KredEx to resume offering extraordinary guarantees and working capital loans


KredEx is launching crisis measures under new conditions to help companies overcome temporary difficulties caused by the continuation of the pandemic. The total volume of the measures is 180 million euros. Based on the Government’s decision, KredEx can enter into loan and guarantee agreements on new terms until the end of June.

Ivo Kuldmäe, KredExi juhatuse esimees
Ivo Kuldmäe

According to Chairman of the Management Board of KredEx Ivo Kuldmäe, the focus of the new crisis measures is directed towards loan guarantees. ‘Given the changed environment, this year we will focus more on offering loan guarantees under new terms. KredEx has 20 years of experience in corporate financing and strong cooperation with all major banks in Estonia, through which crisis assistance reaches entrepreneurs,’ Ivo Kuldmäe said.

‘The emergency guarantee enables companies to borrow longer than usual and to extend the maturity to overcome the temporary difficulties caused by the coronavirus pandemic and to restore the company’s operations,’ Kuldmäe explained. ‘So, the ultimate goal of all extraordinary measures is to keep our businesses running and the economy active.’

According to Chairman of the Board of the Estonian Banking Association Allan Parik, the crisis measures with renewed terms are a step in the right direction, which will contribute to a faster recovery. ‘The improved support package of KredEx is a good message for companies and shows the increased support of the state for entrepreneurship. With the help of the guarantees of KredEx, banks can assist a majority of entrepreneurs and thereby contribute to a faster recovery of the economy.’

KredEx will start to offer four types of extraordinary loan guarantees through banks. When ensuring guarantees for new loans, the rate of credit loss compensation will remain at 90–100%, depending on the loan terms. When ensuring guarantees for existing loans, the loss compensation rate will be in the range of 35–50%.

‘In addition to guarantees, we will offer direct loans to companies that need working capital financing due to the negative effects of the pandemic and for some reason have not received the required financing from the bank,’ Ivo Kuldmäe noted. ‘For this purpose, we have a separate measure under which companies can apply for a loan of up to 700,000 euros and with a term of up to six years.’

The webinar introducing the new terms of service will take place on 1 April at 10.30 in Estonian and at 13.30 in Russian. The webinars are free of charge and take place in Zoom.

Sign up for the webinar in Estonian here.
Sign up for the webinar in Russian here.

Additional information and more detailed terms are available at: