Retail sales in December was 5,2 bEEK

According to Statistics Estonia, in December 2008 compared to December of the previous year the retail sales of goods of retail trade enterprises decreased 9% at constant prices.

In December, the retail sales of goods of retail trade enterprises were 5.2 billion kroons. Compared to December 2007, the retail sales of goods decreased in most economic activities. The decrease in the retail sales of goods was most influenced by the stores selling manufactured goods, where the retail sales of goods decreased 15% compared to the same month of the previous year. The retail sales in stores selling textiles, clothing and footwear and also the stores selling household goods and appliances, hardware and building materials decreased the most. Only stores selling pharmaceutical goods and cosmetics, the retail sales of which increased 12% during the year, could attain the growth in retail sales compared to the same month of the previous year. The growth in retail sales of pharmaceutical goods was caused by the increase of the value added tax of medicines since 2009.

The price increase of food products that slowed down during the last months of 2008 has not brought along the increase of sales volume in stores selling foodstuffs. The retail sales in stores selling food decreased 4% compared to the previous year. The consumers were still price sensitive and limited their daily expenditures.

In December compared to November, the retail sales in retail trade enterprises increased by a fifth at constant prices. This is a characteristic rise of December, when Christmas marketing is taking place.

In December the revenue from sales of retail trade enterprises was 5.9 billion kroons, out of which retail sales of goods accounted for about 90%. Compared to December 2007, the revenue from sales decreased 7% at current prices. Compared to November 2008, this indicator increased 16%.

According to the preliminary data the retail sales of retail trade enterprises were 55.6 billion kroons in 2008, compared to 2007 the retail sales decreased 4% at constant prices.

Retail sales volume index of retail trade enterprises and its trend,
January 2000 – December 2008 (the corresponding month of the previous year =100)

Source: Statistics Estonia

Ministry of finance report about financial stability

The banks operating in Estonia are not facing any liquidity or solvency problems. However, we have recently witnessed several occasions where situation has changed considerably in just a few days as the global developments have wider impact. The briefing below gives an overview about the Estonian financial sector, describes potential risks and explains how these are managed.


I – Current situation of the financial market of Estonia

The financial market of Estonia is relatively unique when compared to the rest of Europe. Our position in the current turbulent situation is better due to the following reasons:

  • The relatively small share of the financial sector in the total economy.
  • More than 90% of the banks operating in Estonia are under Scandinavian ownership.
  • The majority of banks operating here belong to major conservative banking groups.
  • Concentration of the banking market is very high – the biggest market shares are divided between a few banking groups.
  • The interbank moneymarket is very small, which is why potential problems in one bank should not have a direct impact on other banks.
  • The banks operating here are very well capitalised. This means that all funds in our banks are well protected.
  • The loan burden ratio of the Estonian private sector to GDP is relatively low (135% in Estonia, while approx. 200% in the US and Denmark, approx. 400% in Iceland).
  • Estonia has small public debt.

More facts about the banking market of Estonia:

  • The banking system of Estonia is a part of the common banking market of the Northern Baltic region and Europe.
  • 6 banks are registered as companies operating in Estonia. All others operate as branches of banks located in other countries (Denmark, Sweden).
  • Only the banks that are registered in Estonia are under the supervision of Estonia and participate in its deposit guarantee system. Branches of banks registered elsewhere are subject to the supervision and deposit guarantee systems of their home countries (i.e. countries where they are registered).

II – International measures for stabilising financial markets

  • Major problems started when the property bubble in the US burst and the country declared a financial crisis. Crisis reached Europe because many of the bad assets had been sold to European financial institutions using various complex methods.
  • The steps to be taken by the EU to stabilise the financial markets were decided on 7 October at the meeting of the ministers of finance of the EU. It was agreed that the following is necessary:
    • improvement of the trust of people and reliability of banks
    • harmonisation of deposit guarantee and other limits in order to avoid possible distortion of competition
  • Many European countries (United Kingdom, France, Belgium, Sweden, etc.) have applied various national measures in order to prevent and resolve potential situations of crises after the appearance of problems on the financial markets.
    • The measures taken by each country depend on the nature of the problem that needs to be resolved and the general situation in the financial sector of the state.
  • Measures adopted by the Government of Sweden on 20 October undoubtedly have the biggest impact on us. The decision is particularly important for Estonia, because the two banks with the biggest market shares over here are subsidiaries of Swedish banks.
    • The decision was to create a fund for guaranteeing the loans of banks located in Sweden and the state is also prepared to offer liquidity assistance (basically give loans) and acquire shareholdings in banks.
    • By doing this, Sweden increased further the reliability of the banking markets of the Nordic and also the Baltic countries, as the subsidiaries are also able to benefit from these resources if necessary.

