Brussels, 16/11/2009 (Agence Europe) - On Monday 16 November, the European Commission authorised a modification to the Lithuanian regime providing for aid of a maximum of €500,000 per company, which it had initially authorised on 8 June 2009 (EUROPE 9970). This modification will make it possible to extend the scope of the regime, with a particular view to supporting small non-agricultural businesses in rural areas until the end of 2010. It fulfils the conditions of the temporary framework for state aid to promote access to funding against the backdrop of the current economic and financial crisis, stresses the Commission, as it is limited in time and applies only to businesses which were not struggling as of 1 July 2008. This makes it compatible with the relevant provisions of the EC Treaty which authorise aid to overcome a serious disturbance to the economy of a member state.
The aim of the initial regime was to grant aid in the form of guarantees and credit establishments for loans taken out by SMEs and larger businesses during the economic and financial crisis. Due to increasingly tight credit conditions and the increase in interest rates as a result of the economic and financial crisis, small businesses in rural areas of Lithuania are facing serious economic difficulties. The change to the regime adds two new measures (one on the diversification of non-agricultural activities and a support measure for the creation and development of businesses) which are included in the Lithuanian rural development programme 2007-2013. It allows Lithuania to issue direct subsidies of up to €500,000 to support small non-agricultural businesses in rural areas in particular. Businesses active in the primary production, processing and sales of agricultural products sectors are explicitly excluded from the regime. The measure expires at the end of 2010. (O.L./transl.fl)