OREANDA-NEWS  On 25 February was announced, that UAB Medicinos bankas entered into the contract with German Kreditanstalt fur Wiederaufbau (hereinafter referred to as – KfW) and the Council of Europe Development Bank (hereinafter referred to as - CEB) on the 3 million EUR (10,36 million LTL) value credit line for funding very small (micro), small and medium-sized companies. Funds for financing the Lithuanian projects are assigned subject to the preliminary action plan of the European Union support. Farmers and agricultural companies will also be eligible to benefit from the credits of KfW funds.

Mr. Kжstutis Olрauskas, the Head of Administration of UAB Medicinos Bankas, says: "During this economically complicated to Lithuania period, KfW credit will enable us to support one of the most vulnerable parts of economy – small and medium-sized companies. We do hope that favorable crediting conditions will increase competitiveness of these companies and therefore help survive the crisis period".

The following expenditures will be credited from KfW funds: purchasing of equipment and devices; repair of equipment; purchasing of vehicles; acquisition and repair of premises provided that the company will operate in these premises; current assets; other long-term capital investments. Projects currently in progress will not be eligible for crediting from these funds.

The term of the granted credit will depend on the term of implementation of the business plan provided by the client, however no longer than up to September 1st, 2013.

Up to 60 percent of the amount required for investment can be covered by the current assets of small and medium-sized companies, however this amount must not exceed the maximum limits allowed for the client. Exceptions are available for very small companies that can apply for funding the entire current assets. Maximum value of the credit granted to the company is 90 percent of the total Project value, whereas the client must invest the remaining 10 percent of own funds. Average credit sum is 25000 EUR.

Credit insurances are offered by UAB "Investicijш ir verslo garantijos" (Invega) and UAB "Zemes ukio paskolш garantijш fondas". Credits can be guaranteed by offering the realty as a pledge ot byproviding other guarantees acceptable to the bank.

This is the second credit line received by UAB Medicinos bankas from KfW for financing very small (micro), small and medium-sized companies. The first credit line of 5 million EUR received in February, 2006 has already been successfully used.

Applications are welcome at all branches of UAB Medicinos bankas as well as Customer service Departments.

Currently UAB Medicinos bankas has 44 Customer Service Departments, 10 branches and 43 Currency Exchange Offices.

Saulius Karosas, who owns 97,64 percent of the bank's shares jointly with his directly owned company "Western Petroleum Limited" is the principal shareholder of UAB Medicinos bankas.