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työ- ja elinkeinoministeriö

Year 2011

29.12.2011 14:00

New credit model for export financing introduced at the start of 2012

A new credit model for export financing, which will improve the competitiveness of Finnish export companies, will enter into force at the beginning of 2012. The acts on publicly subsidised export and shipbuilding credits and interest equalisation were ratified by the President of Finland on 29 December 2011.

 

In addition to interest equalisation activities, Finnish Export Credit Ltd, which is part of the Finnvera Group, may grant export and shipbuilding credits to a maximum value of EUR 3 billion. Finnvera Plc is responsible for seeking finance for state-guaranteed export and shipbuilding credits.

 

The banks will still play a key role in the financing model:  their global service network and expertise in export financing will be utilised. Seeking finance through the credit model for export financing will be based on Finnvera’s financing, mainly obtained from the capital market. Based on this model, Finnish Export Credit will finance buyer credit, granted by a commercial bank to the buyer of an export contract.

 

The introduction of a so-called ‘Finnish interest’ will increase flexibility when granting export and shipbuilding credits, as requested by trade and industry. The Finnish interest can be deemed considerable, for example, if the degree of domestic origin is at least one-third of the amount of interest equalisation credit.

 

The new export credit model is significant for exporters, especially in the prevailing market situation where obtaining export credits on the market may prove very difficult, especially in US dollars.

 

Further information:
Risto Paaermaa, Director, MEE, tel. +358 50 526 3452
Pauli Heikkilä, Managing Director, Finnvera Plc, tel. +358 20 460 7321
Anita Muona, Managing Director, Finnish Export Credit Ltd, tel.  +358 40 706 7138

 



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