Additional contribution from the State to help Finnvera provide financing for starting enterprises and growth enterprises

On 16 December 2004, the Government of Finland decided to continue the disbursement of interest support on regional and industrial policy grounds to SMEs and to compensate Finnvera for a certain share of its credit and guarantee losses. The State renewed its commitment until the end of 2006, when the European Union’s current structural fund programme will come to an end.

The most important new feature in the commitment is an increment in the compensation paid by the State for losses associated with starting enterprises and growth enterprises. Thus, Finnvera can take considerably higher risks in the financing of these enterprises and can promote the establishment and growth of starting innovative enterprises in line with the government’s industrial policy goals.

Interest support and partial compensation for losses are measures whereby the government promotes the operations of small and medium-sized enterprises through Finnvera’s financing schemes. The Government’s budget proposal for 2005 includes an appropriation of EUR 17.3 million for interest support and an appropriation of EUR 22.2 million for compensations for credit and guarantee losses. This input makes it possible for Finnvera to grant approximately EUR 760 million in loans and guarantees to SMEs during 2005.

Finnvera’s target for next year is to provide financing for about 3,000 starting enterprises and for about 1,000 growth enterprises. An estimated 10,000 new jobs will be created in these projects eligible for financial support.

For further information:

Markku Mäkinen, Managing Director, tel. +358 20 460 7321
Veijo Ojala, Director, Field Operations, tel. +358 20 460 7405