Lithuania received the final tranche of EIB loan for co-financing EU projects

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Lithuania received the fourth and the last tranche of  European Investment Bank loan. EUR 112 million (LTL 387 million) were transferred to the State Treasury, Lithuania will pay fixed annual interest rate of 3.365 per cent for this tranche of loan*.

The Ministry of Finance of the Republic of Lithuania and EIB have signed the contract regarding the long-term loan in the amount of EUR 1.132 billion (LTL 3.908 billion) in March 2009. The loan was designed for co-financing investment projects by the EU Structural Funds.

Lithuania uses the loan for co-financing of projects in transport, energy, environment, innovations and other areas under Operational Programmes for Development of Human Resources, Economic growth and Promotion of Cohesion for 2007-2013. The State has also used these 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.

A share of the EIB loan for co-financing of EU projects is also on-lent to municipalities, state and municipal enterprises, public companies and private limited companies, where the State or municipality is the only shareholder or holds a part of shares, implementing such projects. 43 municipalities and 33 companies have already taken this opportunity.

Lithuania co-operates with the international financial institutions, such as EIB, aiming at the implementation of important investment projects. These institutions grant loans for the country for financing the investment projects of lasting value, the loan conditions (particularly the terms and interest rates) are more favourable than in the market.

* – EIB loan was paid in tranches and each time the fixed interest rate was set for 25 years. Lithuania received three EIB loan tranches in 2009 and 2010.

Sources: www.finmin.lt