A financing programme for the modernisation of housing gains momentum in Šiaulių bankas


Šiauliųbankas actively participates in the programme for the renovation (modernisation) of multi-apartment buildings of the Government of the Republic of Lithuania under the JESSICA initiative of the European Investment Bank (EIB). Šiauliųbankas has already supported the financing of twenty projects of modernization of multi-apartment buildings. Total amount of confirmed loans totals to EUR 2.4 million.

A year ago Šiauliųbankas became the first financial partner of EIB using JESSICA financial instrument, intended for reducing costs in energy consumption and heating of premises. The Bank participates in renovation process of multi-apartment buildings already for the fifth year and provides financing to two renovation programmes of multi-apartment buildings being implemented by the Government. Šiaulių bankas has signed agreements on financing projects of multi-apartment buildings with communities of multi-apartment buildings of different Lithuanian towns and cities. The most active ones: communities of multi-apartment buildings of Klaipėda, Kaunas and Plungė.

“Programme for the renovation of multi-apartment buildings is not very active so far. The state having reduced the compensations, however, with the promises to increase them, multi-apartment buildings delayed to begin renovation. A number of residents wishing to renovate a house is increasing especially due to the growing heating costs; and if the Government adopts a decision to increase a support for modernization loans and adjust the modernization mechanism of multi-apartment buildings, the process can move faster”, says Donatas Savickas, the Deputy Chief Executive Officer of Šiaulių Bankas AB

Šiaulių bankas provides long-term loans (up to 20 years) for the investments in energy efficiency improvement measures in multi-apartment buildings. Interest rates of these loans are low and facilities are applied for disadvantaged persons. Annual interest rates of preferential loans provided under the JESSICA programme for the modernisation of multi-apartment buildings are fixed for the whole period and amounts to only 3 per cent.

According to the data provided by the Housing and Urban Development Agency (HUDA) it is consumed by approximately 40-50 per cent less of energy in modernised multi-apartment building.