E Notes to the balance sheet
                     
E1 Loans to and receivables from credit institutions
                     
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Payable on demand 1,040,131 898,559 985,342 847,523
Reclassified to assets of disposal groups held for sale (Note E23) -3,632 -6,004    
Other 28,279 29,936 7,620 7,555
Total 1,064,778 922,491 992,961 855,078
                     
                     
E2 Loans to and receivables from customers
                     
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Loans 5,692,490 5,827,299 955,476 1,067,468
- Subordinated loans 11,198 15,925 11,198 15,668
- Other loans 5,729,625 5,859,478 991,383 1,097,719
- Impairment losses -47,105 -45,919 -47,105 -45,919
- Reclassified to assets of disposal groups held for sale (Note E23) -1,228 -2,185    
Loans to Group companies 0 0 3,041,718 2,500,398
Guarantee receivables 31,884 26,259 31,884 26,259
Receivables from export credit guarantee and special guarantee operations 121,816 224,476 121,816 224,476
- Fee and commission receivables 723 212 723 212
- Receivables from reinsurance 0 83,521 0 83,521
- Book value of recovery receivables on 31 Dec 114,774 133,444 114,774 133,444
- Nominal value of recovery receivables 204,075 202,708 204,075 202,708
- Impairment losses on recovery receivables -89,301 -69,264 -89,301 -69,264
- Other export and recovery receivables 6,320 7,298 6,320 7,298
Total 5,846,190 6,078,034 4,150,895 3,818,600
Impairment losses on loans        
Impairment losses at the beginning of the period 45,919 59,575 45,919 59,575
- Impairment losses on individually assessed loans 19,987 27,830 19,987 27,830
- Impairment losses on collectively assessed loans 25,932 31,745 25,932 31,745
Impairment losses recognised during the period 5,796 -9,141 5,796 -9,141
- Impairment losses on individually assessed loans 12,065 -368 12,065 -368
- Impairment losses on collectively assessed loans -2,598 -5,814 -2,598 -5,814
- Reversal of impairment losses -3,671 -2,817 -3,671 -2,817
- Other changes 0 -142 0 -142
Credit losses materialised on loans where impairment losses have been recognised -4,609 -4,515 -4,609 -4,515
Impairment losses at the end of the period 47,105 45,919 47,105 45,919
- Impairment losses on individually assessed loans 23,772 19,987 23,772 19,987
- Impairment losses on collectively assessed loans 23,333 25,932 23,333 25,932
                     
The parent company Finnvera plc has a recovery receivable related to the Brazilian company Oi S.A.’s export credit guarantees for which compensation was paid in 2016. On 31 December 2017, the carrying amount of recovery receivables of Finnvera’s export credit guarantee and special guarantee operations was EUR 115 million, the majority of which was receivables from Oi S.A. The total impact of the compensations related to Oi S.A. on Finnvera plc’s financial performance in 2016–2017 was EUR -58 million.
An impairment loss on loans and other receivables is recognised when objective evidence of their impairment exists. The objective evidence of a customer's ability to fulfil its obligations is based on the customers' risk classification as well as on the Company's experience and the management's estimate of effect of defaults on the recovery of loan receivables.
                     
                     
E3 Investments
                     
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Debt securities, available-for-sale        
Certificates of deposits and bonds 2,324,804 1,694,569 2,324,804 1,694,569
Commercial papers 239,435 193,425 239,435 193,425
Local authority papers 466,843 97,211 466,843 97,211
Investments in SME bonds 28,634 57,216 28,634 57,216
Total 3,059,716 2,042,422 3,059,716 2,042,422
Investments in Group companies        
Acquisition cost at 31 Dec     129,006 128,403
- Acquisition cost at 1 Jan     128,403 192,818
- Investments     603 5,000
- Sales     0 -56,059
- Other deductions     0 -13,356
Accumulated impairment losses at 31 Dec     -44,935 -44,935
- Accumulated impairment losses at 1 Jan     -44,935 -43,003
- Impairment losses during the period     0 -1,932
Reclassified to assets of disposal groups held for sale (Note E23)     -15,256 -14,653
Total     68,815 68,815
Investments in assosiated companies 1        
Acquisition cost at 31 Dec 7,340 23,748 0 0
- Acquisition cost at 1 Jan 23,748 71,830 0 0
- Sale of Seed Fund Vera Ltd to a buyer outside the Group 0 -43,194    
- Investments 1,048 2,426 0 0
- Sales and transfers between groups -15,205 -7,314 0 0
Equity adjustments at 31 Dec 7,533 -771 0 0
- Reclassified to assets of disposal groups held for sale (Note E23) -14,873 -8,003    
Total 0 14,973 0 0
Other shares 2        
At fair value through profit or loss 0 0 0 0
- At fair value through profit or loss 18,385 17,710    
- Reclassified to assets of disposal groups held for sale (Note E23) -18,385 -17,710    
Available-for-sale 24,092 24,383 14,068 14,399
- Available-for-sale 36,608 37,392 26,584 27,408
- Reclassified to assets of disposal groups held for sale (Note E23) -12,517 -13,009 -12,517 -13,009
Total 24,092 24,383 14,068 14,399
Investments total 3,083,807 2,081,778 3,142,598 2,125,637
                     
1Investments in associated companies: investments by subsidiaries engaged in venture capital investment operations in the Group.
2 Other shares that are publicly quoted.
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
- Other shares 10,023 10,314 0 331
                     
