Brussels, 17/03/2009 (Agence Europe) - The European Investment Bank (EIB) is lending a total of €1,147 million for key investments in Lithuania. The EIB objective is to target the real economy through investments in social and economic infrastructure, education, training and the promotion of entrepreneurship as well as transport, environment and energy.
The €1,132 million loan for priority investments co-financed with EU funds for the period 2007-2013 was signed in Vilnius on Friday 13 March. The operation is structured as a Framework Loan and will be used by the Lithuanian state for investments in priority areas identified in the National Strategic Reference Framework, through the co-financing of three Operational Programmes for the Development of Human Resources, for Economic Growth and for the Promotion of Cohesion. It will also provide financial support for the completion by 2010 of six large water supply and wastewater treatment projects that were co-financed by the Cohesion Fund in the 2004-2006 programming period.
The EIB will also contribute to the real economy through smaller investments in Lithuania, by cooperating with AB DnB NORD Bankas, with a €15 million loan for projects in industry, services and tourism, as well as schemes mounted by private and public bodies in the fields of environment, economic infrastructure, development of a knowledge-based economy, rational use of energy, health and education in Lithuania. This new loan follows on from a series of other loans totalling €60 million over the 2005-2008 period in favour of Lithuania's banking sector, which were on-lent to SMEs and mid-caps.
In a separate initiative, the European Investment Fund (EIF), part of the EIB Group, signed with the Ministry of Economy and the Ministry of Finance a Funding Agreement for the establishment of a JEREMIE Holding Fund for a capital sum of €80 million. On 4 March 2009, the same parties signed and amendment to this agreement enabling an expansion of the capital allocated to this initiative up to a maximum of €290 million. Implementation activities are well advanced. For Lithuania, the Holding Fund is to be used to provide financing to SMEs through selected intermediaries as a result of EIF implementing four instruments: VC Fund, Business Angel Co-Investment Fund, Funded Risk Sharing Instrument for Banks. (O.L./transl.rh)