Unemployment Insurance Fund Stock Exchange Release 26 April 2016 at 11:30
Unemployment Insurance Fund's (TVR) estimate of the Full-year result has changed
TVR's Board of Directors has changed the estimate of the unemployment rate in Finland and the estimated amount of earnings related benefit payment financed by TVR for year 2016.
Unemployment Insurance Fund's current yearly Budget for 2016 was approved on 28 August 2015 and according to it would the average unemployment rate be 10.1 percent and the change of TVR's net position be negative 419 EUR million for year 2016.
According to the new estimate approved on 26 April 2016 it is stated that the rise in unemployment rate is stabilizing and the average unemployment rate for 2016 is estimated to be 9.4 percent. In addition to this it is however noted, that there is still uncertainty about the development of Finnish economy and therefore it is not ruled out that unemployment rate may rise again in the Autumn 2016.
The decline of the estimated unemployment rate improves the estimate of TVR's Full-year result for 2016 markedly. The change of the net position would according to the estimate dated 26 April 2016 be approximately negative 50 EUR million, which is an improvement of approximately 350 EUR million against the Budget.
The above-mentioned improvement of the Full-year result diminishes the funding need with the corresponding amount, in which case the amount of new debt financing needed for 2016 would not be significant.
Janne Metsämäki, Managing Director. tel. +358 40 522 3614
Tapio Oksanen, Deputy Managing Director, CFO tel. +358 40 539 4651
Helsinki, 26 April 2016
Unemployment Insurance Fund (TVR)
Deputy Managing Director
NASDAQ OMX Helsinki