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-2020-28/1163 – 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||Inga Blaziene (Lithuanian Social Research Centre)|
|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', setting forth the loan granting scheme to businesses providing accommodation and/or catering services. The loans are intended to finance necessary costs of such enterprises. The measure is aimed at mitigating the impact of the COVID-19 pandemic on the accommodation and catering sector.
Loans may be granted to enterprises operating in the Republic of Lithuania which provide accommodation and/or catering services. In the sector of accommodation services, small- and medium-sized enterprises (SME) and large enterprises are eligible to apply for the loan. In the catering sector, the loan is available to large enterprises whose main activity according to the statistical classification of economic activities (NACE rev. 2) is restaurant and mobile food service activities (56.10).
Enterprises are eligible to apply for the loan if they were not qualified as a firm in difficulty, subject to insolvency proceedings and/or under restructuring as of 31 December 2019, and have not received illegal support. Enterprises in the accommodation sector must hold valid accommodation services classification certificates.
The loan is intended to cover the necessary costs of the borrower (employees’ wages, purchase of transport and other services, rental of real estate, property maintenance costs, etc.).
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. The maximum loan amount is €3 million. The loans are granted for a maximum term of 72 months. Repayment of loans commences no later than 12 months after the date of concluding 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).
The following updates to this measure have been made after it came into effect.
|21 October 2021||
A new description of implementing provisions for the measure was approved by CEO’s Order No B-153 and the acceptance of applications for the measure was reopened from 23 July 2021.
The call is closing on 30 November 2021, at 23:59, or upon the allocation of the amount earmarked for the measure. A loan shall be granted and a loan agreement shall be signed no later than on 31 December 2021 and the loan shall be paid out by 31 March 2022.
|31 December 2020||
On 1 January 2021, Order No 4-1189 of the Minister for the Economy and Innovation of the Republic of Lithuania came into force in Lithuania that amended the Scheme of the financial instrument “Loans to providers of tourism and catering services”. According to the Scheme, the loans to providers of accommodation and catering services may be granted until 30 June 2021.
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
Public support service providers
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.
This case is sector-specific
|Economic area||Sector (NACE level 2)|
|I - Accommodation And Food Service Activities||I55 Accommodation|
|I56 Food and beverage service activities|
This case is not occupation-specific.
Eurofound (2020), Loans to providers of accommodation and catering services, measure LT-2020-28/1163 (measures in Lithuania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LT-2020-28_1163.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.