The Estonian government signed a contract to borrow 200 million euros from the European Investment Bank (EIB) with the money channeled to co-finance EU-funded projects in the nation.

Ott Heinapuu, a spokesman for the Ministry of Finance, told uudised.err.ee that the money will be used to fund investments which support research and innovation, improve transport connections, education reform, and the development of small and medium sized businesses.

The loan will help Estonia maximize EU structural funds in the new budget period of 2014 -2020.

During the last EU budget period of 2007-2013, Estonia took out 550 million euros in loans from the EIB, which will be paid back by 2025.

news.err.ee