Terms of refinancing amended

Finnvera’s subsidiary, Finnish Export Credit Ltd, has been able to offer credits according to the refinancing model since the beginning of the year. A bank providing financing for exports can transfer a buyer credit to be financed by Export Credit, in full or in part. Adopted because of the financial crisis, this refinancing model is a temporary arrangement for the years 2009–2010.

The Ministry of Employment and the Economy has now amended the terms concerning a ‘market shortcoming’ associated with refinancing. Until now, exporters applying for refinancing have had to explain why they have been unable to secure financing for the export project on the private market. After the amendment, during 2009, no separate proof is needed to show the existence of a market shortcoming.

At the same time, both the fixed and floating interest rates for financing have been lowered, and repayment periods in the case of water projects and renewable energy projects have been extended to a maximum of 18 years, in keeping with the revision of the OECD terms.

The changes made will improve the competitiveness of Finnish exporters. Finnish Export Credit can use at most EUR 3.7 billion for refinancing export projects in 2009–2010. The total value of the refinancing offers given by the end of September was EUR 0.5 billion. Finnish Export Credit borrows the funds needed for refinancing from the State Treasury.

“Demand for temporary refinancing for exports has remained low because the original terms were quite expensive when compared against those used by our competitor countries and because the number of new capital goods transactions has been exceptionally small this year,” says Topi Vesteri, Chairman of the Board of Finnish Export Credit.


Additional information:
Jyrki Wirtavuori, Managing Director, tel. +358 20 460 3502 / Finnish Export Credit Ltd
Mikael Nordgren, Director, tel. +358 20 460 3507 / Finnish Export Credit Ltd