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Today the government approved an amendment to the Support of Enterprise and State Loan Guarantees Act by which the amount of loan guarantees will be increased, and also large enterprises will be given an opportunity to apply for loan guarantee. The draft legislation prepared in the Ministry of Economic Affairs and Communications is a part of the state support package for exporting companies. The amendment to the Support of Enterprise and State Loan Guarantees Act makes it possible to guarantee loans for a larger number of companies and in a larger amount compared to the present volumes. For that, the total amount of guarantee agreements of business loans will be increased from the present 800 million kroons to 1.5 billion kroons. Also, the limitation of company size valid until now shall be lifted, which means that now also large companies (250 and more employees) have an opportunity to apply for a state guarantee to loans. Increased loan guarantees help entrepreneurs to obtain both turnover and investment loans. That on the other hand helps to continue the business activities and makes it easier to invest in reorganisation of production. Thus, the amendment has a direct positive influence on preservation and creation of jobs, which helps to overcome the recession. The guarantee amount of housing loans will also increase from the present 950 million to 1.5 billion kroons. Among housing loans also loans taken for renovation of apartment buildings shall be guaranteed, which is meant for facilitating investments directed to energy efficiency. Increased guarantee amounts help to create an additional demand to the building sector that is at present in low position, but even more important is their help to increase the energy efficiency of the housing fund, which means direct decrease of costs of heating. The entry of the amendment to the Support of Enterprise and State Loan Guarantees Act into force is a part of the support package of entrepreneurship approved by the government on February 9th, 2009. For the entry of the law into force the approval of Riigikogu is necessary. Detailed information about the support package is here: www.mkm.ee/failid/ETS_uus.doc
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