TALLINN - The Estonian government is planning to offer assistance to exporters by creating a new insurance company to support credit guarantees, reports news agency LETA. Companies including Kredex, and insurance companies, currently are refusing to give credit guarantees for enterprises exporting goods to the European Union.
Up to 70 percent of Estonian companies' export volumes go to other EU Member States, but Kredex only issues export guarantees to those that sell their goods outside the EU and OECD countries. "We are currently essentially a shoe salesman who only sells shoes for one foot and in only one size," explained Kredex chief Andrus Treier. He said that his company "cannot operate in the EU."
The insurance companies that have previously provided guarantees have, however, cut back on their offers quite significantly due to the drop in Estonia's country ratings and in the ratings of local enterprises. If the legislative proposal sent to Riigikogu is adopted, guarantees will be provided by Kredex Credit Insurance Company, to be created jointly by the state and Kredex. They would then be able to offer enterprises guarantees in exporting to the European Union and OECD countries.
"The new draft law has been on the table since February, but today it is crucial for us to be able to have it adopted and implemented quickly," said the Minister of Economic Affairs and Communications Juhan Parts. He acknowledged that each lost month means more lost jobs.