                     
E4 Intangible assets
                     
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Acquisition cost at 31 Dec 46,945 43,982 46,825 43,860
- Acquisition cost at 1 Jan 43,982 40,302 43,860 40,166
- Additions 3,117 3,750 2,966 3,750
- Disposals -154 -70 0 -57
Accumulated amortisation and impairment losses at 31 Dec -38,434 -36,920 -38,313 -36,800
- Accumulated amortisation and impairment losses at 1 Jan -36,920 -35,854 -36,800 -35,734
- Amortisation for the period -1,514 -1,066 -1,514 -1,066
Carrying amount at 1 Jan 7,062 4,447 7,060 4,432
Carrying amount at 31 Dec 8,511 7,062 8,511 7,059
                     
                     
E5 Property, plant and equipment
                     
  Finnvera Group Finnvera plc
(EUR 1,000) Properties Other tangible Total Properties Other tangible Total
31 Dec 2017            
Acquisition cost at 31 Dec 0 12,838 12,838 0 12,838 12,838
- Acquisition cost at 1 Jan 0 12,794 12,794 0 12,794 12,794
- Additions 0 46 46 0 46 46
- Disposals 0 -1 -1 0 -1 -1
Accumulated amortisation and impairment losses at 31 Dec 0 -11,647 -11,647 0 -11,647 -11,647
- Accumulated amortisation and impairment losses at 1 Jan 0 -11,362 -11,362 0 -11,362 -11,362
- Amortisation for the period 0 -284 -284 0 -284 -284
Carrying amount at 1 Jan 0 1,431 1,431 0 1,431 1,431
Carrying amount at 31 Dec 0 1,192 1,192 0 1,192 1,192
31 Dec 2016            
Acquisition cost at 31 Dec 5,112 12,794 17,906 5,112 12,794 17,906
- Acquisition cost at 1 Jan 5,277 11,527 16,804 5,277 11,527 16,804
- Additions 0 1,333 1,333 0 1,333 1,333
- Disposals -164 -66 -231 -164 -66 -231
Accumulated amortisation and impairment losses at 31 Dec -5,112 -11,362 -16,475 -5,112 -11,362 -16,475
- Accumulated amortisation and impairment losses at 1 Jan -5,112 -10,102 -15,214 -5,112 -10,102 -15,214
- Amortisation for the period 0 -1,260 -1,260 0 -1,260 -1,260
Carrying amount at 1 Jan 164 1,425 1,589 164 1,425 1,589
Carrying amount at 31 Dec 0 1,431 1,431 0 1,431 1,431
                     
                     
E6 Other assets
                     
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Credit loss receivables from the state and the ERDF 7,212 8,731 7,212 8,731
Receivables from subsidiaries 0 0 16,178 9,279
Other 1,916 2,328 1,916 2,328
Total 9,128 11,059 25,306 20,338
                     
The state and the European Regional Development Fund (ERDF) has granted Finnvera commitments to partially compensate Finnvera for the credit and guarantee losses. The commitments enable Finnvera to take higher risks in domestic business than financiers operating on commercial grounds.
                     
                     
E7 Prepayments and accrued income
                     
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Interest and interest subsidy receivables 59,721 51,643 40,282 30,255
Fee and commission receivables 3,479 3,332 6,653 4,046
Reinsurance premiums paid in advance 25,743 17,063 25,743 17,063
Cash collateral given for derivatives 79,100 156,080 79,100 156,080
Prepayments and other accrued income 20,788 8,083 3,232 4,087
Reclassified to assets of disposal groups held for sale (Note E23) -48 -83    
Total 188,783 236,118 155,009 211,531
                     
                     
E8 Tax assets and liabilities
                     
  Finnvera Group
(EUR 1,000) 31 Dec 2017 31 Dec 2016
Income tax assets 947 0
Deferred tax assets at 31 Dec 3,235 2,145
- Deferred tax assets at 1 Jan 2,145 0
- Increase/decrease to income statement during the period 1,090 2,145
- Increase/decrease to other items in comprehensive income during the period 0 0
Tax assets total 4,182 2,145
Current income tax liabilities 0 302
Deferred tax liabilities at 31 Dec 299 498
- Deferred tax liabilities at 1 Jan 800 1,990
- Increase/decrease to income statement during the period 2,241 42
- Increase/decrease to other items in comprehensive income during the period 7 16
- Reclassified to assets of disposal groups held for sale (Note E23) -2,749 -1,550
Tax liabilities total 299 800
                     
Deferred tax liability arisen when the venture capital investments of subsidiaries engaged in venture capital investment are carried at fair value and investments in funds are carried at fair value. Finnvera plc is exempt from income tax.
                     
