Kuntarahoitus Oyj - Other information disclosed according to the rules of the Exchange

The government proposal for the Health, social services and regional government reform published

Municipality Finance Plc
Stock exchange release
3 March 2017 at 2:30 PM (EET)

The government proposal for the Health, social services and regional government
reform published

The preparation of the Health, social services and regional government reform
proceeds in Finland. The reform includes, among other things, plans to transfer
tasks related to social and healthcare services from municipalities to new
autonomous regions.

After a wide consultation process the Finnish government has published its
proposal to the Parliament on 2 March 2017. The act proposal is now put to
Parliament and its contents may change during the parliamentary process.
Therefore Municipality Finance is not in a position to evaluate the reform's
impact on its operation before the final legislative acts are passed in the
Parliament.

Potentially the reform might have an effect on MuniFin's volumes, but not in
2017. MuniFin is actively following the development of the reform.

The government proposal is available in English at
www.alueuudistus.fi/frontpage.

MUNICIPALITY FINANCE PLC

Pekka Averio
President and CEO
tel. +358 500 406 856

Measured by the group's balance sheet, Municipality Finance Plc (MuniFin) is
Finland's second largest credit institution. The company is owned by Finnish
municipalities, the public sector pension fund Keva and the Republic of Finland.
MuniFin is an integral part of the Finnish public economy.

MuniFin's balance sheet totals approximately EUR 34 billion. Funding for the
company is primarily obtained through the international capital markets.
MuniFin's funding is guaranteed by the Municipal Guarantee Board.

MuniFin's mission is to ensure competitive funding for local government
investments and state-subsidised social housing production in all market
conditions. The company's customers are Finnish municipalities, municipal
federations, municipally controlled companies and non-profit housing
corporations. The customers use financing solutions provided by MuniFin to
finance social and non-profit targets such as day care centres, schools,
housing, hospitals and other municipal investments.

The Municipality Finance Group also includes the subsidiary company, Financial
Advisory Services Inspira Ltd.




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