Invega launches soft loans under Open Credit Fund 2
Small and medium-sized businesses (SMBs) can already take advantage of soft loans under the new instrument Open Credit Fund 2 (OCF 2). This financial instrument will facilitate access for SMBs to financing in the form of a loan or financial lease (leasing) for projects undertaken by them, especial during early growth stages.
“This instrument will ensure access to financial sources for SMBs by providing financing tailored to their needs and will promote business development and investments,” Minister of Economy Evaldas Gustas says.
Loans from the OCF2 will be issued below market price which will reduce the value of financing in the long run. The new instrument will cover up to 75% of the amount of the loan or financial lease (leasing) but the contribution of the state to the loan or financial lease (leasing) will be up to EUR 450,000 in any case. The remaining portion of at least 25% will be financed by the selected financial intermediaries.
Up to EUR 450,000 will be available per credit from the OCF2. Financing in the form of a loan or financial lease (leasing) will be extended to SMBs for a maximum period of 120 months and financing in the form of a credit facility will be available for up to 36 months.
The instrument is implemented by UAB Investicijų ir verslo garantijos (Invega) which is responsible for the conclusion of agreements with financial institutions which will provide loans or financial lease (leasing) to businesses. Invega has already concluded agreements on soft loans and credit facilities under the OCF2 with AB Citadele bank and UAB Medicinos bankas. Invega is also finalising agreements on financing under the OCF2 in the form of financial lease (leasing) with financial intermediaries.
Financial intermediaries can sign credit agreement with small and medium-sized businesses by 31 December 2018.
During the first stage, the Ministry of Economy will earmark almost EUR 38 million for the implementation of this measure (with a possibility, where necessary, to increase the amount) from the resources returning to the INVEGA Holding Fund.