                     
E9 Liabilities to credit and other institutions
                     
  Finnvera Group Finnvera plc
(EUR 1,000) 2017 2017
  Nominal value Carrying amount Nominal value Carrying amount
Liabilities to credit and other institutions        
1 Jan 2017 2,551,038 2,551,995 289,245 289,245
- Loans withdrawn     243,558 243,558
- Repayments at maturity -395,853 -395,853 -232,364 -232,364
- Fair value changes   -764    
- Foreign exchange differences -194,088 -194,088 -30,311 -30,311
31 Dec 2017 1,961,097 1,961,290 270,128 270,128
                     
  Finnvera Group Finnvera plc
(EUR 1,000) 2016 2016
  Nominal value Carrying amount Nominal value Carrying amount
Liabilities to credit and other institutions        
1 Jan 2016 2,653,738 2,655,046 67,985 67,985
- Loans withdrawn 200,231 200,231 424,096 424,096
- Repayments at maturity -361,933 -361,933 -217,449 -217,449
- Fair value changes   -351    
- Foreign exchange differences 59,001 59,001 14,613 14,613
31 Dec 2016 2,551,038 2,551,995 289,245 289,245
                     
                     
E10 Debt securities in issue
                     
Issuer and ISIN Interest Nominal (thousands) Currency Issue date Maturity date Finnvera plc/Finnvera Group
Carrying amount
(EUR 1,000)           31 Dec 2017 31 Dec 2016
Finnvera Oyj - XS1062104978 0.875% 500,000 EUR 29.04.2014 29.04.2019 509,315 514,495
Finnvera Oyj - XS1140297000 0.625% 750,000 EUR 19.11.2014 19.11.2021 771,150 778,155
Finnvera Oyj - XS1294518318 0.625% 1,000,000 EUR 22.09.2015 22.09.2022 1,027,245 1,034,570
Finnvera Oyj - XS1392927072 0.500% 1,000,000 EUR 13.04.2016 13.04.2026 975,800 984,000
Finnvera Oyj - XS1613374559 1.125% 750,000 EUR 17.05.2017 17.05.2032 741,900 0
Finnvera Oyj - XS1613374559 1.125% 100,000 EUR 03.07.2017 17.05.2032 98,920 0
Finnvera Oyj - XS1613374559 1.125% 150,000 EUR 06.09.2017 17.05.2032 148,380 0
Finnvera Oyj - XS0981865065 3M STIBOR +0.1% 2,000,000 SEK 17.10.2013 17.08.2018 203,443 209,784
Finnvera Oyj - XS1538285807 1.910% 1,500,000 SEK 20.12.2016 20.12.2028 155,211 157,828
Finnvera Oyj - XS1538285807 1.910% 1,500,000 SEK 23.01.2017 20.12.2028 155,211 0
Finnvera Oyj - XS1538285807 1.910% 500,000 SEK 23.01.2017 20.12.2028 51,737 0
Finnvera Oyj - XS0852098929 1.000% 300,000 USD 07.11.2012 07.11.2017 0 283,661
Finnvera Oyj - XS1110448138 1.875% 500,000 USD 16.09.2014 16.09.2019 414,963 474,279
Finnvera Oyj - XS1241947768 2.375% 500,000 USD 04.06.2015 04.06.2025 404,082 455,102
Finnvera Oyj - XS1692488262 1.875% 1,000,000 USD 05.10.2017 05.10.2020 825,698 0
Total 6,483,055 4,891,873
                     
  Finnvera Group Finnvera plc
(EUR 1,000) 2017 2017
  Nominal value Carrying amount Nominal value Carrying amount
Liabilities to credit and other institutions        
1 Jan 2017 4,849,676 4,891,873 4,849,676 4,891,873
- Debt securities issued 2,062,008 2,051,682 2,062,008 2,051,682
- Repayments at maturity -258,844 -259,471 -258,844 -259,471
- Fair value changes   -30,276   -30,276
- Foreign exchange differences -176,474 -174,633 -176,474 -174,633
- Other changes   3,881   3,881
31 Dec 2017 6,476,367 6,483,055 6,476,367 6,483,055
Average interest rate1   0.8235 %   0.4703 %
         
  Finnvera Group Finnvera plc
(EUR 1,000) 2016 2016
  Nominal value Carrying amount Nominal value Carrying amount
Liabilities to credit and other institutions        
1 Jan 2016 3,937,282 3,957,734 3,937,282 3,957,734
- Debt securities issued 1,154,218 1,143,558 1,154,218 1,143,558
- Repayments at maturity -266,572 -266,572 -266,572 -266,572
- Fair value changes   29,275   29,275
- Foreign exchange differences 24,747 24,653 24,747 24,653
- Other changes   3,225   3,225
31 Dec 2016 4,849,676 4,891,873 4,849,676 4,891,873
Average interest rate1   0.9050 %   0.336 %
                     
Liabilities have been measured at fair value when they have been hedged with derivatives (fair value option). An amount equaling the nominal value of a liability is repaid at the maturity date. The change in fair value does not include the change in credit risk because the liabilities have been guaranteed by the state of Finland, whose credit risk has not changed.
1 Average interest rate for the parent company and the Group is calculated as average interest rate for all interest-bearing loans.
                     
                     
E11 Derivatives
                     
(EUR 1,000) Finnvera Group Finnvera plc
  Fair value Nominal value Fair value Nominal value
  Positive Negative Total Positive Negative Total
31 Dec 2017            
Fair value hedges 1            
- Interest rate swaps   43,681 2,833,820   43,681 2,833,820
Hedging derivatives not designated in hedge accounting relationships 2            
- Interest rate swaps 35,191 8,456 3,083,820 35,191 8,456 3,083,820
- Cross-currency interest rate swaps 44,533 81,514 868,259 44,332 81,514 831,225
- Forward foreign exchange contracts 69 4,671 255,907 69 4,671 255,907
Total 79,792 138,321 7,041,805 79,591 138,321 7,004,771
31 Dec 2016            
Fair value hedges 1            
- Interest rate swaps   16,710 1,000,000   16,710 1,000,000
Hedging derivatives not designated in hedge accounting relationships 2            
- Interest rate swaps 55,870 8,498 3,198,677 55,870 8,498 3,198,677
- Cross-currency interest rate swaps 54,123 181,811 1,074,215 54,123 177,592 1,033,696
- Forward foreign exchange contracts 656 5,534 364,138 656 5,534 364,138
Total 110,649 212,553 5,637,029 110,649 208,334 5,596,510
                     
