On 10 February the Riigikogu adopted the State Export Guarantees Amendment Act. The amendments increased the state guarantee limit amount and specified the provisions regulating investment guarantees. The Estonian Credit and Export Guarantee Fund KredEx issues state guarantees to loans in Estonia. To date KredEx has been issuing export guarantees and its portfolio is about to reach the limit permitted by law (300 million EEK). Pursuant to the amendment the new limit for the performance of obligations arising from guarantees is one billion EEK. In addition to exporting, Estonian companies have started to take up production abroad, aimed at the local market. Therefore it has become necessary to protect their foreign investments by issuing investment guarantees. The amendments specify the definition of investments and the provisions regulating investment guarantees. The amendments entered into force on 5 March 2005.
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