Lithuania
Measures taken in response to coronavirus (COVID-19) pandemic
Adoption date |
Type of measure |
Beneficiaries' sector specification |
Description of measure |
13/05/2020 |
Direct grants |
All non-financial sector |
Eligible are small and medium-sized enterprises which have valid loan/leasing contract, they can cover interest payments up to 95%. As the pandemic started, the measure has been extended to cover 100% of interest payments, however, the IR coverage has been reduced back to 95% as 2020 ended. |
04/05/2020 |
Direct grants |
All non-financial sector |
Legal entities that were fully or partially suspended during quarantine can apply for compensation up to 50% of fixed rental costs. |
16/03/2020 |
Public guarantees |
All non-financial sector |
Individual loan guarantees facilitate access to sources of financing. |
11/04/2020 |
Public guarantees |
All non-financial sector |
An 80 per cent guarantee is provided, but the total amount of payments must not exceed the upper limit of 20 per cent of the amount of formed guarantees. |
11/04/2020 |
Public loans |
All non-financial sector |
The loan is for bills issued from January 1 until March 31 2020. To the buyer's company that experienced difficulties due to the COVID-19 outbreak and was unable to pay or partially paid such bills. |
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. |
30/09/2020 |
Equity participation |
Non-financial corporations |
The Aid Fund for Business under the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak: aid will be provided in the form equity instruments and debt instruments that have or may have an equity component (“hybrid instruments”). |
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 and from 01.01.2021, 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. |
01/06/2020 |
Public guarantees |
All non-financial sector |
The measure is targeted at companies that lack funding due to the COVID-19 outbreak. Each loan or leasing transaction included in the loan portfolio guarantee portfolio 2 is guaranteed by an 80% guarantee. |
14/04/2020 |
Public loans |
All non-financial sector |
The loan is intended to cover working capital and other expenses. |
17/04/2020 |
Public loans |
All non-financial sector |
Loans may be granted to finance an SME’s investments and/or to supplement the working capital shortage provided that such financing is related to the launch of the SME’s new business activity or to the maintenance, strengthening or development of the existing activity. |
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 remained to be applicable 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 |
Monthly payout for those engaged in individual business activities. This subsidy is paid out on monthly basis during the quarantine period and one 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 |
All non-financial sector |
The main criterion - a drop in turnover of more than 30 % during the second quarantine period and, in the case of new companies, a restriction of their activities. |
24/03/2021 |
Direct grants |
Non-financial corporations |
The subsidy is paid to those self-employed persons whose individual activities are included in the list of restricted economic activities during quarantine. |
15/04/2021 |
Direct grants |
Non-financial corporations |
Average turnover of a firm must have decreased by 50 percent or more between 2020 November and 2021 January (y-o-y basis) |
30/09/2020 |
Public loans |
Non-financial corporations |
The Aid Fund for Business under the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak: aid will be provided in the form of loans and purchase of debt securities. |
10/07/2020 |
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 |
Providing loans to travel services providers enabling them to settle accounts with tourists for trips cancelled due to the COVID-19 outbreak. The measure also supplies loans to providers of accommodation services and public catering services to finance necessary (mostly fixed) costs. |
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). |