Who are eligible for the loan guarantee?

• The borrower must be the apartment association, housing association, or the apartment owners united into an association of apartment owners.
• The borrower must have a valid resolution of the general meeting on the performance of renovation work, taking of the loan and conclusion of a guarantee agreement the renovation work must be specified in the management plan of the apartment building.

Loan description

• The purpose of the loan is the financing of the renovation of the apartment building and enhancement of the living standards of its residents.
• The apartment building has undergone a technical inspection and/or an energy audit, and the work to be credit-financed have been specified in the technical inspection report/energy audit report, or a building permit has been issued for performance of the work to be credit-financed. Only those entrepreneurs (legal persons or sole proprietors) who prepare design projects and carry out expert analyses on buildings, and have been entered in the register of economic activities, may conduct a technical inspection of the apartment building.

What are the conditions for provision of the loan guarantee?

• The guarantee covers up to 75% of the loan principal, and will be reduced proportionally by each loan repayment.
• The annual guarantee fee is 1.2%-1.7% of the balance of the guarantee.
• In case of payment difficulties, the borrower may apply from the foundation temporary repayment of the loan on his/her behalf. The payments made by the foundation on behalf of the borrower do not constitute a guarantee prepayment; rather, the borrower’s consequent obligations to the foundation will be specified in a separate agreement In case of associations of apartment owners, an administrator is included in the process for the purpose of collecting repayments from the apartment owners, as well as filing claims against the apartment owners, if this proves necessary.
• The foundation covers the loan repayments of the borrower within up to 12 months, but not more than 75% of the loan balance at the moment of the submission of the respective application.
• Interest in the amount of ½ of the loan interest is to be charged on the amount to be repaid for the loan repayments made by the foundation for the apartment building.

KredEx participates in the Baltic Energy Efficiency Network.