According to the new law of business support and state loan guaranteeing, which becomes valid from May 2003, KredEx's business and housing loan guarantees will be counter-guaranteed by the state. The state will cover the business loan guarantee portfolio up to 500 million kroons and the housing loan guarantee portfolio up to 700 million kroons. So far the banks and leasing comanies have not had a guarantee against the bankruptcy of KredEx. Thus, with the new law KredEx's loan guarantees will become even more trustworthy for the financial institutions issuing loans to SMEs and the private sector.