1Fair value hedging is used to hedge liabilities. The derivative contracts and the liabilities hedged with them have been measured at fair value (hedged liabilities are measured at fair value with regard to the hedged risk) and the changes in their fair values have been recognised in the income statement. Financial assets and liabilities encompassed by hedge accounting are presented in Note E20.
2 Derivatives hedge liabilities and foreign currency exchange risks. Liabilities hedged with derivatives have been measured at fair value and the changes in their fair values have been recognized in the income statement (fair value option).
                     
                     
E12 Other liabilities
                     
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Grants under repayment obligation 24,252 24,252 24,252 24,252
Grant from the Ministry of Employment and the Economy to Seed Fund Vera Ltd for venture capital investments 14,653 14,653 14,653 14,653
Prepayments received for ERDF financing 7,598 7,598 7,598 7,598
Accounts payable for investments in debt securities 0 6,998 0 6,998
Other 3,159 2,627 9,439 2,581
Reclassified to assets of disposal groups held for sale (Note E23) -3 -3    
Total 49,659 56,125 55,942 56,082
                     
                     
E13 Provisions
                     
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Provision for export credit guarantee losses at 1 Jan 11,954 12,280 11,954 12,280
Provisions made during the period 856 8,457 856 8,457
Provisions used during the period -4,888 -1,053 -4,888 -1,053
Other change 0 -7,729 0 -7,729
Provision for export credit guarantee losses at 31 Dec 7,922 11,954 7,922 11,954
Impairment losses on guarantees at 1 Jan 32,180 39,172 32,180 39,172
- of which individually assessed guarantees 17,302 20,519 17,302 20,519
- of which collectively assessed guarantees 14,878 18,653 14,878 18,653
Guarantee losses realized during the period on which an impairment loss has been earlier recognized 1,837 -810 1,837 -810
Individually assessed impairment losses recognized during the period 4,492 1,830 4,492 1,830
Collectively assessed impairment losses recognized during the period -2,199 -3,775 -2,199 -3,775
Reversal of impairment losses 715 -1,315 715 -1,315
Other change -4,802 -2,922 -4,802 -2,922
Impairment losses on guarantees at 31 Dec 32,233 32,180 32,233 32,180
- of which individually assessed guarantees 19,554 17,302 19,554 17,302
- of which collectively assessed guarantees 12,679 14,878 12,679 14,878
Other provisions at 31 Dec 3,100 2,653 3,100 2,653
Total 43,255 46,786 43,255 46,786
                     
A provision for export credit guarantee losses is recognised when the Group has a constructive and legal obligation to pay a guarantee indemnity, the realisation of the obligation is probable and it can be measured reliably.
A provision for domestic guarantee losses is recognised when objective evidence exists of impairment of guarantees' value. The objective evidence of a customer's ability to fulfil its obligations is based on the customers' risk classification as well as on the Company's experience and the management's estimate of effect of defaults on the recovery of loan receivables.
For individually and collectively assessed provisions entered for the financial period, a negative figure indicates a decrease and a positive figure an increase in provisions.
                     
                     
E14 Operating leases
                     
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Finnvera as the lessee, premises        
Non-cancellable minimum lease payments payable for premises eased under operating lease contracts        
Within one year 2,149 2,330 2,149 2,330
Between one and five years 7,016 5,217 7,016 5,217
Later than five years 791 1,979 791 1,979
Total 9,956 9,526 9,956 9,526
Finnvera as the lessor, premises        
Non-cancellable minimum lease payments payable for premises eased under operating lease contracts        
Within one year 1 7 16 45
Between one and five years   0   0
Later than five years   0   0
Total 1 7 16 45
                     
                     
                     
E15 Accruals and deferred income
                     
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Interest 50,302 37,413 31,887 17,370
Advance interest payments received 477 9,686 477 9,686
Guarantee premiums paid in advance 1 234,216 261,165 234,216 261,165
Cash collateral received for derivatives 34,130 45,400 34,130 45,400
Other accruals and deferred income 5,022 105,028 4,836 113,883
Total 324,147 458,691 305,546 447,505
                     
1 Premiums on export guarantees are usually collected in advance for the entire guarantee period.
                     
                     
E16 Subordinated liabilities, Finnvera plc
                     
  Finnvera Group
Loan Purpose of use Interest rate % Loan period Balance (EUR 1,000)
(EUR 1,000)     31 Dec 2017 31 Dec 2016
Subordinated loan 2009-2 Increase in the share capital of Veraventure Ltd 1 0 15 years 7,500 7,500
Subordinated loan 2009-3 Raising Finnvera plc’s capital adequacy and improving the financing options 2 0 15 years 0 50,000
Subordinated loan 2014 Increase in the share capital of Seed Fund Vera Ltd 3 0 15 years 2,525 2,525
Subordinated loan 2015 Increase in the share capital of Seed Fund Vera Ltd 3 0 15 years 5,000 5,000
Subordinated loan 2016 Increase in the share capital of Seed Fund Vera Ltd 3 0 15 years 5,000 5,000
 
