The European Commission has approved, under EU State aid rules, capital injections worth €813 million and €15 million per year in corporate income tax and dividend payment exemptions in favour of Lithuanian development bank Investicijos į Lietuvos ekonomiką (‘ILTE’).
The measures are provided by the Lithuanian Ministry of Finance. The aim is to provide ILTE the capacity to ensure financially viable and efficient investments in various sectors with market failures. Business projects in agriculture, renewable energy, district heating, building refurbishment, transport, energy, defence, digital and social infrastructure will be eligible. They often lack sufficient market financing due to high investment volumes, long payback periods, higher risks, limited risk appetite or requirements from private financiers.
In its assessment, the Commission found that the measures facilitate the development of economic activities. Furthermore, the aid is necessary, appropriate and proportionate. Finally, Lithuania has committed to several measures, including the limitation of financial activities to relevant market failures.
