The Employment Fund Launches Investor Work in the Capital Markets

On April 29, 2020, the Employment Fund announced that it was considering issuing bonds. The coronavirus epidemic has increased unemployment and the number of laid-off employees quickly in a short period of time. Based on the scenarios for 2020 drawn up by the Employment Fund, the number of unemployed jobseekers could increase by 60-130% during the year compared to last year. An addition of approximately EUR 1.5 billion to the budget of the Employment Fund is needed in order to ensure liquidity and the payment of unemployment allowances.

The funding of unemployment allowance costs would consist of a business cycle buffer of approximately EUR 1.5 billion, short-term funding raised under the commercial paper programme established in 2010, bonds, as well as a total of EUR 800 million in credit facilities. The Employment Fund has applied for a state guarantee for credit facilities. The matter is currently being discussed by Parliament and the Government.

Further information:

Janne Metsämäki, Managing Director, tel. +358 40 522 3614

Tapio Oksanen, Chief Financial Officer, tel. +358 40 539 4651