Lithuanian businesses and creative industries get €70 million credit boost under EIF deal with Mano Bankas

• EIF provides Lithuanian bank Mano Bankas guarantees to expand a credit line by €70 million
• Of extra loan sum, €50 million available for small companies to counter pandemic’s impact as well as adapt to climate change and €15 million foreseen for creative industries
• Guarantees extended under European Commission`s InvestEU programme

The European Investment Fund (EIF) is providing Lithuanian bank Mano Bankas guarantees to expand an existing credit line for small and medium enterprises (SMEs) by €70 million. The move by the EIF, which is part of the European Investment Bank (EIB) Group, unlocks €25 million for SMEs to bolster liquidity weakened by the Covid-19  pandemic  and €25 million for a range of climate-adaptation steps. A further €15 million will be available to SMEs in the creative industries including publishing, audio-visual art, video gaming, radio and television.

The EIF guarantees are being extended under the European Commission`s InvestEU programme. They come on top of a 2022 EIF guarantee agreement with Mano Bankas that unlocked more than €40 million in new loans for businesses in Lithuania.

“Our partnership with with Mano Bankas under the InvestEU programme aims to boost the competitiveness of the Lithuanian economy,” said EIF Chief Executive Marjut Falkstedt. “Together we have created a considerable credit line to finance businesses that will generate new employment opportunities and accelerate the transition to a carbon-neutral economy. Furthermore, with financing for the creative industries, we are supporting an important – yet underserved – part of the Lithuanian economy.”

Financing for climate adaptation will be for projects to introduce renewable-energy sources and improve energy efficiency in buildings. SMEs will be able to invest in low-emission and zero-emission transport projects as well as in information and communication technology upgrades that result in lower energy consumption.

“We are continuing our successful cooperation with the EIF,” said Mano Bankas Chief Executive Officer Giedre Blazgiene. “We have already granted loans to the Lithuanian small and medium-sized enterprises for more than €32 million under the previous agreement signed in 2022. The scope of the financing programmes has been expanding and thus, such cooperation will allow financing the business that has suffered because of the pandemic, as well as the business developing ecological and cultural projects,” says CEO of Mano Bankas, Mrs Giedre Blazgiene.

An important boost for Lithuanian creative industries

The latest EIF-Mano Bankas partnership expands InvestEU support in Lithuania for SMEs with cultural, artistic or other creative activities.  The credit line at Mano Bankas and the EIF guarantees help ensure the flow of credit in Lithuania to a sector that has long faced financing obstacles because its business models differ from traditional onesFinancing is available to companies operating in, among other areas, publishing, art galleries, theatres, radio, TV and computer applications.

The creative industries account for more than 4% of the European gross domestic product and represent about 10% of all businesses in the service sector, creating some 7 million jobs. Lithuania has more than 10,000 enterprises in the creative industry, and they are responsible for 5% of jobs in the country.