Government measures in key jurisdictions 4th edition - Flipbook - Page 45
Finland
Contributor: Hannes Snellman
Annika Schauman | annika.schauman@hannessnellman.com |
+358 9 2288 4330
Sanna Boow | sanna.boow@hannessnellman.com | +358 9 2288 4420
Loans and
financial
support
The Finnish Government has introduced a range of financial schemes for impacted businesses who are
experiencing financial difficulties during the COVID-19 pandemic. As the spread of the pandemic has
slowed down in Finland and restrictions have been lifted, several schemes have already been closed.
Has the
government put in
place any new
bank funding
schemes?
•
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.
•
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:
The support schemes that are still available include the following:
The application for the compensation ended on 31 August 2020.
Support for re-employment: EUR 1,000 per employee.
•
The support is available until 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 interest-only
payment periods (of up to one year) on mortgages and other loans for individuals and companies in
financial difficulties due to the COVID-10 pandemic.
•
Restrictions for consumer credit - temporary decrease on the amount of permitted interest on
consumer credits from 20% to 10% per annum. Direct marketing (e.g. marketing by telephone or
emails) of consumer credits is also restricted. The temporary measures remain in force until the end
of 2020.
•
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.
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 will be closed in September 2020.
45
Government measures in key jurisdictions