Finnvera’s export credit guarantees help promote Ukraine’s reconstruction efforts
The Ministry for Foreign Affairs has prepared Finland’s national plan for the reconstruction of Ukraine and how the state’s support elements will aid these efforts. Minister for Foreign Trade and Development Ville Tavio announced the programme on Thursday 21 December 2023. Finnvera has been involved in the preparation of the reconstruction plans for Ukraine, as Finnvera’s export credit guarantees will play an important role in the financing of Finnish companies whose exports will be part of the reconstruction process.
Finnish Parliament has approved the Government’s proposal for supplementing the 2024 budget. The Government’s proposal includes permitting the Ministry of Economic Affairs and Employment to provide Finnvera with up to EUR 50 million in compensation for credit losses sustained in connection with export credit guarantees granted for the promotion of exports and investments to Ukraine.
Finnvera is involved in the reconstruction process as part of the Team Finland network. Finnvera is the only actor in Finland that can finance companies that wish to engage in short-term trade in Ukraine.
Short-term export credit guarantees available from 1 January 2024
Finnvera ceased granting export credit guarantees to Ukraine after Russia invaded the country in February 2022.
As part of Finland’s national reconstruction plan for Ukraine, Finnvera will resume granting export credit guarantees from 1 January 2024. This arrangement applies particularly to financing options for short-term trade (such as documentary credit guarantees and credit insurance), which are particularly important for securing SME exports. The provision of export credit guarantees for medium and long-term trade can also be gradually increased.
Export credit guarantees are available on application from Finnvera. Before granting the guarantee, Finnvera assesses the risks of the export trade and the necessary KYC details with its usual procedures. In the case of Ukraine, it is also important to assess the customer’s geographical location. Pricing will be in accordance with country classification 7/7 (very high risks).
In addition, the applicant's deliveries must meet a sufficient degree of Finnish content.
Finnvera will provide more information about the process and any product-specific information on its website in the near future.
If you have any questions about the export credit guarantees to Ukraine, please consult with your company’s account manager at Finnvera or the experts below.
Outi Homanen, Senior Adviser, Country Risk Management Team, Finnvera, tel. +358 29 460 2722
Jari Mehto, Finance Manager, Finnvera, tel. +358 29 460 2536
Timo Pietiläinen, Finance Manager, Finnvera, tel. +358 29 460 2540
email: [email protected]
Ministry for Foreign Affairs: Financing solutions, advice and support - Finland’s national plan supports Ukraine by improving the operating conditions of Finnish companies in the reconstruction of Ukraine
You can find information about the country classification, country policy and specific conditions related to the country from Finnvera's country classification map.