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
|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|
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)|
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.
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).
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.
Employees in standard employment
Sector specific set of companies
|Does not apply to citizens|
EU (Council, EC, EP)
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Eurofound (2022), Soft loans to provide liquidity in the most affected sectors, measure LT-2020-16/2716 (measures in Lithuania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LT-2020-16_2716.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.