Increased authority for Finnvera to grant export financing

Finnvera will in future have better possibilities to participate in the export-related financing arrangements of Finnish companies. The maximum amounts for issuing export credit guarantees and financing export credits will increase markedly. The legal amendments enter into force on 1 July 2014.

The maximum amount for issuing export credit guarantees will rise from EUR 12.5 billion to EUR 17 billion and the maximum amount of financing from EUR 3 billion to EUR 7 billion. These changes ensure that Finnvera can supplement private financial markets in the financing of export transactions pertaining to capital goods. It is important that Finnish export companies can offer competitive export financing to their clients and can submit tenders on terms equal to those of exporters in competitor countries.

“The financial crisis has changed the conditions under which export deals are won, and exporters both in Finland and in competitor countries need public financing arrangements increasingly often. Exports of capital goods involve large credits with long repayment periods, and it is especially difficult today to acquire bank financing for them without Finnvera’s involvement. The increase in limits will guarantee that Finnvera has the capability to facilitate the exports of Finnish companies and participate in the financial arrangements of foreign buyers,” says CEO Pauli Heikkilä.

Finnvera facilitates exports of Finnish companies by guaranteeing credits obtained by foreign buyers from a bank. Finnvera’s subsidiary, Finnish Export Credit Ltd, can finance export credits arranged by a bank. Finnvera’s outstanding commitments for export credit guarantees and special guarantees amounted to EUR 11.6 billion at the end of March 2014. Finnish Export Credit Ltd has financed export credits and ship credits for a total amount of EUR 1.8 billion.

A proposal presented to Parliament would enable Finnvera to guarantee domestic investments related to exports. It is expected that the associated legal amendment will enter into force in the autumn of 2014 at the latest.

Additional information:
Pauli Heikkilä, CEO, tel. +358 29 460 2400