Factsheet for case LT-2020-16/359 – Updated – measures in Lithuania
|Country||Lithuania , applies nationwide|
|Time period||Temporary, 16 April 2020 – 31 July 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Access to finance
|Author||Inga Blaziene (Lithuanian Social Research Centre) and Eurofound|
|Case created||07 April 2020 (updated 04 January 2021)|
|Related ERM support instrument|
The National Development Agency (INVEGA) plans to provide soft loans to companies through financial institutions to maintain companies’ liquidity. Loans are granted to companies if the turnover has fallen by more than 60% as a result of the COVID-19 pandemic. The terms and conditions of loans are regulated by the regulations on the provision of guarantees for small and medium business loans, as approved by Order No 4-188 of the Minister for the Economy and Innovation of the Republic of Lithuania of 27 March 2020, and the Scheme of the financial instrument “Loans to the businesses most affected by COVID-19” approved by Order No 4-229 of the Minister for the Economy and Innovation of the Republic of Lithuania of 15 April 2020.
The measure is targeted at small- and medium-sized businesses operating in the most affected sectors, i.e. where activities are completely banned and there is no turnover or it has fallen by more than 60%. The size of the loan will be limited to the amount needed to cover the company's necessary expenses. The financial institution will calculate how much money the company needs to survive (for salaries, rent, etc). for the period from 16 March 2020 to 31 July 2020 and will pay that amount to the company. Business entities will start repaying the loan 6 months after receiving the loan. The maximum amount of the loan is of €100,000. 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.
According to the data provided by the Ministry of the Economy and Innovation of the Republic of Lithuania, during the period from 16 April 2020 to 31 July 2020, €200 million was disbursed in loans through financial intermediaries. The loans were accessed by 3,462 legal entities and entrepreneurs of the country.
|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), Soft loans to provide liquidity in the most affected sectors, case LT-2020-16/359 (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.