Businesses with risky projects that have potential can expect some support from the so-called Juncker plan as early as this summer. The funds will be provided by the European Investment Bank through Finland’s OP bank.
Business support agencies in Lithuania have said that the money will not be very relevant to the structural support that Lithuania receives, but commercial banks have admitted that the European Bank’s money will bring more competition.
The program running through Finalnd’s OP bank will also support small and medium-sized enterprises (SMEs), which will receive anywhere from 1 to 7.5 million Euro loans.
“In Lithuania, compared to other countries, we have structural support, we have a considerable amount of funds that are used as subsidies or payments. This financing, from the project developer’s perspective, is much more attractive,” said Gvidas Dargužas, head of the Public Investment Development Agency.
“This is a credit, not a subsidy, and it isn’t even a capital investment. It’s a credit that must be returned – perhaps the interest is lower, but this reflects the project’s risk as well,” said INVEGA CEO Audrius Zabotka.