Although the guarantees were practically state guaranteed even now, due to the stricter bank regulations in the European Union, the status of the guarantee scheme was not legally clear in the previous wording. Due to that, the banks had to guarantee even the KredEx surety loans with a certain amount of self capital. It increased the price of the KredEx guarantee loan and on the other hand made the financing of smaller entrepreneurs or those who were just starting and had low equity unattractive or even not recommendable to the credit institution. The amendment of the law makes the loans more accessible to the companies and helps to boost business activities.

The head of KredEx, Mr. Andrus Treier explained, that thanks to the standardized state guarantee it would be easier to offer financing to starting and smaller companies, where granting loans is considered risky even in spite of strong projects. “This amendment of the law allows the banks, while calculating the adequacy of capital, to consider loans with KredEx guarantees as directly state guaranteed claims. That releases the banks’ equity, said Treier.

Credit and Export Guarantee Fund SA KredEx guarantees up to 75% of the loans issued by the banks to companies and apartment buildings and up to 24% of housing loans.