The State Aid Fund for Business already has its executives having elected the Board of the State Investment Management Agency (VIVA) and its Chairman. They will be in charge for the State Aid Fund for Business investment decision-making.
“Lithuania has overcome the first wave of coronavirus, but there still are many questions about the future, including a possible second wave and long-term structural consequences on the country’s economic development. The State Aid Fund for Business is an important step in strengthening the institutional framework of the state in order to effectively provide state aid to companies important to the country’s economy,” says Marius Jurgilas, a member of the Board of the Bank of Lithuania, adding that the Bank of Lithuania will actively contribute its knowledge and competence to the activities of the Fund to the extent necessary.
Members of the Board of the State Aid Fund for Business include Agnė Daukšienė, Andrius Sokolovskis, Aurimas Martišauskas, Normantas Marius Dvareckas and Virginijus Doveika. The Board elected Normantas Marius Dvareckas the Chairman of the Board.
More than 70 candidates applied for the position of the five VIVA Board members. The Selection Committee brought together by the Bank of Lithuania together with an independent recruitment agency evaluated them, while the Supervisory Board of VIVA assessed the selected candidates and appointed them for a 4-year term of office.
“I am glad that joint efforts of all the parties involved have succeeded in attracting motivated highly competent specialists to the Board and the Investment Committee. Impeccable reputation, willingness to contribute to the success of the project and extensive experience in investment, debt management and capital markets were the most important criteria. I hope that our joint efforts will allow us to perform the remaining tasks so that financing reaches business without any undue delay. I also invite the business and investor community to be actively involved so that the funds invested through the Fund create the greatest possible value,” says Valdas Vitkauskas, Chairman of the Supervisory Board of VIVA.
The aim of the State Aid Fund for Business is to support medium-sized and large enterprises active in Lithuania affected by the coronavirus outbreak, the termination of the activities of which may have significant socio-economic consequences. The European Commission (EC) has given the green light to the establishment of the Fund, having approved the scheme for the provision of state aid today. It is the first scheme approved in the European Union under the extended temporary state aid framework to allow states to recapitalize non-financial companies affected by the COVID-19 outbreak.
The Bank of Lithuania proposed the operational strategy and the financing model of the State Aid Fund for Business, helped to prepare the necessary documentation and organizational structure to establish the Fund so that it is independent of political decisions, ensuring its transparent and independent activities, and properly representing investors’ interests. The team of experts of the Bank of Lithuania also played a key role in successful negotiations with the EC regarding the approved scheme of the provision of state aid.
The Fund will consist of a state’s contribution and contributions of international financial institutions and private investors. The Fund’s assets will be used for investing in debt and equity securities of companies or for disbursing loans. The Supervisory Board consisting of five members, three of whom are independent, will supervise the work of the State Aid Fund for Business.