Finnish Non-Financial Corporations Draw Down €1.8 Billion in New Loans Despite Higher Interest Rates in March 2023

In March 2023, Finnish non-financial corporations drew down a total of EUR 1.8 billion of new loans from credit institutions operating in Finland, despite the average interest rate on new loans increasing to 4.95%. This rise was driven by an increase in the interest rate on large loans, but drawdowns of large loans still amounted to 76% of all new corporate loan drawdowns. Manufacturing sector made the largest volume of new loan drawdowns. The average repayment period for new drawdowns of corporate loans was 3 years and 11 months. The stock of loans to Finnish non-financial corporations stood at EUR 61.9 billion at the end of March 2023, contracting from its peak level in October 2022. The stock of housing loans totalled EUR 107.5 billion, with buy-to-let mortgage loans accounting for EUR 8.7 billion of the housing loan stock. Finnish households’ deposits amounted to EUR 109.9 billion at the end of March 2023.