Yesterday afternoon a workgroup, led by Minister Juhan Parts, gathered at the Ministry of Economic Affairs and Communications, discussing the public support package for financing Estonian export-companies that was prepared at the Ministry. Altogether the possible total amount of activities supporting the businesses, might be as high as 4 billion kroons, out of which the direct financial contribution of the state would be 1.2 billion kroons.

"We are definitely not looking for ways to support non-competitive and weak companies. We support the export and adaptability of vital companies and try to find means for solving the credit problems that have emerged, “said Mr. Parts.

At the discussion it was recognized that during the last year there have been two major changes in the economic environment: demand has weakened and the accessibility of capital, including the loan-capital, has diminished. Although it is possible to see some positive signs in the diminishing of loan activity, there is still a threat that viable companies might also get into trouble. That is why it would be sensible to keep the access to the loans at such a level, where it would be possible to enable the companies to manage their current responsibilities and especially in these economic branches that are directed towards export.

The state can offer its support by granting the certainty, guaranteeing the obligations of the banks and supporting the business activities by acquiring necessary resources and directing these through the banks into business.

Obviously also the current support programmes, provided to the companies by the state, should be improved: for technological investments, for the needs of export and marketing, for start-up support, etc. Bureaucracy should be reduced and the conditions should be adapted according to the altered economic situation. At the same time the state is looking for opportunities to solve credit problems that many businesses are facing. Currently there are four public support measures: A loan guarantee, provided by KredEx; capital loan; KredEx’s guaranteed start-up loan and a short-term export loan that is covered for up to 90%. As a new measure, the state is considering supporting the banks operating in Estonia, so that they could, together with state financing, involve additional funds for businesses from financial markets that are cheaper than they would get from their parent banks today. Also the possibility of giving additional guarantees for export to the companies is being considered, as well as refinancing bank loans by the state for particular export companies, which might have temporary difficulties and need to extend the existing loans or to get some additional loans that the banks refuse to grant.

At the meeting it was agreed that by February at the latest, the finalized support programmes would be created with the help of all those who were present and the launching of these programmes would be decided upon by the Government.

The following people participated in the meeting: Aivar Rehe and Katrin Talihärm from the the Estonian Banking Association, Ülari Alamets from Enterprise Estonia, Andrus Treier from KredEx, Enn Veskimägi and Toomas Luman from the Estonian Chamber of Commerce and Industry, Kersti Kraas, Ain Kabal, Kersti Kracht and Sven Sester from the Estonian Association of Small and Medium-sized Enterprises, Tarmo Kriis from the Estonian Confederation of Employers, Veiko Tali from the Ministry of Finance, Keit Kasemets from the State Chancellery and Juhan Parts, Marika Priske, Ahti Kuningas and Lauri Tammiste from the Ministry of Economic Affairs and Communications.