OREANDA-NEWS. March 17, 2009. With an intention to offer more opportunities to the country’s businesses AB DnB NORD Bankas, a member of the international finance group, has signed a EUR 15 million Finance Contract with the European Investment Bank (EIB), thereby extending its successful cooperation with this financial institution dating back to 2003, reported the press-centre of DnB NORD Bankas.

AB DnB NORD Bankas will allocate the funds received under the bilateral contract to finance investment projects of small and medium size businesses and so will contribute to providing of the additional financial resources to the country’s economy.

“I am particularly pleased to sign this agreement, the first of its type in Lithuania following the EIB's adoption at the end of September 2008 of a more streamlined version of its Loan for SMEs. This operation demonstrates the EIB's desire to step up its financial commitment to Lithuanian SMEs to support them in the current difficult economic climate, and confirms the quality of its relationship with the DnB NORD Group in the Baltic Sea Region,” Vice-president of European Investment bank Eva Srejber said.

The contract stipulates that AB DnB NORD Bankas will extend the funds raised to small and medium size enterprises in the sectors of industry, services and tourism as well as to small and medium scale projects in the fields of environmental protection, infrastructure, development of a knowledge-based economy, rational use of energy, health care and education.

“We are pleased to attract fresh funds to the country’s economy to support small and medium size business that has always been among the priorities of our bank. The agreement will enable us to provide the long-term funding for the implementation of perspective eligible investment projects under favorable terms without any additional guarantees from the government,” –Vice-chairman of the Management Board of AB DnB NORD Bankas Dr. Vygintas Bubnys in charge of corporate banking said.

Loans to finance investment projects under this agreement may be extended for up to 12 years term with one year’s grace period.

In 2008 the European Investment Bank increased its lending for small and medium-sized enterprises (SMEs) by more than 42 percent (to EUR 8.1 bln.), underscoring its commitment to provide rapid additional support for the European economy.

AB DnB NORD Bankas has granted LTL 6 billion worth of loans to finance the country’s business growth, about half of it has extended to small and medium size businesses. AB DnB NORD Bankas is also one of the most active partners of UAB “Investiciju ir verslo garantijos” (INVEGA) that facilitates lending to businesses.

AB DnB NORD Bankas is a universal commercial bank providing banking services to individual and corporate customers. AB DnB NORD Bankas runs three subsidiaries: asset management company UAB DnB NORD Investiciju Valdymas, leasing arm UAB DnB NORD Lizingas and real estate brokerage UAB DnB NORD Bustas. The bank is part of Denmark-based DnB NORD banking group which was established by the Norway’s largest bank DnB NOR Bank ASA and North Germany’s largest bank Norddeutsche Landesbank Girozentrale (NORD/LB).