EIF and Citadele Bank Partner to Provide Up to €138 Million in Preferential Loans for Baltic Businesses

EIF and Citadele Bank Partner to Provide Up to €138 Million in Preferential Loans for Baltic Businesses

(IN BRIEF) Citadele Bank, with EIF support, has launched a €138 million loan programme aimed at SMEs and microbusinesses in Estonia, Latvia, and Lithuania. The initiative, backed by the European Commission’s InvestEU programme, will offer loans with low interest rates, minimal collateral requirements, and advisory support to help businesses grow, strengthen competitiveness, and create jobs across the Baltic region.

(PRESS RELEASE) RIGA/LUXEMBOURG, 3-Jun-2025 — /EuropaWire/ — Citadele Bank, based in Latvia, has partnered with the European Investment Fund (EIF) to offer preferential financing to companies in the Baltic region, totaling up to €138 million. This initiative, supported by the European Commission’s InvestEU programme, aims to provide accessible loans to small and medium-sized enterprises (SMEs) and microbusinesses in Estonia, Latvia, and Lithuania, boosting jobs, competitiveness, and investments across the region.

The financing package consists of loans of up to €100 million for SMEs and up to €38 million for microbusinesses, which are defined as businesses with fewer than 10 employees. These businesses will benefit from relatively low interest rates and reduced or no collateral and downpayment requirements, making financing more accessible.

The EIF, part of the European Investment Bank (EIB) Group, will provide guarantees to Citadele Bank, enabling the bank to direct this new financing to companies in the Baltic States. According to Marjut Falkstedt, EIF Chief Executive, the initiative aims to support local businesses in navigating global economic uncertainty and trade challenges by increasing job security and fostering new investments. “This is a prime example of European collaboration unlocking new investment opportunities for even the smallest companies,” Falkstedt said.

Rūta Ežerskienė, CEO and Chair of the Management Board of Citadele Bank, emphasized the vital role that SMEs and microbusinesses play in the Baltic economy. “They are the backbone of our regional communities, fostering innovation, creating jobs, and driving economic growth,” she said. “This programme will provide young companies and new development plans with much-needed financial support, contributing to overall economic prosperity.”

Microbusinesses are especially significant in the Baltic economies, comprising 95% of all companies in Estonia, 93% in Latvia, and 95% in Lithuania. Under the agreement, Citadele Bank will have three years to build the loan portfolio, with a maximum individual financing amount of €1 million. In addition to offering loans, Citadele Bank will also provide advisory support to help businesses select the most appropriate financing options.

Background information

About the EIF:

The European Investment Fund is part of the European Investment Bank (EIB) Group. Its central mission is to support Europe’s small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF furthers key European Union policy objectives such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital and climate action and environmental sustainability. The EIF and Citadele have cooperated before, namely, in 2022, the EIB Group provided capital relief to Citadele Bank, facilitating at least €460 million in additional loans and leases to Baltic businesses.

About the InvestEU programme:

The InvestEU programme provides the EU with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the EU’s policy priorities such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the EU, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

About Citadele Group    

Citadele Group is focused on modernizing the financial industry and expanding opportunities for individuals and businesses across the Baltics. Alongside traditional banking services, Citadele offers cutting-edge technology solutions, including a modern mobile app, contactless and instant payments, as well as innovative features like selfie-based account opening, payment rings, and mobile number payments. Businesses benefit from advanced services such as remote account opening, the Citadele phone POS card acceptance app, and the Klix universal e-commerce tool. Citadele Bank, headquartered in Latvia, leads the Group with subsidiaries and branches in Latvia, Lithuania, and Estonia.

Media Contacts:

EIB Group

Kristiina Randmaa
M. +352 4379 72894, e-mail:  k.randmaa@ext.eib.org
Website: www.eif.org — press@eib.org

Citadele Bank

Līga Ratniece-Vanaga
M. +371 28378366
E-mail: liga.ratniece-vanaga@citadele.lv

SOURCE: European Investment Fund