The European Investment Bank (EIB) and Siauliu Bankas (SB) take another successful step in their cooperation


SB is the first commercial bank operating in Lithuania, which signed an operational agreement  with EIB for Multi-apartment Building renovation Programme under the JESSICA implementation model 2 years ago. Today (7 February 2013) SB extends cooperation with EIB and signs an agreement for additional EUR 12m (LTL 41,4m) to be able to continue implementation of Multi-apartment Building renovation Programme.

“The EIB is pleased to be signing this important agreement with Siauliu Bankas, which will give a further boost to the energy savings programme in Lithuania and assist apartment owners to make their homes more energy efficient. This loan therefore contributes to a successful achievement of the energy savings goals of Lithuania” said EIB Vice-President Pim van Ballekom.

“The renewed cooperation agreement opens the significant opportunities for the residents to renovate their multi-apartment building, as well as accelerates the renovation process itself involving municipalities. We very much hope that other commercial banks will follow Siauliu Bankas example and will be able to take over a very important and necessary role of financial intermediary” said Vice-Minister of Environment Daiva Matoniene.

The main advantage of the new financing model is that modernisation loans for Multi-apartment Building renovation will continue to be provided not only to the apartment owners but also to the multi-apartment building administrators, public entities and other persons, responsible for projects and appointed by municipalities.

“SB assumes the renovation programme as a priority and hopes that both the Government and financial institutions will take steps to accelerate its progress in Lithuania. We already notice a growing need for renovation from residents, as well as from communities what lets us hope that exceptionally good lending conditions will be actively used. All the residents, after renovation of their multi-apartment buildings, immediately felt a significant improvement of quality of life; and now we are extending the possibilities to finance these projects.” - said Chief Executive Officer of SB Audrius Žiugžda.

SB, in accordance to a renewed agreement with EIB, will provide financing at extremely favourable terms and conditions: a maturity of loan up to 20 years, 3% interest rate fixed for entire loan period, collateral and loan insurance are not required. The new funding model also gives a possibility to implement a wide district renovation. Therefore, for the ones seeking a rational use of the EE resources and implementing multi-apartment blocks renovation projects will be provided an exceptional state’s subsidy compensating a share of investments.

According to A. Žiugžda, those recent amendments in the OA also open possibilities for municipalities’ participation and implementation of district wide renovation projects, as well as other infrastructure projects.

In 2010 SB became the first financial partner in Lithuania for JEESICA financial instrument, i.e. the European Commission and EIB joint initiative to promote sustainable investments and growth in urban areas. EUR 6 m (more than LTL 20 m) was allocated to SB under this multi-apartment renovation programme. Today SB has the biggest share of approved loans applications under the JESSICA programme.

EIB‘s representative Frank Lee (on the left) and CEO of Šiaulių bankas Audrius Žiugžda (on the right) signing the extension of the agreement  for funding of multi-apartment building renovation.