Finnvera’s Refinancing Guarantee facilitates financing arrangements for exports

It is now possible for Finnvera to guarantee the refinancing of export credits granted by banks to buyers. The arrangement promotes the acquisition of funds for financing exports. The change in Export Guarantee Act will enter into force on 1 May 2015.

The Refinancing Guarantee is a separate guarantee used to arrange financing for export trade. Its purpose is to facilitate the funding of export credits granted to buyers. Finnvera can grant the guarantee, for instance, to an institutional investor that refinances an export credit given by a bank. The guarantee can also be utilised in the financing of domestic investments that benefit exports. In most cases, the guarantee is associated with one export credit, but it can also be used in a situation where the bank refinances several export credits.

“The adoption of the new guarantee stimulates the operations of the financial market and the private financing of exports. It allows banks to finance some of their export and ship credits by acquiring the necessary funds from the market with the help of the Refinancing Guarantee. The guarantee arrangement also reduces our own need for funding,” CEO Pauli Heikkilä says.

The guarantee helps to develop the Finnish export financing system further, increasing its competitiveness. Similar arrangements are already in use in many of our reference countries, such as Germany, Denmark and the Netherlands.

Additional information: Pauli Heikkilä, Chief Executive Officer, tel. +358 29 460 2400