III – What has Estonia done to guarantee financial stability?

  • Increasing the deposit insurance coverage for the purpose of increasing the reliability of the Estonian banking market is an important part of the contribution made by the state.
    • Today, the state guarantees the deposits of all private persons and SMEs held in banks registered in Estonia (i.e. excluding branches) 100% in the extent of 50,000 euros.
    • Deposit means the most ordinary current accounts of debit cards, term deposits and foreign currency deposits.
    • What this means is that if a bank goes bankrupt, the Guarantee Fund will compensate these persons for the deposits they held in such a bank in the amount of up to 50,000 euros and within 90 days.

o Banks are required by law to treat investments and the assets of pension funds separately from their own assets. This means that if a bank goes bankrupt, the pension pillars and investment accounts of people have been kept separately.

IV – What else could Estonia do to ensure financial stability?

  • Similarly to other countries, Estonia also has three main possibilities to support the stability of financial markets:
    • Give loans to troubled banks in order to help them cope with liquidity or payment difficulties.
    • Guarantee loans issued to banks from elsewhere.
    • Acquire a stake in a problematic bank.
  • The only goal for such intervention and assistance would be to ensure the stability of the state’s financial system and preventing bigger damages to the rest of the economy.
  • Considering the deep financial integration in the region, any steps that could be taken by Estonia would be regionally coordinated.

V – Background dataSource: Estonian Ministry of Finance

V – Background data

Table 1 – General government debt burden in Europe

Table 2 – State reserves

Table 3 – Share of the banking sector in GDP (mln EUR)

Table 4 – Volumes of used assistance packages

Table 5 – Market shares of Nordic banking groups, end of 2007
See normal size graphs on ministry website!

85 bEEK accrued to the state budget last year

According to the initial information by the Ministry of Finance, 84.9 billion kroons accrued to the budget of the Estonian state in 2008, i.e. 94.1 percent of the budgeted revenue. The expenditure of the state budget reached 90.1 billion kroons, i.e. 94.4% of the budgeted expenditure.

As of the end of the year the state budget expenditure exceeded the revenue by 5.2 billion kroons. The excessive expenditure was financed out of reserves.


Tax revenue accounted for 70.4 billion and non-tax revenue for 14.5 billion kroons of the annual total revenue of the state budget of 84.9 billion kroons. In comparison with 2007 the state budget revenue rose by 2.9 billion kroons, i.e. 3.4 percent.
Tax revenue amounted to 70.4 billion kroons by the end of 2008, i.e. 95.8 percent of the budgeted amount. In comparison with 2007 the tax revenues rose by 2.7 billion kroons, i.e. 3.9 percent.

In 2008 social tax accruals amounted to 31.3 billion kroons, i.e. 99.2 percent of the budget amount. In comparison with 2007 the social tax accruals increased by 4 billion kroons, i.e. 14.8 percent.

Last year personal income tax accruals amounted to 4.3 billion kroons, i.e. 104.3 percent of the budget amount.
In 2008 the personal income tax accruing to local authorities amounted to a total of 11.5 billion kroons. In comparison with 2007 the annual accrual rose by 1.7 billion, i.e. 16.9 percent.

Corporate tax accruals amounted to a total of 4.2 billion kroons in 2008, i.e. 102.9 percent of the amount planned in the budget and supplementary budget. In comparison with 2007 the corporate tax accruals increased by 82.3 million kroons, i.e. 2 percent.

Value added tax accruals totalled 20.5 billion kroons last year, i.e. 90.1 percent of the amount planned in the budget and supplementary budget.
1.4 billion kroons of value added tax accrued in December, i.e. 31.6 percent less than in December 2007. The considerably smaller accrual of value added tax in December can be attributed to the use of advance payment, higher value added tax arrears, and postponement of declaration of value added tax until the new year.

