European Commission approves guarantee instrument for businesses affected by the war in Ukraine
The European Commission has approved a new aid instrument for Lithuanian businesses affected by the war in Ukraine - guarantees for working capital and investment loans, and financial leasing transactions - prepared by the Ministry of Economy and Innovation.
"The Provisional War Communication adopted by the European Commission has allowed us to create an aid instrument to support the economy in response to the crisis caused by Russia's military aggression against Ukraine. So we will soon be implementing a loan and leasing guarantee instrument to help affected businesses in these difficult times," said Aušrinė Armonaitė, Minister of Economy and Innovation.
Guarantees will be provided for loans to finance investments or to replenish working capital, as well as for financial leasing transactions concluded by war-affected borrowers and lessees whose import or export of goods or services with Ukraine, Russia and Belarus has been disrupted by the crisis caused by the war.
Guarantees will also be granted for loans and leasing transactions concluded by beneficiaries whose fuel, electricity and/or gas costs amounted to at least 3% of their expenditure in 2021. The guarantees would be issued until the end of 2022, with a maximum duration of 6 years and a guarantee rate of 90%.
The maximum amount of the guaranteed loan or leasing transaction per beneficiary is 15 % of the beneficiary's average annual turnover over the last three years or 50 % of the energy costs during the 12 months preceding the month of application.
The Regulations on the provision of individual guarantees for loans and guarantees for financial leases are currently being finalised and will be approved by a Decree of the Minister. The guarantee instrument will be implemented by UAB Investicijų ir verslo garantijos (INVEGA).