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COSME COVID-19 co-guarantee jointly with the EIF

Under the COSME COVID-19 programme, the EIF, along with confirmation from the European Commission, provides a guarantee, which enables KredEx to share the risk and finance those enterprises that need an additional guarantee, primarily due to the difficulties caused by the COVID-19 pandemic. For small- and medium-sized enterprises this means more favourable financing conditions and better access to funds, meaning that KredEx can share its risk with the guarantee offered by the EIF.

Transactions eligible for using the reinsurance provider are those that are concluded with a purpose of mitigating the negative impact caused by the corona crisis to the operations of an enterprise, primarily due to the COVID-19 pandemic.

Time period: 06.04.2020–31.12.2020

Target group of enterprises: Small- and medium-sized enterprises (SME), operating in Estonia

Transaction amount: principal amount up to EUR 150,000

Minimum duration of transaction: 12 months

Eligible investment: current and new transactions aimed at financing the working capital in any form (except leases and bank guarantees)

Eligible services: specific crisis measures as well as traditional products in terms of both loan guarantees and loans, the certain transactions of which correspond to the predetermined criteria.

Exclusion criteria:
A co-guarantee is not issued to persons:

  1. with respect to whom bankruptcy, insolvency or liquidation proceedings have been commenced or whose condition would enable the commencement of bankruptcy proceedings based on the application of a creditor;
  2. with respect to whom a court decision or a decision of an administrative authority with regard to failure to pay taxes or payments in connection with social insurance has entered into force over the last five years, which has not been executed;
  3. who have a valid payment default;
  4. who have been registered in non-compliant jurisdictions (i.e. in those territories which have been entered on the list of non-cooperative jurisdictions, adjusted by the European Union or in Annex 1 to Commission Delegated Regulation (EU) 2016/1675;
  5. who have significant focus in prohibited sectors or who operate in areas of activity that are prohibited by law;
  6.  with respect to whom international sanctions have been imposed;
  7. with respect to whom or with respect to persons who possess the right of representation, decision-making or control concerning the person, a judgment of conviction has entered into force with regard to the violation of professional duties, caused by intent or gross negligence and, which constitute fraud when entering into contractual relationships or, contractual cooperation with other persons, whose intention is to distort competition or an attempt to unduly influence the award procedure (within the meaning of financial regulation) or an attempt to obtain illegal information for influencing the award procedure;
  8. with respect to whom or with respect to persons who possess the right of representation, decision-making or control concerning the person, a judgment of conviction has entered into force, the subject-matter of which is fraud, corruption, participation in organised crime, money laundering or terrorist financing or participation in an act of terrorism;
  9. who have been entered on the list of early detection and exclusion list.