Estonian state-owned foundation Kredex earned a gross income of €7.1 million in 2016, a 16.4 percent increase over the year before, while profits increased 20 percent to €1.2 million.
Last year was a year for increasing the volume of business at Kredex, foundation chief executive officer Lehar Kütt said in a press release. The volume of business loans increased 44, housing loans 42 and apartment building loans 80 percent.
"In addition, the biggest volumes of yearly sureties since the establishing of Kredex in 2001 were achieved in all fields mentioned," he continued. "A total of €124.4 million's worth of sureties were issued to 3,115 business, housing and apartment building loans in 2016. This enabled them to receive a total of €358 million of additional funding from banks."
Gross income from Kredex's primary activities totaled €7.1 million, having increased by one million euros since 2015. Revenue earned from restitution totaled €4.1 million and interest received on loans amounted to €1.9 million. As on year-end, the foundation's capital totaled €74 million, the balance sheet total was €191.4 million, the guarantee portfolio €207.6 million and loan portfolio €59.1 million.
To cover possible credit losses, provisions worth €3.9 million were made during the year, while payments to cover losses totaled €1.8 million. Compared to 2015, losses were smaller in both the business and housing fields. Since its establishment in 2001, Kredex has paid out €29.9 million euros against losses.
"When providing financial services, Kredex is guided first and foremost by public interest and helps businesses and citizens in places where the market is not working," Kütt explained. "In order to fulfill our mission, Kredex is taking bigger risks than financial institutions based on private capital, but the long-term goal is to retain self-profitability. At the same time, the foundation could earn significant profit or experience loss year by year." Kredex has earned a total of €8.4 million of profit since its establishment.
Kredex is a state-held financing institution the aim of which is to help the funding opportunities of Estonian businesses, manage credit risks and enable people to build or renovate homes.
Editor: Aili Vahtla