1 The loan have been granted to Finnvera for raising the share capital of Veraventure Ltd. The loan will be repaid in one instalment at maturity, provided that the sum of the company’s unrestricted equity and all subordinated loans at the time of payment exceeds the loss recorded on the balance sheet adopted for the company’s latest financial period or on a balance sheet included in more recent financial statements.
2 The loan was granted for raising the capital adequacy of Finnvera plc and for improving its financing opportunities. The loan was repaid during the financial period.
3 The loans have been granted to Finnvera for raising the share capital of Seed Fund Vera Ltd. The loans will be repaid in one instalment at maturity, provided that the sum of the company’s unrestricted equity and all subordinated loans at the time of payment exceeds the loss recorded on the balance sheet adopted for the company’s latest financial period or on a balance sheet included in more recent financial statements. During the financial period, Seed Fund Vera Ltd was turned into a limited partnership company and merged with Innovestor Kasvurahasto I Ky.
The subordinated loans granted for raising the share capital of Seed Fund Vera Ltd pertain to long-term assets held for sale (Note E23).
                     
                     
E17 Financial instruments classification and fair values
                     
(EUR 1,000) Finnvera Group Finnvera plc
Financial assets Loans and receivables Financial instruments carried at fair value Available for sale Total Fair value
3
Loans and receivables Financial instruments carried at fair value Available for sale Total Fair value
3
31 Dec 2017                    
Loans to and receivables from credit institutions 1,064,778     1,064,778 1,065,080 992,961     992,961 992,961
Loans to and receivables from customers 5,846,190     5,846,190 5,952,258 4,150,895     4,150,895 4,150,601
Commercial papers and T-bills     1,007,414 1,007,414 1,007,414     1,007,414 1,007,414 1,007,414
Bonds     2,052,302 2,052,302 2,052,302     2,052,302 2,052,302 2,052,302
Derivatives   79,792   79,792 79,792   79,591   79,591 79,591
Associated companies   0   0 0     0 0 0
Shares and participations 1     24,092 24,092 24,092     14,068 14,068 14,068
Assets of disposal groups held for sale 2   33,259 12,517 45,775 45,775     27,772 27,772 27,772
Other financial assets 125,808     125,808 125,808 111,399     111,399 111,399
Total 7,036,776 113,051 3,096,324 10,246,152 10,352,522 5,255,256 79,591 3,101,556 8,436,403 8,436,109
                     
31 Dec 2016                    
Loans to and receivables from credit institutions 922,491     922,491 922,849 855,078     855,078 855,078
Loans to and receivables from customers 6,078,034     6,078,034 6,215,475 3,818,600     3,818,600 3,816,768
Commercial papers and T-bills     339,128 339,128 339,128     339,128 339,128 339,128
Bonds     1,703,294 1,703,294 1,703,294     1,703,294 1,703,294 1,703,294
Derivatives   110,649   110,649 110,649   110,649   110,649 110,649
Associated companies   14,973   14,973 14,973       0 0
Shares and participations 1     24,383 24,383 24,383     14,399 14,399 14,399
Assets of disposal groups held for sale 2   25,713 13,009 46,911 46,911     27,662 27,662 27,662
Other financial assets 183,092     183,092 183,092 179,450     179,450 179,450
Total 7,183,616 151,336 2,079,814 9,422,955 9,560,755 4,853,128 110,649 2,084,484 7,048,261 7,046,429
                     
1The Group’s and the parent company’s shares and participations include EUR 14 million (EUR 14 million) in investments in unlisted companies outside the Group. These have been measured at cost as fair value cannot be determined reliably.
2The parent company’s item available for sale includes ERDF-Seed Fund Ltd’s shares owned by the parent company and the capital input in Innovestor Kasvurahasto I Ky. As the fair value of the shares cannot be determined reliably, their acquisition value
is presented as their fair value.
The Group’s item available for sale includes unlisted shares and capital inputs. As their fair value cannot be determined reliably, their acquisition value is presented as their fair value.
3 The fair values for balance sheet items that are not measured at fair value in accounting have been determined according to the following principles. The fair value of short-term receivables has been set at their carrying amount due to their short maturity. The fair value of long-term receivables is based on discounted cash flows (Level 2).

 
                     
(EUR 1,000) Finnvera Group   Finnvera plc
Financial liabilities Financial instruments carried at fair value Other financial liabilities Total Fair value
3
  Financial instruments carried at fair value Other financial liabilities Total Fair value
3
31 Dec 2017                  
Liabilities to credit institutions   187,609 187,609 191,265     187,609 187,609 191,265
Liabilities to other institutions 37,227 1,736,453 1,773,680 1,826,166     82,519 82,519 82,519
Debt securities in issue 6,483,055   6,483,055 6,483,055   6,483,055   6,483,055 6,483,055
Derivatives 138,321   138,321 138,321   138,321   138,321 138,321
Other financial liabilities   75,821 75,821 75,821     72,632 72,632 72,632
Subordinated liabilities   7,500 7,500 7,500     7,500 7,500 7,500
Liabilities of disposal groups held for sale   12,525 12,525 12,525     12,525 12,525 12,525
Total 6,658,604 2,019,908 8,678,513 8,734,654   6,621,377 362,786 6,984,163 6,987,818
                     
