"Experience of INVEGA with the use of financial engineering instruments in Lithuania 20 May 2011...

"Experience of INVEGA with the use of financial engineering instruments in

Lithuania“

20 May 2011JEREMIE NWP, Brussels

Audrius ZabotkaDeputy Director General

INVEGA

• UAB “Investicijų ir verslo garantijos” (INVEGA) - Investment and Business Guarantees, Ltd.

• Established by the Government of Lithuania, registered on 29th November 2001

• On 5 March 2004 INVEGA counter-guarantee agreement with EIF under the MAP

• Since 2001 issuance of individual guarantees• Since 2006 administration of microcrediting programme • Since 2009 administrator of Global Grant• Since 2009 manager of the JEREMIE HFs (ERDF + ESF)• 32 employees

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INVEGA - Investment and Business Guarantees, Ltd.

Small credits_1 2

EUR 6 m

Small credits_1 2

EUR 6 m

Micro credits

for SME 1

EUR 8 m

Micro credits

for SME 1

EUR 8 m

Instrument funded byNational budget


Open credits fund 3

EUR 29 m

Small credits_2 2

EUR 29 m

Financial Engineering Instrument funded by ERDF


INVEGA fund (JHF)

EUR 58 m

Entrepreneurship Promotion Fund (JHF) EUR

15 m

Entrepreneurship Promotion 4

EUR 14,48 m

Financial Engineering Instrument funded by ESF


Guarantee Fund -

Individual guarantees 5

EUR 37,4 m

Guarantee Fund -


EUR 37,4 m

Compensation of interestsEUR 30 m 6

Individual guarantees Individual guarantees

• ERDF since April 2009• Term up to 31 Dec 2014• Budget: EUR 29 m (no co financing from the banks)• Participating 4 banks

• Max . Credit amount EUR 101 thousands• One credit per SME per 12 months• Purpose for investments and working capital for development or general business

expansion• State aid scheme: de minimis (restricted sectors: under de minimis rules)

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INVEGA fund: Small credit programme-2

• ERDF since April 2009• Term up to 31 Dec 2015• Budget: EUR 29 m • Participating banks – 8 selected (agreements with 7 banks)• Open credit fund:

• Co-financing of up to 75 % of the credit to SME but not more than EUR 434 thousands

• Two credit per SME per 12 months• Credit term for SME up to 72 months• Max. bank margin < 3 %• Interests 3 m Vilibor + 0.1 % (>3; <7)• Interest 3 m Euribor + 0.1% (>1; <3)• Purpose for investments and working capital for development or general business

expansion• State aid scheme: de minimis (restricted sectors: under de minimis rules)

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INVEGA fund: Open Credit Fund

Small credits_1 2

EUR 6 m

Small credits_1 2

EUR 6 m

Micro credits

for SME 1

EUR 8 m

Micro credits

for SME 1

EUR 8 m



Open credits fund 3

EUR 29 m

Small credits_2 2

EUR 29 m



INVEGA fund (JHF)

EUR 58 m


15 m


EUR 14,48 m



Guarantee Fund -


EUR 37,4 m

Guarantee Fund -


EUR 37,4 m



• ERDF since August 2009• Term up to 31 Dec 2015• Budget: EUR 37.4 m • INVEGA has co-operation agreements with (all commercial banks )• Guarantee fund:• provides 80 % guarantee on INVEGA’s individual commitments on SME loans• Targets 1100 guarantees, guarantee portfolio of EUR 112 m• Individual guarantee rate up to 80 % of the credit to SME but not more than EUR 1,5 m• Guarantee premium 3-4 %• Purpose of guaranteed loan for investment or working capital loans for the expansion

and the development of SME’s general business activity• State aid scheme: de minimis (restricted sectors: under de minimis rules)

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Guarantee fund

Small credits_1 2

EUR 6 m

Small credits_1 2

EUR 6 m

Micro credits

for SME 1

EUR 8 m

Micro credits

for SME 1

EUR 8 m



Open credits fund 3

EUR 29 m

Small credits_2 2

EUR 29 m



INVEGA fund (JHF)

EUR 58 m


15 m


EUR 14,48 m



Guarantee Fund -


EUR 37,4 m

Guarantee Fund -


EUR 37,4 m



• ESF since December 2009• Term up to 31 Dec 2015• Budget: EUR 15 m • Co-operation agreements with the Consortium led by Central Credit Union

(+57 Credit Unions)• Entrepreneurship Promotion:• Trainings for SMEs• Microcredits for start-up micro companies (legal entities and individuals) < 12 months

• One credit per entity• 10 % co-financing of the microcredit by Credit Unions• State aid scheme: de minimis (restricted sectors: under de minimis rules)

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Entrepreneurship Promotion Fund (EPF)

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Implementation of JHF/FEI

INVEGA Fund Guarantee Fund

Entrepreneurship Promotion Fund

Small Credits Open Credit Fund

Signature of funding agreement

April 2009 April 2009 August 2009 30 Dec 2009

Contribution to the JHF/FEI

EUR 29m EUR 29m EUR 37.4m EUR 15m

Disbursements/ commitments to SMEs as of 31 March 2011

EUR 38,3m EUR 18,1m EUR 100,1m EUR 0,7m

Small credits_1 2

EUR 6 m

Small credits_1 2

EUR 6 m

Micro credits

for SME 1

EUR 8 m

Micro credits

for SME 1

EUR 8 m



Open credits fund 3

EUR 29 m

Small credits_2 2

EUR 29 m



INVEGA fund (JHF)

EUR 58 m


15 m


EUR 14,48 m



Guarantee Fund -


EUR 37,4 m

Guarantee Fund -


EUR 37,4 m



A web- link to further information on each measure

1. http://www.invega.lt/en/index.php?option=com_content&task=view&id=234&Itemid=80





6. http://www.invega.lt/en/index.php?option=com_content&task=view&id=190&Itemid=87http://www.esparama.lt/2007-2013/en/5

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Contacts

UAB „Investicijų ir verslo garantijos“ (INVEGA)(Investment and Business Guarantees, Ltd.)Konstitucijos ave. 7 (16th floor), LT-09303 VilniusTel. +370 5 210 7510, faks. +370 5 210 7511Email to: [email protected]

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"Experience of INVEGA with the use of financial engineering instruments in Lithuania 20 May 2011...

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