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Finnvera’s financing authorisations increased in response to the coronavirus – additional funding EUR 10 billion

Ministry of Economic Affairs and Employment
Publication date 23.4.2020 13.46 | Published in English on 27.4.2020 at 12.51
Press release

The Government enables the provision of additional financing of EUR 10 billion to businesses through Finnvera, a state-owned specialised financing company, by increasing its domestic financing. The additional financing would mainly be used for guarantees to help companies get loans from banks in the coronavirus situation.

The Government submitted its legislative proposal to Parliament on 23 April 2020. The proposal would enable the increase outlined by the Government on 20 March 2020. Finnvera’s domestic financing authorisations now amount to EUR 4.2 billion, of which approximately EUR 2 billion has been spent. The authorisations will be increased to EUR 12 billion.

The objective of increasing Finnvera’s authorisations is to ensure the continued availability of sufficient financing. The temporary increase would be in effect until the end of December 2025. The number of financing applications submitted to Finnvera has increased by 84% from the beginning of the year to the end of April, compared to the same period last year. The number of decisions made has increased by 89% from last year. Since the beginning of March, Finnvera has already made 10, 000 financing and amendment decisions affecting SMEs.

In addition to SMEs, additional financing may, on special grounds, be granted to larger companies such as midcaps. The objective is to ensure that as many companies as possible that operated profitably before the coronavirus crisis could continue to do so after the crisis. The Act is intended to enter into force in June 202 at the latest.

The state’s coverage of Finnvera’s losses increased

The Government accepted a commitment to partially cover Finnvera’s credit and guarantee losses. The commitment raises the state’s coverage of Finnvera’s loss from 50% to 80%. This means Finnvera’s guarantee can cover a larger amount of the company’s loan from a bank. In addition, the increase in state coverage has permitted Finnvera to lower the price of its guarantees.

In addition, the financing ceiling of EUR 420 million to large enterprises was removed. The deterioration in the general economic situation caused by the coronavirus epidemic also affects large companies. It is therefore important that Finnvera is able to allocate funding to them on special grounds.

The commitment will enter into force on 1 May 2020 and will remain in force until 31 December 2022. Measures will be evaluated for the first time in December 2020 at the latest, and as necessary thereafter. The amended commitment would apply retroactively to all financing arrangements granted, and to new loans and guarantees granted by Finnvera starting from 1 January 2020.

It is difficult to estimate the exact economic impacts on the state; this depends on the new guarantees and loans granted by Finnvera during the crisis, and on the losses from the financing arrangements granted by Finnvera. In the preparation of the 2021–2024 General Government Fiscal Plan, the partial coverage of Finnvera’s losses by the state was estimated to generate expenditure of EUR 613 million over the next four years.


Kari Parkkonen, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 29 506 4938

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