IMPLEMENTATION LEVEL

IFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 12 Jun 2015 | Removal date: open ended
Still in force

State loan

On 12 June 2015, the European Investment Bank decided to provide 75 million EUR to the Metsä Fibre Oy bio-product mill in Äänekoski as part of the European Fund for Strategic Investments (henceforth: EFSI).
The EFSI financing will be used to construct a new bio-product pulp mill that will replace the old factory in the same location.
EFSI support does not fall under EU State Aid rules as it is meant as a tool to address "market failures or sub-optimal investment situations". However, the investment support does include favourable conditions in the form of public assumption of risk. As described in the European Commission's Fact Sheet form 20 July 2015:
"The type of risk-financing instruments will be designed so as to take uncertainty out ("first loss protection") of as such viable projects and therefore crowd-in private sector investments. Since the EFSI will take riskier tranches in investment projects, the private sector will be able to join under more favourable conditions." Furthermore, the EIB states that "The new initiative 'i.e. the EFSI' will benefit from the EIB's strong credit standing that enables funding at favourable conditions and across maturities".
 
Furthermore, the project has received a 32.1 million subsidy from the Finnish government, which was approved by the European Commission on 10 March 2016 (cf. Related Measures).

A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

321 Pulp, paper & paperboard
4702 Chemical wood pulp, dissolving grades.
470200 Chemical wood pulp, dissolving grades.
4703 Chemical wood pulp, soda or sulphate, other than dissolving grades.
470311 Coniferous
470321 Coniferous
470329 Nonconiferous
4705 Wood pulp obtained by a combination of mechanical and chemical pulping processes.
470500 Wood pulp obtained by a combination of mechanical and chemical pulping processes.

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