Minister of Economic Affairs Mika Lintilä (Centre) at the government’s press conference on Friday, 3 April 2020. (Vesa Moilanen – Lehtikuva)

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THE FINNISH GOVERNMENT has pledged more financial support to businesses hit by the coronavirus pandemic.

Finnish Industry Investment (Tesi), a government-owned venture and private equity capital firm, will launch a new funding programme worth 150 million euros for medium-sized businesses with a significant economic and employment impact later this month.

The 1–10-million-euro cash injections will be available to businesses that have reported annual revenues of at least 10 million euros, employed more than 50 people and been profitable before the crisis as of 14 April. The applicants must also demonstrate that the conditions for their business operations are in place also in the future.

The government has also begun preparatory work to adjust the bankruptcy legislation to limit the right of creditors to file a bankruptcy petition against businesses.

It proposed yesterday that the coverage of unemployment security be expanded temporarily to enable entrepreneurs to apply for the labour market subsidy on grounds of “a rapid and unexpected” drop in demand caused by the pandemic.

The entrepreneur is not required to suspend the business operations to qualify for the subsidy, but the subsidy is conditional on the business reporting monthly revenues of less than 1,089.67 euros per employee.

The piece of legislation is to be implemented as soon as possible and remain in effect until June.

Aleksi Teivainen – HT
Source: Uusi Suomi