Notes to the consolidated balance sheet: liabilities

13. Short-term credits

Short-term credits reflect the cash collateral received for derivative contracts we held with positive value. Refer also to the section 'Counterparty credit risk' in the Risk Management chapter.

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

15. Debentures and notes

Debentures and notes includes issued debt instruments in various currencies under FMO's Debt Issuance Programmes. In addition, a subordinated note of €250 million is also included in the Debenture and Notes. Under IFRS this note is classified as financial liability, but for regulatory purposes it is considered as Tier 2 capital. This note was issued on July 15, 2020 with a maturity date of January 15, 2031. The note is issued at 99.764% of the aggregated nominal amount at a fixed coupon rate of 0.625%. The note is non-convertible and can be called on first call date after five years till July 15, 2026.

The movements can be summarized as follows:

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.

The following table summarizes the carrying value of the debentures and notes.

The nominal amounts of the debentures and notes are as follows:

16. Accrued liabilities

17. Other liabilities

Lease liabilities arise from IFRS 16 leases. For a breakdown of the lease liabilities, reference is made to Note 'Property, Plant and Equipment'

18. Provisions

The amounts recognized in the balance sheet are as follows.

The movements in allowance for loan commitments and liabilities for guarantees are set out in 'Off - balance sheet information' section.

Pension schemes

FMO’s pension schemes cover all its employees. The pension schemes are defined benefit plans and are mostly based on average-pay-schemes. FMO has a contract with a well established insurer, in which all nominal pension obligations are guaranteed. 

Due to the expiration on December 31, 2021 of FMO's existing pension agreement, and taking into account upcoming changes in regulations impacting defined benefit pension plans, FMO made the decision during 2021 to amend its current pension plan for existing and future employees. All relevant approvals for the amendment took place in 2021 and the existing defined benefit pension plan will be curtailed such that contributions under the plan will cease from December 31, 2021 and employees will participate in a defined contribution plan from January 1, 2022. The current defined benefit plan will continue to exist in order to reflect the net pension liability attributable to members of the plan on December 31, 2021.

From January 1, 2022 the pension entitlements of existing and future employees will accumulate in the new pension plan. Therefore the present value of future defined benefit obligations relating to the existing plan are remeasured to account for the migration of entitlements from future contributions into the new plan. This results in a decrease in the defined benefit obligation from €297,881k to €275,888k. The reduction of €21,993k in the defined benefit obligation is classified as a "past service cost" in terms of IAS 19 but results in a gain in profit and loss. The quantitative impact is illustrated in the movement schedule for the defined benefit obligation below.

The amounts recognized in the balance sheet are as follows:

The movements in the present value of the defined benefit obligations can be summarized as follows:

The movements in the fair value of plan assets can be summarized as follows:

The actuarial profit on the pension liability amounts to €12,857k (2020: €5,027k loss) and is mainly due to the decrease of the expected indexation for active participants and the increase of the discount rate.

No direct asset allocation is held in relation to the new 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 balance sheet is as follows:

The amounts recognized in the profit and 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:

The assumption for future salary growth is a range of percentages which are based on the age of individual employees. The pension indexation is conditional.

Significant actuarial assumptions are the discount rate, indexation for active participants and (general) wage inflation. Reasonably possible changes to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

Other provisions 

Other provisions include mainly legal provisions. The KYC provision recognized in 2020 has been utilized during 2021.

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 as well, which are for held by commercial banks and private investors. The Dutch Government holds 51% of the total shares of FMO, while commercial banks and private investors hold the remaining 49%. The voting rights for A shares and B shares are equal. In addition, the equity of the company comprises of three reserves, which result from the Agreement State-FMO of November 16, 1998. 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 sole contributed by Shareholders of A shares 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 (2020: €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 November 16, 1998 (see section ‘additional information’).

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 pensions

Translation reserve

Other reserves

Non-controlling interests