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Yes, I’m talking about the Covid-19, Corona virus. It has hit companies very heavily. Also depending of the defense strategy of the Government hit can be even worse. Finland has taken a quite aggressive one, boarders are closed for people traffic, schools are closed, workplaces are in remote work mode, southern part of Finland is isolated from rest of the country, restaurants are closed etc. Quite drastic actions compared to our western neighbor. They had discussion and they had a chat and meeting. This sequence was repeated few times and they ended up to a conclusion, we do nothing. Which one is correct? Today it is difficult to say, after half of an year much easier but Finland gets my vote.

The not so good thing is that the Finnish strategy will leave dead bodies, companies. Especially small companies and restaurants will be the victims. Finnish Government understands the situation and they have opened their piggy bank. They tool is organisation called Business Finland and the instruments are grants and warranties for the loans.

There is a money on the table! Government has reserved some grants to develop products and services how companies should survive over and after the crisis. There are also money available for covering the working capital. However, there is not enough money, the damages are so big. But at least some help is available and some of the companies may survive. Rules are quite simple, company put 20% and the grants are 80%. Bureaucracy is pretty simple, however Business Finland is getting busier and busier and the response times are growing. Government should think about the business’ which have got the direct hit, like restaurants. They shouldn’t pay the full price of this battle.

Then comes the Government guaranteed loans. They are nice instruments for the Government. You can show big figures without using the money, Money is required only if the shit hits the fan. But because the loans are distributed with many different companies the is small. From the company point of view, using loans to patch the working capital is the most stupid thing what you can do, By doing so, you eat the future development of your company. Grants and direct support for short term cash problems, loans for the future investments. Clear?

If you think these loans more like Devil’s Advocate you end up to conclusion that they are only support for banks. Normally you couldn’t get these type loans from the bank because they are too risky. When Government guarantees them, they are triple A loans and EU is happy and the bank manager get his/hers bonuses.

This just pop into my mind.
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