6,177
Exposures derecognized or matured (excluding write-offs)	-1,831,516	3,778	-65,547	5,709	-1,176	-	-1,898,239	9,487
Transfers to Stage 1	-	-	-	-	-	-	-	-
Transfers to Stage 2	-56,473	484	56,473	-484	-	-	-	-
Transfers to Stage 3	-	-	-394	-	394	-	-	-
Changes to models and inputs used for ECL calculations	-	134	-	-4,704	-	-	-	-4,570
Changes due to modifications not resulting in derecognition	-	-	-	-	-	-	-	-
Amounts written off	-	-	-	-	-	-	-	-
Foreign exchange adjustments	-15,839	82	-4,626	201	-213	-	-20,678	283
Balance at December 31, 2023	565,739	-3,092	126,642	-6,457	4,509	-	696,890	-9,549