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European Commission approves new aid facility for Lithuanian businesses

Date

2022 09 21

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The European Commission has approved another aid instrument to help Lithuanian businesses affected by the war in Ukraine - loans for working capital and investment - prepared by the Ministry of the Economy and Innovation.

"The Interim War Communication has allowed us to prepare a second aid measure - direct loans to small and medium-sized enterprises and large companies affected by the consequences of Russia's military aggression against Ukraine. We have earmarked €50 million for this purpose. We will be launching a call for applications in the near future," said Aušrinė Armonaitė, Minister of the Economy and Innovation. 

The loans will be open to businesses that meet at least one of three conditions. For example, if the costs of natural gas supply, heat supply and electricity supply services represent at least 8% of the annual costs of the company (based on 2021 data), or if one of the economic activities is in one of the sectors identified in Annex I of the European Commission's Communication as particularly affected.

The loan will also be available if the share of exports to or imports from Ukraine and/or the share of imports from Russia and/or Belarus is at least 25% of the total share of the company's imports or exports (including to EU countries) between 1 January 2021 and 31 December 2021.  

The maximum loan duration is 3 years for working capital loans and 6 years for investment loans. Loans will be granted until 31 December 2022. The Facility will be implemented by the national development institution "Investment and Business Guarantees" (INVEGA). 

Businesses already have access to a range of financial instruments. Businesses in various sectors affected by the crisis can obtain aid guarantees for working capital and investment loans and financial leasing transactions under the same Temporary War Communication. Under this facility, guarantees worth €120 million are planned. 

Businesses can also apply to INVEGA for a range of other financial support facilities, including soft loans for investment projects, direct loans to businesses affected by the actions of third countries, export credit guarantees, individual guarantees, portfolio guarantee facilities and others.