INVEGA starts providing aid guarantees for loans and financial lease transactions of businesses affected by the crisis caused by the Russian war against Ukraine

National development agency Investicijų ir verslo garantijos (INVEGA) starts granting individual aid guarantees to financial intermediaries for loans they issue to and financial lease transactions with enterprises of all sizes, affected by the crisis caused by the Russian war against Ukraine. It is planned that the value of guarantees for loans or financial lease transactions will be up to EUR 100 million.

Together with the Ministry of the Economy and Innovation, we see the difficulties Lithuanian businesses face and the consequences caused by the Russian aggression and we respond to the current crisis and start granting aid guarantees.

“Together with the Ministry of the Economy and Innovation, we see the difficulties Lithuanian businesses face and the consequences caused by the Russian aggression and we respond to the current crisis and start granting aid guarantees, that will be able to be used to secure loans for investments and for supplementing working capital, also for financial lease transactions,” says Kęstutis Motiejūnas, CEO of INVEGA.

According to the head of INVEGA, a business will be considered affected by the war-caused crisis and will be able to apply for aid guarantees if a quarter or more of the business’s imports or exports (which include trade with EU countries) in 2021 was trade with Ukraine, Belarus or Russia, or at least 3% of the expenditure in 2021 was for fuel, electricity and/or gas. In any case, the business will not be able to have trading obligations with Russia and/or Belarus or will have to have terminated them by 30 June 2022 at the latest.

“These aid guarantees will guarantee up to 90% of the amount of the loan or financial lease transaction amount,” says K. Motiejūnas. “And the maximum guaranteed amount of the loan or financial lease transaction will be determined according to one of the selected models – 15% of the business’s average annual turnover in the last three years or 50% of the energy expenses in the 12 months preceding the month of filing an application. Namely such conditions are established by the Communication from the Commission Temporary Crisis Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia, according to which this instrument has been prepared.”

In order to calculate how much a guarantee will cost, a business can do it using the guarantee calculator. The head of INVEGA also points out that the amount of all INVEGA aid guarantees will not be able to exceed EUR 10 million.

These aid guarantees for investment loans and financial lease transactions will be provided for a maximum period of 72 months and the investment loan repayment will not be able to be postponed for more than 12 months. In the case of working capital loans, guarantees shall be issued for a period not exceeding 36 months. INVEGA also reminds that these guarantees will be granted by 31 December 2022.

A business, in order to make use of these guarantees, should, at first, address a financial intermediary (list of financial institutions issuing INVEGA guarantees), which will assess the eligibility and the maximum amount of funding. More information about the instrument can be found on INVEGA's website, and consultations can be obtained by phone (+370 5) 210 7510 or e-mail uzklausos@invega.lt.