The National Development Agency Investicijų ir Verslo Garantijos (INVEGA) initiated the changes to the terms and conditions of the loans granted to the business most affected by Covid-19 during the first wave of the pandemic. The business which took advantage of this opportunity during the first wave of the Covid-19 pandemic can apply for a six-month deferment. INVEGA further reminds that businesses can extend the maturity of the loan to the maximum permissible if it was shorten than 6 years.
The changes introduced provide for the possibility to defer loan repayments for an additional period of up to 6 months, irrespective of whether repayment has already started or not. Borrowers may also extend the maturity of the loan to the maximum permissible, i.e. up to 6 years, if it was shorter. Depending on the loan received, it will suffice for businesses to apply to the financial intermediary which granted a preferential loan to the businesses most affected by COVID-19.
“We understand the complex situation that most businesses find themselves in after the second wave of the pandemic has struck and, therefore, in addition to the state aid measures we are looking for additional ways to help businesses. We have initiated corrections to the terms and conditions of the loans which have already been granted in order to enable the benefiting companies and businesses to postpone their payment obligations. We hope that this will further facilitate the financial situation of small and medium-sized enterprises affected during the first quarantine and will help them focus on keeping their business going,” says Kęstutis Motiejūnas, CEO of INVEGA.
According to the CEO of INVEGA, the loans granted to 3,462 businesses and entrepreneurs most affected by COVID-19 helped them survive the first quarantine – to cover the basic costs, to further carry out their business activities, and to maintain jobs. These entrepreneurs can now defer loan repayments by submitting the respective application to the financial intermediary which granted the loan.
It should be noted that loan repayments may be deferred for a total period of up to 6 months, regardless of whether repayment has started or not, i.e. the borrower may apply for a 6-month deferment at once or to apply, for example, twice for a 3-month deferment, etc. With more options available, businesses will be able to decide more easily on the option that best suits their situation. During this grace period by which loan repayments are deferred and/or amendments to the loan agreement are made, the financial intermediary may apply the standard fees for amendment to the terms and conditions of the agreement at their usual rates. INVEGA notes that when the loan repayment deadline is extended and the loan agreement is amended simultaneously, the single fee for amending the loan agreement is applied.
INVEGA also reminds that those entrepreneurs who took advantage of another loan facility during the first quarantine period, i.e. loans for payable invoices (ASAP), may, after assessing their financial capacity and submitting an application to INVEGA in a free form, postpone the payment of installments and interest for 3 or 6 months already from November, irrespective of whether repayment has started or not.