EUR 33 million of added authority to Finnvera

The extra authorisation of 33 million has been granted to Finnvera for granting domestic loans and guarantees without interest subsidy by the end of last year. The authority for granting domestic investment and working capital loans without interest subsidy comprises EUR 661 million in 2008.

The demand for Finnvera’s domestic financing denominated in euro has increased by 18% last year and companies are financed by more than one billion euro in Finland. The economic outlook for small and medium-sized companies has deteriorated significantly at the end of the year and the emphasis of financing has transferred from investments to working capital. Finnvera’s task is to share risks with other financiers. At all times, financing requires that business operations are assessed as profitable.

The Ministry of Employment and the Economy confirms the maximum amount of Finnvera’s loans and guarantees without interest subsidy every year. The maximum authority for 2008 has now been increased by EUR 33 million, and it was increased by EUR 60 million earlier last autumn. In total, the authority has been increased by EUR 93 million in 2008.

On 30 June 2008, Finnvera’s total outstanding commitments in export financing amounted to EUR 6.7 billion, and EUR 2.6 billion in domestic financing.

Finnvera acquires the funds required for corporate loans from the market, mainly using bond loans guaranteed by the State. The State grants interest subsidy for some of the loans granted by Finnvera and pays approximately half of the lossesincurred by Finnvera in domestic financing. Otherwise, Finnvera’s operations must be self-sufficient, i.e. it must cover its expenses and share of credit losses through its profits in the long-term.

For further information, please contact:
Pauli Heikkilä, Managing Director, tel. +358 20 460 7321 or +358 400 429 210
Veijo Ojala, Deputy Managing Director, tel. +358 20 460 7405 or +358 400 672 401

Leena Jaakkola, Communications Manager, tel. +358 40 352 9332