Within the first six months of the current year, entrepreneurs have borrowed 328 million EEK from banks using KredEx loan guarantee. 209 guarantee applications have been made, of which 167 have turned into agreements.

KredEx guarantee is mostly used for obtaining investment loans from banks. Investment loans constitute 51% of the amount of guarantees issued within six months, followed by guarantees of overdrafts, working capital loan, bank guarantee and leasing. It is noteworthy that, compared to previous year, weight of investment loans has diminished, but the weight of overdrafts and working capital loans has increased.

According to Mr Andrus Treier, Kredex manager, cautiousness of entrepreneurs on making investment decisions indicates a lack of confidence about the future and, therefore, they are not willing to take excessive risks. "So far, a bigger weight of working capital loan guarantees indicates a larger necessity to finance current costs." "A more conservative financial market is definitively influencing investment decisions of entrepreneurs. Compared to previous years, loan interests have significantly increased and financers have become more conservative in taking collaterals and evaluating their values. Above all, changes in assessment of immovables can be notified,“ Treier added.

 KredEx guarantee is mostly used by microenterprises with 9 employees – 64% of the amount of guarantees issued within first half of the year. Regionally, enterprises in Tallinn and Harju County are the most active guarantee applicants, to whom 59% of the amount of surety-provided loans and guarantees for bank guarantees has been issued. With the surety-provided loans within the period of January until June of 2008, according to enterprises‘ estimate, 665 additional working places will be established.

Since 2001, 1149 small and medium-sized enterprises have invested 3.7 billion EEK and ca 5800 new working places have been created using KredEx guarantee. Speaking about fields of activities, most of loan guarantees have been issued to production-related enterprises, of which the biggest part consists of timber and metal industry, followed by enterprises offering catering and business services. Also, guarantees for technical guarantee issued for building companies have had noteworthy weight within the first half of the year.

KredEx additional guarantee is meant for small and medium-sized enterprises who are about to begin their activities or lack sufficient collateral for obtaining loan from bank.

KredEx guarantees to bank up to 75% small and medium-sized enterprises‘ investment loan, working capital loan and bank guarantee. Leasing transactions will be surety-provided by KredEx for up to 40% of unpaid redemption price of leasing assets. Entrepreneurs belonging to the guarantee target group are operating in all kinds of activity areas, excl. agriculture, fishery, weapon and tobacco industry and public and voluntary sector. Likewise, no real estate development, retail and wholesale trade loans for financing working capital, and loans for obtaining means of transport of enterprises providing road transport services will be supported.