Includes how major projects are financed and gives examples where relevant. Explains activities of the multilateral development banks in and other aid-funded projects where procurement is open to U.S. bidders.

The Finnish financial market is typical of European countries where banks and financing institutions have a dominant role. A project finance package usually includes financing from a variety of sources, different types of collateral arrangements, guarantees, escrow accounts, project sponsor commitments, etc. Finland is also an important source of foreign direct investment in many countries serviced by multilateral development banks such as the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC). Finnish firms often play an important role in co-financing large-scale projects in these countries. IFC maintains an active relationship with Finland, covering business development with Finnish companies interested in investing in emerging markets, cooperation with Finnish banks, and donor funded initiatives.

Major Finnish government and other programs are detailed below:
Finnfund – The Finnish Fund for Industrial Cooperation: Like the U.S. government-sponsored OPIC, Finnfund promotes investments in developing countries, Russia, etc. Apart from co-investing with Finnish companies, it finances ventures that use Finnish technology, cooperate with Finnish partners on a long-term basis or generate major environmental or social benefits. Finnfund provides equity capital as well as long-term investment loans and participates in guarantee arrangements. In addition to financing, the corporation offers a broad range of fund-management and advisory services. Finnfund is owned by the State of Finland, Finnvera, and Confederation of Finnish Industries.

NIB - Nordic Investment Bank: The Nordic Investment Bank (NIB) is a multilateral financial institution headquartered in Helsinki. NIB promotes sustainable growth of its eight-member countries (Finland, Sweden, Norway, Denmark, Iceland, Estonia, Latvia, and Lithuania) by providing long-term complementary financing, based on sound banking principles, to projects that strengthen competitiveness and enhance the environment. Loans and guarantees are given to investments that assure energy supply, improve infrastructure, or support research and development. NIB finances investment projects and project exports, both in and outside the member countries. The bank has lending operations both in its member countries and in emerging markets. High priority is given to investments furthering economic cooperation between the member countries.

Finnvera plc. - A specialized financing company owned by the State of Finland, Finnvera plc. provides services to supplement the Finnish financial market. Finnvera’s task is to promote the development of enterprise, regions, and the exports of Finnish companies. Finnvera carries out this task by improving the range and versatility of financing options available to enterprises through loans, guarantees, capital investments and export credit guarantees. Finnvera grants loans to enterprises and entrepreneurs, and issues guarantees, and export credit guarantees to enterprises and financiers. Through its special loans and guarantees, Finnvera also acts as an intermediary between the European Union's financing programs and Finnish SMEs. Finnvera acts as Finland’s official Export Credit Agency (ECA), providing export guarantees and insurance.

Finnish Export Credit Ltd (FEC) - FEC is an internationally notified official Export Credit Agency and a wholly owned subsidiary of Finnvera plc. FEC administers on behalf of the Finnish Government the interest equalization scheme for officially supported export credits and domestic ship financing at CIRRs (Commercial Interest Reference Rate) in accordance with the OECD Arrangement. FEC also provides export credits when a withholding tax benefit can be achieved.

Sitra and Business Finland: Sitra and Business Finland are independent public financing institutions with the purpose of strengthening the role of research in economic life and promoting new products. The aim is to introduce internationally competitive high-technology products and production methods. Sitra’s focus is to make its new venture-capital investments in select program areas. Sitra’s market-based investments are meant to create and develop competitive, profitable, and sustainable businesses. Business Finland was created on 1st January 2018 by the merger of two organizations: Finpro, which offered services for internationalization, investments, and tourism promotion, and Tekes, which offered funding for innovation activities. They aim to develop Finland to be the most attractive and competitive innovation environment in which companies can grow, change, and succeed. Business Finland is part of the Team Finland network.

Ministry of Employment and the Economy: The former Employment and Economic Development Centers (T&E Centers) were replaced by new regional Centers for Economic Development, Transport and the Environment (ELY Centers). The tasks of the centers comprise those of the former Employment and Economic Centers, Road Districts, Regional Environmental Centers and State Provincial Offices. The newly formed centers operate in close collaboration with the Regional Councils and promote entrepreneurship, functioning of labor market, competence, and cultural activities.
 

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