lisävelan

Lisävelka is a Finnish term that refers to additional borrowing or debt undertaken beyond a previously planned or existing level of indebtedness. The word is a compound of lisä (“additional”) and velka (“debt”). The genitive form lisävelan is used to denote possession or association, for example lisävelan kustannukset (the costs of the additional debt).

In practice, lisävelka is used mainly in public finance and corporate financing to describe new borrowing intended to finance investments, bridge short-term funding gaps, or manage liquidity. In the public sector, lisävelka may be incurred to fund infrastructure projects, compensate for revenue shortfalls, or stabilize cash flow when revenue is uncertain. In the corporate sphere, it can arise from financing capital expenditures, acquisitions, or refinancing needs.

Decisions to take on lisävelka are typically subject to planning and oversight. They require assessment of debt sustainability, future service costs, and potential impact on credit ratings. In many jurisdictions, the management and approval of new borrowing involve budgets, financial regulations, and, in the public sector, governing bodies or councils. The accounting treatment generally records new borrowing as an increase in gross debt, with associated interest obligations appearing in financial statements and budgets.

Risks associated with lisävelka include higher debt service costs, sensitivity to interest rate changes, and potential constraints on future fiscal or financial flexibility. Proper planning, amortization schedules, and assessment of alternative funding sources are important to ensure that any increment in debt remains sustainable.

See also: velka, lainat, velkaantuminen.