31.12.2016                  
Liabilities to credit institutions   213,452 213,452 218,847     213,452 213,452 218,847
Liabilities to other institutions 41,476 2,297,067 2,338,543 2,425,850     75,793 75,793 75,793
Debt securities in issue 4,891,873   4,891,873 4,891,873   4,891,873   4,891,873 4,891,873
Derivatives 212,553   212,553 212,553   208,334   208,334 208,334
Other financial liabilities   195,909 195,909 195,909     193,114 193,114 193,114
Subordinated liabilities   57,500 57,500 57,500     57,500 57,500 57,500
Liabilities of disposal groups held for sale   12,525 12,525 12,525     12,525 12,525 12,525
Total 5,145,902 2,776,453 7,922,354 8,015,057   5,100,207 552,385 5,652,591 5,657,987
                     
3 The fair values for balance sheet items that are not measured at fair value in accounting have been determined according to the following principles. The fair value of short-term receivables has been set at their carrying amount due to their short maturity. The fair value of long-term receivables is based on discounted cash flows (Level 2).

 
Valuation groups
Under IFRS rules, financial assets are classified into four valuation groups: loans and receivables, financial assets at fair value through profit or loss, available-for-sale financial assets and held-to-maturity financial assets. According to the rules, financial assets at fair value through profit or loss are further divided into the following categories: financial assets classified as held for trading and financial assets designated to be recognised at fair value through profit or loss upon initial recognition. The Group has no financial assets to be held for trading or held until maturity.
                     
Under IFRS rules, the Group's financial liabilities are classified into two groups: financial liabilities at fair value through profit or loss and other financial liabilities. Other financial liabilities are measured at (amortised) cost. Financial liabilities at fair value through profit or loss are presented in the same manner as financial assets, classified as being held for trading and designated to be recognised at fair value through profit or loss upon initial recognition. The Group has no financial liabilities to be held for trading
                     
Fair value measurement principles
                     
1. Debt securities
The fair values of debt securities are based on the prices at the closing of the financial period, determined by a third party pricing source, or on the value discounted using the market interest rate at the closing of the financial period.
                     
2. Derivatives
The fair values of interest rate and currency swaps and currency futures are specified using a method based on the current value of cash flows, in which the market interest rates on the end date of the financial period and other market information serve as the accounting principle. The Group uses common valuation techniques in determining the fair value of these instruments. Fair values are equivalent to average market prices in situations where the Group would transfer or sell derivatives in the course of normal business under market conditions on the end date of the financial period. The credit risk related to derivatives is mitigated by means of collateral arrangements. Fair values are monitored on a daily basis using calculations from counterparties and those made in-house.
                     
3. Investments in associates
The fair value of subsidiaries involved in venture capital investment is determined using a valuation technique approved by the Board of Directors that complies with the International Equity and Venture Capital Valuation (IPEV) Guidelines and recommendations for early stage ventures. In this technique, the determination of the investment's fair value is based on the valuation and investments made by outside investors as well as on the portfolio company valuation approved by the fund's Board of Directors. The valuation of companies is done continuously throughout the year, with valuations being updated on a biannually basis, for Group reporting in a separate process, where investments are examined by investment portfolio.
                     
In accordance with the government’s policy guidelines, Finnvera will give up its venture capital investments to a signifact extent. Finnvera has already initiated measures to this end. In consequence, when the fair value of venture capital investments is determined, attention is also paid to how the management of both Finnvera and its subsidiaries engaged in venture capital investment assess the fair value of the investments.
                     
4. Shares and participations
Shares and reserve shares listed on the NASDAQ OMX Helsinki stock exchange that are classified as available-for-sale shares and participations are measured at the exchange rate on the date of the financial statements. Unlisted shares classified as available-for-sale shares and participations are measured using the effective interest method. Because their measurement using fair value measurement models has not been possible, nor could the fair value of investments otherwise be reliably determined. The most notable item of this type consists of shares in Finnfund EUR 13.67 million (2015: 13.67 million).
                     
5. Financial liabilities at fair value through profit or loss
The fair values of bonds in issue that fall outside hedge accounting are based on the prices at the closing of the financial period, determined by a third party pricing source. Other fair values of liabilities measured at fair value are calculated using a method based on the current value of cash flows. In this method, market interest rates on the end date of the financial period and other accounting information serve as the accounting principle. The company’s own credit risk is also taken into consideration in the measurement of liabilities.
                     
                     
E18 Hierarchy for carrying financing instruments at fair value
                     
The presentation method has been changed from the previous year. The table below shows the fair value hierarchy levels for items that are measured at fair value in accounting. The fair values for balance sheet items that are not measured at fair value in accounting are disclosed in Note E17 and the principles for detemining the fair value in the footnotes 1–3 of Note E17.
                     
