Šiaulių bankas and the European Investment Bank have signed an agreement regarding the financing scheme for renovation of multi-apartment buildings

2010-05-31

Šiaulių bankas became the first financial partner of the European Investment Bank (EIB) in Lithuania using JESSICA financial instrument.

 On 31 May this year, in Vilnius, Eva Srejber, EIB Vice-President, and Chairman of the Board of Šiaulių bankas Algirdas Butkus, signed an agreement regarding the financing scheme for renovation of multi-apartment buildings.

“This is an important milestone for the EIB and JESSICA”, Ms Srejber, EIB Vice-President, said. “We are pleased to see that the Lithuanian government sees the EU's JESSICA initiative as an effective way of deploying European Structural Funds for sustainable urban development and also as a much needed stimulus to the local economy”.

Having evaluated the bank‘s experience, collaborating with the international financial institutions, the bank‘s consent to assume the part of risk as well as considering the administration and other fees applied by the bank, EIB has chosen Šiaulių bankas as an intermediary. Pursuant to the terms of agreement for renovation of multi-apartment buildings Šiaulių bankas will provide the loans for a total amount of EUR 6 million (over LTL 20 million). Homeowners will receive the loans with 3 per cent annual interest; moreover, they will be provided with the favorable maturities.

„The priority will be given to multi-apartment buildings, where the use of energy is inefficient. In spite of the fact of overdue, these are going to be the new opportunities seeking to efficiently exploit the old multi-apartment buildings as well as increasing their energy efficiency. Currently, the Bank is preparing financial procedures as well as Draft agreements and in the nearest time will call the Community of multi-apartment buildings to provide the applications for the renovation of housing“, Chairman of the Board of Šiaulių bankas Algirdas Butkus said.

During the competitive tender for the provision of concessional loans seven banks were chosen. Apart from Šiaulių bankas, SEB bank and „Swedbank“ were also selected.

The purpose of a new state-supported renovation scheme is to provide favorable conditions for the homeowners to renovate and modernize multi-apartment buildings as well as residential environment, to ensure the efficient maintenance and modernization of housing, to guarantee the energy efficient use, to reduce energy consumption and heating expenses. JESSICA financial instrument that assists in implementation of this scheme is the initiative of the European Commission and the European Investment Bank intended to stimulate the investment of balanced urban projects development.