EBRD is reiterating its confidence in Šiaulių Bankas
EBRD, the largest single shareholder of the Lithuanian bank, has been a partner of Šiaulių Bankas since 2000.The European Bank for Reconstruction and Development, the largest single shareholder of Šiaulių Bankas, is stating its confidence in Lithuania's seventh largest bank by assets.
In response to the renewed turbulence in the country's financial sector following the state takeover of another bank, the EBRD wishes to emphasise its continuing support of Šiaulių Bankas.
The EBRD trusts that Šiaulių Bankas is well managed and, following the 2011 capital increase, fully subscribed by the existing shareholders, well capitalised.
At the end of third quarter 2011 Šiaulių Bankas reported a net profit of LTL 10.7 million and capital adequacy of 12.8 per cent.
The EBRD intends to continue its cooperation with the bank in line with its strategy for Lithuania, which is to provide continued support of banks' lending to the corporate sector, particularly small and medium-sized enterprises (SMEs).
The EBRD and Šiaulių Bankas have been successfully working together for 11 years. Since the beginning of the EBRD’s cooperation with Šiaulių Bankas, the EBRD has been instrumental in supporting the development of this dynamic, locally owned bank and the bank has been a valuable partner of the EBRD in chanelling finance to SMEs.
In 2000 the EBRD granted a €5 million line of credit to Šiaulių Bankas for financing SMEs; in 2001 the bank received a loan of €2 million to finance on-lending to cereal purchasers, processors and growers. With the EBRD acting as an intermediary, two more syndicated loans, each amounting to €12 million, were obtained in 2005 and 2006 in order to finance the expansion of activities of Šiaulių Bankas. In 2009 the EBRD granted a €30 million convertible loan to support the bank in the crisis environment.
Since 2005 the EBRD has been the major shareholder of Šiaulių Bankas, and in 2010 increased its shareholding from 16.06 per cent to 19.57 per cent through partial conversion of the loan granted in 2009.
The EBRD, owned by 61 countries and two intergovernmental institutions, is supporting the development of market economies and democracies in countries from central Europe to central Asia. Follow us on the web, Facebook and Twitter.