Minister of Finance Algirdas Šemeta and Vice-President of the European Investment Bank (EIB) Eva Srejber have signed the Finance Contract regarding the long-term loan in the amount of EUR 1.132 billion (LTL 3.9 billion) designed for co-financing investment projects by the EU Structural Funds.

“By this Contract the State has under favourable conditions secured the funds required for Lithuania to co-finance projects until as late as 2015, when EU structural assistance period of 2007-2013 ends. The EIB’s loan will help to strengthen Lithuania’s economy and to use EU funds efficiently”, - said Minister of Finance Algirdas Šemeta.

Lithuania will use the loan for co-financing funds by which it contributes to the use of EU structural assistance for 2007-2013 in implementation of investment projects in transport, energy, environment, innovations and other areas under Operational Programmes for the Development of Human Resources, Economic Growth and Promotion of Cohesion. The State will also use the loan funds as its contribution to the six large water supply and wastewater treatment projects that are co-financed by the Cohesion Fund in the 2004-2006 programming period and should be implemented until 2010.

The fixed annual interest rate for the loan could be 4.2%. The first portion of the loan, i.e. more than LTL 1 billion, will be disbursed to Lithuania in the beginning of April. The loan funds will reach individual project operators (they are indicated in Operational Programmes and Annexes thereof) along with the funds granted from the EU Structural Funds.

Projects for which Lithuania will allocate the loan funds will be selected following the conditions established by the EIB. If the project value is lower than EUR 25 million, the decision regarding the contribution to its financing will be made by our State upon its own discretion (the EIB will perform further control of such projects), and if the project’s total amount will be higher, then the EIB’s approval will be needed before the loan funds are allocated for the project.

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About Operational Programmes

The Operational Programme for the Development of Human Resources is designed for public and private sector staff trainings and improvement of professional skills as well as cultivation of researcher and scientist capabilities. The life-long learning and effective public governance structures are developed under this Operational Programme.

Under the Operational Programme for Economic Growth, EU assistance is allocated for the improvement of national economic infrastructure, enhancement of business productivity level, in particular, by creating favourable environment for innovations, small and medium business, research and development (R&D).

The Operational Programme for Promotion of Cohesion is designed for strengthening the potential of local and urban development, preservation of cultural heritage and nature as well as their adaptation for tourism development, ensuring quality and accessibility of public services, improvement of environmental quality.