SEB and EIF – a subsidiary of the European Investment Bank – each contribute 75 million euro (259 million litas) to the programme.
Based on EIF’s conditions, SEB will issue loans to enterprises registered and carrying on their activities in Lithuania, except to companies in the sector of agriculture and fisheries, which are covered by separate business incentive programmes. According to the EIF requirements, eligible enterprises must have no more than 250 employees, and annual revenue may not be over 50 million euro.
“The EIF initiative is based on the shared risk principle, which enables our bank to issue loans to enterprises on better terms as the bank shares the risks and may apply a lower interest margin,” says Raimondas Kvedaras, head of SEB Lithuania.
"We believe that with the first signals of economic stabilisation, this type of lending will enable more rapid recovery for SME’s and contribute to the development of their on-going projects."
Applications for loans issued under the EIF programme may be submitted to SEB according to the bank's regular procedures, and this type of loans will not require any additional documentation. Concluded financing agreements will be marked by a special European Union structural funds’ logo indicating that funding comes from the European Union structural funds and from local sources.
“It is a pleasure to have the first bank, which together with the EIF will provide new possibilities for businesses and starts issuing more than half a billion litas in loans. We do encourage other banks to start the process of lending out funds as soon as possible,” says Dainius Kreivys, Lithuania’s minister of economy.
“Businesses should avail of the excellent opportunity to borrow money, as pro-active investment projects implemented today may provide a substantial basis in preparation for competition at the stage of economic recovery.”