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-2020-28/1162 – Updated – measures in Lithuania
|Country||Lithuania , applies nationwide|
|Time period||Temporary, 08 July 2020 – 30 November 2021|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Access to finance
|Author||Rasa Mieziene, Inga Blaziene (Lithuanian Centre for Social Sciences)|
|Measure added||21 September 2020 (updated 18 October 2021)|
On 8 July 2020, Order No 4-536 of the Minister for the Economy and Innovation of the Republic of Lithuania came into force in Lithuania to approve the Scheme of the financial instrument “Loans to providers of tourism and catering services”, providing for the loan granting scheme to tour operators. The measure is aimed at mitigating the impact of the COVID-19 pandemic on tourism business by way of providing funding to tour operators in the form of loans so that to enable them to settle accounts with travellers for their trips cancelled due to the COVID-19 outbreak.
The loan may be granted to a tour operator operating in the Republic of Lithuania in cases where a traveller who has an organised tour contract refuses a travel voucher offered in accordance with the procedure established in Law on Tourism No VIII-667. The tour operator shall meet the following criteria to be eligible for the loan:
The maximum loan amount is €3 million. The loans are granted for a maximum term of 72 months if the loan amount is more than €20,000 and for a term of 18 months if the loan amount is up to €20,000.
Repayment of loans commences:
The loan shall be granted by 31 December 2020 at the latest. The loan shall be disbursed to the borrower within 3 months from the conclusion of the loan agreement.
If the company is small or medium-sized, the loans bear a fixed annual interest rate of 0.1% to 0.69%, depending on the term of the loan. If the company is large, the loans bear a fixed annual interest rate of 0.19% to 1.69%.
The measure is implemented by the National Development Agency UAB Investment and Business Guarantees (Invega).
According to Invega’s data, 15 agreements have been signed as of the end of September 2020 regarding direct loans to the providers of tourism services affected by the COVID-19 pandemic. The total amount of loans under the signed agreements is close to €5.1 million.
A total of €30 million has been allocated for this measure targeting the providers of tourism services and accommodation and catering services.
INVEGA provides only general statistics on the providers of tourism services and accommodation and catering services. On 2 April 2021, there were a total of 174 applications filed for the total amount of €21.54 million, of which 55 have been approved, 112 rejected and 7 are being processed.
On 29 June 2021, there were a total of 201 applications filed for the total amount of €19.13 million, of which 57 have been approved, 144 rejected. Anticipated funds in the amount of €23 million are to be used by 30 September 2021.
|Does not apply to workers||
Sector specific set of companies
||Does not apply to citizens|
Social partners jointly
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Any other form of consultation, institutionalised (as stable working groups or committees) or informal||Any other form of consultation, institutionalised (as stable working groups or committees) or informal|
Social partners' role in the implementation, monitoring and assessment phase:
No information available.
No information available.
|Economic area||Sector (NACE level 2)|
|N - Administrative And Support Service Activities||N79 Travel agency, tour operator and other reservation service and related activities|
This case is not occupation-specific.
Eurofound (2020), Loans to providers of tourism services, measure LT-2020-28/1162 (measures in Lithuania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LT-2020-28_1162.html
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