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The fund's management says companies will be funded through the purchase of their issued bonds, but in exceptional cases the state might also become their shareholder.

Dainius Vilcinskas, managing director at Lithuania's State Investment Management Agency, says purchased bond would be further sold on the secondary market.

"In exceptional cases, we will consider entering the share capital. But we will definitely go into such situations to acquire big stakes in companies. There's no intention to take over companies' management from shareholder," Vilcinskas said on Tuesday.

In his words, companies will also be issued loans for the minimum price, similar to what they now borrow from the state. The fund will try to generate a positive return, adding, however, that loans would be issued to "companies facing challenges".

The tasks of the fund include the upholding of the sectors that are considered important for the national economy and their preparation for recovery, promotion of capital market, mobilization of institutional investors and pursuit of investment returns for the participants of the fund.

The government will initially invest 100 million euros and provide the state’s guarantees for bonds, worth up to 400 million euros, which will be issued to raise additional money for the fund. The remainder, i.e. 500 million euros, is expected to be raised from private investors.

The European Commission approved the support scheme in May.

Valstybes Investicinis Kapitalas (State Investment Capital) will act as a limited partner of the business support fund. The company will be subordinate to the Ministry of Economy and Innovation.

The assistance fund's planned investment portfolio is valued at 1 billion euros, and the state will invest 100 million euros in its initial contribution and also plans to provide the state's guarantee of up to 400 million euros for non-equity securities. The remaining funds will come from private and (or) institutional co-investors.