(EUR 1,000) Finnvera Group Finnvera plc
Financial assets 31 Dec 2017 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Financial instruments carried at fair value            
- Derivatives   79,792     79,591  
- Associated companies            
- Assets held for sale     33,259      
Available-for-sale            
- Bonds   2,052,302     2,052,302  
- Shares and holdings 10,023          
Total 10,023 2,132,094 33,259 0 2,131,893 0
Financial liabilities 31 Dec 2017 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Financial instruments carried at fair value            
- Liabilities to other institutions   37,227        
- Debt securities in issue   6,483,055     6,483,055  
- Derivatives   138,321     138,321  
Total   6,658,604     6,621,377  
                     
(EUR 1,000) Finnvera Group Finnvera plc
Financial assets 31 Dec 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Financial instruments carried at fair value            
- Derivatives   110,649     110,649  
- Associated companies     14,973      
- Assets held for sale     25,713      
Available-for-sale            
- Bonds   1,703,294     1,703,294  
- Shares and holdings 9,983     331    
Total 9,983 2,153,071 40,686 331 2,153,071 0
Financial liabilities 31 Dec 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Financial instruments carried at fair value            
- Liabilities to other institutions   41,476        
- Debt securities in issue   4,891,873     4,891,873  
- Derivatives   212,553     208,334  
Total   5,145,902     5,100,207  
                     
Hierarchy levels
Level 1: Investments in quoted shares and funds traded on the active market are valued at market price.
Level 2: The fair values of interest rate and currency swaps, currency futures and liabilities are specified using a method based on the current value of cash flows, in which the market interest rates at the closing of the financial period and other market information serve as the accounting principle. The fair values of bonds in issue that fall outside hedge accounting are based on the prices at the closing of the financial period, determined by a third party pricing source. The fair values of debt securities are based on the prices at the closing of the financial period, determined by a third party pricing source, or on the value discounted using the market interest rate at the closing of the financial period.
Level 3: The fair value of venture capital investments made by subsidiaries engaged in venture capital investment is based on the valuation and investments made by outside investors as well as on the portfolio company valuation approved by the fund. The method used complies with the International Private Equity and Venture Capital Valuation Guidelines (IPEV) for early-stage enterprises. In accordance with the government's policy guidelines, Finnvera will give up its venture capital investments to a significant extent. Finnvera has already initiated measures to this end. In consequence, when the fair value of venture capital investments is determined, attention is also paid to how the management of both Finnvera and its subsidiaries engaged in venture capital investment assess the fair value of the investments.
                     
Transfers between levels 1 and 2
There were no transfers between the fair-value hierarchy levels 1 and 2 during the financial period under review or the preceding financial period.
                     
                     
E19 Specification of events at hierarchy level 3
                     
LEVEL 3, Financial assets Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Financial assets carried at fair value        
Balance at 1 Jan 40,687 101,320 0 0
Profits and losses entered in the income statement, total 6,434 -9,646 0 0
Acquisitions 2,395 11,449 0 0
Sales -16,235 -50,081 0 0
Transfers to level 3 0 0 0 0
Transfers from level 3 0 0 0 0
Other -22 -12,356 0 0
Balance at 31 Dec 33,259 40,687 0 0
Profits and losses entered in the income statement for the instruments held by Finnvera 2,575 -2,688 0 0
         
The impact of the sale of the majority holding in Seed Fund Vera Ltd on the Group’s financial assets is presented in the Group’s comparison year item Sales.
                     
                     
E20 Financial assets and liabilities encompassed by hedge accounting and the net result of hedge accounting
                     
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Financial assets        
Derivatives        
- Encompassed by hedge accounting        
- Other 79,792 110,649 79,591 110,649
Total 79,792 110,649 79,591 110,649
Financial liabilities        
Debt securities in issue        
- Encompassed by hedge accounting 2,790,698 984,000 2,790,698 984,000
- Other 3,692,357 3,907,873 3,692,357 3,907,873
Total 6,483,055 4,891,873 6,483,055 4,891,873
Derivatives        
- Encompassed by hedge accounting 43,681 16,710 43,681 16,710
- Other 94,641 195,843 94,641 191,623
Total 138,321 212,553 138,321 208,334
Net result of hedge accounting        
Gains (+) / losses (-) from items carried at fair value        
- Derivatives encompassed by hedge accounting 17,927 6,087 -17,872 6,087
- Debts encompassed by hedge accounting -17,872 -6,818 17,927 -6,818
Total 54 -731 54 -731
                     
In 2016, hedge accounting was applied to the 10-year bond of one billion euros issued by Finnvera in April as well as bonds issued in the financial year 2017 after January 2017.
                     
In its financial statements, Finnvera plc recognises Finnish Export Credit Ltd’s share of the change in the fair value of liabilities and derivatives either as a liability to or as a receivable from Finnish Export Credit Ltd, depending on the final outcome of the change. Finnish Export Credit is Finnvera’s subsidiary.
                     
                     
E21 Financial instruments set off in the balance sheet or subject to netting agreements
                     
  Finnvera Group / Finnvera plc
(EUR 1,000) Gross recognised financial assets Gross recognised financial liabilities set of in the balance sheet Net carrying amount in the balance sheet Financial instruments
1
Financial instruments received/given as collateral
1
Cash received/given as collateral
1
Net amount
1
Financial assets 31 Dec 2017              
Derivatives 79,591 0 79,591 -45,745 0 -33,130 716
Total 79,591 0 79,591 -45,745 0 -33,130 716
Financial liabilities 31 Dec 2017              
Derivatives 138,352 0 138,352 -45,745 0 -78,100 14,507
Total 138,352 0 138,352 -45,745 0 -78,100 14,507
               
Financial assets 31 Dec 2016              
Derivatives 110,649 0 110,649 -69,850 0 -45,400 -4,601
Total 110,649 0 110,649 -69,850 0 -45,400 -4,601
Financial liabilities 31 Dec 2016              
Derivatives 208,334 0 208,334 -69,850 0 -156,080 -17,596
Total 208,334 0 208,334 -69,850 0 -156,080 -17,596
                     
