New credit line for financing small and medium-size businesses

2005-06-22

Šiaulių bankas was granted one more credit line for financing small and medium-size businesses

Šiaulių bankas AB and the Nordic Investment Bank concluded an agreement on 21st June under which Šiaulių bankas will be granted a credit line of EUR 2 million for financing small and medium-size businesses.

The projects of manufacturing and services sector will be financed using the funds of this credit line. Priority will be allocated to the projects oriented towards export and interchange of technologies, goods and services between the Northern countries and the Baltic States. The Bank will grant credits to small and medium-sized enterprises of Lithuania up to EUR 300,000 for the period of 5 years. Using funds of the credit it will be possible to finance up to 50% of the project value.

This is already the third agreement concluded by Šiaulių bankas and the Nordic Investment Bank. In December 2002 the Nordic Investment Bank together with the European Council Development Bank granted Šiaulių bankas a credit line of EUR 1 million for financing small and medium-size businesses started by women. Having implemented the project rapidly and successfully Šiaulių bankas was granted an additional credit of EUR 1 million after a year.

On 27th April 2005 Šiaulių bankas concluded and agreement with the European Council Development Bank under which Šiaulių bankas is granted a credit line of EUR 2.5 million for financing small and medium-size businesses.

The Deputy Chairman of the Board of Šiaulių bankas Donatas Savickas claims that the concluded agreements prove the growing trust of international financial institutions in Šiaulių bankas and its perspectives, show new opportunities of long-term funding and costs decrease.

Servicing of small and medium-size businesses is an underlying activity of Šiaulių bankas. The Bank has been crediting small and medium-sized enterprises under the PHARE programme for 10 years, collaborating with the European Bank for Reconstruction and Development for 5 years. 76% of credit portfolio is allocated to small and medium-size businesses. Of all credits granted to private enterprises in 2004, 83% of them are not larger than LTL 300,000, and the average amount of these credits is LTL 84 thousand. Last year the Bank granted over 600 credits to small and medium-size businesses and increased the portfolio of credits granted to them by more than one third.