The State will capitalise Finnvera's export credit guarantee and special guarantee operations with EUR 400 million

    The State will capitalise Finnvera's export credit guarantee and special guarantee operations with EUR 400 million 

Stock Exchange Release 22 December 2021

Finnvera plc, Inside information

The State will capitalise Finnvera's export credit guarantee and special guarantee operations with EUR 400 million

In June, Parliament approved a provision for capitalising Finnvera's export credit guarantee and special guarantee operations in the third supplementary budget for 2021. Today, the Government's Ministerial Finance Committee supported the capitalisation of export credit guarantee and special guarantee operations with EUR 400 million. The capitalisation will be carried out by transferring the funds to the State Guarantee Fund by a decision of the Ministry of Economic Affairs and Employment.

The amount of capitalisation is based on the estimated minimum capitalisation need and takes into account the uncertainty caused by the prolongation of the corona pandemic.

The separate result for export credit guarantee and special guarantee operations showing a possible loss will primarily be covered from the reserve for export credit guarantees and special guarantees on Finnvera’s balance sheet. If the funds of the reserve are not sufficient for covering the loss, the loss will be covered from the State Guarantee Fund. If necessary, the Fund will be supplemented by an appropriation to the state budget.

The purpose of the capitalisation is to prepare for a situation in which the remaining State Guarantee Fund assets would not be sufficient to cover the possible deficit in Finnvera's result for export credit guarantee and special guarantee operations in 2021‒2023.

Finnvera will also be exempted from refunding the fund payment on the basis of a possible profitable result of the export credit guarantee and special guarantee operations in 2021 or subsequent years until the the reserve for export credit guarantees and special guarantees has reached the level prior to the corona pandemic. The final decision on the refunding will be made by Finnvera's Annual General Meeting. Finnvera received a fund payment of EUR 349 million from the State Guarantee Fund on the basis of the export credit guarantee and special guarantee operations’ unprofitable result of 2020.

In accordance with the Half-Year Report for January‒June 2021, Finnvera still estimates that the uncertainty caused by the corona pandemic as well as the economic outlook of Finnvera's individual high-risk subjects are key factors in how financial performance will develop in 2021.

Publication of the report of the Board of Directors and the financial statements

Finnvera Group’s report of the Board of Directors and the Financial Statements 1 January‒31 December 2021 will be released on 16 February 2022.

Further information:

The Ministry of Economic Affairs and Employment:

Inkalotta Nuotio-Osazee, Government Counsellor, [phone]

Finnvera:

Pauli Heikkilä, CEO, tel. [phone]

Ulla Hagman, CFO, tel. [phone]

Distribution:

NASDAQ Helsinki Ltd, London Stock Exchange, the principal media, www.finnvera.fi/eng