Last year excise duty accruals totalled 9 billion kroons, i.e. 91.9 percent of the amount planned in the budget and supplementary budget. Overall, excise duty accruals of 2008 exceeded those of 2007 by 776.6 million kroons, i.e. 9.5 percent.
Non-tax revenue accruals amounted to 14.5 billion kroons in 2008, i.e. 87 percent of the amount planned in the budget. In comparison with 2007 the accrual of non-tax revenues increased by 209.2 million kroons last year, i.e. 1.4 percent.

Aid accounts for the largest share of the accruals of non-tax revenue with 7.4 billion kroons. External funds amounted to 5.6 billion kroons thereof, i.e. 62.5 percent of the amount planned in the budget. In comparison with 2007 the amount of aid has risen by 244.3 million, i.e. 3.3 percent.
In addition to aid 1.8 billion kroons accrued to the state budget from the sale of goods and services, i.e. 99.7 percent of the amount budgeted. 650.6 million kroons accrued from sales of material and immaterial property and assets, while revenue earned on property and assets amounted to 3.2 billion kroons, which account for 43.7 and 138.7 percent of the budgeted amounts, respectively.

In comparison with 2007 the revenue on property and assets rose by 120.3 million kroons, i.e. 3.8 percent.
Other revenue totalled 1.4 billion kroons, i.e. 120 percent of the budgeted amount. In comparison with 2007 other revenue accrued in the amount of 17.1 million kroons, i.e. exceeding that of 2007 by 1.2 percent.
Budget expenditure amounted, according to initial information, to 90.1 billion kroons as of the end of 2008, i.e. 94.4 percent of the amount planned in the budget and supplementary budget.

Last year various allocations such as social aid and allocations intended for a specific purpose constituted the largest portion of the expenditure classes with a total of 65.1 billion kroons. In comparison with 2007 this expenditure rose by 10.8 billion kroons, i.e. 16.6 percent. This can be attributed mainly to rises in pensions and other social aid.

5.5 billion kroons, i.e. 61.2 percent of the planned amount has been paid out of external aid. As of the end of December 2008 18.7 billion kroons, i.e. 3.1 billion (16.7 percent) more than in 2007 has been allocated for operating expenses.

The figures indicated in this press release give an initial overview of the implementation of the budgeted revenue and expenditure in 2008, taking into account the expenditure transferred from 2007. Implementation of the revenue and expenditure of the state budgeted cannot be equalised with the budgetary position of the Estonian general government, which is calculated upon fulfilment of the Maastricht criteria.

Final figures of implementation of the state budget are specified and approved in the annual report not later than in August 2009. The initial budget deficit and debt data of the general government in 2008 will be published by the Estonian Statistical Office on March 31.

Source: Estonian Ministry of Finance

Estonian Air to increase flights to Moscow

The Estonian national carrier Estonian Air is going to increase the frequency of its flights between Tallinn and Moscow, making five weekly flights instead of the present three from June.
Starting from 4 June, Estonian Air will increase the frequency of flights on the Tallinn-Moscow route, adding a Friday return flight departing at 13.25 from Tallinn and a Friday return flight departing from Tallinn at 7.05.
Estonian Air spokeswoman Ilona Eskelinen said Moscow was a destination where the growth in the number of passengers was among the highest.
At present, Estonian Air makes three weekly flights from Tallinn to Moscow — on Monday, Wednesday and Friday.
The additional flights will be serviced by a 88-seater CRJ NextGen aircraft.

Source: Estonian Review

862 000 tons of cereal production in 2008

According to preliminary data of Statistics Estonia, in 2008 the cereal production was 862,300 tons, which was 2% smaller than in the previous year.

In 2007 the cereal production of 880,000 tons was the largest during the last 16 years. In 2008 the cereal production was influenced by rainy harvesting period, which was the reason why particularly the spring crop production was smaller than expected.

Of the total cereal production, 65,700 tons of rye, 339,600 tons of wheat and 349,500 tons of barley were produced. Compared to 2007, the production of rye increased by 4,700 tons, the production of wheat and barley decreased by 6,200 tons and 13,200 tons, respectively. In 2008 cereals were sown on 309,100 hectares, the average yield per hectare was 2,790 kilograms, of which 3,076 kilograms of rye, 3,170 kilograms of wheat and 2,557 kilograms of barley.

The production of potatoes amounted to 125,400 tons, which was over a third less compared to 2007. Potatoes were sown on 8,700 hectares; the average yield of potatoes was 14,316 kilograms per hectare.

