KredEx earned a profit of EUR 1 million
According to the annual report approved by the Supervisory Board of KredEx, Foundation KredEx earned a profit of EUR 1 million last year.
“2015 was a successful year for KredEx in terms of operational volumes and financial results. In addition, several improvements were prepared, the impact of which will become evident primarily starting from 2016. In April 2015, the apartment building reconstruction grant was reopened on new conditions; in November, a cooperation agreement on using counter-guarantees was signed with the European Investment Fund; preparations were made for the implementation of structural funds for the period 2014–2020, as well as the terms and conditions of a loan guarantee for energy-efficient housing; and arrangements were made for establishing a fund of funds, geared towards equity investments for companies in the early stages of development,” said Lehar Kütt, CEO of KredEx.
Gross operating revenue for KredEx amounted to EUR 6.1 million, remaining on the same level compared to 2014. That includes revenue related to guaranteeing loans, which reached EUR 3.3 million, and revenue from interest on loans, which amounted to EUR 1.9 million.
To cover losses, appropriations totalling EUR 3 million were made in 2015. Indemnified losses amounted to EUR 2.9 million in 2015, with the majority accounted for by losses resulting from guarantees for business loans. Over the course of its entire existence, KredEx has indemnified losses of EUR 28.1 million.
As at the end of last year, KredEx had an endowment of EUR 74 million; a balance sheet total of EUR 173.6 million; a guarantee portfolio totalling EUR 174.5 million; and a loan portfolio of EUR 63.1 million.
“In providing financial services, KredEx is, above all, guided by public interest, assisting companies and residents where the market is not functioning. To accomplish its mission, KredEx has to take sufficient risks yet break even when several years are averaged. That said, considerable profits or losses may be earned or incurred in individual years,” Kütt reflected. Since its founding in 2001, KredEx has earned a total profit of EUR 7.2 million.
In the area of entrepreneurship, KredEx provided guarantees and financing, in the sum of EUR 66.3 million, to 401 companies in 2015. In addition, valid guarantee agreements with 207 companies were amended. The support of KredEx made it possible for companies to include additional financing from banks and KredEx in the amount of EUR 112.3 million. Supported enterprises have a total of 9930 employees.
In addition to supporting the companies, last year KredEx helped 2191 young families, entry-level specialists and military veterans to purchase homes and to take out a total of EUR 120.7 million in housing home loans from banks, using EUR 17.5 million in guarantees from KredEx to that end. Last year, KredEx issued 70 loan guarantees for apartment buildings, totalling EUR 3.6 million.