Notes to the consolidated statement of financial position: liabilities and equity

13. Short-term credits

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

These are current accounts maintained for the State Funds' administration.

15. Dutch government program liabilities

The financial liabilities contained in this note relate to FMO's obligations to the public fund programs managed on behalf of the Dutch Government and amounts payable to the Dutch Government as a part of their participation in the DFCD and Ventures programs. Other additions line item relates to the consolidation of the Land Use Facility (LUF) of the Dutch Fund for Climate Development (DFCD) in 2024 and represents the amounts payable to the Dutch Government as a result of their participation in the program.

FMO applies the net asset value valuation technique as the basis for estimating the fair value of these liabilities. The valuation is based on the underlying assets included in the overall programs' values, which are level 3 inputs.

The movements ‘changes in fair value’ and ‘other changes’ are both reflected in the line item ‘other changes’ in Note 24 'Net result of financial transactions'.

The 'other changes' comprise €12.3 million reduction resulting from the amendment to the AEF agreement with the Dutch State, and a €10.3 million decrease related to movements in the 2025 results of LUF.

16. Debentures and notes

Debentures and notes include senior unsecured and subordinated debt instruments in various currencies issued under FMO's debt issuance programs. FMO issued €300 million of subordinated notes (11NC6) on June 12, 2025, with a maturity date of June 19, 2036, bearing a fixed coupon rate of 3 percent. The notes are non-convertible and can be called on the first call date, June 19, 2031. On July 15, 2025, the first call date, the outstanding €250 million subordinated notes at the time were called after having obtained regulatory approval. Subordinated notes are classified as financial liability under IFRS, but for regulatory purposes considered as Tier 2 capital.

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.

17. Accrued and other liabilities

Lease liabilities relate to IFRS 16 leases. For a breakdown of the lease liabilities, refer to Note 11 - 'Property, plant and equipment'.

Sub‑delegation balances relate to funding received by FMO under sub‑delegation agreements that is in the process of being transferred to the sub‑delegee. The corresponding assets are recognised as part of 'Cash balances with banks'.

In this consolidated financial statements, immaterial presentation revisions have been made to aggregate 'Wage tax liabilities', which were presented separately in the December 31, 2024, consolidated annual financial statements, with 'Accrued and other liabilities'. Furthermore, the financial statements captions 'Accrued liabilities' and 'Other liabilities' which were presented separately in the December 31, 2024, consolidated annual financial statements have now been merged and presented as single financial statements caption in this consolidated financial statements.

18. 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 Note 32 - '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.

The actuarial loss on the pension liability amounts to €0.7 million (2024: €8.4 million profit). This loss is mainly due to the fact that for 2024 the actual indexation granted was higher than expected.

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

In December 2024 the indexation budget for active members with conditional indexation had increased. This resulted in an increase in the indexation assumption for this group and has an increasing impact of €5.5 million on the defined benefit obligation.

No direct asset allocation is held in relation to the 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:

As the principal actuarial assumptions are discount rate and the indexation, it is expected that possible changes to these assumptions, holding other assumptions constant, would affect the defined benefit obligation by the amounts shown below.

European Single Resolution Fund

The European Single Resolution Fund (SRF) was established on 1 January 2016 to support resolution mechanisms in the euro area. FMO is required to contribute annually to the SRF and may do so either by paying the full contribution in cash or by settling 85% in cash and providing the remaining 15% as an irrevocable payment commitment (IPC). Since 2019, FMO has chosen the IPC option.

In February 2024, the Single Resolution Board (SRB) confirmed that the SRF had reached its target level, and no contribution was collected for 2025. The cumulative IPCs provided by FMO amount to EUR 2.946 million, representing the maximum potential loss in the event the SRB executes a call. 

On 13 November 2025, the Court of Justice of the European Union ruled that, when an institution exits the Single Resolution Mechanism following withdrawal of its banking licence, IPCs are cancelled but the obligation to pay the underlying SRF contributions remains. The SRB may therefore retain collateral until the full cash amount is settled. Therefore, the related liability is no longer considered as contingent but as a provision that should be recognised.

As at 31 December 2025, FMO does not anticipate any circumstances that would lead to the withdrawal of its banking licence, an exit from the Single Resolution Mechanism, or the initiation of resolution actions that could trigger additional SRF contribution calls. Given the time value of money and the fact that the SRF has reached its target level, the estimated liability is considered immaterial.

19. 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 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 July 1, 2023. 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 contributed by shareholders 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 (2024: €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 July 1, 2023 (see section ‘Additional information’). The contractual reserve in the consolidated financial statements is a combination of the revaluation reserve and contractual reserve recognised and presented in the Company financial statements, for further information on these, refer to the Note 'F. Shareholders' equity' in the Company financial statements.

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 on defined benefits plans

Translation reserve

Other reserves

Changes due to FOM line item relates to the liquidation of FOM and the subsequent distribution made to the Dutch Government in 2024.