SDE proposes creating a development bank to help Estonian companies innovate
Chairman Lauri Läänemets said that the idea for a development bank that could help Estonian companies secure favorable loans could be added to SDE's 2027 elections program.
Estonian entrepreneurs have in fact been talking for a long time about problems with access to capital, particularly in areas where risks may be higher, such as innovation, SDE leader Lauri Läänemets told ERR.
"If we look at what entrepreneurs are saying about where access to capital is most difficult, it is often in the case of investments such as research and development. These are significantly longer-term than, for example, building infrastructure or setting up production lines. That means the risks for commercial banks are higher there," he said.
"The idea behind a development bank should be to increase Estonia's economic capacity and boost export capability. The goal could be to support innovation, exports and high-impact regional investments," Läänemets added.
According to Läänemets, the concept of a development bank is not new in itself — such institutions exist in nearly all European countries.
He said a development bank could be created by consolidating the functions of existing institutions.
"We have EIS, KredEx, SmartCap, KIK. Based on these, we should consider whether certain functions could be merged. The exact details can be worked out when the process begins," Läänemets said.
"We see that the state already has these funds available, but KredEx is similarly quite cautious, like today's commercial banks, so it is not currently fulfilling this function," he added.
According to Läänemets, the capital should come from resources the state already has. "KredEx's volume is close to €1 billion — starting from that alone would already have a considerable impact," he said.
"The idea is that Estonia should not stand by and watch its companies struggle due to development constraints while other countries are offering solutions for their economies. We need to respond and enable faster economic growth," Läänemets said.
He added that establishing a development bank could be included in the Social Democrats' parliamentary election program.
"In my view, this is a very reasonable proposal," Läänemets said.
Läänemets believes other parties would also support the initiative.
"I think there is strong potential in Estonia today to get this done. It has been discussed for a long time at the administrative level and entrepreneurs have called for it, so there is a real and significant need," he said.
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Editor: Aleksander Krjukov, Marcus Turovski
