Record-breaking number of guarantee applications
Year’s worth of investments in half a year.
In Q2 KredEx received 170 new guarantee applications from enterprises and concluded 156 new contracts with the total sum of 30 million euros guaranteed. This is an all-time record-breaking quarter, where as a result of the loan guarantees enterprises were able to get extra financing in another bank in Q2 in the sum of 56.2 million euros.
While in 2015 KredEx made 109.3 million euros of supplementary financing available to enterprises through their guarantees, this year the sum has already reached 89.4 in the first half of the year. In Q2 of the last year, 138 new applications were filed for enterprise loan guarantees, while in the same period this year the number was as high as 170. The most active month was May, when 67 new applications were submitted. Out of all applications, 156 were qualified for a contract, with the total sum guaranteed being 30 million euros, which is the highest figure in a single quarter in the time KredEx has been in operation and almost half of the total guarantee volume of the last year.
According to Jarmo Liiver, Head of the Enterprise Division at KredEx, the record numbers are a sign of optimism among the entrepreneurs. “Enterprises are renewing their assets, expanding and are constantly looking for new opportunities. With our guarantees and loans, we have supported the plans of almost 300 enterprises in the first half of the year. As a result, these companies are planning to create around 800 new jobs,” said Liiver.
In 2016, guarantees have been used the most to finance overdrafts and working capital loans (46% of the total volume), followed by investment loans (34%) and bank guarantees (14%). While in Q1 the biggest share in the guarantees was made up by investment loans and leases (total of 59%), in Q2 guarantees were mainly used for overdrafts and working capital loans (57% of the total volume).
Continued contributions are being made into companies starting their operations, with start-up loans granted in the total sum of 561,000 euros. In the half-year, starting entrepreneurs have received start-up financing in the sum of 961,000 euros, which is almost as much as the total amount of the last year (€971,000)