SIFEM: Investments create jobs in emerging markets
Bern, 06.05.2015 - The Swiss Confederation, the owner of SIFEM (Swiss Investment Fund for Emerging Markets), approved the annual report and the audited financial statements 2014 at the General Meeting on May 6, 2015. At the beginning of the period 2014-2017, SIFEM is basically on track.
SIFEM is the development finance institution of the Swiss Confederation. In the scope of the Swiss Confederation’s development cooperation, it is the most important instrument for funding companies in the partner countries, and creating and sustaining desperately needed employment. More than 290,000 employees are employed by the companies funded by SIFEM in the target countries. Only a company that is financially sustainable, promotes good working conditions, respects the international social, environment and governance standards, and supports the development of the private sector in their community, will be considered for an investment. SIFEM currently funds around 372 companies.
The conditions for SIFEM’s activities in 2014 were challenging, especially due to the impact of the exchange rate on the financial results as well as the difficult situation in some target countries (e.g. Ukraine, Western Balkans). Exchange rate gains caused, for the first time, a net profit of CHF 20.7 m. However, the operating result of CHF -13.4 m is unsatisfactory. The main reason is the loss of CH 8.6 m on the investment portfolio. It suffered under the devaluation of local currencies against the US dollar, which was in excess of the portfolio value increase. SIFEM's board decided to hedge the investments partially against volatile currency exchange rates.
The Annual Report 2014 of SIFEM provides more information about the business year and the financial report. It can be ordered on www.sifem.ch.
Address for enquiries
State Secretariat for Economic Affairs SECO
Holzikofenweg 36
CH-3003 Bern
Tel. +41 58 462 56 56
medien@seco.admin.ch
Links
Publisher
State Secretariat for Economic Affairs
http://www.seco.admin.ch
