National promotional institutions will promote investment in Lithuania
Today, the Government granted the status of national promotional institutions (NPIs) to three state-owned financial institutions – Public Investment Development Agency UAB (lith. UAB “Viešųjų investicijų plėtros agentūra“), Investment and Business Guarantees UAB (lith. UAB “Investicijų ir verslo garantijos“) and Agricultural Credit Guarantee Fund UAB (lith. UAB “Žemės ūkio paskolų garantijų fondas“).
‘The NPI will create conditions to improve the investment environment in Lithuania for foreign and international investors. The operation of such financing platforms is a common practice in many European Union countries, encouraging the attraction of private funds through more efficient investment in public infrastructure, business, innovation and integrated territorial development. Institutions with NPI status will be able to take more investment risk and invest in longer-term projects’, said Finance Minister Vilius Šapoka.
The NPI will not compete with private market players (such as banks and venture capital management companies), but will facilitate investment in areas where market funding is not available or not sufficient, or where conditions are not optimal. It will allow for a wider use of financial instruments, which will reduce Lithuania's financial and economic dependence on funding from the EU and other countries after 2020.