INVEGA has signed Guarantee Facility Agreement with Taiwan Eximbank
Lithuanian national promotional institution Investiciju ir verslo garantijos (INVEGA) has signed Guarantee Facility Agreement with Taiwan Eximbank to facilitate bilateral trade between Lithuania and Taiwan.
In view of building bilateral cooperation and friendship, the Taiwan Economic and Trade Delegation led by Minister of National Development Council (NDC) Kung Ming-hsin visited Lithuania in October 2021. During the visit, INVEGA and Eximbank of Taiwan signed a Memorandum of Understanding on October 27, 2021 as a landmark for further financial cooperation. After intensive discussion for several months along with the coordination of Taiwanese Representative Office in Lithuania, INVEGA signed Guarantee Facility Agreement with Taiwan Eximbank on August 23, 2022 to assist the importers of Lithuania in purchasing Taiwan products.
The Guarantee Facility is a tailor-made financial product designed by Eximbank of Taiwan for INVEGA only. Different from providing direct loans to INVEGA, Eximbank of Taiwan provides Guarantee Facility to share the credit risk of Lithuanian importers when INVEGA funds the local clients for purchasing goods from Taiwan. The arrangement is expected to partially undertake INVEGA’s possible company’s loan risk, increasing INVEGA’s motivation to more support Lithuanian importers for purchasing goods from Taiwan.
The arrangement is expected to partially undertake INVEGA’s possible company’s loan risk, increasing INVEGA’s motivation to more support Lithuanian importers for purchasing goods from Taiwan.
Based on the statistics of the Customs Administration of Taiwan, in 2021 Taiwan's exports to Lithuania were US$131.72 million and increased 20.91% in comparison with that in 2020. In the first half of 2022, it reached US$64.42 million and increased 15.29% compared to the same period in 2021.
During the period of designing mechanism of Guarantee Facility catering to the need of INVEGA, Eximbank of Taiwan established sound interaction with Lithuanian Ministry of Economy and Innovation and INVEGA. Both parties have sufficiently demonstrated professional viewpoints and dedication to work in tandem. It brings lots of benefits to upgrade the industries and set up a trade financial platform to facilitate the bilateral trade between Lithuania and Taiwan.
It brings lots of benefits to upgrade the industries and set up a trade financial platform to facilitate the bilateral trade between Lithuania and Taiwan.
INVEGA, founded in 2001, is a national financial entity incorporated by the Government of the Republic of Lithuania to assist Lithuanian businesses in obtaining the necessary financing. The Government granted INVEGA status of a National Promotional Institution starting from 2018. INVEGA has been mandated to carry out government policy, and its main function is to promote the growth and development of Lithuanian business through various financial supports such as soft loans, guarantees, equity investments and subsidies for business start-up and so on.
The Export-Import Bank of the Republic of China (Eximbank of Taiwan) was established in 1979 with the aim to facilitate export and import trade of Taiwan through offering various kinds of Export Credit Insurance, Guarantee and financing facilities, to implement its vision “Strengthen Trade Finance and Assist External Trade”. It is a policy-oriented and specialized financial institution fully owned by government with a fully paid-in capital of US$1.16 billion and assets of US$5.47 billion (as of 12/31/2021). Eximbank of Taiwan is currently rated AA (stable outlook) by Fitch, on par with Taiwan sovereign credit rating.