Työttömyysvakuutusrahasto - Financial Statement Release

Unemployment Insurance Fund (TVR): Impacts of the Agreement on Competitiveness Pact in Finland for the Unemployment Insurance Fund (TVR)

Unemployment Insurance Fund     Stock Exchange Release     1 March 2016 at
09:00

Impacts of the Agreement on Competitiveness Pact in Finland for the Unemployment
Insurance Fund (TVR)


The social partners in Finland have proposed as part of the Competitiveness Pact
changes in the legislation regulating the financing of the unemployment
benefits. The key proposals are among other things a time-limited increase in
the maximum amount of the business cycle buffer to an amount representing an
yearly amount of benefits paid by TVR generated by a seven percent unemployment
rate. If accepted, this regulation would be in force for the period of 2017 -
2019. This maximum amount would represent a net asset or debt position carried
by TVR worth ca.  EUR 2.300 million. The respective amount is currently EUR
1.600 million.

Additionally, social partners are proposing that the Government of Finland would
grant a governmental guarantee without any counter guarantees or guarantee fees
to the loans and borrowings issued by TVR. The proposal made by the social
partners does not take a stand about which loans issued by TVR would be
guaranteed. The total value of the debt and borrowings of TVR is currently EUR
1.100 million consisting of bonds outstanding with the total nominal value of
EUR 900 million and commercial paper with the total nominal value of EUR 200
million. These debt instruments are not guaranteed by the government.
Additionally TVR has a Revolving Credit Facility worth EUR 1.000 million, which
includes a governmental guarantee of EUR 770 million. This facility is currently
unutilized.

The government of Finland has stated that the agreement carried by the social
partners on the Competitiveness Pact is positive for Finland. The government
will continue more specific discussions with social partners to clarify the
details of the Pact.

The progression of the above mentioned proposals is first and foremost dependent
on the approval of all the relevant social partners organisations. After that is
the final passage of the Competitiveness Pact dependent on the decisions of the
Government of Finland and the required coverage and approval within the sectoral
collective bargaining. The central organisations of the social partners will
inform the Government of Finland about this outcome after they have made an
evaluation about the coverage of the process on 1 June 2016.

The proposals outlined above will only be put into operation when the relevant
government bills are passed by the Parliament.

TVR will monitor closely the preparations of the decisions agreed in
Competitiveness Pact and will report if necessary.



Additional  information:

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



Helsinki, 1 March 2016

Unemployment Insurance Fund (TVR)

Tapio Oksanen
Deputy Managing Director



Distribution:
NASDAQ OMX Helsinki
Media
www.tvr.fi

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