The production of rape and turnip rape seed totalled 110,000 tons, which was 27% less compared to 2007. Rape and turnip rape was sown on 77,700 hectares; the average yield per hectare was 1,416 kilograms of rape and turnip rape seed.

In autumn 2008, 41,000 hectares of winter wheat, 12,700 hectares of winter rye and 6,700 hectares of triticale were sown for harvesting of the year 2009.

Source: Statistics Estonia

The adoption of the euro is a strategic goal for Estonia and Lithuania

Today, Prime Minister Andrus Ansip met with Andrius Kubilius, the Prime Minister of Lithuania, with whom the topics of energy and economy were mainly discussed. At the meeting, both Prime Ministers stated that regardless of the financial crisis in the world, in the Baltic region, it is essential to continue the movement towards the adoption of the euro.

“Estonia plans to take forceful steps to make the adoption of the euro possible at the beginning of 2011,” Andrus Ansip said. The Prime Minister added that although this means unpopular decisions, the government is obliged to make these. “Times are tough everywhere and it is clear that budget cuts are popular nowhere, but the government has the obligation and responsibility to make unpopular decisions as well,” Prime Minister Ansip said. He added that the satisfaction of people in the future can only be based on the correct decisions made today and decidedly implemented.

At the meeting, energy-related issues were also discussed in more detail: the establishment of network connections between countries, the export and import of electricity, the status of the establishment of the new nuclear reactor power plant in Lithuania, and the need to establish a common Baltic and Nordic electricity market by the year 2013.

Prime Minister Ansip pointed out that the establishment of an operating electricity market between the Baltic States and the Nordic Countries in the current situation is not only a security policy issue, but a very important issue from the viewpoint of enlivening the economy as well. Both Ansip and Kubilius stated that the establishment of the common electricity market needs operative and fast action.

See photos of the meeting at:

Source: Government Communication Office

Exports and imports decreased by one fifth

According to Statistics Estonia, in November 2008 compared to November 2007, both exports and imports of goods decreased by one fifth at current prices. Imports of goods were last on such a low level at the beginning of 2006.

The value of exports of goods was 9.6 billion kroons, compared to November 2007 exports decreased by 2.2 billion kroons or 19%. Such a decline in exports was mainly caused by the nominal (not taking into account the change of prices) decrease in the exports of mineral products (incl. fuels) and transport equipment.

The value of imports of goods was 12.7 billion kroons, compared to November 2007 imports decreased by 3.2 billion kroons. The 20%-decline in imports was caused by the decrease of demand in internal market in all commodity sections besides raw materials and products of chemical industry.

Estonian foreign trade deficit was 3.1 billion kroons in November, and it decreased by 1 billion croons compared to November 2007.

Estonian foreign trade, January–November, 2007–2008

Month Exports,
million kroons
million kroons
million kroons
2007 2008 change, % 2007 2008 change, % 2007 2008
January 9 722 10 110 4 13 956 13 540 -3 -4 234 -3 430
February 9 768 10 447 7 13 302 13 628 2 -3 534 -3 181
March 10 464 10 602 1 15 511 14 150 -9 -5 047 -3 548
April 10 396 12 266 18 15 648 15 880 1 -5 252 -3 614
May 11 706 11 493 -2 16 157 14 437 -11 -4 451 -2 944
June 10 825 10 782 0 15 078 14 087 -7 -4 253 -3 305
July 9 889 10 892 10 14 066 15 056 7 -4 177 -4 164
August 10 290 11 036 7 14 656 13 416 -8 -4 366 -2 380
September 9 843 12 210 24 14 570 15 488 6 -4 727 -3 278
October 11 768 13 212 12 16 163 15 791 -2 -4 395 -2 579
November 11 814 9 598 -19 15 898 12 677 -20 -4 084 -3 079

In November 2008 the share of the EU countries was 70% and the share of the CIS countries accounted for 16% of the total exports (in November of the previous year 71% and 13%, respectively). Main countries of destination were Finland, Sweden and Russia. The exports to the EU countries decreased significantly — by 1.6 billion kroons. Exports of goods to the CIS countries increased by 3%.

In total imports of goods, the share of the EU countries was 74% and that of the CIS countries 16% (in November of the previous year 80% and 12%, respectively). Imports from EU countries decreased by 3.3 billion kroons. Main countries of consignment were Finland, Russia and Germany. Imports of goods from Germany, Sweden and Finland decreased significantly. As imports from Russia slightly decreased, then imports from Belarus increased by 41%.

