Guarantee instrument for war-affected Lithuanian businesses launched
Lithuanian businesses affected by the war in Ukraine can now apply to financial institutions that have entered into cooperation agreements with Investment and Business Guarantees UAB (INVEGA) for working capital and investment loans and leasing transactions, which will be covered by individual aid guarantees.
“We are one of the first in Europe to respond to the complicated business situation caused by Russia’s military aggression against Ukraine, and we have already launched an aid instrument that will help our country’s affected businesses to obtain loans for investment or working capital and to enter into leasing transactions with a state guarantee more easily,” said Minister for Economy and Innovation Aušrinė Armonaitė.
Loans and leasing transactions guaranteed by INVEGA will be granted to companies whose imports or exports of goods or services with Ukraine, Russia, and Belarus have been disrupted by the war crisis. As well as businesses whose fuel, electricity and/or gas costs accounted for at least 3% of their business costs in 2021.
The guarantees would be granted until the end of 2022. The duration of the guarantees would comprise up to 72 months for investment loans and leasing transactions and up to 36 months for working capital loans.
The maximum amount per beneficiary of a guaranteed loan or leasing transaction is 15% of the beneficiary’s average annual turnover over the last three years or 50% of energy costs in the 12 months preceding the month of application.
The terms and conditions of the instrument can be found here.