17 Commitments 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.

FMO also receives guarantees from various guarantors, which participate in the risk FMO takes. These guarantees are presented as 'Effective guarantees received' in the table below.

Other contingent liabilities of €13.4 million (December 31, 2025: €8.6 million) have been recognized in respect of potential additional tax payments arising from treatments currently under consideration with tax authorities.

The outstanding amount for financial guarantees (issued and received) and other contingent liabilities recorded by FMO are as follows:

June 30, 2026

December 31, 2025

Contingent liabilities

Effective guarantees issued

217,389

218,713

Other contingent liabilities

13,440

8,631

Total contingent liabilities

230,829

227,344

Effective guarantees received

-613,568

-593,540

Nominal amounts for irrevocable facilities is as follows:

June 30, 2026

December 31, 2025

Contractual commitments for disbursements of:

- Loans

1,043,539

1,070,630

- Equity investments and associates

869,978

740,023

- Contractual commitments for financial guarantees given

111,978

119,120

Total irrevocable facilities

2,025,495

1,929,773

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

Movement financial guarantees in 2026

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, 2026

293,727

-250

40,229

-1,143

3,877

-533

337,833

-1,926

Additions

25,718

-49

-

-

-

-

25,718

-49

Exposures matured (excluding write-offs)

-42,650

515

-2,484

516

-323

219

-45,457

1,250

Transfers to Stage 1

23,097

-305

-23,097

305

-

-

-

-

Transfers to Stage 2

-

-

-

-

-

-

-

-

Transfers to Stage 3

-1,755

1

-

-

1,755

-1

-

-

Changes to models and inputs used for ECL calculations

-

-68

-

-449

-

155

-

-362

Foreign exchange adjustments

10,711

-16

413

-29

150

-17

11,274

-62

Balance at June 30, 2026

308,848

-172

15,061

-800

5,459

-177

329,368

-1,149

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

Financial guarantees represent €217 million (2025: €219 million) classified as contingent liabilities and €112 million (2025: €119 million) classified as irrevocable facilities.

Movement of loan commitments in 2026

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, 2026

864,540

-3,113

117,300

-6,586

14,187

-576

996,027

-10,275

Additions

906,559

-2,354

12,833

-21

1,627

-

921,019

-2,375

Exposures derecognized or matured (excluding write-offs)

-978,046

2,341

-3,032

72

-

-

-981,078

2,413

Transfers to Stage 1

37,836

-883

-37,836

883

-

-

-

-

Transfers to Stage 2

-19,023

45

19,023

-45

-

-

-

-

Transfers to Stage 3

-

-

-

-

-

-

-

-

Changes to models and inputs used for ECL calculations

-

1,082

-

-2,775

-

-

-

-1,693

Changes due to modifications not resulting in derecognition

-

-

-

-

-

-

-

-

Amounts written off

-

-

-

-

-

-

-

-

Foreign exchange adjustments

19,517

-70

2,864

-163

372

-16

22,753

-249

Balance at June 30, 2026

831,383

-2,952

111,152

-8,635

16,186

-592

958,721

-12,179

Movement of loan commitments 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

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