Financing operations



By providing financing, Finnvera influences the competitiveness of Finnish enterprises - their opportunities to operate and grow in Finland and to enter international markets. The clients sought by Finnvera are enterprises in a state of change and with the potential for successful business.

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

Finnvera provide its clients with loans, guarantees, venture capital investments and export financing services.

Within the Finnvera Group, venture capital investments are carried out by Finnvera's subsidiary Veraventure Ltd.

Finnish Export Credit Ltd, another subsidiary of Finnvera, administers the interest equalization system for officially supported export credits and domestic ship financing in accordance with the OECD Arrangement.

SMEs and midcap companies

During the first half of the year 2019, Finnvera granted domestic loans and guarantees to SMEs and midcap companies totalling EUR 0.5 billion. Financing spread according to businessa areas: locally operating small companies 12%, SMEs focusing on domestic markets 44%, SMEs seeking growth and internationalisation 43%.

Large Corporates

During the first half of the year 2019, the amount of export credit guarantees and special guarantees offered for large corporates was EUR 2.2 billion.

Offered financing (EUR bn)






SMEs and midcap companies*






Large Corporates**






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

During the first half of the year 2019 Finnvera's outstanding commitments totalled EUR 25.6 billion. The outstanding commitments for SMEs and midcap companies stood at EUR 2.3 billion and the outstanding commitments for large corporates at EUR 23.3 billion.

Outstanding commitments (EUR bn)






SMEs and midcap companies*






Large Corporates**












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

Half-Year Report 1 January-30 June 2019

Annual Report 2018

Business risks

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. The State compensates Finnvera for about half of the realised credit losses incurred in SME financing. 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. In accordance with the Government's changed commitment the State will compensate 50 per cent of the credit losses resulting from financing granted to SME and midcap enterprises. The changed commitment will enter into force on 1 March 2018, and it will be applied to all outstanding credits and guarantees of the company and to new credits and guarantees granted by the company as of 1 January 2018. Previously the State compensation varied case by case from 35 per cent to 80 per cent. Year 2017 the compensation totalled 59 per cent of the realised losses.

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.


The monitoring of client companies’ financial and operational situation is part of Finnvera’s risk management. If financial problems are observed, their causes are investigated together with the client and other financiers. This is referred to as “turnaround”.

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 and Finnvera’s own claims. 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.

It must be accepted, however, that not all client enterprises can benefit from turnaround, especially if the problems have not been addressed early enough. In a difficult economic situation, it is particularly important to ensure that the enterprise’s own reporting is reliable and up to date, and that its operations are predictable.

Enterprises are expected to show initiative of their own: the enterprise and its stakeholders must be committed to the measures agreed. Turnaround is often done with the advice of competent, experienced consultants, experts in financial administration, and lawyers.

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.


029 460 11 (weekdays 9:00 a.m. and 4:15 p.m.)

Financial advice

029 460 2582 (weekdays 9:00 a.m. and 4:15 p.m.)

Other matters

029 460 2790 (weekdays 9:00 a.m. and 4:15 p.m.)

Helsinki Headquarters

Porkkalankatu 1

PL 1010, 00101 Helsinki

Kuopio Headquarters

Kallanranta 11

PL 1127, 70111 Kuopio

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