However, although most businesses support this measure, Andrius Romanovskis, president of the Lithuanian Business Confederation (LVK), says that during the discussions, some companies expected loans on preferential terms.
“When we had the last debate with the Minister of Economy and Innovation in January, the following question arose – do you want cheap, but much later, or market conditions, but sooner. And most of them said that it is better sooner and were ready to participate in market conditions”, A. Romanovskis explained to Elta.
“Opinions were different, there were some who wanted cheaper, but could wait. Others have projects on the table that need to be implemented and were willing to take that market rate for loans,” he added.
However, the head of LVK himself is happy that this measure was presented to businesses just a year after the start of discussions.
He reminded that previously planned loans from the Economic Recovery and Resilience Fund (RRF) funds were planned only for the energy sector, but political pressure changed the purpose of the support.
“The discussion started in February of last year, so we have had that money for a little more than a year. It’s here soon,” A. Romanovskis said to Elta.
“The discussion was initiated by the presidency and 2 meetings took place with it. And then, due to the turmoil of the business community and political pressure, because other countries not only had subsidies and borrowed, it all finally moved,” he said.
When asked if 850 mln. the amount of EUR is sufficient, A. Romanovskis answered that due to the fact that these funds are taken from the RRF fund, certain limits appear.
“There is a certain ceiling that we could take. If we had 2 billion RRF money, these are the limits. Money will probably always be the problem. Would it be good to have more? Yes. Is it okay with what we have? Yes”, said A. Romanovskis.
The president of LVK also assured that 150 million EUR loans are sufficient to help Lithuanian medium and large businesses.
A. Armonaitė: this measure will ensure that large capital projects will not be left behind
At that time, the Minister of Economy and Innovation, Aušrinė Armonaitė, emphasizes that this measure will help large projects and businesses, which often lack support from funds or banks.
“It is clear that large capital projects were often left behind. Thus, one billion euros will precisely open up opportunities to create and expand large-scale projects, and at the same time ensure investments in sustainable Lithuanian business and innovations”, says A. Armonaitė.
She emphasized that this will also be the first such measure to help the defense industry, which not only produces dual-use products, but also military production.
“It is also very important that companies operating in the defense and security sector will be able to use the funds of this measure, which remains one of the priorities in the coming years,” she explained.
The minister assures that such a measure will help in the expansion of high-value industries.
In addition, according to her, since this measure is based on loans, it will ensure a certain return to the state.
“It will help mobilize significant investments that create well-paying jobs and create high added value,” she said.
“We start with 1 billion EUR, but the accumulated interest and returning loan payments will be reinvested again, so, we calculate, the total effect should reach up to EUR 2 billion. euros,” she added.
As announced last Friday by the development institution “Investicijų ir versų garantijos” (Invega), loans will be provided for projects aimed at investing in environmentally friendly technologies, increasing circularity, decarbonization, energy efficiency, implementation of low-waste, advanced, innovative and digital technologies, as well as well as the development of production capacity for high value-added products and the defense and security industry.
Under the new measure, businesses will be able to receive up to 150 million. Invegos’ directly provided or subordinated loans amount to EUR 250 million. euros.
Micro, small and medium (SME) 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.
V. Janulevičius: this measure will help companies move from the “point of death”
At that time, 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.
As announced last Friday by the development institution “Investicijų ir versų garantijos” (Invega), loans will be provided for projects aimed at investing in environmentally friendly technologies, increasing circularity, decarbonization, energy efficiency, implementation of low-waste, advanced, innovative and digital technologies, as well as well as the development of production capacity for high value-added products and the defense and security industry.
Under the new measure, businesses will be able to receive up to 150 million. Invegos’ directly provided or subordinated loans amount to EUR 250 million. euros.
Micro, small and medium (SME) 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.
Tags: million started EUR billion measure business satisfied
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