Marco Francini: ‘Our cooperation is based on the principle that the EIB priorities coincide with the national ones’

In cooperation with the public and private sectors, the European Investment Bank (EIB) has invested approximately EUR 4.3 billion into the national economy since the restoration of Lithuanian independence. EIB opened its office for the Baltic States in Vilnius three years ago and continues to promote sustainable growth of the Lithuanian economy through investments to innovations, renewable energy and infrastructure, granting more opportunities for Lithuanian companies to grow.

EIB Group has been successfully cooperating with three out of the four national development institutions: UAB Investicijų ir verslo garantijos – INVEGA (Guarantees for Investments and Business), Viešųjų investicijų plėtros agentūra – VIPA (Agency for the Expansion of Public Investments), and Valstybės investicijų valdymo agentūra – VIVA (Agency for Management of State Investments). These three institutions and the Fund of Guarantees for Agricultural Investments were joined into a single institution. All services to businesses, the public sector and agriculture are provided through INVEGA on a one-stop shop basis.  Such a merger is unavoidably change the relations with an international partner important for all the institutions – EIB. Marco Francini, Head of the EIB Group Office for the Baltic States, talked about changes in the cooperation of EIB and the consolidated national development institution. He elaborated with the experience accumulated by EIB Group while working with other national development funds and banks in Europe, and the factors determining the success of a financial institution.

EIB has been closely cooperating with INVEGA, VIPA and VIVA. Soon, these three national financial institutions and the Fund of Guarantees for Agricultural Investments will be merged into one consolidated national development institution. What do you think about the decision to consolidate these entities?

EIB Group has been cooperating successfully with INVEGA, VIPA and VIVA in recent years. We believe this merger will result in a stronger and bigger institution that will have more resources to promote private and public sectors in Lithuania.

What is the value of consolidation of the entities for Lithuanian businesses and the economy? What benefits will be felt by the customers – small, medium-sized and large enterprises, local producers, start-ups, and public and agricultural sectors?

The merger of the entities will result in three benefits at least. First of all, all the knowledge and competences accumulated in different organisations will be held in one place and used more efficiently. Second, financial products oriented to the customers’ needs will be developed. Third, the ‘single-window’ concept will be applied in the new national development institution. Customers searching for financing solutions for digitisation, greening, business development, manufacturing, energy or transport projects will be able to receive all the services conveniently from one institution.

How will the relations between the national development institutions and EIB change after the consolidation of entities?

When the four entities are merged into one the new financial institution will be created, the size of which will allow EIB not simply to continue but also to expand the cooperation areas. Together we will be able to create new financial services and share the accumulated experience. It will be an excellent opportunity to create more versatile financial solutions to promote the Lithuanian economy.

EIB is closely cooperating with many European national development institutions and banks. What good partnership practices will you attempt to create while cooperating with the Lithuanian national development institution?

The national development institutions and banks are regular and important partners of EIB. We, as the European bank, together with the national development institutions supplement domestic financial markets. Our cooperation is based on the understanding that the EIB financing priorities coincide with national ones. Our investments are directed to the priorities of the Future Europe: creation of infrastructure, innovations, projects reducing environmental pollution and solving challenges of climate changes, and promotion of competitiveness.

What will be the key strategical directions of the partnership of EIB and the national development institution?

Today, I believe that we are going to develop three strategical directions of partnership. First of all, we are going to exchange our knowledge and competences by financing such important fields as the challenges of climate changes, and financing innovations. Second, we will continue to offer loans and grant guarantees for financing small and medium-sized enterprises. Third, we are going to continue investing into long-term projects of infrastructure, and continue such initiatives that have addressed these purposes such as the Baltic Innovation Fund.

In your opinion, what are the indicators of a successfully operating national development institution? How should we assess the success of such an institution?

We are successfully cooperating with BPI France, CDP Italy, ICO in Spain, BGK in Poland and ALTUM in Latvia. All these institutions play an important role for their national economies. The specialists of all the institutions are familiar with the subtleties and needs of local markets. A variety of financial solutions and an ability to cooperate with all the interested parties in the local market and internationally are key to successful work by a national development institution.

About INVEGA

Investicijų ir verslo garantijos UAB (INVEGA) is a national promotional institution, with the Ministry of Finance representing the Government of the Republic of Lithuania as a shareholder. As part of implementation of the plan for New Generation Lithuania, and seeking to direct sufficient investments to key areas and to speed up economic development, on 1 August 2023 four national promotional institutions – INVEGA, Viešųjų investicijų plėtros agentūra (VIPA), Valstybės investicijų valdymo agentūra (VIVA) and Žemės ūkio paskolų garantijų fondas (ŽŪPGF) were joined into a single institution. All services to businesses, the public sector and agriculture are provided through INVEGA on a one-stop shop basis.