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At the Wednesday meeting of the KredEx council, it was decided to increase the volume of surety commitments from EEK 16 million to EEK 23.4 million. At the same time, according to the rules of state aid of low importance, the volume of surety commitments of EEK 23.4 million is the upper limit for a guaranteeable loan, said Ms Kristina Samra, press representative of KredEx, to BNS. In order to facilitate enterprises' activities and enliven entrepreneur's interest in guarantees provided by Kredex, it was proposed to increase the volume of bank guarantee surety commitment to be issued to single entrepreneur or group of entrepreneurs. On the grounds of information obtained from banks, Kredex states that in the case of enterprises with the turnover more than average, there is a need for bank guarantee with larger volume. According to the banks' estimates, the potential target group for bigger bank guarantee will be relatively successful entrepreneurs with lower risks, to whom the decision about the issuing of bank guarantee is often made by endorsing a limit. Upon the limit establishment, enterprise financial abilities, existing obligations and needs will be taken into account; they may differ during the limit's validity period. Use of guarantee of bank guarantee with bigger obligation gives an entrepreneur an extra opportunity to participate in bigger projects and to use guarantees usually provided for entrepreneurs to provide guarantees for involving other financial means, if necessary.
Source: BNS (ETA Monitoring)
Date: June 18, 2008
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