Financing operations

Key information about Finnvera's financing

By providing financing, Finnvera influences the competitiveness of Finnish enterprises - their opportunities to operate and grow in Finland and to enter international markets. Finnvera can provide financing for most sectors.

Finnvera enables comprehensive financing solutions that encompass the Finnvera Group's own products and the services offered by other public and private financiers.

Financing and outstanding commitments by business units

Offered financing (EUR bn)	2022	2021	2020	2019	2018
Domestic financing*	1.3	1.7	1.7	1.0	0.9
Export financing**	5.7	4.3	2.9	5.2	3.0
Total	6.9	6.1	4.6	6.2	3.9

* Includes Loans, Guarantees, Export Guarantees and Export Credit Guarantees for SMEs
**Includes Export Credit Guarantees and Special Guarantees

Outstanding commitments (EUR bn)	12/2022	12/2021	12/2020	12/2019	12/2018
Domestic financing*	2.8	3.1	2.9	2.3	2.3
Export financing**	23.5	22.2	22.0	25.2	23.3
Total	26.3	25.3	24.9	27.4	25.6

* Includes Loans, Guarantees, Export Guarantees and Export Credit Guarantees for SMEs as well as guarantee and export guarantee receivables
**Includes Export Credit Guarantees and Special Guarantees

Domestic financing granted, by sector	2022		2021		2020		2019
	Meur	%	Meur	%	Meur	%	Meur	%
Industry	616	54	1,055	64	787	49	526	57
Services to business	251	22	312	19	359	22	190	21
Trade and consumer services	206	18	174	11	266	17	143	15
Tourism	52	5	92	6	174	11	55	6
Rural trades	13	1	19	1	22	1	12	1
Total	1,139	100	1,651	100	1,608	100	925	100

Additional information

Links and attachments

Financial reports and reviews

Finnvera Group’s Report of the Board of Directors and Financial Statements (PDF)

Finnvera financing is suitable for most sectors and industries. However, there are certain sectors that are not covered by Finnvera's financial operations.

Risk-taking

Controlled risk-taking is an integral part of Finnvera’s operations. According to the goal of self-sustainability set for Finnvera’s operations, income received from commercial operations must, in the long-run, cover both the company’s own operating expenses and the credit and guarantee losses for which it bears responsibility.

Ultimately, Finnvera operates under the aegis of the State and is able to assume greater credit risk than private financial institutions. In accordance with the Government's commitment from 2018 the State will compensate 50 per cent of the credit losses resulting from financing granted to SME and midcap enterprises. Losses resulting from these operations and remaining after the State’s compensation for credit losses are covered from the reserve for domestic operations on the balance sheet. Due to the coronavirus pandemic, the State’s loss compensation was raised from 50 per cent to 80 per cent retrospectively from the beginning of 2020.

Credit risks are shared between Finnvera and other providers of financing. Loans and guarantees are almost always granted without full collateral. Financing is based on the assessment of risks and the enterprise’s potential for success and on the effectiveness of financing.

The financing offered by Finnvera is priced on the basis of the assessment of the recipient’s business risks and the collateral available. In recent years, Finnvera has increased its risk-taking both in the financing of companies’ domestic operations and in the financing of exports. Credit losses incurred by Finnvera annually have been about 2 to 3.5 per cent of the total exposure.

The pricing of export credit guarantees is based on the risk category reflecting the relevant credit risk. Any export financing losses are covered primarily from profits arisen in previous years that have been transferred to the reserve for export credit guarantee and special guarantee operations on Finnvera’s balance sheet.

Turnaround

The monitoring of client companies’ financial and operational situation is part of Finnvera’s risk management. Finnvera’s aim is to respond to any weakening in the client enterprise’s situation as early as possible in order to secure viable business.

If the enterprise’s normal development measures do not produce the desired results, it is justified to consult outside professionals. Finnvera’s own turnaround experts assist clients in seeking help.

In the best of cases, turnaround means that the enterprise solves its financial difficulties and continues its operations profitably and competitively. For Finnvera, successful turnaround means smaller credit losses. Rapid and expert turnaround is also useful for society: it can help the company to avoid the possibly impending bankruptcy and loss of jobs.

Technically, turnaround is generally implemented using either voluntary turnaround or official restructuring, as referred to in the Restructuring of Enterprises Act. Sometimes the only alternative remaining is bankruptcy, but even in these cases the viable part of the business can often be sold to a new owner.