The Ministry of Economic Affairs and Communications sent the draft Act for an approval round, which should abolish Kredex’s current restrictions, due to which big corporations cannot apply for loan guarantees.

During the times of steady expansion, the aim of the restriction was to encourage small and medium size enterprises, by granting them business loans. Now, in different circumstances, it would be appropriate and necessary to include all the enterprises, granting them loans, irrespective of their size. Besides, big corporations play an important role from the point of view of both economic expansion and employment provision, which is stated in the explanatory memorandum.

To enliven the economy and ensure sustainability, the state is also rising the total amounts of the guarantee agreements. While granting business loans the limit will be shifted from the current amount of 800 million kroons to 1.5 billion, and while granting housing loans it will be shifted from 950 million kroons also to 1.5 billion.

The aim of the above-mentioned step is to immediately grant business loans in bigger amounts, so that businesses could enliven their activity and thus alleviate the negative results of economic recession both from the point of view of the corporations and also in general.

The draft Act should be approved by March 16th.

Date: 2009-03-03
Channel: BNS (economy news)