The terms approved by the government set out how Kredex could lend money to the hard-hit shipping company. But the loan still needs to be approved by the Kredex Supervisory Board.

Joonas Kerge, Head of Communications at Kredex, told ERR: "The loan application has been submitted to the government. But it was a decision on the main conditions. The structure of the guarantees must also be approved by KredEx."

The earliest decision of the council can be taken on Friday or next week. Kerge said the council is working in crisis mode so all decisions are taken in a timely manner.

Kerge noted that although the government approved the general principles of the loan and also the interest rate, all the details, as well as the pledge of assets, will be set.

On Friday, the government agreed to grant a loan of €100 million to Tallink, the term of the loan is three years and the loan must be repaid in one installment at the end of the loan term. The interest rate is 12-month Euribor plus two percent per annum. The contract fee is 0.1 percent of the loan limit amount.

The loan limit may be drawn in installments, with a minimum size of at least €10 million and a maximum size of €40 million.

The interest is based on the average price of Tallink's existing loan liabilities. The loan must be secured by assets belonging to the borrower and the undertakings belonging to its consolidation group.

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