Confederation of Finnish Industries (EK) proposes a 10-point list of (temporary) emergency actions to be taken to save businesses during the coronavirus crisis
- Finnvera’s guarantees should increase by EUR 10 billion euros (a specialised financing company owned by the State of Finland and the official Export Credit Agency (ECA) of Finland)
With Finnvera’s guarantees, banks and pension-insurance companies and other financing institutions may continue to finance a company in this exceptional situation. We need to 1) increase the guarantees by EUR 10 billion euros immediately and 2) increase Finnvera’s risk-taking capacity so that it can finance a company (that was not in serious economic situation on 31.12.2019) up to 100%.
- Taxes maturing in three months’ time should get 12months’additional term of payment
Taxes maturing for payment, such as VAT, payroll tax, employer’s taxes and excise duty, should immediately be given 12 months’ additional term of payment. This should come into effect asap, but at the latest on 1.4.2020.
- Finnvera’sEUR 2 billion financial capital support for employers’ liquidity crisis
An urgent decision must be made for 2 billion loan programme. Conditions:
- Capital, hybrid or other types of loans which can be forgiven partly or fully in case the company is unable to pay it back.
- The state will back the loan and carry the risk, and Finnvera will execute it.
- This is directed to companies that employ people and that are affected by coronavirus. Valid until 30.9.2020.
- This capital support can be included in the equity of the company and strengthens the creditworthiness of the company but does not result in ownership rights.
- The maximum risk for the state is EUR 2 billion euros but parts of the loans will be paid back.
- Temporary crisissupport forsalary payment support to avoid dismissals and layoffs
– Salary payment support to
- Companies who commit to avoiding dismissals and layoffs.
- Are operating in sectors such as the travel- and restaurant/catering businesses that are the hardest hit.
- Have estimated the layoff requirement to be a minimum of 25% of the employees.
– The support level is to be 70% of the employee’s net salary over the previous 3 months.
– Case-by-case support.
– Decision to be made by the TE Office within 2 days of receiving the request.
- The daily allowancesduring the layoff periodto be temporarily paid by the state
- Employers’ unemployment insurances and sickpayinsurances will temporarily be paid by the state (change of the legislation by 1.6.2020 until 31.12.2020)
- EU’s financial aidfor coronavirusto be utilised efficiently at the national level
The Ministry of Economic Affairs and Employment should take the lead in coordinating and providing information about the different sources (such as the EU’s cohesion or investment funds).
- Late payment interest temporarily 0%
From 16.3.2020 late payment interest for taxes will automatically be 0% until 31.12.2020.
- The handling of VAT returnswillbe faster
- Other actions
- The removal of the late payments for the tax declarations concerning taxes from 1.3-30.7.2020.
- We should change community legislation so that it recognises critical situations such as the coronavirus crisis and eases the organisation of shareholders’ meetings and allowing of dividend payments.
- Put on hold all legislation review projects that would create a financial or administrative burden for companies.
- Bankruptcy law will be amended for the duration of the crisis so that a company cannot be declared bankrupt due to non-payment of taxes or public charges to the extent that the default is caused by the coronavirus crisis.