Minister of Finance: “The State is Setting Up a Reliable Business Partner for Lithuanian companies “
“We are setting up a National Development Fund, which will support Lithuanian businesses and not only make necessary information accessible, but will also become a reliable business partner" — stressed Minister G. Skaistė at the Forum “Lithuanian Davos 2023” organised by the magazine “Valstybė”, – „ following the launch of the Structural Funds in the next perspective, the complement of the plan “New Generation Lithuania” and the incorporation of the loan tranche through the Fund, we expect the portfolio to grow EUR 10 billion“.
The Minister, participating in the Lithuania’s economic progress session, also stated that a strong National Development Fund would ensure greater investment in strategic activities– from the development of high value-added sectors to the green and digital transformation.
“Our Government has found four different institutions with separate strategies, fragmented financial instruments, unrealised partnerships with potential investors. “ – said the Minister, – „in the second half of this year, there will be one National Development Fund — a reliable partner providing one-stop-shop services to investors.”
When the Fund is operational, the businesses will know where to apply, the proposed financial instruments will not compete with each other, and a unified investment strategy will help to find synergy between different financial instruments.
The Fund will also expand opportunities by attracting large international investors. In the future, it is planned to continue cooperation with existing international partners and to attract other international financial institutions to achieve the country’s strategic investment plans.
It is planned that the Fund will complement the market where funding weaknesses have been identified and will provide customer-oriented services, administer a wider range of investments and reduce the administrative burden on businesses. Before consolidation, the portfolio of financial instruments amounted to EUR 4.2 billion, but following the launch of the Structural Funds in the next perspective, the complement of the plan “New Generation Lithuania” and the incorporation of the loan tranche through the Fund, we expect the portfolio to grow to EUR 10 billion.
The Government is currently finalising the consolidation of pre-existing four national development institutions, designating UAB Investicijų ir verslo garantijos (INVEGA) as the only financial institution with the status of a NPI, while the Agricultural Credit Guarantee Fund (ACGF), Public Investment Development Agency (VIPA) and State Investment Management Agency (VIVA) become as subsidiaries. The rights of the future shareholder of the Fund, representing the State, have been assigned to the Ministry of Finance.
Last updated: 31-03-2023
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