Finnfund Act (291/79)

Section 1

The purpose of the limited liability company named Teollisen yhteistyön rahasto Oy in Finnish, or Fonden för industriellt samarbete Ab in Swedish, hereinafter the Company, is to operate so as to implement the objective provided for in this Act. 1617/91

At least fifty-one per cent of the Company’s shares must always be in the immediate ownership of and administered by the state. The legislation in force concerning limited liability companies shall be applied to the Company unless otherwise specified in this Act. 291/79

The Company has the right to use separately the Finnish and Swedish business names as well as the name Finnish Fund for Industrial Cooperation Ltd. The company’s secondary designation is FINNFUND. 1617/91

The Act (1607/1993) concerning the activity of credit institutions shall not be applied to the Company. 1083/00

Section 2

The Company shall promote the economic and social development of countries which the Development Assistance Committee (DAC) of the Organization for Economic Cooperation and Development (OECD) has classified as developing countries by directing human and material resources to the development of the industrial and other economic corporate activity of these countries. The purpose of the Company is not to generate a profit for the shareholders. 1083/00

The Company shall finance companies, in which a Finnish interest is involved, to be established and operating in developing countries, by acquiring shares and holdings in such companies, by granting loans and guarantees for such companies, by allocating resources for studies and reports connected with the start-up and development of the operations of the companies as well as by participating in the development and financing of the financial sector that serves the industrial and other production-related corporate activity of developing nations or otherwise by initiating such measures that further the achievement of the aims outlined in Subsection 1. 1083/00

On the basis of a decision of the Council of State pertaining to each country, the Company can engage in the operations outlined above in countries other than those classified as developing countries. 1617/91

Section 3

During the years 1979 – 1983 the government shall subscribe for the Company’s shares within the framework of allocations to be included in the budgets. 291/79

The Company’s share capital shall be paid up within five years of Company’s founding. 291/79

The government can at a later date subscribe for the Company’s shares and grant loans within the limits of the allocations to be included in each year’s budget. 151/84

The Council of State may, on conditions that it shall stipulate, give the Company commitments to the effect that the government shall compensate the Company for any losses incurred in its credit granting and guarantee operations, as well as losses and decreases in value in its investments in shares and holdings, and that the government shall pay for any exchange rate losses that may result from a loan taken out by the Company denominated in a currency other than the euro, within the limits specified in greater detail in the government’s budget.  464/05

Section 3, Subsection a

The Council of State has the right, on conditions that it shall stipulate, to give commitments to the Company to the effect that the government will annually pay the difference between the interest expenses of the loans taken out by the Company during the years 2005 – 2009 and at least the annual interest which the Parliament decides in connection with discussion of the budget. Parliament shall decide each year, in connection with its budget discussions, the maximum amount of those loans for which the commitment can be made.  464/05

A commitment can also be made concerning the payment of interest support for a loan to be taken out for the repayment of the loans referred to in Subsection 1. Interest support shall be paid for a maximum of 15 years. The Council of State nevertheless has the right to extend this time for special reasons. 151/84

If the loan is denominated in a currency other than the euro, its counter-value shall be calculated according to the average exchange rate quoted by the European Central Bank for the currency in question at the time the government gives its commitment.  464/05

Section 3, Subsection b

The Council of State has the right to make guarantees that are directly enforceable against the government, without demanding counter-guarantees and in other respects on conditions it stipulates, for the payment of loans taken out by the Company and for the fulfilment of the other agreed conditions. The maximum total amount of loans referred to in this Section that may be outstanding at the same time is the amount of 100 million euros. Guarantees can be given for the period up to the end of 2009.  The counter-value of a loan denominated in a currency other than the euro shall be calculated according to the average exchange rate quoted by the European Central Bank for the currency in question at the time the government gives its commitment.  464/05

Section 4

The Company belongs to the administrative domain of the Ministry for Foreign Affairs. 291/79

Section 5

The Company has a Supervisory Board and Board of Directors. 291/79

Section 6

The Council of State shall, if necessary, issue more detailed stipulations concerning the implementation and application of this Act. 291/79

Section 7

This Act shall enter into force on the 1st day of April 1979. Steps for establishing the Company and initiating its operations may be undertaken prior to the entry into force of the Act. 291/79