Lithuania

Adoption date

Type of measure

Beneficiaries' sector specification

Description of measure

04/03/2020

Direct grants

Non-financial corporations

The pre-quarantine measure of Interest rate subsidies has been expanded to cover interest payments for companies that have their loan principal payments postponed after 16 March (quarantine introduction date in Lithuania).

05/04/2020

Direct grants

Non-financial corporations

SMEs and Large undertakings that were fully or partially suspended during quarantine can apply for state support and receive compensation for up to 50% of fixed rental costs. In order to receive the discount, the landlord will have to provide at least 30% discount, and the tenant will have to pay the remaining 20%. The premises for which compesation is asked should be used by the bussiness for their economic activities.

03/08/2020

Public guarantees

Non-financial corporations

The existing measure of Individual Guarantees for Loans has been expaned in terms of sectors eligible for the intervention. For example, in contrast pre-pandemic governance of the measure, it is now possible to receive a working capital loan or refinance a loan that has been issued by other financial institution. The application procedures for the measure have also been simplified, i.e. it will take a shorter time to receive a loan. Guarantees under the measure apply only to loans that target SMEs segment.

11/04/2020

Public guarantees

All non-financial sector

The new measure Portfolio guarantees for factoring transactions is expected to incentivize financial companies to initiate new factoring transactions.

11/04/2020

Public loans

Non-financial corporations

Loan measure for invoice settlements will provide loans for SMEs that do not receive payments for goods or services from their buyers facing difficulties due to COVID-19 related financial stress.

11/05/2020

Direct grants

Non-financial corporations

Subsidies for micro companies that have 1 to 9 employees and are included in the list (formed by the State Tax Inspectorate) of businesses affected by the Covid-19. Subsidies will help the businesses to maintain sufficient working capital levels.

13/05/2020

Equity participation

Non-financial corporations

The Government of the Republic of Lithuania has launched a fund for helping businesses. The fund will invest in equity and debt securities of companies that have experienced COVID-19 related financial difficulties. The fund will also provide loans to companies.

16/03/2020

Tax deferrals

All sectors

Suspension of recovery actions for tax debts based on reasonability criteria.

16/03/2020

Tax deferrals

All sectors

Tax loan agreements are concluded with taxpayers who have suffered negative consequences as a result of COVID-19 due to tax debts incurred until 31.12.2020, layout period until 31.12.2022. These provisions do not apply to the administration of fines for administrative misconduct. Tax loan agreements concluded or modified shall not be subject to interest for the entire period of deferral/layout of the tax debts, but until 31.12.2022 at the latest.

16/04/2020

Public guarantees

Non-financial corporations

The new measure of Portfolio Guarantees for Loans will pursue the twofold goal: a) provision of guarantees for old loans', repayment schedules of which were modified to improve repayment terms without worsening other provisions (collateral, pricing etc.) ; b) provision of guarantees for new liquidity loans. The eligibility of new loans was expanded to include Large Undertakings (not only SMEs), there are basically no sectorial limitations.

16/04/2020

Public loans

Non-financial corporations

Loans for businesses mostly affected by COVID-19 crisis. The main aim is to support liquidity of NFC.

17/04/2020

Public loans

Non-financial corporations

Measure "Alternative" (lt. Alternatyva) will provide liquidity and investment loans for SMEs through alternative financial intermediaries.

20/04/2020

Private moratoria

Households

Banks, foreign bank branches, some credit unions based in Lithuania announced moratoria, by which their clients are provided with a possibility to defer the payment of mortgage loans for up to 1 year. Leasing and consumer loans - for up to half a year. During the deferral period, the customer will only have to pay interest or other periodic payments.

23/04/2020

Private moratoria

Non-financial corporations

On 23 April 2020 Financial and credit institutions united under the Association of Lithuanian Banks (LBA) signed a broad moratorium for Business Companies. The moratorium came into power on April 24, 2020 and will remain in power until July 1, 2020. This moratorium is open, all Lithuanian credit market participants, who offer business related loans, can join it under its conditions. It is committed to postpone loan payments to companies for up to 6 months, without changing contract terms and interest rates. The moratorium applies to business loans of up to EUR 5 million per group of companies.

19/03/2020

Direct grants

Non-financial corporations

Subsidies paid-out for the workers of lockdown-affected firms i.e. firms which have their operations restricted or banned completely.

