Government measures in key jurisdictions 5th edition - Flipbook - Page 47
Finland
Contributor: Hannes Snellman
Loans and
financial
support
Has the
government put
in place any new
bank funding
schemes?
Annika Schauman | annika.schauman@hannessnellman.com |
+358 9 2288 4330
Sanna Boow | sanna.boow@hannessnellman.com | +358 9 2288
4420
The Finnish Government has introduced a range of financial schemes for impacted
businesses who are experiencing financial difficulties during the Covid-19 pandemic. Several
schemes introduced in the beginning of the pandemic have already closed. However, as the
spread of the pandemic has in the previous months increased and the financial difficulties
caused by the Covid-19 pandemic are expected to continue, the Finnish Government has
prolonged some of its measures, particularly the restrictions for consumer credit.
The support schemes that are still available include the following:
•
Finnvera guarantees - the state guarantees for bank loans, which can be used for working
capital needs caused by the Covid-19 pandemic. Guarantees are granted by Finnvera (a
state-owned specialised financing company) for up to 80% of the bank loan and no
collateral is required. As of 11 September 2020, financiers have been able to apply for the
Finnvera guarantee on behalf of the company.
•
Stabilisation programme to support Mid-cap companies - a funding program to support
MidCap companies who are in temporary financial difficulties due to the Covid-19
pandemic. Finnish Industry Investment Ltd (a state-owned investment company) will make
capital investments of EUR 1-10 million into companies with a minimum of EUR 10 million
turnover and over 50 employees. The company must have the ability to survive the
financial difficulties caused by the crisis and the investment is subject to standard due
diligence.
•
Support for restaurants and catering businesses - direct support consisting of two
parts:
Compensation for restrictions for business: the application for the compensation ended
on 31 August 2020.
Support for re-employment: EUR 1,000 per employee. The application period for the
support ended 31 October 2020.
•
Commercial paper purchase schemes - both the Bank of Finland and the State Pension
Fund of Finland have agreed to increase their investment in domestic corporate papers.
•
Temporary interest-only payments periods - Finnish banks have agreed to give interestonly payment periods (of up to one year) on mortgages and other loans for individuals and
companies in financial difficulties due to the Covid-19 pandemic.
•
Restrictions for consumer credit – additional temporary restrictions pertaining to
consumer credits and direct marketing entered into force on 1 January 2021 and remain in
force until 30 September 2021. These restrictions include a temporary interest rate cap of
10% per annum, a prohibition to increase credit costs and certain marketing restrictions.
Direct marketing (e.g. marketing by telephone or emails) of consumer credits is
temporarily prohibited. The current restrictions apply, in principle, to new consumer credit
and new withdrawals made between 1 January 2021 and 30 September 2021.
•
Postponement of certain statutory payments - In addition to the above financial
support, certain payment arrangements have been agreed by the Tax Administration and
between the Government and the Pension Insurance Companies. These include measures
such as postponement of payments deadlines, extension of tax return deadlines, removal
of late payment penalties and temporary reductions of pension insurance payments. The
application period for some of these payment arrangements have already ended.
In addition to the above, there are a number of smaller support packages put in place,
including support for sole entrepreneurs, for small agricultural businesses and for the primary
agricultural sector and fisheries section. Most of these smaller support schemes closed in
September 2020.
Government measures in key jurisdictions
47
