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The government is easing the conditions on KredEx crisis measures for entrepreneurs

19.06.2020
Minister Raul Siem.
Minister Raul Siem.

Press release of the Estonian Government

The government has decided to support the proposals submitted by the Ministry of Economic Affairs and Communications and SA KredEx to alleviate the conditions of crisis measures so that crisis aid reaches entrepreneurs faster and on a larger scale.

According to the decision of the session of the government, the credit loss compensation limit of KredEx's extraordinary loan guarantee will increase to 30 percent for new loans issued by banks. When adding a KredEx guarantee to existing loans, the current upper limit of loss indemnity will be maintained at 15 percent.

According to Raul Siem, Minister of Foreign Trade and Information Technology, the aim of the crisis measures is to provide loans and guarantees to companies quickly and on favourable terms, so that entrepreneurs can survive the crisis as painlessly as possible. “Unfortunately, the current ceiling for loan guarantees has made KredEx's guarantees uncertain for banks. Relaxing the limit on new loans issued by banks will help businesses to a much greater extent than before, and hopefully also on more favourable terms.”

At the Cabinet meeting held on 24 April 2020, the Government set the compensation limit for credit losses for KredEx crisis measures at 15% of the amount of loan guarantees used by the bank.

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