Finnvera plc is Finland's official Export Credit Agency, a specialised financing company offering financing services to promote the domestic operations of Finnish businesses, and to further exports and internationalisation of enterprises.

Finnvera is owned by the Finnish state coming under the aegis of the Ministry of Trade and Industry.
Legislation applying to Finnvera means that it is not governed by the Credit Institution Act but complies with the practices provided by the Act. Finnvera's financing operations are supervised by the Ministry of Trade and Industry.
Finnvera takes part in the joint bodies responsible for OECD and EU export credit guarantee and export credit rules. ECA status commits Finnvera to compliance with the conditions and rules of international credit guarantees. ECA status also opens the doors for more extensive information exchange and development work.

Finnvera’s role is to complement risk financing in the finance market, to identify existing or future shortcomings in the risk finance market and to innovating suitable products in response to these. Finnvera provides partial financing in projects where a company's or entrepreneur's own collateral is insufficient.
Finnvera shares risks with other lenders such as banks and insurance companies and, in export credit guarantee operations, also with guarantee agencies in other countries.
Finnvera implements industrial policy through risk financing.
Industrial policy includes furthering and developing the operations, exports and internationalisation of Finnish businesses, promoting employment by supporting the establishment and growth of companies and implementing the objectives of the government's regional policy.
The Finnish government and parliament determine the direction and scale of regional policy. Finnvera's regional policy actions in respect of SME's are reflected through the financing products it offers. These include:
- regional policy interest subsidy; in 2000 regional policy loans totalled FIM 630 million.
- regional scaling of credit losses (max 65%), which enables Finnvera to take a greater risk than other lenders and in areas of business where the traditional financial markets do not operate
- and regional scaling of Finnvera's financing proportion to ensure that, as regards financing, companies are in an equal position throughout the country.
Additionally, Finnvera can utilise the subsidy opportunities provided by the European Regional Development Fund (ERDF) in its financing operations. top
Finnvera has concluded several agreements with different lenders, banks and insurance companies. Cooperation aims at risk sharing and diversifying corporate financing services. Finnvera's current partners are: MeritaNordbanken, the savings banks, OKOBank, Leonia Bank, Aktia Savings Bank, Säästöpankki Optia, Ålandsbank, Varma-Sampo, Fennia, Ilmarinen and Tapiola.
Finnvera operates transparently because the allocation of state subsidies is shown in the company's financial statements and balance sheet.
In its capacity as owner, the Finnish government has given Finnvera industrial policy responsibilities, the implementation of which it also supports financially.
- The interest on Finnvera's special loans (including start-up loans, microloans, loans for women entrepreneurs, development and environmental loans) is subsidised by the state, which has made it possible to cut the interest rate on them.
- Additionally the Finnish state indemnifies between 40 and 65 per cent of Finnvera's credit and guarantee losses depending on company location and financing product.
As a limited company, Finnvera operates profitably. In addition, the company receives subsidies earmarked in the government's budget to implement industrial and regional policy. Finnvera's self-support is examined through financial result and through the implementation of industrial policy objectives.
Finnvera's performance is measured in terms of client company benefit and the impact of industrial policy objectives in companies. The next few years will see Finnvera concentrate on employment, company establishment, growth and internationalisation and on the implementation of regional industrial policy objectives.
100% coverage for sovereign and political risks
Finnvera has adopted a 100 per cent maximum guarantee coverage for sovereign and political risks for the following guarantee products:
- Credit Risk Guarantees
- Buyer Credit Guarantees
- Letter of Credit Guarantees
- Investment Guarantees granted for bank loans.
As a rule, the 100 per cent maximum coverage for sovereign and political risks applies to all country categories. Finnvera reserves the right not to apply the 100 per cent coverage for sovereign and political risks in the case of specific high-risk transactions or countries.
As concerns concessional loan schemes, Finnvera's coverage for the financier is 100 per cent.
The 100 per cent maximum coverage for sovereign and political risks has been adopted as of 15 February 2002. Finnvera’s guarantee products are priced in accordance with the OECD recommendations. A 95 per cent coverage for sovereign and political risks is also available. top
Finnvera’s clients can also request a coverage of 100 per cent for sovereign and political risks pertaining to decisions in principle issued prior to 15 February 2002. The application to raise the coverage can be made when the validity of the guarantee offer in question is extended or when the guarantee agreement is signed. The guarantee premium is then increased correspondingly.

Links ECA's:
CESCE COFACE COSEC DUCROIRE EKF ECGD EDC EKN ERG EXIM EXPORTERS FINNVERA GERLING-NCM GIEK HERMES HKECIC JBIC KEIC MIGA OeKB SACE

East-West Debt has made every effort to ensure the accuracy of this publication. Neither the company nor any contributor can accept any responsibility for -including but not limited to- errors, omissions, opinions or advice given. This publication is not a substitute for professional advice and all information is for guidance only.