ALMI presentation

1
From idea to profitable enterprise

Global crisis impact on SME financing A Swedish
perspective
Anna Hallberg dep. CEO, ALMI Sweden Turin Round
Table 25-26 March, 2009
2
Swedish economy and the credit market

• GDP declined 4,9 in Q4 2008
• Unemployment expected to rise significantly
• Sharp decline in umber of newly started
  enterprises
• Bankruptcies increase rapidly
• Credit spreads widened
• Avaliability of credit an issue despite
  relatively stable banking system

3
Impact on Swedish SMEs

• Rapidly falling revenues
• Customer payments delays and pressure on sales
  financing
• Tighter lending conditions and increased cost
• Local banks unable to pick-up sizable foreign
  banks retrenchment from marketplace
• Raising equity from difficult to in many cases
  impossible
• Dependence on cars trucks industry ? sub
  contractors

? Liquidity crisis for many SMEs
4
Measures taken by Swedish Government

• Capital injection in to SME development bank,
  ALMI
• Intra year tax credits
• Export credit facilitation
• Business development programs to prioritised
  client segments
• Private equity fund sponsorship
• Dedicated RD support package to car truck
  industry
• Guarantee and Capital program to private banks

5
Impact on the Swedish development bank, ALMI

• Capital injection increased lending capacity by
  50
• Lending demand more than doubled
• New client segment added upper tier SMEs
• Higher average loan volume
• Increased number of rejections risk migration
• Increased number to credit risk control
• Co operation with private banks is key club
  deals

6
Major actions and challenges 2009/2010

• Key principles
• Sound lending practice sustainable business
  plans
• NOT subsidies
• Ensure private banks co- participation and
  involvement in every deal

• Combine financing with long term business
  development advisory
• Encourage establishment of new enterprises
• Need for widened scope to also include larger
  companies

7
Thank you for your kind attention!