Impact on society

Finnvera has an important social role in facilitating and augmenting enterprise activities. Finnvera reinforces the capacity and competitiveness of Finnish enterprises. As a promoter of exports, Finnvera wants to offer Finnish companies the same starting points as those offered by export credit agencies of competitor countries in their own countries. 

The main indicators of impacts include the number of new enterprises and jobs created by means of financing and the ratio of exports covered by export credit guarantees to Finland’s total exports.

However, the central issue in pursuing impacts on society is responsibility as an element of daily work. Provision of financing for economically viable business and meticulous risk assessment in financing decisions lay the foundation for everything else.

A marked increase in the authorisation to grant export financing in 2016

In 2016, the authorisation to grant export financing was first raised from EUR 17 billion to EUR 19 billion and then to EUR 27 billion in December. The purpose of this increase is to improve the competitiveness of Finnish companies exporting capital goods and to enhance their opportunities to secure export contracts.

The year’s second development measure derived from the Government Programme was the launch of the Growth Loan. The loan can be used to finance major growth and internationalisation efforts undertaken by midcap companies, which are larger than SMEs.

The EU’s economic sanctions on Iran were lifted in January 2016, after which Finnvera revised its country policy. This makes it possible to grant export credit guarantees to Finnish companies that have export projects in Iran.

Finnvera is exempt from income tax, and the parent company has no subsidiaries abroad. Thus, Finnvera does not pay income taxes for its subsidiaries anywhere else besides Finland.

Self-sustainability and capital adequacy as the cornerstones

The State of Finland covers some of Finnvera’s credit and guarantee losses. This enables Finnvera to grant loans at greater risks than banks usually can.

According to the goal of self-sustainability set for Finnvera’s activities, the company’s income from business operations must be sufficient in the long term to cover its operating expenses and its share of any credit and guarantee losses incurred.

Self-sustainability in Finnvera’s SME financing has been attained over an 11-year period when the cumulative result is calculated up to the end of December 2016. Export financing has been economically self-sustainable for all of Finnvera’s 18 years of operation. If the payment-based result of Finnvera’s predecessor, the Finnish Guarantee Board, for its last years of operation is taken into account when reviewing the self-sustainability of export financing, economic self-sustainability is also realised over a 21-year period.

Finnvera’s capital adequacy must be sufficient to ensure the company's ability to bear risks and to keep the costs of funding reasonable. Finnvera’s capital adequacy must be at least 12 per cent. By the end of 2016, the figure was 22 per cent. In 2015, the corresponding figure was 18.1 per cent.

Case: The State's role in promoting exports

Key indicators for financial responsibility

Finnvera group, MEUR 2016 2015 2014

- Net interest income, and fee and commission income and expenses

194.2 197.3 188.8
Subsidies and compensation for losses      
- Interest subsidies passed on to clients 1.5 3.4 6.4
- Compensation for credit and guarantaa losses 28.3 82.6 63.7
Impairment loss on financial assets 94.0 97.2 97.5
Administrative expenses      
- Personnel expenses 29.9 30.4 28.1
- Other administrative expenses 14.1 13.6 12.7
Amortization and other operating expenses 6.7 5.7 6.1



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