Key Benefits:
See the copyright notice Conditions of use .
In accordance with the decision of the Parliament:
Development appropriations may, according to the provisions of this Act, pay interest subsidies on loans to finance projects which contribute to the economic or social development of developing countries. There may also be other forms of government support. These credits are referred to as interest rate solutions.
For the purposes of this law, a credit institution refers to the law on credit institutions (1607/1993) Of a credit institution authorised in the Finnish or European Economic Area, or any other credit risk that has been authorised for such a comparable foreign credit institution.
Interest rates may be granted on an annual basis in the Organisation for Economic Cooperation and Development (OECD, hereinafter 'the OECD'), which are eligible for credit and export credit.
Appropriations for interest payments and commitment powers are decided annually in the context of the State budget.
The Ministry of Foreign Affairs shall be supervised by the Ministry of Foreign Affairs, taking into account the principles of Official Development Assistance and officially supported export credits approved by the OECD.
The loan is approved by the Ministry of Foreign Affairs.
The acceptance of credit as an interest rate subsidy requires an export guarantee from Finnvera Oyj.
The credit institution shall finance the interest rate subsidy and conclude the credit agreement with the borrower.
The Ministry of Foreign Affairs decides on the amount of interest subsidies payable, which is the difference between the interest rate and the annual interest rate on the market interest rate, plus the management fee.
The State Treasury pays interest subsidies to the lending credit institution on the date on which the interest is due under the terms of the credit agreement.
In the case of foreign currency credit, the interest rate subsidy shall be paid by two Finnish business days prior to the average exchange rate of the relevant currency of the European Central Bank in force before the maturity of the loan.
The Ministry of Foreign Affairs shall ensure that the interest rate subsidy is used for the purpose specified in the decision approving the credit in the interest rate form.
A credit institution shall include in the interest-rate credit agreement a condition that a credit institution is entitled to terminate the interest rate subsidy if the borrower does not fulfil its obligations under the credit agreement. The credit institution shall require the credit institution to provide the credit institution with all necessary information for the purposes of supervision.
A credit institution shall be required to provide the Ministry of Foreign Affairs with the information necessary to establish that the interest rate subsidy has been used for an approved purpose and that the agreed conditions have otherwise been respected.
The Ministry of Foreign Affairs may revoke or amend a decision referred to in Article 6, if the credit is not used for the purpose specified in the decision, or where other important circumstances arise under the interest-rate credit Changes.
More detailed provisions on the management of interest-rate credit, the application procedure and dismissal are laid down by the Government Decree.
This Act shall enter into force on 1 January 2001.
This Act repeals the Law of 31 December 1986 on the interest rate subsidy for loans for the economic development of developing countries (1058/1986) And the acts adopted pursuant thereto.
THEY 169/2000 , TaVM 33/2000, EV 180/2000
