Investment & Fund Management
has entered into a significant partnership with the European Investment
Full Credential Description
Enterprise Estonia (EIS) has entered into a significant partnership with the European Investment Fund (EIF), unlocking 109 million in financing aimed at supporting Estonian businesses through more favorable loans and guarantees. This collaboration specifically addresses the challenges faced by small and medium-sized enterprises (SMEs) in Estonia, particularly in accessing affordable financing. The initiative is designed to facilitate investments in critical areas such as green and digital transitions, innovation, and social inclusion.
The tailored solution provided by EIS involves offering enhanced financial services that share risk with the EIF, thereby making it easier for SMEs and microbusinesses to secure funding. This includes offering loans at lower interest rates and easing collateral requirements for companies that may not have sufficient assets to back their loans. The support from the EIF, part of the European Unions InvestEU programme, aims to stimulate the economy by improving access to finance for businesses that might otherwise struggle due to perceived high risks by commercial banks.
As a result of this partnership, virtually all Estonian businesses, which are predominantly SMEs, stand to benefit. The agreement is expected to drive innovation and sustainable growth across the region by enabling EIS to direct loans specifically to SMEs with green objectives, such as upgrading manufacturing processes to comply with EU environmental standards and reducing energy consumption through new technologies. This initiative marks a pivotal advancement in strengthening Estonias business ecosystem, ensuring that innovation and sustainability are central to its economic growth.