Estonia: KredEx approves Alexela’s €37 million loan

Fuel company Alexela Varahalduse AS and state credit body KredEx reached an agreement for a coronavirus loan of €37 million, allowing the company to maintain more than 500 jobs at oil shale producer Kiviõli Keemiatööstus, managed by Alexela Group.

Alexela group CEO Andreas Laane said via press release Tuesday morning: “The greatest satisfaction comes from the knowledge that as an employer, we can maintain the jobs and household stability of our employees in Lüganuse, Ida-Viru County.

The company had been hit by the slump in world oil prices earlier in the year, ahead of the pandemic breaking.

“In the first stage of adapting to the crisis, we were forced to optimize the structure of companies belonging to the group and the restructuring process consisted of 58 people at Kiviõli Keemiatööstus, whose jobs we could not maintain. As a leader, layoffs are always painful decisions. With the state’s help, we can still look at the future at Kiviõli Keemiatööstus and therefore also keep stability at Lüganuse,” Laane added.

The loan’s term is for five years and the interest rate is set at 2 percent. The loan limit is issued in multiple parts, with the first payout set to take place this week.

The CEO added that the company pays well over €100 million in taxes yearly, with Kiviõli Keemiatööstus alone accounting for almost €10 million of that amount, so the €37 million loan is a reasonable sum for the state since it maintains tax revenue and in addition, it will be paid off in five years at the latest.

Read more: ERR.EE

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