Economic rescue package has been approved by Estonian Government to diminish the situation faced by Estonian workers and enterprises due to the growing coronavirus pandemic in the country.
The cost of the package of measures is two billion euros. The purpose is to ease the initial period of the crisis and to support Estonian workers and enterprises, as well as to guarantee the functioning of the Estonian economy in a state of emergency.
Loan guarantee through SA KredEx is offered to diminish repayment schedules for loans already issued. The total amount is one billion euros (the marginal rate for the implementation of the guarantee is 600 million euros, the maximum amount of the guarantee is 5 million euros per enterprise);
In order to overcome difficulties with the liquidity of enterprises caused by the epidemic of coronavirus, it is possible to obtain a revolving loan (total amount – 500 million euros, maximum loan amount – 5 million euros per enterprise; interest rate approximately 4% per year);
SA KredEx provides an investment loan for using new business opportunities (total amount – 50 million euros, maximum loan amount – 5 million euros per enterprise, interest rate – 4% per year.)
Estonian Unemployment Insurance Fund provides a labor market support service (total compensation – 250 million euros) to compensate declining salary:
- The employer can use the grant for two months from March to May;
- The grant is paid in the amount of up to 1000 euros of gross salary per month for each employee, and is calculated in the amount of 70% of the gross salary for the past 12 months, to which the salary paid by the employer is added (not less than 150 gross euros).
- The Unemployment Insurance Fund and the employer pay all labor taxes from salaries and subsidies.
In the period from March to May, the government compensates first three days of the sick leave.
Rural enterprises can apply to the Rural Development Fund for a guarantee (up to 50 million euros), revolving credit (up to 100 million euros) or land capital (up to 50 million euros).
Assistance measure for advance social tax is launched for individual entrepreneurs (physic persons).
Contributions to the 2nd pillar pension are temporarily suspended.
The direct expenses of the cancelled cultural and sporting events due to coronavirus are partially compensated by the state. The total amount of compensation is up to three million euros.
The accrual of interest on taxes for 2 months has been suspended by the government, and it is allowed to pay already existing tax debts with a reduced interest.
The draft law on the supplementary budget will be presented to the government for discussion no later than April 16.
More information about Temporary subsidy program