Investment & Fund Management

A range of Baltic companies will be eligible for preferential loans totalling up to €138 million as a result of guarantees by the European Investment Fund (EIF) for Latvia-based Citadele Bank. The EIF guarantees will enable Citadele Bank to direct the new financing to small and medium-sized enterprises (SMEs) as well as microbusinesses in Estonia, Latvia, and Lithuania. SMEs in the three Baltic countries will be eligible for loans from Citadele Bank, with a total amount of up to €100 million available. Microbusinesses—defined as those with fewer than 10 employees—will have access to up to €38 million of this funding. Beneficiaries will benefit from relatively low interest rates and from lower or no collateral and downpayment requirements.

The accord, part of the European Commission's InvestEU programme, aims to increase job security, facilitate new investments, and strengthen the competitiveness of local companies amid global economic uncertainty and international trade challenges. Microbusinesses play a vital role in the Baltic economies, accounting for 95% of all companies in Estonia, 93% of enterprises in Latvia, and 95% in Lithuania. Under the agreement with the EIF, Citadele Bank will have three years to build the loan portfolio, with a maximum individual financing amount of €1 million. Additionally, Citadele Bank will provide advisory support to companies, helping them identify the most suitable borrowing arrangements.