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Home BUSINESSFinavia incurs EUR 34m derivative loss
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Mon, 01 Feb, 2016 12:05:59 AM
FTimes – STT Report, Feb 1
 
The President and Chief Executive Officer of Finavia, Kari Savolainen. File Photo – Lehtikuva.
The country’s air traffic and airport operator Finavia has incurred a derivative loss of 34 million euros.
 
The derivative losses could have been as much as 240 million euros had measures not undertaken to prevent further losses, Finavia President and CEO Kari Savolainen told the Finnish language daily Helsingin Sanomat.
 
According to Savolainen, the company in the period of 2009 to 2011 made a mistake by buying derivatives from banks which initially yielded profits but later turned out to be extremely risky.
 
Savolainen was appointed as a director at Finavia in 2012.
 
According to Savolainen, the 34 million euro derivative loss came about when the company got rid of the risky derivatives after realising the danger.
 
Finavia has lodged a complaint against the banks with the Financial Supervisory Authority.
 
Savolainen suspects that the banks were after the buyers of the risky derivatives who did not realise the danger.
 
The police and the National Audit Office are also investigating into the matter.
 
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