In both exports and imports, the most important commodity section in November was machinery and equipment, which accounted for about a quarter of both flows. Compared to November 2007, the decrease in exports was mainly caused by the decline in exports of mineral products (incl. fuels), of transport equipment and of wood and products thereof. The decrease was also mentioned in exports in the section of metals and products thereof.

The significant decline in imports of goods was caused by the decrease in imports of transport equipment and machinery and equipment (by 1.3 and 0.6 billion croons, respectively), which was also influenced by the decrease of demand in the internal market. Only imports and exports of raw materials and products of chemical industry increased compared to the previous year, in remaining commodity chapters the values of both flows decreased.

Main foreign trade partners of Estonia, November 2008

Country of destination,
group of
same month
Country of consign.,
group of
same month .
prev. year,
TOTAL 9 598 100 -19 TOTAL 12 677 100 -20
EU 6 737 70 -19 EU 9 393 74 -26
CIS 1 537 16 3 CIS 2 005 16 4
1. Finland 1 919 20 -11 1. Finland 1 696 13 -27
2. Sweden 1 391 15 -14 2. Russia 1 358 11 -2
3. Russia 1 251 13 4 3. Germany 1 301 10 -36
4. Latvia 830 9 -36 4. Latvia 1 238 10 -7
5. Lithuania 596 6 -21 5. Sweden 1 200 10 -37
6. USA 510 5 168 6. Lithuania 997 8 -4
7. Germany 479 5 -20 7. Poland 558 4 -18
8. Norway 352 4 -12 8. Belorus 454 4 41
9. Denmark 343 4 0 9. Netherlands 381 3 -29
10. Netherlands 239 3 -30 10. Great Britain 371 3 -39

Exports and imports of goods by commodity sections, November 2008

Commodity section by Combined Nomenclature (CN) Exports Imports Balance,
million kroons share,
same month
million kroons share,
same month prev.year


TOTAL 9 598 100 -19 12 677 100 -20 -3 079
Agricultural products, food preparations (I–IV) 1 079 11 -21 1 391 11 -16 -312
Mineral products (V) 972 10 -30 2 510 20 -4 -1 538
Raw materials and products of chemical industry (VI) 564 6 12 1 174 9 13 -610
Articles of plastics and rubber (VII) 304 3 -23 546 4 -27 -242
Wood and products  (IX) 829 9 -24 267 2 -33 562
Paper and articles thereof (X) 280 3 -19 296 2 -8 -16
Textiles and products thereof (XI) 372 4 -32 601 5 -23 -229
Metals and products thereof (XV) 797 8 -24 1 115 9 -21 -318
Machinery and equip. (XVI) 2 433 25 -1 2 873 23 -18 -440
Transport equipment (XVII) 694 7 -32 878 7 -59 -184
Miscellaneous manufactured art. (XX) 727 8 -29 349 3 -18 378
Other 547 6 -12 677 5 -20 -130

SOurce: Statistics Estonia

1,340,300 people live in Estonia

According to Statistics Estonia, by preliminary estimation the number of population in Estonia on 1 January 2009 was 1,340,300. Due to the increase in the number of births and to the decrease in the number of deaths the decline in population number slowed down last year.

In 2008, the number of population decreased by about 600 persons, a year ago by 1,600 persons. Although the natural increase stayed negative, i.e. the number of deaths still exceeded the number of births, the number of births increased and the number of deaths decreased compared to the previous year. 16,233 live births and 16,827 deaths were registered in 2008, i.e. about 460 births more and over 580 deaths less than in the previous year. The number of marriages and divorces also decreased — 6,175 marriages were contracted and 3,511 marriages were divorced. Compared to the previous year, the number of marriages decreased by about 850 and the number of divorces by about 300.

Births, deaths and natural increase, 2000–2008

The number of population published by Statistics Estonia is based on the 2000 Population and Housing Census data and is complemented by the annual data on registered births and deaths. Since 2000 the migration data were not used in the estimation of the population because of their low quality. It was mainly caused by the voluntary registration of the place of residence from the beginning of the 1990s up to 2005. Since 2006 the quality of migration data has improved. Therefore, Statistics Estonia will publish in addition to the preliminary adjusted population number also the population number with migration for the years 2000–2007 on 22 April 2009. Statistics Estonia will continue publishing the population number with and without migration until the new population census. After the 2011 Population Census Statistics Estonia will switch to one unified population number. For the need to ensure consistent time series, Statistics Estonia will use until the 2011 Census in calculations of different indicators the population number without migration based on the currently applied methodology.

