Finnvera plc will start financing export credits at the beginning of 2012. The objective of the new export financing model is to ensure the competitiveness of Finnish exporters. The model is intended for the arrangement of financing for foreign customers who purchase Finnish capital goods. The President of the Republic of Finland approved the bills concerning the model on 29 December 2011.
Finnvera acquires the funds needed for export credits by issuing debt instruments and commercial papers guaranteed by the State of Finland. Finnvera grants the credits through its subsidiary, Finnish Export Credit Ltd.
“In the increasingly challenging market environment, it is highly important to ensure the competitive standing of Finnish exporters. The export credit transfer model that is now available for Finnish exporters has already been applied in our principal competitor countries for providing long-term financing for buyers of capital goods. The new system will level the playing field between Finnish exporters and their foreign competitors,” says Executive Vice President Topi Vesteri, responsible for export financing at Finnvera.
In trade negotiations, a Finnish exporter can inform the buyer of Finnvera’s guarantee and buyer credit services, thereby making it easier to complete the export transaction. The application for financing export credits must be submitted to Finnvera before the sales contract is signed.
Banks continue to have an important role in the arrangement of financing for export transactions because the bank negotiates the terms of the buyer credit and administrates the credit. The bank selected by the buyer arranges a long-term export credit on the OECD terms, which can then be transferred to Finnish Export Credit for financing. The buyer credit arrangement is always backed by Finnvera’s export credit guarantee. Finnvera makes the decisions on export credits and export credit guarantees in accordance with its normal criteria.
As of the beginning of 2012, Finnvera’s Export Financing Unit will serve as the ‘onestop shop’ for all export financing services provided by Finnvera and the Finnish Export Credit.
Topi Vesteri, Executive Vice President, Finnvera, tel. +358 400 702 002
Pauli Heikkilä, Managing Director, Finnvera, tel. +358 20 460 7321
Anita Muona, Managing Director, Finnish Export Credit, tel. +358 40 706 7138