Private business joins the Programme for Renovation of Multi-Apartment Buildings


The Lithuanian Programme for Renovation of Multi-Apartment Buildings has reached a strategic turning-point. The Programme, which was funded by the state budget and the European Union Structural Funds till now, has found a private investor – Šiaulių bankas. The first partner of the European Investment Bank in the country in providing preferential renovation loans, Šiaulių Bankas will contribute EUR 20 million of its own resources to be channeled through the JESSICA Holding Fund.

“It took us just over a year not only to restore the trust of residents in the Renovation Programme, but also to attract investments of private business. The step made by Šiaulių bankas is an important recognition of the Programme as well as the definition of future prospects for the Programme in Lithuania. I believe that other commercial banks in the country will follow the example set by Šiaulių bankas,” stated Mrs Daiva Matonienė, Vice Minister of the Environment.

According to Mrs Matonienė, this step by Šiaulių bankas could be the beginning of a new model for financing renovation. The EU measures for 2014-2020 will be implemented and private investors will be involved in the financing of energy efficiency programmes. 

“The decision of Šiaulių bankas to contribute its own resources into the Programme for Renovation of Multi-Apartment Buildings was natural as our experience in this area is the most extensive in Lithuania. We have been participating in the renovation process for over 15 years and we consider it one of our priority activities. As the demand for financing the renovation of multi-apartment buildings continues to grow in the market, the investment by Šiaulių bankas will further accelerate the renovation process,” said Mr Vytautas Sinius, Chief Executive Officer of Šiaulių bankas.

From February 2013 onwards, with the introduction of the preferential programme for renovation of multi-apartment buildings for administrators, Šiaulių bankas has approved financing for over 814 renovation projects. Their total value exceeds LTL 598 million (EUR 173 million). According to the data as of December 2014 even 367 credit agreements were signed with administrators. In 2010, Šiaulių bankas attracted first investments of EUR 22 million from the JESSICA Holding Fund – this money was used to finance 66 renovation projects in Lithuania.

Šiaulių bankas has been participating in housing renovation programmes since 1999 when the first projects were performed together with the Housing and Urban Development Agency (HUDA) under the Ministry of Environment. From 2002 onwards, in cooperation with the Central Project Management Agency, Šiaulių bankas has renovated a number of Lithuanian schools, kindergartens and hospitals. 

In 2005-2009, the bank was financing renovation of 34 multi-apartment buildings in cooperation with “Būsto paskolų draudimas” and INVEGA.

According to the data of the Housing Renovation Association, approximately 38 thousand multi-apartment buildings in Lithuania require renovation in total. Currently, approximately 8 per cent of Lithuanian residents of multi-apartment buildings are implementing renovation projects or are prepared to do so.