INVEGA has announced a list of new or improved measures aimed at distributing state support to business. This package of measures will help companies address the liquidity and financial challenges posed by COVID-19. More than EUR 1.1 billion will be distributed through these measures.
“Vacation” from business loans: Improved measure
- The improved measure will be available to small and medium-sized businesses.
- The purpose of the measure is to reimburse 100% of the interest payable (up to 7% annually) on loan or lease payments for 6 months.
- Interest compensation is paid monthly.
- The improved measure will be tentatively launched early next week.
Read more here (in Lithuanian).
Portfolio guarantees
Portfolio guarantees for loans 2 (PGP2) and leasing 2
- Available to small, medium-sized and large companies.
- INVEGA will guarantee banks and other financial institutions, including leasing companies, for execution of loans already granted and new loans. Loans that can be guaranteed:
- investment loans granted (including leasing transactions) and working capital loans (excluding reverse leasing transactions) where restructuring took place after 16 March 2020;
- new working capital loans (including reverse leasing transactions) to support corporate liquidity.
- The measure does not apply to loans granted to companies directly involved in organizing gambling activities or operating in sectors such as production, processing and sale of arms and ammunition, tobacco & tobacco products and distilled alcoholic beverages.
- Up to 80% of the loan principal can be guaranteed up to a maximum of EUR 1.5 million.
- Expected start of measure application – 10 April 2020.
Read more here (in Lithuanian).
Portfolio guarantees for factoring 2 (PGF2)
- This measure is intended to guarantee financial institutions for factoring limits granted to micro, small and medium-sized companies.
- Up to 80% of the factoring transaction limit will be guaranteed, with a maximum amount of one factoring limit per company cannot exceed EUR 1,875,000.
- Expected start of measure application – 10 April 2020.
Financial instrument Alternative
- This measure is designed to promote the financing of small and medium-sized companies by alternative financiers. A list of suitable alternative financiers is still being prepared.
- Expected start of measure application – 16 April 2020.
Targeted loans for business
- INVEGA plans to provide (via financial institutions) soft loans for companies to maintain liquidity.
- The measure is targeted at micro, small and medium-sized enterprises and large enterprises operating in the most affected sectors – ie, if the activity of the company is completely banned and turnover either does not take place or has fallen by over 60%.
- The size of the loan will be limited to the amount needed to cover the company’s necessary expenses. Loans will be provided on a monthly basis.
- Loans will be issued until the end of quarantine or until 31 December 2020. Companies will start repaying the loan 3 months after the end of the quarantine.
- Expected start of measure application – 16 April 2020.
INVEGA direct loans
- INVEGA plans to provide direct loans to small and medium-sized enterprises whose activities were banned during the quarantine period.
- Loans can be granted if companies cannot obtain financing in the market.
- Expected start of measure application – 1 September 2020.
