Baltic companies will get facilitated access to loans totaling up to €138 million through a new deal between the European Investment Fund (EIF) and Latvia-based Citadele Bank. The agreement lets the Latvia-based bank offer preferential loans to small and medium-sized enterprises (SMEs) and microbusinesses across Estonia, Latvia, and Lithuania. Companies will benefit from lower interest rates and reduced collateral requirements.
SMEs in the three Baltic countries can apply for loans from a €100 million pool, while microbusinesses with fewer than 10 employees have access to €38 million. The funding comes through EIF guarantees that reduce risk for the bank. Microbusinesses make up most companies in the region – 95% in Estonia, 93% in Latvia, and 95% in Lithuania.
The deal was made possible through the European Commission’s InvestEU programme. EIF is part of the European Investment Bank (EIB) Group and works to support smaller companies across Europe. Under the agreement, Citadele Bank has three years to build its loan portfolio, with individual loans capped at €1 million.
“Our support for Baltic businesses increases job security and strengthens the competitiveness of local companies in times of global economic uncertainty,” said EIF Chief Executive Marjut Falkstedt. She called it “an excellent example of how European collaboration can unlock new investment opportunities for even the smallest of companies.”
Citadele Bank will also provide advisory support to help companies find the right borrowing arrangements. The programme aims to make financing more accessible for young companies and new development plans, supporting economic growth across the Baltic region.