11/05/2020

Direct grants

Non-financial corporations

257 Eur monthly payout for those engaged in individual business activities. This subsidy is paid out on monthly basis during the quarantine period and two more months after its end.

20/01/2021

Direct grants

Non-financial corporations

Average turnover of a firm must have decreased by 30 percent or more between 2020 November and 2021 January (y-o-y basis)

20/01/2021

Public loans

Non-financial corporations

Average turnover of a firm must have decreased by 30 percent or more between 2020 November and 2021 January (y-o-y basis)

08/06/2020

Public guarantees

Non-financial corporations

Guarantees for SMEs, large enterprises and entrepreneurs that hold valid travel services provider certificates granting them the right to engage in outbound and/or local tourism.

15/07/2020

Public loans

Non-financial corporations

Loans to tourism and catering companies affected by the COVID-19 pandemic

06/08/2020

Direct grants

Non-financial corporations

The grants specifically aim at employers who have kept the workplaces, even though they had to release employees for the downtime. The downtime thas to be over at the point of intervention. However, firms that were included into list of affected by the pandemic, which was compiled by the State tax agency, are also egligible for the funds.

09/07/2020

Direct grants

Non-financial corporations

One-off 300 Eur handout for a small non-food market traders.

30/04/2020

O-SII

Banking sector

Postponement of the transition period of the O-SII buffer by 1 year (applicable to 1 bank)

31/03/2020

CCyB

Banking sector

The countercyclical capital buffer (CCyB) rate has been reduced from 1% to 0%.

02/04/2020

Other measure

All financial sectors

Reschedule of routine on-site inspections

16/03/2020

Special provisioning policy

Banking sector

Permission for banks to disregard previously designed non-performing loan level management strategies and manage them on a case-by-case basis

17/03/2020

Other measure

Households

Amendment of the Law on Credit Related to Real Estate expanding the list of circumstances when a mortgage credit provider, upon borrower's request, has to defer credit payments up to 3 months: when a borrower or their spouse loses at least a third of the income and do not satisfy DSTI limit. (Already applicable payment moratorium conditions - DSTI breach in combination with either of these circumstances: divorce, death of a spouse, borrower or their spouse becomes unemployed or is recognized as fully or partially work incapable.)

17/03/2020

Other measure

Households

Amendment of the Law on Consumer Credit introducing possibility of payment moratorium. Consumer credit provider, upon borrower's request, has to defer payments up to 3 months when DSTI limit is breached and either of the following circumstances materializes: divorce, death of a spouse, borrower or their spouse becomes unemployed, loses at least a third of the income or is recognized as fully or partially work incapable.

18/03/2020

Other measure

Banking sector

Permission for directly supervised banks to temporarily operate below the level of capital defined by the Pillar 2 Guidance (P2G), the combined buffer requirement and also on a case-by-case basis the liquidity coverage ratio (LCR).

18/03/2020

Buffer usability

Banking sector

Permission for directly supervised banks on a case-by-case basis to cover Pillar 2 requirements with capital instruments other than Common Equity Tier 1 (CET1).

20/03/2020

Lending standards

Households

Recommendation issued by the Supervisory Authority (Bank of Lithuania) for consumer credit providers. Although the Law on Consumer Credit (transposing Consumer Credit Directive) allows credit restructuring without new assessment of creditworthiness only when consumer is already in default of their obligations, BoL recommends to extend this practice also with regard to consumers who are not yet in default, but anticipate it in the future, as long as this might help to avoid default and conditions for consumer are not worsened compared to initial agreement.

28/04/2020

Supervisory expectations

Banking sector

The Bank of Lithuania informed the banks on the European Banking Authority (EBA) statements on how additional flexibility will guide supervisory approaches in relation to market risk, the Supervisory Review and Evaluation Process (SREP), recovery planning, digital operational resilience and ICT risk and securitisation, also to on the application of the prudential framework on targeted aspects in the area of market risk. The Bank of Lithuania intends to have a more flexible policy towards these areas.

31/03/2020

Emergency liquidity

All financial sectors

Amendment of the Law on Bank of Lithuania expanding the scope of institutions elligible for emergency liquidity assistance to all financial institutions (previously only credit institutions were elligible).