Henrik Sass Larsen: Economic recovery an opportunity for NIB to expand and reach out to SMEs

NIB should see the recovery of the European economy as an opportunity to expand its business, says Henrik Sass Larsen, Minister for Business and Growth of Denmark and Chairman of the Bank’s Board of Governors in 2013–2014, in an interview with the NIB Newsletter. He encourages the Bank to increase cooperation with regular banks in order to reach out to the SME market in the Nordic–Baltic countries.

How would you evaluate NIB’s results in 2013?

“The Bank’s results for 2013 are very satisfying, especially when you consider the less favourable investment climate in 2013.

“The strong balance sheet with a high asset quality is a guaranty for NIB’s AAA rating with stable outlook. The triple-A rating is crucial for the whole business model of the bank and it secures loans on favourable conditions for NIB’s customers.

“It’s good to see that the efforts of both staff and management over the past year have paid off with NIB delivering a fine financial result. This gives us a good indication that NIB is run efficiently, which is a prerequisite for the Bank to deliver high value added to its customers.”

How do you see the economic outlook for the Nordic-Baltic countries?

“There are clear signs that a more lasting recovery is now taking place in both the Nordic–Baltic region and the EU. Hopefully, this will result in a better climate for doing business, particularly in the NIB countries, since most of the Nordic–Baltic countries expect higher GDP growth rates in 2014 and 2015 than the average for the EU.”

Do you think NIB needs to increase its impact on the economy of the member countries?

“NIB should see the starting recovery of the European economy as an opportunity to expand its business – of course with due consideration being given to the quality of the individual projects.

“If Nordic–Baltic companies are to take full advantage of the economic upswing, they must be able to finance necessary investments.

“Our businesses need to increase their research and development efforts, and this might be an interesting field for NIB to develop further.

“The value added created by loans from NIB is helping to improve the competitiveness of Nordic–Baltic enterprises. In the end, this will mean higher growth and lower unemployment rates in the member countries. Therefore an increase in NIB’s activities in the member countries is always welcome.”

What could make NIB’s services even more relevant in Denmark? What specific areas or ways of cooperation would be most relevant for the Bank to focus on and add even more value?

“Many Danish businesses, and particularly small and medium-sized enterprises, will need to invest in new technology to increase efficiency and sustainability of their production in the coming years. This is an area where NIB could contribute with significant value added due to the long-term financing the Bank can supply.

“It would be interesting for the Bank to look further into how it can reach a larger share of the SME market in Denmark—and the other Nordic–Baltic countries—for instance by strengthening its cooperation with regular banks, since they are often the financial entry point for SMEs.

“Another area worth mentioning is activities in the North Atlantic and Arctic regions. These areas often pose many challenges for doing business in regard to business opportunities, available infrastructure and environmental impact. An increased presence of NIB in these areas will be welcomed. NIB will be able to deliver high value added to good projects in these regions, both by delivering long-term financing and by setting high environmental standards.”

What do the owner countries expect from NIB in 2014?

“I expect that the good results from 2012 and 2013 will continue, also in 2014. And hopefully the beginning recovery of the European economy means that there will be more good projects for NIB to finance in the coming years.

“If Nordic–Baltic companies are to take full advantage of economic upswing, they must be able to finance necessary investments aimed at increasing innovation, production and, in the end, competitiveness. This is necessary for them to be able to develop new business opportunities and markets. Here, NIB can play a crucial role in delivering long-term financing, which is not always readily available in the market.

“Thanks to the dedication of both the staff and management of NIB, I consider these goals for 2014 to be a realistic scenario.”