With the consent of the Cabinet Committee on Economic Policy of the Government of Finland, Finnvera and Kvaerner Masa-Yards, and its parent company Aker Kvaerner ASA, have concluded an agreement which will ensure that Kvaerner Masa-Yards can be granted guarantees independently of its Norwegian parent company until the end of 2010.
Through this frame agreement, Finnvera will grant Masa-Yards guarantees that will help the company to conduct negotiations about new orders on the highly competitive international shipbuilding market. With the consent of the Cabinet Committee on Economic Policy, Finnvera was able to agree on exceptionally extensive guarantee arrangements in view of Finnvera's operating capacity.
The commitments associated with these arrangements will come into effect if the Finnish shipyard secures new shipbuilding orders. The maximum sum of the guarantees to be granted by Finnvera will depend on the value of the future orders. The total value of the commitments included in the pre-delivery guarantee scheme needed for shipbuilding may rise to nearly 1,000 million euros. Guarantees will be granted separately for each individual project.
The total value of post-delivery financing, i.e. Finnvera's Buyer Credit Guarantees, will depend on the value of the forthcoming orders and on the need of the potential buyers to acquire ECA (Export Credit Agency) backed financing. Buyer Credit Guarantees will cover risks arising from the shipping companies having placed orders for ships. In all, it is estimated that the value of the commitments pertaining to Buyer Credit Guarantees may rise to nearly 1,500 million euros.
Finnvera's export credit guarantee operations are based on the Act on the State's Export Credit Guarantees. The Act has been subject to the appropriate notification procedure within the European Union. Any guarantees coming under the scope of this arrangement will be granted on commercial grounds. The guarantees granted by Finnvera will not include any aid elements.
Markku Mäkinen, Managing Director, tel. +358 20 460 7321
Topi Vesteri, Director, Major Customers and Export Credit Guarantees, tel. +358 20 460 7238