Energy, Estonia, Financial Services, Legislation, Loan, Transport

Prime Minister Juri Ratas said at a government press conference on Thursday that the government has approved the main terms of Alexela's working capital and capital loan.

The term of the loan issued by Kredex is up to five years, the interest is 12-month Euribor plus 2 percent per annum and the contract fee is 0.2 percent of the loan limit amount, government spokespeople said.

The loan limit can be used in installments -- the minimum size of each installment is at least five million euros and the maximum size 15 million euros.

The loan must be secured by assets belonging to the borrower and the undertakings within its consolidation group.

Alexela Grupp CEO Andreas Laane told BNS in late May that the group is applying for a 37-million-euro loan from the Kredex foundation to support its oil products producer Kivioli Keemiatoostus and other companies of the group.

Laane said then that the loan is needed for next year's investments. While there will be enough orders until the end of this year, the crisis will reach the industrial sector with a delay and the toughest period will not arrive until the end of 2020 or early 2021. Extremely low oil prices are also becoming a serious problem, he added.

The state has earmarked 300 million euros in the supplementary budget for supporting businesses of strategic importance. All support allocations exceeding 10 million euros must be approved by the government.