Employment Fund Strengthens Financing of Unemployment Benefit Costs

The Employment Fund has a valid EUR 400 million revolving credit facility (RCF) with four banks. The facility agreement expires on 20 April 2020.

The Employment Fund has renewed the RCF by signing corresponding agreements totalling EUR 800 million on 9 April 2020 with the following banks: Danske Bank A/S, Finland Branch, Nordea Bank Abp, OP Corporate Bank plc, Swedbank AB (publ) and Svenska Handelsbanken AB (publ), Branch Operation in Finland. The RCFs are valid for two years and include a one-year extension option, but the use of the option is subject to the support of the banks.

The Employment Fund submitted an application to the Ministry of Finance on 3 April 2020 concerning a state guarantee for the aforementioned facilities. The guarantee requires a decision of Parliament.

The Employment Fund’s Chief Financial Officer Tapio Oksanen summarises the significance of the agreements: ‘We are very satisfied and happy that we were able to agree significant revolving credit facilities with our banks in such a short timeframe. This financing arrangement offers us alternative forms of debt financing in addition to our current commercial paper programme. I would also like to thank all of the banks participating in the arrangements for their strong commitment to strengthening the Employment Fund's financing structure and securing the financing of employment benefits.’

The Employment Fund will continue to prepare other measures to secure the fund’s solvency and the payment of daily unemployment allowances. This will require, among other things, government action to secure financing.