Työttömyysvakuutusrahasto - Other information disclosed according to the rules of the Exchange

Unemployment Insurance Fund (TVR): TVR has decided to seek for the continuation of the state guarantee

Unemployment Insurance Fund     Stock Exchange Release     12 April 2017 at
15:30

Unemployment Insurance Fund (TVR) has decided to seek for the continuation of
the state guarantee


TVR has since 2015 had a single currency revolving credit facility (RCF) worth
700 million euros backed by a state guarantee worth 770 million euros. TVR has
decided to renew the maturing RCF with a new facility worth 400 million euros
and to seek for the continuation of the state guarantee worth 440 million euros.

The base scenario estimate drafted by TVR of the development of the economy and
unemployment in Finland indicates that unemployment would gradually decline in
the coming years and that TVR would most probably be in a position to finance
the benefit payments entitled to it with the contributions collected assuming
the current total levels of unemployment insurance contributions. The net
position would according the base scenario estimate be positive in the year
2018 being negative one year earlier. TVR states further that it's financial
performance is strongly dependent on the development of the Finnish economy and
employment. A change of one percentage point in the level of unemployment rate
compared to the level estimated would generate a change in net position worth
350 million euros on a yearly basis. Hence the euro amounts of contributions
collected and benefits paid standing in the tables below could deviate
significantly whether the economy would face meaningful negative fluctuations.

Unemployment Insurance Fund has a total amount of debt withdrawn worth slightly
more than 1.000 million euros at the end of 2016. The debt position constitutes
mainly of two bonds issued in 2015. The bond with the nominal amount of 300
million euros matures in 2018  and the one with the nominal amount of 600
million euros in 2019. TVR would according to the base scenario estimate be most
probably in a position to repay the bond proceeds without any further need for
refinancing.

TVR aims to ensure various options to refinance it's operations if needed in the
capital markets as well as utilizing debt financing facilitated by banks and
therefore considers it necessary to renew the RCF as part of it's funding
program. Would the development of the economy turn out to be weaker than
forecasted would TVR need to refinance the maturing bonds at least partially
with new debt withdrawals. In that case the debt financing would be carried out
among other things utilizing the single currency revolving credit facility
(RCF).



Base scenario estimate

EURm                           2 016    2017e   2018e   2019e   2020e
---------------------------------------------------------------------


Unemployment rate %              8,8

Change in persons unemployed             -4 %    -3 %    -2 %    -2 %

UIC collected                  4 083   4 082   4 154   4 188   4 240

Total benefits paid           -3 859  -3 830  -3 822  -3 675  -3 639

Change in net position           220     252     332     513     600
---------------------------------------------------------------------
Net position                    -466    -214     119     632   1 232
---------------------------------------------------------------------
Statutory limit for buffer     1 566   2 278   2 332   2 271   2 302




Source of funding

EURm                     2016 2017e 2018e 2019e  2020e
------------------------------------------------------


Change in net position   220   252   332   513    600

Net position            -466  -214   119   632  1 232

Commercial paper         -86  -125     0     0      0

Bonds                      0     0  -300  -600      0

RCF (state guaranteed)     0     0     0     0      0

Debt outstanding       1 025   900   600     0      0




Additional  information:

Janne Metsämäki, Managing Director. tel. +358 40 522 3614
Tapio Oksanen, Deputy Managing Director, CFO tel. +358 40 539 4651



Helsinki, 12 April 2017

Unemployment Insurance Fund (TVR)

Tapio Oksanen
Deputy Managing Director



Distribution:
NASDAQ OMX Helsinki
Media
www.tvr.fi




[]