OREANDA-NEWS. June 05, 2009. Ukio bankas signed the first agreements on small credits under the Economic Promotion Plan and measure “Small Credit Granting, Stage I” of the Ministry of Economy of the Republic of Lithuania.”

Ukio bankas concluded lending agreements with Ukmerge and Jurbarkas companies. A small credit of LTL 40 thousand was extended to Ukmerge-based UAB Butero prekyba, engaged in book retail. Another small credit of LTL 80 thousand was granted to Jurbarko shviesa, a company selling magazines and periodicals.

“As stated by both these companies, having signed lending agreements, the loan will tackle the problem of the lack of working capital. That is the reason most often specified in applications received from companies. A credit granted to small and medium-sized enterprise would help stabilise the situation,” said Mindaugas Pashvenskas, head of Ukio bankas Credit Division.

In the first stage, during which Ukio bankas will lend nearly LTL 13 million to small and medium-sized enterprises, Ukio bankas has already received 160 applications and approved 44 of them. According to the second stage plan, Ukio bankas will lend LTL 26 million to small and medium-sized businesses. The Bank has received applications from 18 enterprises and has approved 4 credits.

In the first stage major part of applications to Ukio bankas came from Vilnius, Kaunas, Shiauliai and Alytus companies working in the retail trade, processing textile industry and IT service sector. In the second stage, the most active enterprises were those from Kaunas, Panevezhys, Shiauliai and Marijample working in the construction sector, wood processing industry and wholesaling.

In the first and second stages, one borrower can receive only one small credit. Small credits are granted to finance investment or working capital. In the first stage the maximum loan amount – LTL 175 thousand. In the second stage, the Bank will be able to grant a small credit of the maximum amount of LTL 350 thousand during a 12 month period.

With the aim to provide information to the clients, Ukio bankas, in cooperation with the Ministry of Economy and UAB Investiciju ir verslo garantijos, organises information seminars-conferences about the possibilities of financing small and medium-sized businesses under measure “Granting Small Credits, Stage I” and measure “Granting Small Credits, Stage II” of the Ministry of Economy of the Republic of Lithuania. In May seminars were hosted in Kaunas, Alytus and Marijampole. Considering lively interest in these events, repeat seminars will be organised on 12 June in Kaunas, on 15 June in Klaipeda.