The number of enterprises having used KredEx guarantees increased by 12% over a year

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Last year, KredEx, the Estonian Member Organization of AECM, provided guarantees of 52 million Euros to the financial liabilities of 454 enterprises. The support of KredEx made it possible for enterprises to include additional financing from banks in the amount of 112 million Euros. The supported enterprises have a total of 10,525 employees and 650 jobs are planned to be created as a result of the financed projects. In comparison to year 2010, the number of supported enterprises increased by 12%. At the same time, the number of applications submitted to KredEx increased by 11%.

“Within the past year, the average guarantee amount per entrepreneur in the portfolio of KredEx has decreased to some extent. In comparison to previous years, banks are more ready to undertake risks without KredEx in connection with larger enterprises, and the guarantee of KredEx is mainly used for smaller enterprises that were financed much less during the economic crisis,” said Lehar Kütt, head of the Enterprise Division of KredEx.

Most of all, last year the guarantee of KredEx was used for bank guarantees that formed 36% of the issued guarantee amount, the share of overdraft and turnover loans was 34% and the share of investment loans and leasing was 30%. The field of activity with the largest share was construction and metal industry followed by wood industry, trade and textile industry. The total share of processing industry was 51%.

From year 2001, KredEx has guaranteed the financial obligations of 2,230 enterprises in the amount of 298 million Euros, which has made it possible for enterprises to include financing from banks in the amount of 593 million Euros. The supported enterprises had a total of 59,531 employees and about 9085 jobs have been created as a result of the supported projects.

In addition to guarantee of bank loan, bank guarantee and leasing, KredEx offers subordinated loan to developing enterprises. As a special type of subordinated loan, technology loan is offered to industrial entrepreneurs with export potential, the purpose of which is to co-finance investments in machines and devices in cooperation with a leasing company or a bank.

(source: KredEx web-site)