European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure LT-2020-16/2716 – measures in Lithuania

Soft loans to provide liquidity in the most affected sectors

Lengvatinės paskolos likvidumui palaikyti labiausiai paveiktiems

Country Lithuania , applies nationwide
Time period Temporary, 16 April 2020 – 31 July 2022
Context COVID-19, Restructuring Support Instruments
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Access to finance
Author Inga Blaziene (Lithuanian Centre for Social Sciences) and Eurofound
Measure added 23 June 2022 (updated 26 October 2022)

Background information

The instrument aims to sustain companies' liquidity, providing them with soft loans, through financial institutions.

The measure is targeted at small and medium-sized businesses operating in sectors in which the activities are completely banned, or that have registered a decrease as a consequence of the COVID-19 pandemic. The eligibility criteria for the support are the following: the monthly turnover of the company decreased by 30% as compared to the average monthly turnover in 2019 (i.e. the monthly turnover of the borrower after 16 March 2020 is compared with the average monthly turnover in 2019), the company has retained at least 50% of the employees compared to the number of employees on 1 March 2020.

The criterion of decrease in turnover of business entities established between 1 January 2020 and 1 March 2020 is not assessed.

Content of measure

The size of the loan provided by the instrument is limited to the amount needed to cover the company's necessary expenses. The financial institution calculates how much money the company needs (for instance, for salaries, rent, etc.) in the period from 16 March 2020 to 31 July 2020 and pays that amount to the company.

The maximum amount of the loan is €100,000 and the beneficiaries will start repaying it 6 months after having received the sum. The company will pay a fixed interest rate depending on the duration of the loan:

  • 0.1% for the loans shorter than 12 months

  • 0.19% for the loans that will be repaid in 13-36 months

  • 0.69% for the loans that will be repaid in 37-72 months.

Funding: national legal framework implemented by the National Development Agency (INVEGA).

Use of measure

It is a good measure to sustain companies' liquidity and ensure business continuity in most affected economic sectors in Lithuania; companies can borrow at low interest rates.

However, not all companies are eligible for support - only small and medium-sized businesses operating in sectors in which the activities are completely banned, or which have registered a decrease as a consequence of the COVID-19 pandemic.

Target groups

Workers Businesses Citizens
Employees in standard employment
Sector specific set of companies
Other businesses
Does not apply to citizens

Actors and funding

Actors Funding
National government
EU (Council, EC, EP)
European Funds
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown



Views and reactions




    Eurofound (2022), Soft loans to provide liquidity in the most affected sectors, measure LT-2020-16/2716 (measures in Lithuania), EU PolicyWatch, Dublin,


    Eurofound publications based on EU PolicyWatch

    30 January 2023


    Measures to lessen the impact of the inflation and energy crisis on citizens

    Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.


    12 September 2022


    First responses to cushion the impact of inflation on citizens

    Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.


    12 September 2022


    Policies to support EU companies affected by the war in Ukraine

    This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.


    5 July 2022


    Policies to support refugees from Ukraine

    This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.


    Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.