Although state housing loans (ARAVA loans) are separate from the state budget in Finland, the Housing Fund, which grants the loans, has not been immune to changes in public finances. Because of the severe economic recession of the 1990s and the approching third stage of Economic and Monetary Union (EMU), it was necessary to consider new ways of raising funds for the ARAVA housing loan programme. In recent years, funds have been raised through securitisation, and subsidised housing production has been maintained at a reasonable level while non-subsidised production has become decreased.
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