Finland unveils 15 bln euro economic support package

The Finnish government agreed on Friday on a wide financial assistance package ranging from loan guarantees to labor market support to boost the slowing economy, saying the measures total 15 billion euros ($16.2 billion).

The most significant amount is an additional 10 billion euros used to guarantee companies' loans through Finnvera, the state's financing, and export credit company. "The idea is that Finnvera will guarantee and the banks will distribute," economics minister Mika Lintila told a news conference, adding more was needed. "This is not enough, we are already working on an additional package."

Earlier this week the Bank of Finland said it expects the Finnish economy to shrink between 1.5% and 4% this year. The government also agreed on labor market reforms which were proposed earlier this week by trade unions and employers.

($1 = 0.9287 euros)