Factsheet for case LT-2020-12/340 – measures in Lithuania
|Country||Lithuania , applies nationwide|
|Time period||Temporary, 16 March 2020 – 31 December 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Inga Blaziene (Lithuanian Social Research Centre) and Eurofound|
|Case created||07 April 2020 (updated 15 October 2020)|
Taking into account the companies’ lack of working capital during the quarantine period, the Government allocated €23 million of EU funds to fully reimburse interest payable by small- and medium-sized enterprises in cases where the repayment of loans or financial leasing has been postponed for at least 3 months after 16 March 2020 due to the quarantine regime. The businesses, therefore, can use their savings for other important purposes. The measure is implemented in accordance with Description 1 of the conditions for financing projects under measure J03-IVG-T under priority axis 3 “Promoting the competitiveness of small- and medium-sized enterprises” and priority axis 4 “Promoting energy efficiency and the production and use of renewable energy” under the Operational Programme for EU Structural Funds Investments for 2014-2020, as supplemented on 3 April 2020 by the Order No. 4-201 of the Minister for the Economy and Innovation.
Representatives of small- and medium-sized enterprises experiencing difficulties in relation to COVID-19 pandemic may apply for the reimbursement of interest on deferred loans or financial leasing payments by the National Development Agency “Investicijų ir verslo garantijos” (Investment and Business Guarantees, INVEGA). If the financial institution defers the payment of loans or financial leasing, the borrowers will be reimbursed 100% of interest payable during the period of deferral. In addition, interest compensations will be paid on a monthly basis instead of a quarterly basis. The interests will be reimbursed in respect of investment and working capital loans, as well as financial leasing agreements, provided that the company meets certain criteria (e.g., interest compensation during the deferral period is not available for companies engaged in road freight transport wishing to purchase vehicles for freight transportation; for farmers; in respect of overdrafts, credit lines, factoring, operating lease contracts, etc.). The interest rate from which the maximum amount of partial reimbursement of interest is calculated shall not exceed 7%. The reimbursement of interest shall be applied within the de minimis aid ceiling (€200,000) for a period exceeding six months – until 31 December 2020.
According to the data provided by INVEGA, a total of 4,642 applications for compensation for interest on loan or lease payments amounting to €31.2 million have been submitted by 24 September 2020, of which 55 are being processed, 497 – returned for being revised, 1,031 – denied, and 3,059 – approved.
|Does not apply to workers||
||Does not apply to citizens|
Company / Companies
Public support service providers
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Direct consultation outside a formal body||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
No information available.
Social partners consulted only ad hoc, the tripartite meeting was not held.
Eurofound (2020), Compensation for interest on loan or lease payments, case LT-2020-12/340 (measures in Lithuania), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.