Šiaulių Bankas Efficiently Works with Small and Medium Businesses

2003-04-11

Šiaulių Bankas Efficiently Works with Small and Medium Businesses

Šiaulių Bankas has been recognized as one of the most efficient banks in implementing the SME Finance Facility under European Bank for Reconstruction and Development. This was announced at the meeting of the banks working with the EU/EBRD SME Finance Facility in Bratislava on 6-7th March 2003. Banks from 10 Central and East European countries seeking EU accession – Bulgaria, Czech Republic, Estonia, Latvia, Lithuania, Poland, Rumania, Slovakia, Slovenia and Hungary – are taking part in the project.Šiaulių Bankas was among the most efficient in using the project funds during the shortest time. Šiaulių Bankas and EBRD signed a EUR 5 million credit line agreement in December 2000. The first loan was granted already in 4 months, while the following 13 months saw the disbursement of the rest of the credit line. All granted loans are of good quality and correspond to the EBRD requirements.

The size of the loans granted by Šiaulių Bankas is in line with the aim of the project, which is financing small and medium-sized businesses. The average loan amount is EUR 13.6 thousand (LTL 47 thousand). With the help of the project consultants financed by the European Commission, Šiaulių Bankas has developed and successfully implemented a micro-crediting program.

The whole structure of Šiaulių Bankas loan portfolio also reflects the Bank’s aim to stimulate the development of small and medium business in the country. Almost 85% of loans granted to private businesses between 2001 and 2002, were below LTL 300,000, while the average size of these loans was accordingly LTL 80,000 and 82,000.