The main banks are already calculating how best to take advantage of the proposed options.
"If, by taking advantage of the government's guarantees, we can offer customers lower marginal interest rates, then we will seriously consider using those guarantees," says OP-Pohjola Group's CEO Reijo Karhinen.
Commercial ventures are also pleased with the package. Small and medium-sized businesses in particular have had a very hard time securing affordable financing. The boost to the banks is expected to help financing flow to businesses, and hopefully lessen the need for layoffs and job cuts.
Critics Warn Plan is Not Enough
Critics of the plan say that it only addresses one half of the economic problem, the lack of credit, while completely ignoring the issue of low demand for goods and services. They also warn that the plan may prove too costly for the government to upkeep if a recession becomes worse than expected.
Finance Minister Jyrki Katainen brushed these comments aside, saying that now was not the time to paint doomsday scenarios.