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-2021-4/1861 – Updated – measures in Lithuania
|Country||Lithuania , applies nationwide|
|Time period||Temporary, 20 January 2021 – 31 October 2022|
|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||13 April 2021 (updated 20 September 2022)|
On 19 January 2020, a description of the conditions for the implementation of the incentive financial instrument “Direct COVID-19 Loans” (the Description) was approved by Order No B-14 of the Director General of UAB Investicijų ir Verslo Garantijos (INVEGA), providing for the possibility for businesses affected by COVID-19 to apply for soft loans. These loans are designed to help businesses facing a shortage of working capital. The loans should help business to cover the costs incurred or anticipated during quarantine and thus to ensure business continuity.
The Description provides for loans to small- and medium-sized enterprises (SMEs) and large enterprises, except for businesses in the field of agriculture, forestry, fisheries, aquaculture and finance. The loan funds can be used to cover the expenses incurred (planned to be incurred) from 1 October 2020 to 30 October 2021. The loans are provided on preferential terms, i.e., at reduced interest rates which depend on the loan period and the status of the borrower. The highest interest rate can be up to 0.69% for SMEs and up to 1.69% for large enterprises. Only one loan may be granted to one business entity, which may not exceed the average monthly turnover and in any case may not exceed €100,000. Loans are granted for a maximum period of 72 months.
To be eligible for the loan, business entity should meet the criteria for assistance set by the Government of the Republic of Lithuania. One of such criteria is a drop in turnover of more than 30% during the period from 1 November 2020 to 31 January 2021, as compared to the monthly average turnover in the corresponding period in 2019-2020. In the case of new business entities, there must be restrictions imposed on their primary activities during the second quarantine.
Business entities seeking loans may submit applications to INVEGA from 20 January to 31 May 2021.
According to INVEGA, in total, €36 million has been allocated for the implementation of the measure from the state budget.
According to INVEGA, on 19 November 2021, there were a total of 1,621 applications filed for the total amount of €35 million, of which 875 applications have been approved, 725 rejected and 21 are being processed.
|Does not apply to workers||Applies to all businesses||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||Direct consultation outside a formal body||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners consulted only ad hoc, the tripartite meeting was not held.
Information is not available.
Eurofound (2021), Direct COVID-19 loans for businesses, measure LT-2021-4/1861 (measures in Lithuania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LT-2021-4_1861.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.