Ministry of Finance presented proposals that will help growing companies to raise funds and reduce dependence on the traditional banking sector
The Government has approved draft legislation prepared by the Ministry of Finance to facilitate the smooth functioning of the market for collective investment undertakings and to strengthen the protection of the interests of investors in such undertakings.
"Alternative investment funds play a key role in the country's economy by channelling private capital into small and medium-sized businesses, real estate and infrastructure projects, which helps diversify the financial system, fosters innovation and strengthens the country's economic resilience. These funds invest directly in private companies, venture capital and loans. This provides vital financing for growing companies that do not have easy access to bank loans and reduce their dependence on the traditional banking sector," Minister of Finance Taurimas Valys emphasizes.
According to him, the package of amendments to the Law on Managers of Alternative Collective Investment Undertakings (AIF) and related laws submitted to the Government will facilitate the efficient functioning of the investment fund market, strengthen the protection of investors in these funds, increase financial market stability and encourage the development of the alternative investment fund market.
These amendments also address practical problems related to the availability of depositary services in order to create a more favourable operating environment for market participants.
Currently, the need for depository services in Lithuania far exceeds the supply of these services, which creates problems for market participants regarding the availability of depositary services. Moreover, limited choice and low competition increase the cost of these services. To address these problems, the proposed legislative amendments introduce provisions that will allow the supervisory authority to allow AIF managers to acquire depositary services in other EU Member States.
AIF is one of the main funders of long-term projects such as infrastructure, renewable energy parks, commercial real estate or public-private partnership (PPP) initiatives. By enabling investment in alternative instruments (private debt, raw materials, intellectual property), they reduce dependence on the traditional banking sector. This helps to cushion systemic economic shocks. By allowing investments in alternative instruments, they diversify sources of funding and reduce the economy's dependence on the traditional banking sector.
Last updated: 23-09-2026
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