Changing the functional currency for IFRS reporting from CHF to EUR

Following the provisions of the International Financial Reporting Standards (IFRS) EUROFIMA has changed its functional currency from Swiss Francs (CHF) to Euro (EUR) as of 1^st October 2019. The rate for translating its balance sheet from CHF to EUR has been fixed at EUR/CHF 1.08638.

The IFRS foresee in their relevant provisions (IAS 21) that the functional currency of a company is determined by the primary economic environment in which the company operates. In 2019, the Management of EUROFIMA indicated that the market environment in which EUROFIMA operates has changed since the introduction of IFRS in the year 2013 and that going forward EUR will be the functional currency used by EUROFIMA.

The change has been triggered by the following determining factors:

• Current lending activities are predominantly done with railways in Eurozone countries.
• Under its new strategy, EUROFIMA anticipates that further liberalization in the EU passenger railway markets will create further opportunities to win new shareholders and customers in Eurozone countries.

New strategy of EUROFIMA

In October 2018 EUROFIMA announced amendments to its Statutes which have opened the supranational organization for new shareholders and customers. Additionally, to the national railways of the EUROFIMA Contracting States, going forward railway authorities, railway infrastructure managers, and private railway operators that are subject to public service obligations will be invited to become shareholders of EUROFIMA in order to benefit from its advantageous financing terms.

EUROFIMA is now looking forward to intensifying its lending business with current shareholders and new shareholders from all over Europe.