EIF and Lithuania’s ILTE Launch €191.6 Million Initiative to Boost Business Financing Through Private Credit Funds

EIF and Lithuania’s ILTE Launch €191.6 Million Initiative to Boost Business Financing Through Private Credit Funds

(IN BRIEF) The European Investment Fund (EIF) and Lithuania’s national development institution, UAB ILTE, are investing €191.6 million to support private credit funds, providing alternative financing for Lithuanian businesses. With equal contributions of €95.8 million each, the partnership aims to reduce Lithuanian companies’ dependency on traditional bank loans and stimulate growth in the country’s capital markets. This initiative supports up to five private credit funds, expanding financing options for businesses and encouraging economic development by attracting private capital.

(PRESS RELEASE) LUXEMBOURG, 9-Nov-2024 — /EuropaWire/ — The European Investment Fund (EIF) and Lithuania’s national development institution, UAB ILTE, have announced a partnership to inject €191.6 million into private credit funds aimed at supporting Lithuanian businesses. This funding, which combines €95.8 million from ILTE with matching contributions from the EIF, will be directed towards non-bank credit providers who will in turn invest in local companies, providing an essential financing alternative to traditional bank loans.

This initiative seeks to build a stronger private credit market in Lithuania, offering companies more diverse financing options and reducing their reliance on banks. Up to five private credit funds will receive joint investments through this collaboration, which is part of a broader goal to bolster Lithuania’s capital market and support business growth.

EIF Chief Executive Marjut Falkstedt emphasized that the initiative will enhance Lithuania’s financing ecosystem, creating job opportunities and boosting economic growth. Meanwhile, ILTE CEO Dainius Vilčinskas pointed out that the availability of business financing in Lithuania lags behind other EU countries, with private sector loans totaling only 14% of GDP compared to 35% through banks. He noted that the development of private credit funds will allow Lithuanian companies to access more flexible financing options, thereby stimulating private capital and promoting competitive growth within the business landscape.

Background information

The European Investment Fund is part of the European Investment Bank 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 target this market segment. In this role, the EIF advances key EU policy objectives including competitiveness, growth, human capital and climate action.

Media Contacts:

EIB Group

Kristiina Randmaa
tel.: +352 4379 72894
k.randmaa@eib.org
Follow us on Twitter@eif_eu
Website: www.eif.org — press@eib.org

ILTE

Viktorija Voroncova
tel.: +370 6 386 3484
Viktorija.Voroncova@ilte.lt

Website: www.ilte.lt

SOURCE: European Investment Fund