OREANDA-NEWS. November 29, 2011. EBRD, the largest single shareholder of the Lithuanian bank, has been a partner of Siauliu Bankas since 2000. The European Bank for Reconstruction and Development, the largest single shareholder of Siauliu Bankas, is stating its confidence in Lithuania's seventh largest bank by assets, reported the press-centre of Siauliu Bankas.

In response to the renewed turbulence in the country's financial sector following the state takeover of another bank, the EBRD wishes to emphasise its continuing support of Siauliu Bankas. 

The EBRD trusts that Siauliu Bankas is well managed and, following the 2011 capital increase, fully subscribed by the existing shareholders, well capitalised.

At the end of September 2011 Siauliu Bankas reported a net profit of LTL 10.7 million for the first nine months of 2011 and capital adequacy of 12.8 per cent.

The EBRD intends to continue its cooperation with the bank in line with its strategy for Lithuania, which is to provide continued support of banks' lending to the corporate sector, particularly small and medium-sized enterprises (SMEs).

The EBRD and Siauliu Bankas have been successfully working together for 11 years. Since the beginning of the EBRD’s cooperation with Siauliu Bankas, the EBRD has been instrumental in supporting the development of this dynamic, locally owned bank and the bank has been a valuable partner of the EBRD in chanelling finance to SMEs.

In 2000 the EBRD granted a EUR 5 million line of credit to Siauliu Bankas for financing SMEs; in 2001 the bank received a loan of EUR 2 million to finance on-lending to cereal purchasers, processors and growers. With the EBRD acting as an intermediary, two more syndicated loans, each amounting to EUR 12 million, were obtained in 2005 and 2006 in order to finance the expansion of activities of Siauliu Bankas. In 2009 the EBRD granted a €30 million convertible loan to support the bank in the crisis environment.

Since 2005 the EBRD has been the major shareholder of Siauliu Bankas, and in 2010 increased its shareholding from 16.06 per cent to 19.57 per cent through partial conversion of the loan granted in 2009.