The deadly Chinese virus “took hostage” the economy of Finland

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The Finnish economy was held hostage by the deadly coronavirus in Chinese Covid-2019, according to Bloomberg. State company Finnvera Oyj, performing the functions of an export credit Agency, has issued a large number of loans and loan guarantees for the purchase produced in the countries of Northern Europe, in Finland, the cruise ships. They took major international operators.

Because of the coronavirus, the market is expensive sea and ocean cruises are under threat. Off the coast of Japan currently stands on the quarantine liner with dozens of infected passengers on Board. If the epidemic continues, the demand for new ships will fall, and have already taken loans for them will be under the risk of default.

The total amount of loan guarantees, the liability for which ultimately lies with the government of Finland is of 11 billion euros, which is equal to the sixth part of the state budget in 2020 and 10 percent of the total debt.

As long as borrowers maintain solvency, loan guarantees are not counted among the liabilities of the government, however, the situation changes, if they are not able to pay. Among the borrowers, the major cruise operators, including American Carnival Corp. and the American-Norwegian Royal Carribean Cruises.

The number of people infected with coronavirus Covid-2019 exceeded 45 thousand. More than 1,100 of them died, more than 4.8 thousand recovered.

Video, photo All from Russia.

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