Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) has partnered with the Lithuanian national development institution UAB ILTE to provide 191.6 million for private credit funds aimed at supporting Lithuanian businesses. This funding includes 95.8 million from ILTE, which is matched by EIF resources. The initiative is designed to accelerate the development of capital markets in Lithuania and to create a senior private credit market as an alternative financing source for companies.
One of the key issues faced by businesses in Lithuania is limited access to finance, which is among the lowest in the EU. The total amount of loans to businesses in Lithuania is only 14% of GDP, compared to 35% for total bank financing. This partnership aims to diversify financing options for local companies, enabling them to pursue expansion plans and develop new projects. By fostering competition and mobilizing financing, the initiative is expected to enhance the attractiveness of private capital in the region.
The expected outcome of this collaboration is to generate much-needed financing for local companies, ultimately contributing to job creation and economic growth in Lithuania. The EIF's Chief Executive, Marjut Falkstedt, emphasized that this investment will strengthen the local financing ecosystem and reduce reliance on traditional banking finance, thereby creating more opportunities for businesses to thrive.