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Finland unveils plan to bolster exporters

Published 01/27/2009, 08:57 AM
Updated 01/27/2009, 09:00 AM

HELSINKI, Jan 27 (Reuters) - Finland unveiled extra stimulus measures for exporters on Tuesday to help the Nordic country through the economic downturn.

Finland said it would triple the amount of export credit available through financing company Finnvera to 3.7 billion euros ($4.9 billion) from the current 1.2 billion.

"We are trying to strengthen small- and mid-sized corporations to get the money for everyday life and investments," Finance Minister Jyrki Katainen said on the sidelines of a news conference.

"We will get involved in the financing of the export sector because they are in the same trouble as other sectors are," he said.

The credit would guarantee that Finnish exporters get paid even if the buyer goes insolvent or is otherwise incapable of paying for the goods.

Katainen, who said last week Finland may need to borrow up to 30 billion euros over the next three years to battle the recession, said stimulus measures would mean an extra 4.8 billion in debt this year and some 1.25 billion in 2010.

Triple-A rated Finland's state debt was 54.8 billion at end-2008, or about 29 percent of gross domestic product (GDP).

Katainen reiterated Finland was also ready to provide funds to banks to help jump-start lending. In October Finland set a limit of 50 billion euros on state guarantees of interbank loans, but thus far no Finnish banks have sought state cash.

"Finnish banks are in good shape based on the facts we have got from them and the financial authorities," Katainen said.

(Reporting by Brett Young)

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