Bank of Lithuania prepares proposals for promoting small and medium-sized businesses

“More active use of capital market instruments would serve as an alternative source of funds for start-up businesses for which getting credits from banks is often not easy. Proposals on how to animate funding have therefore been prepared,” said Ingrida Šimonytė, deputy chairperson of the Board of the Bank of Lithuania.

The possible legal regulation measures include the proposals to regulate joint funding activities, conditions of the public distribution of bonds of public limited liability companies in the country, establish a mechanism for the protection of bond owners’ interests, define explicit criteria for the non-public offering of securities of private limited liability companies, create the possibility for companies’ employees to acquire their shares.

It is also suggested to improve the regulation of collective investment undertakings, embedded in Lithuanian legislation, through revising the legal regulation of partnerships and changing the legal regulation of the accounting of investment funds and companies whose securities are traded in regulated markets. It is suggested to implement changes in the national taxation system that would promote creating and using alternative means of financing of SMS businesses.

The proposals have been agreed with business representing associations and other market participants concerned.

Moreover, the Ministry of Economy, jointly with the Bank of Lithuania, Ministry of Finance and UAB Investicijų ir Verslo Garantijos,has worked out proposals on the increasing of the range of financing sources for SMS businesses and improving of information for businesses on accessible financing sources.