Government confirmed loan to Finnfund
Press release 206/2016
3 November 2016
In its session on 3 November 2016, the Cabinet Finance Committee favoured the Foreign Ministry's proposal to grant a convertible loan of EUR 130 million to Finnfund. The loan decision is now ready for signature by Minister for Foreign Trade and Development Kai Mykkänen.
The loan decision will implement the position set out in the Development Policy Report adopted in February 2016, concerning the enhancement of Finnfund's operations and improvement of its opportunities for risk-taking in projects of importance for development. The financial implications of the convertible bond for the Government were addressed in the second supplementary budget for 2016, adopted by Parliament on 22 June.
Finnfund (Finnish Fund for Industrial Cooperation Ltd.) is a state-owned development finance company operating in the administrative sector of the Ministry for Foreign Affairs. It provides long-term risk capital for profitable investments in developing countries. Projects funded by Finnfund have led to the creation of 24,886 jobs in developing countries. In 2014, this produced a total of EUR 277 million in tax revenues and other payments to developing country administrations. The company’s operating profit in 2015 totalled EUR 5.1 million and the value of its investment assets was EUR 329 million.
"There is a global consensus that attaining the UN sustainable development goals also demands a strong private sector contribution. Finland is now taking a major step forward in aligning itself with the principal countries that support this philosophy," states Minister for Foreign Trade and Development Mykkänen.
Inquiries: Oskar Kass, Senior Officer, Unit for Development Finance Institutions, Ministry for Foreign Affairs, tel. +358 295 351 943
The Foreign Ministry’s email addresses are of the format [email protected]