TALLINN, 8 January 2025 – The risks of loans granted to mitigate the effects of the crisis caused by the spread of the coronavirus have not materialised, the National Audit Office finds in a review of the implementation of coronavirus crisis measures by the Estonian Business and Innovation Agency (EISA) published today. Some of the loans have also been repaid to the state budget before maturity, and in addition €25 million has been earned in interest and fees. A final assessment of the repayment of crisis loans can be made after the maturity dates of all loans arrive in 2026.
At the beginning of the coronavirus crisis, the state developed large-scale measures implemented by the Estonian Business and Innovation Agency to support companies by lending them €224 million and guaranteeing their banks loans in the amount of €102 million. “In general, the crisis loans have been repaid better and faster than feared, and some larger loans such as those of Tallink and, as confirmed by the Estonian Business and Innovation Agency, also Porto Franco have already been repaid,” said Märt Loite, Director of Audit at the National Audit Office. “Moreover, banks have not had to call in large amounts of guarantees.” The pessimistic risk forecast at the time the loans were issued, which resulted from the unpredictability of the crisis, was that loan losses could be up to 50%. This has not happened.
In reality, €133 million had been repaid under the crisis loan agreements as at the end of the first half of 2024. €22 million in interest and €1.1 million in service fees have been received. By the end of the first half of the year, 69 out of 155 companies had repaid their loans in full. The total amount of guaranteed bank loans was €166 million, of which the guaranteed part was €102 million. €2.3 million has been received in fees for guarantees, €0.3 million in service fees and €0.3 million in guarantees have been enforced.
Loans overdue for more than 60 days amount to €4 million and loans written off amount to €2 million.
€850 million was earmarked for crisis measures in 2020, of which €550 million was for loans and €300 million for guarantees. The money was allocated with a reserve, signalling that the state would provide help. Later, it turned out that the scope of the crisis measures hastily prepared in the unpredictable coronavirus crisis to save the economy was larger than necessary.
Background
In June 2021, the National Audit Office published the report “Crisis loan procedure for nationally important projects at KredEx” and in November 2020, the report “KredEx extraordinary measures for companies to relieve the impact of corona crisis”. Due to the large impact of the coronavirus crisis loans and guarantees on the state budget, the National Audit Office took a closer look at the state of repayment and revenue received.
25.11.2020 – KredEx extraordinary measures for companies to relieve the impact of corona crisis
11.06.2021 – Crisis loan procedure for nationally important projects at KredEx
Crisis loans and guarantees as at 30 June 2024
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Loans
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Amounts (€ million)
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Amount of loan agreements
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250
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Amount of loans drawn down
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224
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Amount of loans repaid
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133
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Interest received
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22
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Service fees
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1.1
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Loans written off
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2
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Guarantees
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Amounts (€ million)
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Total amount of guaranteed loans from banks
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166
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Guarantee amount
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102
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Expired guarantee agreements
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30.6
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Guarantee fees received
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2.3
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Service fees
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0.3
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Guarantees paid out to banks
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0.3
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Toomas Mattson
Advisor at National Audit Office
+372 513 4900
[email protected]
[email protected]
http://www.riigikontroll.ee/
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Posted:
1/8/2025 11:00 AM
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Last Update:
1/8/2025 9:17 AM
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Last Review:
1/8/2025 9:17 AM