19.03.2020 SUMMARY

Today the Estonian Government decided to support companies and workers with a package of economic measures.

In short: State resources are directed to support companies through the KredEx Foundation and the Estonian Rural Development Foundation. The package also includes labour market support the Estonian Unemployment Insurance Fund, sickness benefits and tax incentives. The package allows for deferral of tax debt for 18 months, temporary suspension of second pillar pension scheme payments, as well as partial compensation for direct costs of cancelled events.

As to the latest information available, the following measures have been taken or agreed:


The Tax and Customs Board has suspended calculation of interest on tax debts from 1 March 2020 until 1 May 2020. The Government supported a proposal to suspend tax interest calculation for two months and to allow tax debts to be rescheduled at lower interest rates than are currently in force.

KredEx Foundation measures

Loan collateral amounting to EUR 1 Billion for bank loans already issued in order to allow for repayment schedule adjustments (maximum EUR 600 Million for surety collection), under the following conditions:
1) if the bank relaxes the repayment schedule of an existing bank loan which is not secured by KredEx, then KredEx will secure the loan;
2) the maximum guaranteed amount is EUR 5 Million per company;
3) if possible, a fixed guarantee will be restored or the guarantee rate will be increased to cover over 80% of guaranteed liability.

KredEx Foundation business loan subject to the following conditions

1) KredEx issues a revolving business loan to a company in order to overcome liquidity problems caused by the coronavirus, including repayment of bank loans where necessary;
2) the maximum loan is EUR 5 million per company,
3) the interest rate is approx 4% per year.

KredEx Foundation investment loan under the following conditions

1) KredEx grants an investment loan to a company enabling it to take advantage of business opportunities created by the coronavirus, and other new business opportunities;
2) the maximum loan is EUR 5 Million per company;
3) the interest rate is approx 4% per year.

Wage reduction

The labour market service provided by the Estonian Unemployment Insurance Fund to cover for wage reduction – amounting to EUR 250 Million ‒ under the following conditions:
1) the benefit can be used by a compliant employer to cover the two months from March to May 2020;
2) benefit of no more than EUR 1000 per month per employee in need of support is paid gross;
3) benefit is calculated based on the gross wages of the employee over the previous 12 months, plus remuneration payable by the employer to the employee being no less than EUR 150 gross. The Unemployment Insurance Fund and the employer will pay all labour taxes on wages and benefits.

Sick leave

From March to May, the state will compensate the first three days of sick leave for all incapacity leave applications.

Rural companies

Rural companies can apply to the Rural Development Foundation for guarantees (up to EUR 50 million), business loans (up to EUR 100 million) or land capital financing (up to EUR 50 million).

Self-employed workers

Self-employed workers qualify for an advance social tax support measure.

II pillar

Payments into the II pillar of the pension fund are temporarily suspended.


The State compensates for the direct costs of cultural and sporting events cancelled due to the coronavirus in March-April, up to EUR 3 million.