HELSINKI May 2 The Finnish government plans to
sell 460 million euros ($638 million) worth of shares its
investment fund holds, to finance spending and to reduce the
need for borrowing, the finance ministry said on Friday.
The Finnish state investment fund, Solidium, is worth 8.2
billion euros. Its most valuable holdings are a 12 percent stake
in the insurance and investment firm Sampo and a 10
percent stake in telecoms operator TeliaSonera. The
finance ministry did not say which shares it plans to sell.
In its first supplementary budget for the year, the finance
ministry also cut its estimate for tax income by 190 million
euros. A sluggish economy has caused retail sales to fall short
of earlier estimates.
Overall, the supplementary budget adds 100 million euros
more income than spending. That amount will be used to reduce
After the supplementary budget, the central government
should need to borrow 7.0 billion euros this year. Finland's GDP
was 193 billion euros last year.
The government will discuss the supplementary budget on May
20, after which it will go to parliament.
($1 = 0.7212 Euros)
(Reporting by Sakari Suoninen; Editing by Larry King)