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KredEx begins offering the first crisis measures in cooperation with banks


The continuing spread of the coronavirus has resulted in serious disruptions to the economic activity of Estonian companies. In order to mitigate these effects, the state-owned financial institution KredEx is planning additional measures aimed at assisting Estonian companies. The packages of measures will be developed based on the different possible courses that the crisis may take.

KredEx has begun to offer extraordinary loan guarantees in co-operation with banks since the end of march. Applications for an extraordinary loan can be submitted since the 3rd of April.

The situation is putting a lot of pressure on the liquidity of companies and the lack of certainty regarding the duration of the pandemic only adds to the uncertainty. In order for undertakings to emerge from this crisis as soon as possible, having suffered only minimal losses, KredEx is ready to take on higher risks than before via new and existing guarantee and loan measures. Companies have different capital needs, and it is certainly worth contacting your home bank as soon as possible to find solutions, even before problems escalate. Estonian commercial banks have promised companies that they will make concessions on loan repayment schedules as a result of the crisis.

Services will gradually become available for businesses. KredEx will begin granting capital loans, investment loans and loan guarantees in larger amounts once KredEx has been allocated the necessary capital for this with an additional budget.

The target group of KredEx includes all Estonian companies, except for the exclusions regarding fields of activity that were already in effect. In addition, the financial status of the company must be in order as at 31 December 2019, i.e., the company may not have already encountered difficulties before the crisis. The crisis measures are intended for companies whose difficulties are directly or indirectly caused by the coronavirus outbreak.

Even though the implementation of the KredEx aid measures takes place through banks, we ask you give some time for the banks to implement KredEx’s crisis measures.

Councelling on business plans etc are offered by County Development Centres.

The situation is constantly changing; the information on this page was last updated on the 24th of April 2020 at 9:30.

READ: Steps to alleviate liquidity problems:

  1. Firstly, a company should think through a plan for themselves on how to bring the company out of difficulties. We emphasise that this does not have to be comprehensive or have the level of detail characteristic of a business plan. After that, they should contact their bank and ask for a new loan or relaxation of the repayment schedule for an existing loan. Almost all banks have expressed their willingness to allow grace periods for companies affected by the crisis. We ask companies for their understanding and to give banks time to go over all of the terms and conditions of KredEx’s new services.

  2. If the bank sees a need for this, they will involve KredEx in the implementation of the crisis measures. There is no need to address KredEx directly – implementation of the measures will be carried out in cooperation with the bank. KredEx cooperates closely with all of the major banks operating in Estonia, through which KredEx's support is easily able to reach companies.

  3. If a positive solution is not reached in the previous steps, the companies will also be able to apply for an extraordinary loan from KredEx. Use of the possibility to apply for a loan from the bank should be given priority and, if necessary, KredEx’s extraordinary loan guarantee should be used in order to be granted the loan. The extraordinary loan can be applied for as of 3 April. Loans will not be paid out before the state has allocated KredEx the capital required for this. This will likely not happen before mid-April.

In the first package of measures, KredEx will soon begin offering the following new services to help alleviate the current situation:

Other useful information for coping with the crisis

What should an employer take into account in employment relationships regarding the coronavirus?

Lawyers of the Chamber of Commerce prepared an overview of possibilities that the Employment Contracts Act provides to employers for coping with the emergency situation and the spread of the coronavirus. In addition, our lawyers provide recommendations on how to fulfil the requirements related to the working environment during the spread of the coronavirus.

Read the recommendations on the website of the Chamber of Commerce and Industry.


Crisis measures from the Tax and Customs Board for entrepreneurs

The Tax and Customs Board is also actively engaged in providing entrepreneurs with solutions for alleviating the situation. More information about the emergency situation can be found on the website of the Tax and Customs board.

Temporary subsidy from the Estonian Unemployment Insurance Fund

Temporary subsidies will be paid to those employees whose employers are significantly impacted by the current extraordinary circumstances. The subsidy will grant an income for the employees and help the employers to surpass temporary difficulties without having to lay off their staff or declare bankruptcy. More information can be found on the website of the Unemployment Insurance Fund.