It is the enforcement action of three measures from the state support package of 6.1 billion kroons for exporting companies and, with those measures, two billion kroons in total will be remitted to entrepreneurs.

 

The target group of the support package is 400-450 mainly small and medium-sized exporting Estonian companies, whose annual export is 13 billion kroons in total. The company must have been active for more than three years and its export turnover within the last economic year must be at least 20 per cent of total turnover and more than 8 million kroons.

Next week, entrepreneurs will be able to apply for equity loan with flexible conditions from KredEx. The equity loan up to 16 million kroons is intended for entrepreneurs, whose self-financing rate remains too low according to the banks’ estimates. Compared to the KredEx equity loan so far, issuing conditions are now more favorable – e.g. more favorable and staggered interest, longer repayment holiday.

 

At the end of April, in cooperation with banks, KredEx will start to offer long-term loan resources; from the summer, the measure of additional line of credit for banks will be deployed.

Offering long-term loan resources together with banks means that banks will obtain long-term resource from KredEx in order to finance certain single projects. Upon the entering into contract with an entrepreneur, a resource guided from specific needs will be allocated to the bank. The bank will take the entrepreneurs’ risk and, if necessary, the KredEx usual guarantee for covering the company's risk will be added. The amount of the loan should amount to at least 30 million kroons per company.

 

With the creation of an additional line of credit, the state will allocate 400 million kroons for banks; KredEx will borrow from international financial institutions 800 million kroons for boosting, and thus provides a credit with more favorable interest for relending to private banks in the amount of 1.2 billion kroons. With those three measures, two billion kroons will be remitted to entrepreneurs in total. 1.2 billion kroons will come from European Union structural funds, 0.8 million from the state co-financing.