Nordic Investment Bank (NIB) and Estonia's LHV Pank have signed an agreement to launch a €20 million loan programme for onlending to small and medium-sized enterprises (SMEs) in Estonia.
The funds under the five-year loan programme will be onlent for various SME investments, NIB said in a press release on Friday. Loan allocations are expected to fulfil the eligibility criteria for a good rating for loan programmes to SMEs.
As a segment, SMEs produce approximately three quarters of the total added value of Estonia's economy, which is more than the EU average.
AS LHV Pank is part of AS LHV Group, a financial group established in 1999. LHV is the largest domestically-owned banking group in Estonia, and the fourth largest in terms of assets. LHV has a strong focus on lending to SMEs in sectors such as real estate, financial services, manufacturing, and transport and logistics.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor's and Moody's.
Editor: Aili Vahtla