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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 14:56

EC approves Lithuania's plans to set up business assistance fund

BC, Vilnius, 27.05.2020.Print version
The European Commission has on Tuesday approved Lithuania's plans to set up a fund with a target size of up to 1 bn euros that will invest through debt and equity instruments in medium-sized and large enterprises active in Lithuania and affected by the coronavirus outbreak, the country's Competition Council said in a statement.

The central Bank of Lithuania notes that it's the first such approved scheme in the European Union under the Temporary Framework for State Aid that will allow member states to recapitalize non-financial enterprises affected by the COVID-19 outbreak.

The fund could be operational as early as June. Under the scheme, the support will take the form of subsidized debt instruments and recapitalization instruments for medium and large enterprises affected by the epidemic and whose cessation of business activity could have significant social and economic consequences.

Such an assistance scheme will encourage enterprises to issue debt securities and will also contribute to the long-term development of the capital market in Lithuania.

The Lithuanian government will provide an initial investment of 100 mln euros into the fund, and will guarantee bonds up to 400 mln euros that will be issued to raise additional capital for the fund. The fund will also aim to attract private investments for up to additional 500 mln euros.






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