European Investment Bank Signs €300 Million Financing Agreement with Lithuania for Green and Digital Transitions

European Investment Bank Signs €300 Million Financing Agreement with Lithuania for Green and Digital Transitions

(IN BRIEF) The European Investment Bank (EIB) and the Republic of Lithuania have signed a €300 million financing agreement aimed at supporting long-term competitiveness, job creation, and the green and digital transitions in Lithuania. This loan is the first installment of a €1 billion commitment by the EIB and will contribute to investment projects throughout the country, including areas affected by the transition to a climate-neutral economy. The funding will be used to co-finance projects supported by European Structural and Investment Funds, with a total investment volume of €7.7 billion. This collaboration strengthens the cooperation between the EIB and Lithuania, promoting sustainable development and achieving ambitious national goals.

(PRESS RELEASE) LUXEMBOURG, 21-Jul-2023 — /EuropaWire/ — The European Investment Bank (EIB) and the Republic of Lithuania have signed a €300 million financing agreement to support investment in long-term competitiveness, job creation and the green and digital transitions in the 2021-2027 period.

The loan is the first tranche of a €1 billion EIB commitment to back investment targeting all regions of Lithuania. It will also support the just transition of three carbon-intensive areas that have been most affected by the shift towards a climate-neutral economy.

The agreed structural programme loan is a specific product for co-financing projects backed by European Structural and Investment Funds. The total volume of investment planned is €7.7 billion, with around €6 billion to be financed by EU structural funds, and the rest to be provided as national co-financing, which also includes the EIB loan.

“The agreement with the EIB is another example of our effective cooperation and will give Lithuania a boost in implementing EU-funded projects and achieving its ambitious goals for areas such as the green and digital transitions. The EIB offers long-term loans on favourable terms, which makes it possible to co-finance projects more effectively in terms of national public finances,” said Minister of Finance Gintarė Skaistė.

“Ensuring a stable source of funding for the Republic of Lithuania is particularly important in volatile market conditions and a high inflation environment,” said EIB Vice-President Thomas Östros. “The EU bank is delighted to sign this important loan agreement to support national public investment programmes, boost competitiveness and accelerate the green and digital transitions.”

This will be the third EIB structural programme loan with the Republic of Lithuania. The EU bank and Lithuania have had two similar agreements during previous financing periods, for €1.1 billion and €1.3 billion, respectively.

About the EIB

The EIB Group has adopted a Climate Bank Roadmap to deliver on its ambitious agenda to support €1 trillion of climate action and environmental sustainability investments in the decade to 2030 and to devote more than half of EIB finance to climate action and environmental sustainability by 2025. As part of the roadmap, all new EIB Group operations have been aligned with the goals and principles of the Paris Agreement since the start of 2021.

The EIB has provided financing of €4.6 billion to Lithuania since 1994. Since opening the first EIB Group office for the Baltic states in Vilnius in 2020, the Bank has significantly expanded its activities by supporting innovation, healthcare, infrastructure and small and medium businesses. In 2022, nearly €303 million of EIB Group financing went to Lithuanian projects, mainly to support maritime infrastructure, small companies and innovation. For example, the Port of Klaipėda received an EIB loan to upgrade its infrastructure, and Teltonika IoT Group to accelerate its research, development and innovation activities. On the EIF side, Mano Bankas and Orion Leasing are supporting small and medium companies in Lithuania with microloans and leasing contributing partially to climate action. The EIF also invested €25 million in pan-European climate tech venture capital fund Contrarian Ventures.

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SOURCE: European Investment Bank


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