Šiaulių bankas will be granting loans in collaboration with the European Investment Fund

2009-09-10

Collaborating with the European Investment Fund (EIF) Šiaulių bankas starts implementing a new financial facility, which will allow providing easier funding to the very small, small and medium-sized enterprises. The EIF selected Šiaulių bankas to grant risk sharing loans and projected to assign EUR 20 million (LTL 69 million) from the JEREMIE’s controlling fund.

Šiaulių bankas was selected after the comprehensive analysis and evaluation of the bank according to the eligible criteria of the tender. “The financial facility trusted to Šiaulių bankas will help fostering the entrepreneurship, occupation of small and medium-sized businesses, development of investment projects in Lithuania and will provide new financial opportunities to the companies. This is not the first time when a financial institution playing a significant role in the European financial market chooses Šiaulių bankas for the collaboration”, - said Mr. Donatas Savickas, Deputy Chairman of the Board of Šiaulių bankas.

The European Investment Fund is the fifth financial institution, the funds of which are attracted by Šiaulių bankas to finance the prospective business projects. Šiaulių bankas is closely collaborating with the European Bank for Reconstruction and Development (EBRD), Council of Europe Development Bank (CEB), Nordic Investment Bank (NIB) and KfW Bankengruppe (KfW).

Up to EUR 120 million (LTL 414 million) will be granted in total to small and medium-sized business from the JEREMIE’s controlling fund to finance investment projects and supplement working capital. Besides Šiaulių bankas, this facility will be distributed at the SEB and “DnB Nord” banks. Allocating money from the structural funds received under the JEREMIE program the banks will have to invest the same amount of their own funds, therefore the total amount of the support to small and medium-sized business under the risk sharing facility shall reach EUR 240 million (LTL 828 million). 8 banks operating in Lithuania had participated in the open tender arranged by the EIF.

Lending the funds according the EU initiative JEREMIE will assist stimulating the loan granting to small and medium-sized enterprises of Lithuania in two coming years and, thus, improving the business conditions in Lithuania.  JEREMIE is a joint initiative of the European Commission and European Investment Bank Group, the purpose of which is to improve the ability of the enterprises to receive the external funding sources using the a share of support from the structural funds of the European Union for 2007 - 2013.