KredEx provided guarantees to the obligations of 3788 enterprises, private persons and apartment associations in the sum of over EUR 416 million


In 2018, enterprises and private persons received 416 million euros from banks with the help of a KredEx loan guarantee for financing the operations of their enterprises and the purchase of their home.

 In the field of entrepreneurship, 428 new contracts were concluded for securing the obligations of 292 enterprises in the sum of 118 million euros, from which the guarantee of KredEx accounts for 72 million euros. Enterprises mainly used the guarantee of KredEx for receiving bank guarantees (46% of the provided amount of guarantees) which were followed by overdrafts and working capital loans (29%) and investment loans (23%).

According to Jarmo Liiver, Head of the Enterprise Division at KredEx, the amount of guarantees has slightly decreased compared to last year. "Entrepreneurs are active but the current market and work force situation is undoubtedly posing many challenges. Last year, we changed the conditions of many services based on the feedback received from the entrepreneurs so they would better meet the current needs of entrepreneurs. For example, the need to invest in buildings, equipment and software has increased, which is why we launched an industry loan last year with updated conditions. We have also, together with the participants of the financial market, contributed to information actions to increase the awareness of entrepreneurs about different financial opportunities."

By the end of the year, KredEx had provided loan guarantees for 836 enterprises, bank guarantees and leases in the sum of 189 million euros. The outstanding balance of the guarantee obligations of KredEx is EUR 110 million. The sectors with the greatest share were the processing industry (33% of the outstanding balance), construction (25%), trade (6%) and professional education, research and technical practice (6%).

Since its establishment in 2001, the KredEx loan guarantee has been used to make over 1.4 billion euros available for entrepreneurs.

In the field of housing, 3,383 new housing loan guarantee agreements were concluded that provide housing loans for different target groups in the total sum of 284 million euros, from which the guarantee of KredEx accounts for 35 million euros. In addition, apartment building loan guarantee agreements were concluded with 113 apartment associations, which allowed them to receive over 14 million euros from the bank to reconstruct the buildings. The guarantee of KredEx accounts for about 10 million euros from these loans.

Last year, every fifth housing loan in Estonia was provided with the guarantee of KredEx.

According to Triin Reinsalu, Head of the Housing and Energy Efficiency Division, the real estate market was still active in 2018 and this is clearly reflected in the results of KredEx. "People are looking for opportunities to purchase their very own home and the lack of an initial or additional guarantee is often the obstacle. Compared to 2017, the amount of KredEx's housing loan guarantee has remained more or less on the same level. In addition, the reconstruction of apartment buildings is in full force, which is supported by the apartment building loan guarantee offered by KredEx.”

In the area of private equity and venture capital, five private equity and venture capital funds (BaltCap Private Equity Fund II, BPM Mezzanine Fund, Livonia Partners Fund, Karma Ventures Fund I, BaltCap Growth Fund) continued to finance enterprises with the participation of KredEx from the fund of funds Baltic Innovation fund (BIF).

Other examples include United Angels Co-Investment Fund I, which received investments from the fund of funds EstFund and Tera Ventures Fund II, which makes venture capital investments in innovative early-stage enterprises. Altogether, about 560 million euros of private equity and venture capital investments reach the region's enterprises with the help of BIF and EstFund.
Preparations for the establishment of Baltic Innovation Fund II are also ongoing, which is expected to start operating this year.