Kredex’s loan guarantee ceiling to be raised to €390 million ({{commentsTotal}})

The Riigikogu’s Economic Affairs Committee decided to back raising the ceiling of Kredex’s loan guarantees by €134 million to €390 million. The foundation backs housing and business loans with a government guarantee.

The Economic Affairs Committee backed a proposal on Monday to increase the ceiling of Kredex’s loan guarantees to €390 million. The Riigikogu is to discuss a bill to the effect in a plenary session soon.

According to the parliament’s press office, this is a reaction to the continuing trend towards a greater loan volume guaranteed by the fund. In detail, the amount of guarantees Kredex can support businesses with is to increase drom €160 million to €220 million, and that for housing loans from 96 million to 170 million.

While the change doesn’t mean that more money will be allocated to the fund, it does create the conditions necessary for Kredex to guarantee a greater loan volume altogether.

“Kredex’s guarantee of loans is a great support for homeowners and smaller businesses to get a loan from the bank,” chairman of the economic affairs committee, Sven Sester (IRL), said. “Due to the increase in demand and the larger volumes added last year, both the limits to business and housing loans will soon be too low. In order to make sure that Kredex can still back important loans for people, the plan is to raise the ceiling,” he added.

Editor: Dario Cavegn

Source: BNS



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