negatively by 570 kEUR. A reduction of interest rates would have limited impact. If relevant base interest rates are negative as is currently the case, the bases rates will be deemed to be zero. 2 Trading partner risk Credit risk is the risk of financial losses to the group if a customer or counterparty fails to meet contractual obligations. For Fiven this arises mainly to trade receivables. Trade receivables are generally secured by credit insurance from a reputable credit insurance company. Credit limits for each customer and overdue receivables are monitored and built into the ERP systems and for customers where credit insurance cannot be obtained, other methods are generally used to secure the sales proceeds, such as prepayment or documentary credit. There is a non-recourse factoring agreement for Fiven Norge and Fiven Belgium enabling the two entities to sell up to 90 percent of the total ‘allowable receivables’ to Factofrance. 3 Liquidity Risk Liquidity risk is the risk that the group will encounter difficulty in meeting the obligations associated with its financial liabilities. Fiven is exposed to liquidity risk related to its operations and financing. Fiven’s cash flow will fluctuate due to economic conditions and financial performance. In order to assess its future operational liquidity risk, short-term and long-term cash flow forecasts are provided. The short-term forecast is updated each week, and the long-term cash flow projection is updated as part of the planning cycles. Fiven has a non-recourse factoring facility which allows a funding of up to 90 percent of the total receivables transferred to the factoring company for a total amount not exceeding 13 mEUR for entities in Fiven Norge and Fiven Belgium. As per 31 December 2021, the utilization of the factoring facility was 8.6 mEUR. In Brazil, Fiven has an export credit facility based on confirmed export order intake to finance cost of production. The credit facility is covering up to 174 days, and at the end of December 2021 the total of the facility was 4.8 MEUR. The bond has maturity date 21 June 2024 and the un-secured shareholder loan, 22 June 2024. Trade payables are payable in 2021. The factoring liabilities at 31 December 2021 matures in Q1 2022 and the export credit facility in Brazil in 1H 2022. The bond contains financial covenants further described in note 22 Interest Bearing liabilities. The group is in compliance with all covenants as of the reporting date. Fiven Annual Report 2021 Financial statements 73
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