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Rural Development Foundation in Estonia received EUR 136 mln worth of crisis loan applications

BC, Tallinn, 01.10.2020.Print version
The Estonian Rural Development Foundation on May 15 launched support measures for rural entrepreneurs in difficulty due to the coronavirus, the measures have so far received applications in the amount of 136.7 million euros, informs LETA/BNS.

The current use of COVID-19 measures shows the greatest interest in a loan measure where 100 million euros is available. The foundation has made decisions in the amount of 61.4 million euros and loan agreements have been concluded in the amount of 43.6 million euros, Marko Gorban, deputy secretary general of the Ministry of Rural Affairs for agriculture and rural affairs policy, said.

Entrepreneurs in the agricultural sector, the food industry and rural tourism have been most interested in loans, applying for loans in the amount of 54.5 million euros, 11.8 million euros and 9.8 million euros, respectively.

To a lesser extent, loan guarantees amounting to approximately 19 million euros have been applied for from the Rural Development Foundation.

As part of the nationwide crisis package, the government in the spring decided to finance in the total amount of 200 million euros loan guarantees and turnover and investment loans to bio- and rural enterprises as well as financial lease transactions of agricultural land through the Rural Development Foundation.

The Rural Development Foundation's measures are not grants, but the foundation provides a loan or guarantee for loans. It is a repayable aid that the state can continue to use to help entrepreneurs in the future as well.

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