Lithuania: EIB supports green and digital investment with first €300 million tranche in new financing

• EIB loan to be used to finance Lithuania’s national contribution to EU-funded priority projects.
• This €300 million is the first tranche of a co-financing agreement set to facilitate projects worth €7.7 billion to support competitiveness, job creation and innovation.
• Lithuania to benefit from the EIB’s attractive lending terms at a time of persistent inflation, rising interest rates and tightening financing conditions.

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.

This article was first published on 20 July by the European Investment Bank.