Parex Bankas is to refinance LTL 19.5 million for small and medium-sized enterprises

Parex Bankas won the tender organised by UAB Investicijų ir Verslo Garantijos (INVEGA) regarding the financing of very small, small and medium-sized enterprises, and is to lend LTL 100 million together with other three selected banks.

LTL 19.5 million will be allocated from the funds of UAB Investicijų ir Verslo Garantijos (INVEGA) for the small credits extended by Parex Bankas. Small credits for very small, small and medium-sized enterprises will be extended for investments of up to LTL 350,000 and (or) to replenish current assets. One beneficiary will be extended at the maximum one small credit within twelve months.

As provided in the terms and conditions of the tender announced by UAB Investicijų ir Verslo Garantijos, Parex Bankas will apply the three-month VILIBOR+0.48 interest rate to SMEs operating in Vilnius, Kaunas and Klaipėda municipalities, and the three-month VILIBOR-0.52 interest rate for enterprises operating in other municipalities. The maximum bank margin will not exceed 1.48 per cent.

Parex Bankas will extend credits for investment projects for a period of up to five years, and to replenish current assets – for a period of up to two years.
In case of the investment credit, the projects with the following one or several goals will be eligible:
o investment in export promotion activities of a legal entity;
o investment in innovation development and implementation;
o investment in the development of production and services provided;
o investment in fixed assets (equipment and industrial premises).

In case of the current assets credit, the bank will extend a short-term loan in order to meet the working capital needs for companies implementing investment, innovation, export-oriented projects, as well as companies facing temporary shortage of current assets.

Extending small credits to small businesses is one of the measures laid down in the Economic Recovery Plan drawn up by the Ministry of Economy. Its purpose is to make the credit resources market in Lithuania more active, thus effectively using the European Union Structural Funds for the period 2007–2013 for promoting business financing.