Government action to protect
people’s health, jobs andlivelihoods and safeguard
financing for businesses
20 March 2020

Government working with key agencies and organisations
PROTECTING PEOPLE’S HEALTH
Supplementary budget includes €250 million needed for healthcare and testing

PROTECTING JOBS AND
SAFEGUARDING LIQUIDITY FOR
BUSINESSES
Government action €200 million(proposed)
Also action in partnership with thecentral bank and financial institutions

2 | 20.3.2020

PROTECTING PEOPLE’SLIVELIHOODS
In partnership with labour marketorganisations

Protecting jobs and businesses– in partnership with key agencies and organisations

Bank of Finland,commercial papers

FIN-FSA, easing ofcapital requirements
for credit institutions€1 bn€30 bnState Pension
Fund,commercialpapers€1 bn

3 | 20.3.2020

Deferral of tax
payments andTyEL contributions

Finnvera’s
budget authority+€10 bnPensioninsurance
contributions
lowered€910 mill.

€3–4.5 bn

Easierreborrowingof pension
insurance
contributions

BF and ELY
Centres,
directassistance+€200 mill.

Total package with all inputs is nearly €50 bn

Government action
totalling approx.

€15 bnProtecting people’s livelihoods• Removal of unemployment security waiting period in both lay-offs andredundancies• Right to unemployment allowance also applies to entrepreneurs and selfemployed, irrespective of type of business (incl. sole traders andfreelancers)• Shortening of notification period for lay-offs and for statutory employeremployee negotiations, to five days
• Employer’s lay-off right extended to fixed-term contracts• The measures apply to all businesses
4 | 20.3.2020

Phasing of measures
Measures to be taken immediately
1.

Supplementary budget appropriations swiftly to Ministry of Social Affairs and Health and forbusiness financing

2.

Other business financing measures

3.

Measures based on proposals from labour market organisations

Measures to be taken at the next phase
4.

Strengthening of local government finances

5.

Measures to boost the economy, to be determined at government spending limits discussion

6.

Structural reforms to safeguard the sustainability of public finances

5 | 20.3.2020

Coronavirus support for businesses:
Finnvera guarantees, banks willing to lend
Finnvera financing for SMEs (loans, guarantees) = €12 billion
Fast track until end of 2020:
1.

Business Finland’s financing services (incl. travel & tourism, creative sectors,subcontractor chains) = €150 million

2.

Finnish Industry Investment’s additional financing for investee companies

3.

ELY Centres’ development projects (de minimis) = total €50 million

4.

Wellbeing & financial guidance services for business owners = total €0.5 million

5.

Easier TyEL reborrowing for businesses = Finnvera 80% guarantee

6 | 20.3.2020

Goal: as many business owners as possible will get
through the difficulties caused by the coronavirus• Financing above all for sectors suffering the most – a clear package of help andsupport for business owners is in preparation• Next week all will have details of how to proceed• Business Finland’s first financing decisions today, 20 March• Aim is that ELY Centres will begin taking financing applications at the start of nextweek• Business owner: first contact your bank or finance provider. Banks are ready to agreee.g. grace periods and flexible repayment schedules, and should be able to advise
you next steps.
Next: third wave of business financing (in preparation), centred on action to
support business solvency and special support for micro businesses and SMEs
7 | 20.3.2020