Finnvera plc has decided to merge its subsidiaries Fide Ltd and Finnish Export Credit Ltd, both of which provide services for the financing of exports. The companies’ Boards of Directors have approved the plan for the merger, which is expected to come into effect on 31 December 2004. Even before the actual merger takes place, operations of the companies will be combined.
Finnish Export Credit Ltd became subsidiary of Finnvera on 5 May 2004. Fide Ltd has been Finnvera’s subsidiary for a longer time.
For its own part, Finnish Export Credit Ltd works to ensure a competitive system of export financing together with Finnvera plc, which grants state supported export credit guarantees. Finnish Export Credit Ltd does not compete with commercial banks. Neutrality in terms of competition is also an operating principle of both Fide and Finnvera.
The export credits channelled by Finnish Export Credit Ltd are competitive in countries with which Finland has concluded tax treaties by virtue of which interest on these officially supported export credits is exempt from withholding tax. Interest equalization offered by Fide Ltd and, as of the beginning of 2005, by Finnish Export Credit Ltd enables the provision of competitive fixed-interest export credits complying with OECD terms.
By means of export credit guarantees, Finnvera guarantees political and commercial risks associated with exports credits.
Finnish Export Credit Ltd and the company’s Managing Director Matti Virtanen agreed on 4 June 2004 that Virtanen will resign from his post as Managing Director. As of 7 June 2004, until the implementation of the merger, the acting Managing Director is Mikael Nordgren, MBA.
For further information:
Director, Chairman of the Board of Finnish Export Credit Ltd, Topi Vesteri, Finnvera plc, tel. +358 20 460 7238 or +358 400 702 002