Starting from today KredEx will provide companies with long-term loans in co-operation with banks

The terms of the loans that are offered through the co-operation between KredExi and the banks are similar to regular bank loans, except for the fact that a long loan-period is offered (2 to 10 years). The maximum amount of loan is 30 million EEK per company. The loan’s target group is enterprises whose export turnover in recent economic year was at least 8 million EEK and not less than 20% of the enterprise's turnover (more than one foreign buyer is recommended. Companies with smaller export turnover are excluded, as the total volume of the loan resources is limited to 400 million EEK and bigger companies have presumably more economic and social impact.

 

Today, on May 18th, KredEx signed the framework agreement concerning the issuing of long-term loans with  Estonian branch of UniCredit Bank. Negotiations about issuing long-term loans are held with several other banks as well and soon the agreements would be signed.

 

 “Due to the economic instability and the conservatism of financial markets, the inclusion of long-term financing has become a problem for the companies. As a result, several sustainable investment projects that might have an important impact on Estonian economy might not be carried out,” said the head of KredExi, Mr Andrus Treier.

 

“Companies need also additional circulating capital due to the decrease of factoring and credit limits and disadvantaged conditions of payment. To ease the above-mentioned problems, KredEx will start providing companies with long-term loans in co-operation with banks,” added Treier.

 

The head of the Estonian branch of UniCredit Bank, Mr Taavi Laur said that in order to apply for a long-term loan, the company should turn to the office of UniCrediti and the applicants will undergo the regular check for credit eligibility.

“Being one of the biggest and most extensive banks, our previous focus in Estonia has also been on financing exporting companies. Due to that we have had a wonderful co-operation with KredExiga and we are glad to support the local companies thanks to the Estonian state,“ said Laur.

 

Companies cannot apply for loans for the following activities:agriculture, fishery, forestry, weapon- and tobacco industries, acquiring vehicles and equipment that is used in transportation on the roads, financing of circulating capital for retailers and wholesalers, real-estate development projects for selling and renting purposes.

 

The above-mentioned product is being financed out of the resources of the European Regional Development Fund.

 

Providing companies with long-term loans in co-operation with KredEx and banks is one of the state support packages directed to exporting companies. Within the framework of support package KredEx offers companies also subordinated loans with result-based interest since the beginning of April.