In May 2009 Medicinos Bankas has won the tender “Granting of Micro Credits – Stage 2”, announced by the Ministry of Economy and Investicijų ir Verslo Garantijos UAB (INVEGA), and has become one of the four banks through which micro, small and medium-sized companies will be granted LTL 100 million in loans.

Small and medium-sized entities are welcome to contact the bank regarding micro-crediting already now.

A total of LTL 19.5 million will be allocated for small credits granted by Medicinos Bankas; additionally, the Bank will invest 3 per cent of its own funds in this programme.

Micro, small and medium-sized companies will receive loans of up to LTL 350 thousand to finance their investments and/or working capital.  Only one small credit may be granted to one recipient within a 12-month period. The Bank’s margin will not exceed 2.2 per cent.

Medicinos Bankas has been granting credits to micro, small and medium-sized companies since the end of April, after winning the first stage of the tender for granting up to LTL 2 million in loans.

Granting small credits to small business is one of the measures included in the Economic Growth Action Programme, prepared by the Ministry of Economy. It aims to make the Lithuanian market of credit resources more active and, thus, use the European Union structural funds for 2007-2013, allocated for the promotion of business financing, in an efficient way.

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In April 2009 Medicinos Bankas has won the tender of the Ministry of Economy and Investicijos ir Verslo Garantijos UAB (INVEGA) for allocating a part of the Lithuanian state budget assignations to crediting small business.

Up to LTL 120 million in total should be allocated for the support of micro-crediting. In accordance with the order of the Minister of Economy, up to LTL 2 million will be allocated for small credits granted by Medicinos Bankas. The bank will have to credit these funds to the business within 10 weeks from the date of signing an agreement with the Ministry of Economy and INVEGA.

Medicinos Bankas will invest 16 per cent of its own funds in this programme. The maximum margin of the bank applied to the credits in the first two years should not exceed 5.6 per cent.

Small credits may be granted to micro, small and medium-sized enterprises that are registered and carry out their main activities in Lithuania. Up to LTL 175 thousand may be granted to one credit recipient. Small credit loans will be granted for investments or financing the circulating capital.

For more information on state-supported small credits, please contact the subdivisions of Medicinos Bankas.

Microcredits are provided to micro, small and medium enterprises (with priority granted to micro enterprises). A micro enterprise is an enterprise where less than 10 employees are employed, annual income of the enterprise does not exceed 7 million litas or book value of assets of the enterprise does not exceed 5 million litas.

Conditions for provision of microcredits:

• Maximum amount of microcredit is 25,000 Euros (or 86,320 Litas);
• Credits are provided in litas or euros;
• Credit period is up to 4 years, and the final credit repayment deadline is 31 December 2012;
• Microcredits are provided to supplement current assets, for investments or for development of other activities;
• Credit repayment can be assured by pledging real or movable property or using other security methods acceptable to the bank. Real or movable property offered for pledging shall be assessed by property valuators;
• Interest rate shall be determined according to 3 - month EURIBOR base interest rate less 0.26 %. In case of micro enterprises operating in Alytus, Marijampolė, Tauragė, Telšiai or Utena counties – less 0.76 %;
• A company can receive up to two microcredits.

How Microcredit Can Be Obtained?
If you have decided to apply for a microcredit, please call information phone number and agree on meeting with a specialist of the bank or fill request / application and visit the nearest client servicing divisions or branch for advice. Please take the documents specified in the credit application and brief description of credit use.

When the bank makes positive decision, credit shall be provided after making credit agreement and registration of property pledging pursuant to procedure described in LR laws (or after execution of other documents for assurance of credit repayment).