“Loans will be dedicated to several areas. This is primarily for green and digital innovation projects. Also for defense industry projects. For industries where Lithuania already has achievements and for companies that need help and a breakthrough. We are well aware that the problem of access to capital is a pressing issue for our investors,” A. Armonaitė presented to journalists on Thursday.
“We will have such an ambitious financial instrument, which will be launched next week, for the first time in Lithuania,” she emphasized.
According to Inga Beiliūnienė, board member and head of business development of the development institution “Investičių ir verslo garantijos” (Invega), companies will normally be able to borrow up to 150 million. euros. At that time, borrowing together with other banks or private investors will be possible to apply for 250 million. euro loan.
At that time, according to A. Armonaitė, since it is a loan instrument, the return generated by it will allow further investment in other projects or industries important to the state. However, according to her, the companies will be able to agree on the return period, so it should not burden them.
“From the returning funds, since these are loans, we will be able to finance other important projects. We are ready to do that,” she assured.
“This is an important tool for business, because it will not have to be given away immediately. It will be possible to arrange the payment of the loan over a long period of time,” the minister added.
I. Beiliūnienė also said that this is one of the first instruments allowing investment in defense industry companies producing military equipment.
“We are not only talking about dual-use products and technologies, but also defense projects and technologies. These are military technologies that are used every day in Ukraine and other conflicts,” she asserted.
She emphasized that companies will be able to submit applications from April 29. According to her, the development agency has already prepared a team of people who will help companies submit applications properly.
Janulevičius: this measure will help companies move from the “point of death”
Finally, the president of the Confederation of Lithuanian Industrialists (LPK) Vidmantas Janulevičius believes that such a measure will fill the missing niche of support for larger companies.
According to him, companies operating in Lithuania, unable to expand with their own resources, previously had problems finding financing.
“We believe that this measure will equally help the banks in Lithuania, which will be able to finance large companies by contributing to the measure. This has been lacking in Lithuania until now. These are companies that operate and can expand, but it is difficult for them to move from the so-called “point of death”, commented V. Janulevičius.
The maximum duration of loans is 15 years
As reported by the Ministry of Economy and Innovation, micro, small, medium and large companies will be able to apply for loans. The maximum duration of loans is 15 years with the possibility of extension up to 20 years.
Companies will be able to sign loan agreements until 2026. June 30
Companies wishing to take advantage of the facility are subject to criteria, among which are the absence of relations with states hostile to Lithuania, ensuring that the projects do not cause significant damage to the environment, as well as that the project involves suppliers or contractors who are not controlled by third-party entities, and whose management bodies operate in the EU.
