Our team advised on establishing the State Aid Fund for Business which will invest public and private funds in medium and large enterprises affected by Covid-19. This is the first fund of its kind in the Baltic states. The planned size of the fund’s investment portfolio is EUR 1 billion. The Lithuanian government will provide an initial investment of EUR 100 million, EUR 400 million will be raised by issuing bonds with a state guarantee, and another EUR 500 million – from private institutional investors.
Seeks to ensure economic recovery and sustainable growth
The purpose of the fund is to assist medium and large enterprises operating in Lithuania affected by the Covid-19 crisis, closure of which may have significant social and economic consequences. The fund will consist of a government contribution and possible contributions from international financial institutions and private investors.
Says Vilius Šapoka, Lithuanian Minister of Finance: “The state’s priority is to invest in economic recovery and sustainable growth. From the very beginning of the quarantine, we started with helping small and medium-sized businesses. Today, the State Aid Fund for Business intended for larger companies is launched. The situation with Covid-19 in the world is not improving and is likely to remain so until we have a reliable vaccine. Therefore, uncertainty in the economy will remain for a long time to come. This shows that the idea of support for medium and large businesses, which was developed this summer, is still relevant.”
Our services and project team
Our team provided legal services in developing the fund’s business model, preparing the investment strategy, coordinating state aid issues with the European Commission, establishing the company Valstybės investicijų agentūra, which will act as a general partner of the fund, and preparing the fund’s founding agreements.
The team, led by country managing partner Tomas Kontautas, also included partner Mantas Petkevičius, senior associate Dalia Augaitė and others.