Off-balance sheet information

32. 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.

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 and other contingent liabilities issued by FMO and the amount of guarantees received by FMO is as follows:

	2025	2024

Contingent liabilities
Effective guarantees issued	218,713	193,176
Total guarantees issued	218,713	193,176
Other contingent liabilites	8,631	-
Total contingent liabilities	227,344	193,176

Effective guarantees received	-593,540	-503,519
Total guarantees received	-593,540	-503,519

FMO has recorded a contingent tax liability of €8.6 million (December 31, 2024: €0 million) for possible additional tax payments arising from treatments currently under consideration with tax authorities.

Nominal amounts for irrevocable facilities are as follows:

		2025	2024
Contractual commitments for disbursements of:
ˑ	Loans	1,070,630	923,553
ˑ	Equity investments and associates	740,023	980,534
ˑ	Contractual commitments for financial guarantees given	119,120	263,172
Total irrevocable facilities		1,929,773	2,167,259

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

Movement financial guarantees in 2025

	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, 2025	401,176	-1,137	30,619	-296	24,553	-1,386	456,348	-2,819
Additions	82,950	-165	-	-	-	-	82,950	-165
Exposures matured (excluding write-offs)	-125,982	351	-943	468	-4,093	1,031	-131,018	1,850
Transfers to Stage 1	17,999	-1,128	-2,117	-	-15,882	1,128	-	-
Transfers to Stage 2	-18,120	27	18,120	-27	-	-	-	-
Transfers to Stage 3	-	-	-	-	-	-	-	-
Changes to models and inputs used for ECL calculations	-	1,709	-	-1,340	-	-1,447	-	-1,078
Foreign exchange adjustments	-64,296	93	-5,450	52	-701	141	-70,447	286
Balance at December 31, 2025	293,727	-250	40,229	-1,143	3,877	-533	337,833	-1,926

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

Financial guarantees represent €219m (2024: €193m) classified as contingent liabilities and €119m (2024: €263m) classified as irrevocable facilities.

Movement of loan commitments and ECL allowances in 2025

	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, 2025	671,697	-4,742	101,147	-5,443	7,388	-397	780,232	-10,582
Additions	3,422,540	-9,213	41,910	-568	-	-	3,464,450	-9,781
Exposures derecognized or matured (excluding write-offs)	-3,109,745	8,955	-56,165	506	-412	-	-3,166,322	9,461
Transfers to Stage 1	-	-	-	-	-	-	-	-
Transfers to Stage 2	-54,832	1,104	54,832	-1,104	-	-	-	-
Transfers to Stage 3	-	-	-9,092	419	9,092	-419	-	-
Changes to models and inputs used for ECL calculations	-	467	-	-1,073	-	37	-	-569
Consolidation of group entities	-	-	-	-	-	-	-	-
Changes due to modifications not resulting in derecognition	-	-	-	-	13	-	13	-
Amounts written off	-	-	-	-	-	-	-	-
Foreign exchange adjustments	-65,120	316	-15,332	677	-1,894	203	-82,346	1,196
Balance at December 31, 2025	864,540	-3,113	117,300	-6,586	14,187	-576	996,027	-10,275

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