More detailed information about the methodology and quality of migration data can be found on the web site of Statistics Estonia Statistics-> Subject Areas -> Population -> Vital events. More detailed data on population number as of 1 January 2009 have been published in the Statistical Database.

Source: Statistics Estonia

The state supports businesses with 4 bEEK

 On jan 21 a working group led by Minister Juhan Parts gathered at the Ministry of Economic Affairs and Communications to discuss the state support package prepared by the Ministry for the financing of exports of Estonian companies. The total potential volume of business support activities reaches four billion kroons, including the direct financial contribution by the state to the extent of 1.2 billion kroons.
“We are certainly not looking for an opportunity to support uncompetitive or weak companies. We will support the exports and adjustability of viable companies and make efforts to find resources for the alleviation of credit problems that have appeared in business activities”, said Juhan Parts.
Participants in the discussion acknowledged that the two main changes in the economic environment in the past year have been the weakening of demand and the decrease in the availability of capital, incl. loan capital. Although also positive signs can be seen in lending activities, there is still the risk that also viable companies may get into difficulties. Therefore it would be reasonable to keep access to loans on a level that would enable companies to cope with their current obligations, above all in export-oriented economic sectors.
The state can support financing providers by giving them sufficient assurance, by guaranteeing the commitments taken by banks, and can also support business activities by acquiring the necessary resources and directing them to businesses through banks.
It would certainly be necessary to enhance the existing business support programmes provided by the state: for investments in technology, for the exporting and marketing needs, start-up support, etc. It would be necessary to reduce bureaucracy and adjust the terms and conditions to changes in the economic situation.
At the same time, opportunities are sought for the solution of the credit problems faced by businesses. There are already four state support measures: loan guarantee provided by KredEx, capital loan, KredEx guaranteed start-up loan and short-term export guarantee with 90% coverage. As a new measure the state is considering the possibility to support the banks operating in Estonia to enable them to use state financing for the involvement of cheaper additional funds from financial markets for businesses, in comparison with the funds they currently get from their parent banks. Also the possibilities to provide additional export guarantees to companies and state refinancing of bank loans of specific exporting companies are considered for companies which have temporary difficulties and need to extend their existing loans or borrow additional funds, if the bank is not willing to do that.
It was agreed at the meeting to finalise the support programmes by February at the latest with the assistance of everybody present at the meeting, to enable the government to adopt a decision on the implementation of these programmes.
The following persons participated at the meeting: Aivar Rehe and Katrin Talihärm from the Estonian Banking Association, Ülari Alamets from Enterprise Estonia, Andrus Treier from KredEx, Enn Veskimägi and Toomas Luman from the Estonian Chamber of Commerce and Industry, Kersti Kraas, Ain Kabal, Kersti Kracht and Sven Sester from the Estonian Association of SMEs, Tarmo Kriis from the Estonian Employers’ Confederation, Veiko Tali from the Ministry of Finance and Keit Kasemets from the State Chancellery,  and Juhan Parts, Marika Priske, Ahti Kuningas and Lauri Tammiste from the Ministry of Economic Affairs and Communications.

Source: Estonian Ministry of Economics and Communications

Estonian exporters’ aid package got green light from entrepreneurs

The aid package worth EEK 4 bln got approved yesterday and Juhan Parts, the Minister of Economic Affairs and Communications will take it to the government in February, Äripäev reports.

Aivar Rehe, the CEO of Sampo bank, who represented Banking Association at the meeting said, he endorses and praises the prepared package.

“We got surety that the parties are ready to value and revalue the existence of monetary resources,” Rehe noted.

Parts said that all parties are interested and now one has to make sure, which companies need help.

“It’s pointless to hope that troubled entrepreneur gets support that would save the company that has lost competitiveness. The main thing is to support adaptability and to see whether there are such market errors in which additional state’s or Kredex’ guarantee can be of help,” Parts said.

The help plan:

*Current help: operating loan, loan guarantees and export guarantees.

*Possible additional help: state’s guarantee to banks’ loans, financing the banks (getting the resources from the financial market together with state financing), re-financing bank loans, own capital loan (for the companies, who don’t have enough own capital for the banks).

Source: BBN