ERKAS is a development agency reporting to local self-governments, evolved from The Supportive Fund of Local Governments established in 1996 by three unions of local authorities:

Its main area of activity was to issue loans to the local governments, in small volumes and for short periods.

At the beginning of 2002, the founders of The Supportive Fund of Local Governments decided to overhaul it and thereby established Estonian Regional and Local Development Agency (ERKAS). It started to offer diverse project management services to public as well as to private sector.

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