Chairman of the Board of Governors: NIB's fundamentals are solid
The Nordic and Baltic countries welcome the outcome of NIB’s strategy review which shows that the fundamentals of the Bank are solid, says Antti Rinne, Finland’s Minister of Finance and Chairman of the Bank’s Board of Governors (until 29 May 2015), in an interview with the NIB Newsletter. It is important that the Bank is developing its activities in order to have flexibility and to stay relevant for its owner countries.
How would you evaluate NIB’s results in 2014?
“NIB’s results show that the fundamentals of the Bank are right. We see that the projects that NIB is financing bring added value to our region. The financial results are strong, and the EUR 210 million profit allows for a dividend of EUR 55 million to be paid to the member countries.”
How do you see the economic outlook for the Nordic–Baltic countries?
“The real GDP growth for the region will be somewhat below 2 per cent this year and slightly above that next year. So the growth is gradually picking up. This year the strongest performances in the 2–3 per cent range are expected to come from Sweden, Iceland, and the Baltics. Meanwhile, Denmark and Norway look set to grow by 1–2 per cent this year, although on different sides of the cycle. Growth in Finland is expected to remain very modest, below 1 per cent.
So the economic outlook is soft, gradually picking up, but it varies quite a bit across the NB8.”
The Bank has conducted a thorough strategy review. What are your thoughts on the outcome?
“It is very important for every institution to review its strategy from time to time. For me, the conclusions show that the fundamentals of NIB are solid. At the same time, the Bank is developing its activities in order to have flexibility and to stay relevant for its owner countries.
The increased flexibility in lending for SMEs and mid-caps is highly welcomed. It is also wise to look at ways of supporting Nordic–Baltic companies outside our member countries. More focus on opportunities related to member country integration, Baltic investments and Arctic region projects are also welcome.”
The Board also considered the capital situation of the Bank. What is your assessment today?
“Our conclusion today is clear: the Bank’s capital situation is robust and it supports the new initiatives outlined in the strategy review.”
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