Global Economic Challenges
The world’s economic challenges certainly did not dissipate in 2012, but the markets in which we operate continued to fare well. Demand for FMO financing was buoyant and we enjoyed a strong year with record volumes of new investments.
Commercial banks in the North and West continue to experience financial turbulence. At the same time, regulatory requirements are pushing up the cost of lending for both commercial and development finance institutions. Persistent global economic uncertainty has fostered a more cautious atmosphere, and even emerging market financial institutions, which have generally been less affected by the crisis, have a smaller appetite for extending credit to companies.
The global economic situation left demand for FMO funding relatively unscathed in 2012. We again achieved most of our targets and key strategic objectives in terms of both financial performance and development impact.