1 Sums not subject to netting but included in the main netting agreements and similar arrangements.
                     
                     
E22 Equity
                     
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017   31 Dec 2016 31 Dec 2017   31 Dec 2016
Parent company's equity   196,605   196,605 0 196,605   196,605
Reserves   0     0 0    
- Share premium reserve 51,036 0 51,036   51,036 0 51,036  
- Fair value reserve 4,534 55,570 3,488 54,524 4,342 55,378 3,323 54,359
Restricted equity   252,175   251,129   251,983   250,964
Unrestricted reserves                
- Reserve for domestic operations 213,734   154,550   213,734   154,550  
- Reserve for export credit guarantee and special guarantee operations 687,681   668,440   687,681   668,440  
- Reserve for venture capital investments 15,252 916,667 15,252 838,242 15,252 916,667 15,252 838,242
Retained earnings                
- Profit/loss for previous periods 38,659 0 33,065   504 0 504  
- Profit/loss for the period 106,744 145,403 84,019 117,084 98,411 98,914 78,425 78,929
Unrestricted equity   1,062,071   955,327   1,015,582   917,171
Total   1,314,245   1,207,362   1,267,565   1,168,136
Equity attributable to the parent company's shareholders   1,314,245   1,206,456   1,267,565    
Share of equity held by non-controlling interests   0   906        
                     
                 
                 
Share capital and ownership: 31 Dec 2017 31 Dec 2016
Owner Share capital (EUR 1,000) Shares, nb Ownership Share capital (EUR 1,000) Shares, nb Ownership
The Finnish state 196,605 11,565 100 % 196,605 11,565 100 %
                     
Reserves:
                     
Share premium reserve
The share premium reserve has been formed before the new regulations of the Companies' Act came into force on 1 September 2006. The reserve includes the difference of EUR 42.9 million between the acquisition cost and the nominal value of KERA's shares and EUR 0.1 million that was generated in the transfer of assets of Takuukeskus and the acquisition of Fide Oy's shares as well as EUR 8.1 million generated by the raise of share capital of Finnvera as the shares of Finnish Export Credit Ltd were acquired.
                     
Fund for domestic operations and fund for export credit guarantee and special guarantee operations
In 2006 the laws regulating the operations of Finnvera Plc were amended so that separate funds to cover future losses from domestic operations and from export credit guarantee and special guarantee operations were established in equity. Losses from export credit guarantee and special guarantee operations will be covered by resources from the State Guarantee Fund only when the export credit guarantee and special guarantee fund is insufficient. The retained earnings from the domestic operations were transferred to the fund for domestic operations and the retained earnings from the export credit guarantee and special guarantee operations were transferred to the fund for export credit guarantee and special guarantee operations.
                     
Fund for venture capital investments
In 2011, a reserve for venture capital investments was established in the unrestricted equity on the balance sheet. The purpose was to monitor the assets allocated for venture capital investments in accordance with the ERDF operational programmes. The Ministry of Economic Affairs and Employment allocated to Finnvera the sum of EUR 17.5 million, to be used for venture capital investments in accordance with the ERDF operational programmes during the programme period 2007–2013. These assets have been recognised in the above reserve.
                     
Fair value reserve
The reserve includes the fair value change of available-for-sale financial assets. The items recognised in the fair value reserve are taken to the income statement when an available-for-sale financial asset is disposed of or an impairment loss on such an asset is recognised.
                     
The Group’s objectives and principles for capital management are presented in the Risk Management section.
                     
                     
E23 Disposal groups classified as held for sale
                     
As a whole, venture capital investments belong to disposal groups classified as held for sale because, in accordance with the Government’s policy outlines, the Group gives up its venture capital investment activities. The Group’s figures include ERDF-Seed Fund Ltd’s assets and liabilities as disposal groups classified as held for sale, as well as the capital input invested in Innovestor Kasvurahasto I Ky.

In 2017, Finnvera bought the holdings of ERDF-Seed Fund Ltd’s minor shareholders (approximately 5 per cent), becoming the sole owner of the fund. The arrangement was made in preparation for Finnvera’s overall withdrawal from ERDF-Seed Fund Ltd. In accordance with the presentation method allowed by IFRS 12 section B17, financial information concerning ERDF-Seed Fund Ltd is not presented in the financial statements for 2017.

In 2017, Seed Fund Vera Ltd merged with the Innovestor Kasvurahasto I Ky fund. At the end of 2017, the parent company had a 19.71 per cent holding in Innovestor Kasvurahasto I Ky, and the company is not included in the consolidated financial statements.

Veraventure Ltd’s venture capital investments available for sale were sold during 2017, and the company no longer has any actual business operations.
                     
  Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
Assets        
Loans to and receivables from credit institutions - payable on demand 3,632 6,004    
Loans to and receivables from customers – credits 1,228 2,185    
Investments in Group companies 0 0 15,256 14,653
Investments in associated companies 14,873 8,003    
Investments in other shares and participations 30,902 30,719 12,517 13,009
Prepayments and accrued income 48 83    
Total 50,683 46,994 27,772 27,662
Liabilities        
Other liabilities 3 3    
Subordinated liabilities 12,525 12,525 12,525 12,525
Deferred tax liabilities 2,749 1,550    
Total 15,277 14,078 12,525 12,525
                     
Each year Finnvera conducts an impairment test on the investments of its subsidiaries, as laid down by IAS 36. The valuation principles of long-term assets held for sale are presented in Note A13 to the financial statements.