EBRD Grants Convertible Loan of EUR 30 Million to Šiaulių Bankas

2009-08-06

The Board of Directors of the European Bank for Reconstruction and Development (EBRD) has approved a convertible loan of up to EUR 30 million to Šiaulių Bankas. The obtained funds will be used for financing small and medium-sized businesses (SMEs) and for the development of infrastructure projects of public undertakings and private enterprises of municipal and regional importance.

“This loan shall send a positive signal to SMEs, the development of which in our country has been lately hindered by the shortage of funds. The same applies to the implementation of new business ideas. By making rational use of additional credit resources Šiaulių Bankas is planning to invest the obtained funds in business promotion thus making an impact on the overall business processes taking place in the country”, said Algirdas Butkus, the Chairman of the Board of Šiaulių Bankas.

According to Mr. Butkus, the present decision of the EBRD is also of great significance to the Bank itself since the convertible loan granted by the long-term financial partner shows confidence in the activities and prospects of Šiaulių Bankas. “A certain part of this loan, should the need arise, might be converted to bank shares, subject to the general meeting of the Bank’s shareholders decision, to make a new share issue. This will certainly have a positive impact on strengthening the Bank’s capital base, the further increase in the Bank’s credibility and sustainability of its development”, stated the Head of Šiaulių Bankas.

“Supporting the development of SMEs through improved access to banking finance is one of the EBRD key priorities in the current challenging environment. The EBRD loan will support further Šiaulių Bankas in its drive to provide the much needed financing to local businesses and municipal borrowers, while boosting the confidence in the banking sector overall”, said Nick Tesseyman, EBRD Director for Financial Institutions.

The EBRD and Šiaulių Bankas have been successfully co-operating for nine years already.  With the intermediation of the EBRD the amount of EUR 31 million funding resources was extended to Šiaulių Bankas.

Since 2005 the EBRD has been the major shareholder of Šiaulių Bankas owning 16.06 per cent of the Bank’s authorized capital.