Finland: Finland strengthens investments in companies of the poorest countries

NordenBladet — The coronavirus crisis has hit companies in developing countries hard. Finland has increased its guarantees to development finance institution Finnfund, which will strengthen the targeting of its investments to the companies of the poorest countries as well as promote economic and social development.

In addition to adverse health impacts, the coronavirus pandemic has resulted in major economic losses around the world. In developing countries, the private sector accounts for a large share of jobs, and states cannot afford to revive their economies through billion-dollar packages as in the wealthier countries. As a result, restrictive measures, recession and declining trade hit the companies of developing countries particularly hard.

The situation is further aggravated by the fact that poor countries often have poor social security. If there are no safety nets, the collapse of companies and decreasing incomes often mean that people have to face poverty. The World Bank expects the coronavirus crisis to increase extreme poverty for the first time in more than twenty years.