Estonian government to continue crisis aid measures

Estonian COVID

The Estonian government has decided to continue in the coming year to implement the crisis aid measures during the initial spring wave of the coronavirus to support the economy in difficult times.

The decision made at a cabinet meeting on Tuesday includes the emergency crisis measures to increase the limit of the credit loss indemnity from 30 per cent to 50 per cent in guaranteeing new loans granted by banks, Estonian Rural Development Foundation’s loan guarantees, working capital and investment loans, and support measures for the financial lease of agricultural land, as well as support measures to the Estonian tourism sector, said a government press statement.

“We support an economy that has been hammered by the crisis. The least we can do is ensure that critical resources for rapid economic recovery are available after the crisis,” Estonian Prime Minister Juri Ratas, who is still in self-isolation with a negative Covid-19 test after a recent contact with a virus carrier, was quoted as saying, Xinhua reported.

In spring, the business loan budget was divided in a way that 500 million euros were allocated to working capital loans and 50 million euros to investment loans, and more flexibility is needed as the crisis has deepened, according to Estonian Minister of Foreign Trade and Information Technology Raul Siem.

In November, the government approved in principle the enabling of the use of 5 million euros allocated from its reserve to support the tourism sector next year, which will be accompanied by the balance of the crisis support for lease payments of trade and service companies of Enterprise Estonia in the amount of 3 million euros, the statement added.

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