MICROCAPITAL BRIEF: European Investment Fund Loans $7m to Šiauliu Bankas of Lithuania for Expansion of Microfinance Portfolio

The European Investment Fund (EIF), a public-private partnership (PPP) that supports financial institutions in Europe that serve small and medium-sized enterprises (SMEs), has agreed to loan EUR 5 million (USD 7.2 million) to Šiauliu Bankas, a Lithuanian bank that provides finance to micro-, small and medium-sized enterprises (MSMEs). The deal was signed under the European Progress Microfinance Facility (EPMF), a microfinance initiative established with funding from the European Commission and the European Investment Bank (EIB).

According to Šiauliu Bankas CEO Audrius Žiugžda, “This microfinance facility is very important [in] expanding the activity of micro-enterprises, stimulating investments into capacities, creating quality jobs and for social inclusion by increasing women’s entrepreneurship.” As of December 31, 2010, Šiauliu Bankas had total assets of USD 896 million and a gross loan portfolio of USD 636 million.

By Rohan Trivedi, Research Associate

About European Investment Fund (EIF):
The European Investment Fund (EIF) is a provider of risk finance to lenders to small and medium-sized enterprises (SME) in Europe. The fund is a public-private partnership whose shareholding structure includes the European Union’s European Investment Bank; the European Union, represented by the European Commission; and 29 financial institutions from European Union member states plus Turkey and Croatia. EIF is a member of the EIB Group, the parent organization of the European Investment Bank. As of December 31, 2010, EIF reported total assets of EUR 1.2 billion (USD 1.6 billion).

About Šiauliu Bankas:
Šiauliu Bankas is a Lithuanian bank that lends primarily to small and medium-sized enterprises. Šiauliu Bankas was established in 1992 and is funded through deposits as well as loans from the European Bank for Reconstruction and Development (EBRD), the World Bank, the European Council Development Bank (ECDB), the Nordic Investment Bank and the European Union’s Poland and Hungary Assistance for the Restructuring of the Economy (EU PHARE) program. As of December 31, 2010, Šiauliu Bankas had total assets of USD 896 million and a gross loan portfolio of USD 636 million.

Sources and Additional Resources:

[1] Press release submitted by the European Investment Fund (EIF) to MicroCapital, June 2011

MicroCapital Universe Profile: European Investment Fund (EIF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Investment+Fund

MicroCapital Universe Profile: Šiauli? Bankas, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Šiauli?+Bankas

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

Similar Posts: