Expectations of the Ministry of Finance for the National Development Institution: customer satisfaction and qualitative leap in services
Today, the Ministry of Finance submitted to Investicijų ir verslo garantijos Ltd. (INVEGA) and its group of companies the updated letter on the objectives pursued by the State and raised expectations in relation to the company and its group of companies. The letter of expectations gives priority to customer satisfaction, improvement of the quality of services and attracting investments for the implementation of the green and digital transformation.
“After the reform of the consolidation of national development institutions has been completed, we raise a high-quality standard to INVEGA. Capital and experience mobilised in a strong national development fund will help to extract synergies between various financial instruments, to effectively "employ" EU funds and to attract additional funds from institutional or private investors to achieve strategic goals of the State in creating safe, prosperous, green and innovative Lithuania”, stressed Minister of Finance Gintarė Skaistė.
Customer satisfaction
The expectation for the company and its group of companies is raised to apply high performance standards based on best business practices, as well as best practices of the Organisation for Economic Co-operation and Development, European national development bodies and the public sector. The letter highlights operational efficiency, independence of decision-making and innovation.
The letter of expectations also focuses on risk management based on best practices. Priority is given to the application of the three-line risk management model, which combines the functions of risk owners, risk managers and internal and external audit, ensuring the compliance with the principles of reasonableness, transparency and efficiency.
The company and its group of companies must adhere to social responsibility, environmental sustainability principles and strive for a high degree of employee involvement. The principles set out to achieve these objectives apply not only within the organisation, but also in the implementation of its own financed projects.
Qualitative leap in services
In the letter of expectations INVEGA and its group of companies are expected to improve access to finance. Existing financial instruments are significantly expanded or created in areas where financing at market conditions is insufficient and/or sub-optimal.
To create the investment environment by increasing the leverage effect created by financial instruments,the company and its group of companies should give priority to capital market instruments and innovative financial instruments that create new opportunities for recipients of funding.
The letter states that the company and its group of companies must ensure expert assistance related to attracting highly skilled human resources, proposals for the necessary solutions to improve the investment environment and access to finance.
An expectation was also expressed to the company that the annual reports of the good governance index of state-owned enterprises would maintain a rating of at least A.
Attracting investments
The company is raised the expectation to systematically assess and update financing gaps of the Lithuanian economic sectors and be able to propose the most appropriate financial instruments to reduce them. It is expected that INVEGA will be able to reduce a lack of funding supply in the market by diversifying financing sources, attracting private investments and developing the capital market.
It is noted that INVEGA is expected to continue and develop the use of financial instruments in those sectors of the Lithuanian economy that generate financial returns in investment projects. Existing financial instruments will need to be consolidated to exploit synergies and interaction, while new instruments will be developed with the involvement of the financial market participants and stakeholders.
It is expected that the board of the company will be able to attract additional financing without affecting general government debt. The company is also expected to become a leading knowledge and competence centre in the field of sustainable (green) finance in the Baltic region in the near future.
It is worth noting that the stage of the reform of the consolidation of National Development Institutions (NDIs) was completedin 2023 – INVEGA became the only financial institution with the NDI status to implement promotional financial instruments. This allows pooling the necessary knowledge and competences, unifying and optimising NDI operational practices and fund management in various investment areas, creating preconditions for attracting institutional investors, strengthening public-private partnership, and sustainably increasing the supply of financial instruments for financially viable projects.
This reform is one of integral parts of the recovery and resilience plan “Next Generation Lithuania”.
Last updated: 14-08-2024
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