Moderate growth in Finnish companies’ non-performing loans

Abstract

The economic shock caused by the COVID-19 pandemic has reduced demand for goods and services offered by Finnish companies. Accommodation and catering services, in particular, have faced severe difficulties. The risks of corporate loans to banks and other corporate lenders have increased. The heightened risk has not, however, been reflected much in the average interest rates on new corporate loans from banks. So far, no significant amounts of credit losses have incurred from corporate loans, but payment-term arrangements have been used extensively.