Estonia, Financial Services, Markets and Companies

International Internet Magazine. Baltic States news & analytics Tuesday, 26.05.2020, 09:34

Estonia: KredEx to receive state guarantee in extent of EUR 500 mln

BC, Tallinn , 09.04.2020.Print version
In order to quickly support entrepreneurship and reduce the general economic risks accompanying the spread of the COVID-19 virus, the Estonian government will on Thursday grant a state guarantee of 500 million euros and an overdraft of 150 million euros to the KredEx foundation, informed LETA.

Overdraft will be granted for a period of three months for granting business loans. The state guarantee will be issued to provide a state guarantee for business loans. The guarantee to be granted will ensure such guarantees granted by KredEx that are not ensured by the state guarantee issued with the Support of Enterprise and State Loan Guarantees Act due to the fulfillment of the total amount of business loan guarantee agreements, government spokespeople said.

The purpose of granting the state guarantee and overdraft is to enable KredEx to provide business loans and guarantees in a larger total amount before the amendments to the 2020 supplementary state budget and amendments to the Support of Enterprise and State Loan Guarantees Act enter into force.

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