Interpreneurship Promotion Instruments 14 November, 2013 Vilnius

INVEGA – Investment and Business Guarantees, Ltd. Established by the GoV, registered on 29 November 2001, supervised by MoE State owned 100%, private limited liability company Share capital – EUR 8.69 million Liabilities under individual guarantees are calculated into State Debt of LT 40 employees On 5 March 2004 counter-guarantee agreement with EIF under MAP Since 2001 issuance of individual guarantees Since 2006 administration of micro-crediting programmes Since 2009 administration of Global Grant Since 2009 manager of HFs (ERDF + ESF) Invegos pristatymas turėtų būti labai trumpas: 5- 6 sakiniai. Visa ši informacija galėtų likti skaidrėse, tačiau reikėtų pasakyti tik esminius faktus, pvz., apie Invegos funkcijas.

Financial Instrument funded by National budget Financial Instrument funded by ESF Financial Instruments funded by ERDF and reflows Entrepreneurship Promotion Fund EUR 14.5m INVEGA fund (HF) EUR 199m Micro credits for SME EUR 8m Small credits EUR 6m Entrepre- neurship Promotion EUR 14.5m Guarantee Fund - Individual guarantees EUR 37.4m Small credits_2 EUR 27.5m Open credits fund EUR 43.4m FRSP EUR 110m FLPG EUR 11.3m CID EUR 11.6m BIF EUR 20m Enterpreneurship Promotion Subsidies EUR 2.9 m Global Grant First Employment EUR 9.3 m Global Grant Compensation of interests EUR 21.4 m Individual guarantees

Financial instruments for SMEs under the management, EUR m

Number of services provided to SMEs, p.a.

Amount of financing provided to SMEs because of support through INVEGA’s measures, accumulated EURm

The “power” of co-operation INVEGA 184 EUR m + 23,5 EUR m >100 Financial Intermediaries 802 EUR m financing >8’000 SMEs supported 962 EUR m investments >4’700 SMEs supported Economy, Growth, Employment

Financial Instrument funded by National budget Financial Instrument funded by ESF Financial Instruments funded by ERDF and reflows Entrepreneurship Promotion Fund EUR 14.5m INVEGA fund (HF) EUR 199m Micro credits for SME EUR 8m Small credits EUR 6m Entrepre- neurship Promotion EUR 14.5m Guarantee Fund - Individual guarantees EUR 37.4m Small credits_2 EUR 27.5m Open credits fund EUR 43.4m FRSP EUR 110m FLPG EUR 11.3m CID EUR 11.6m BIF EUR 20m Enterpreneurship Promotion Subsidies EUR 2.9 m Global Grant First Employment EUR 9.3 m Global Grant Compensation of interests EUR 21.4 m Individual guarantees

Financial Instrument funded by National budget Financial Instrument funded by ESF Financial Instruments funded by ERDF and reflows Entrepreneurship Promotion Fund EUR 14.5m INVEGA fund (HF) EUR 199m Micro credits for SME EUR 8m Small credits EUR 6m Entrepre- neurship Promotion EUR 14.5m Guarantee Fund - Individual guarantees EUR 37.4m Small credits_2 EUR 27.5m Open credits fund EUR 43.4m FRSP EUR 110m FLPG EUR 11.3m CID EUR 11.6m BIF EUR 20m Enterpreneurship Promotion Subsidies EUR 2.9 m Global Grant First Employment EUR 9.3 m Global Grant Compensation of interests EUR 21.4 m Individual guarantees

Entrepreneurship Promotion Fund Holding Fund with measure – “Entrepreneurship Promotion”: ESF from December 2009 term up to 31 Dec 2018 Budget: EUR 14.5m FI: Consortium of 57 credit unions, represented by Lithuanian Central Credit Union State aid scheme: de minimis (restricted sectors: under de minimis rules Responsible ministry: MoSa Holding Fund with measure – “Entrepreneurship Promotion” (ESF): ESF from December 2009 term up to 31 Dec 2018 – iki šios datos reikėtų grąžinti paskolas? Reikėtų papildyti, iki kokios datos paskolos išduodamos? In December on 29 was signed a contract between Invega the ministry of finance and ministry of social security and labour of the Republic of Lithuania. With this contract was founded a new financial engineering measure “Enterpreneurship promotion” under Jeremie initiative financed from European Social Fund in Lithuania. The budget of Fund is 15 milion EUR. Co-operation agreements with Consorcium of 57 Credit Unions was signed ons 30th of July 2010. Credit Unions have a wide range of servise departments all around the country. They are socially concerned to raise the level of the economy and help people who are most in need of financial help. So all Enterpreneurship facilitation fund loans are made through credit unions across the country.

Entrepreneurship Promotion Fund Main terms of microcredits: For start-up SMEs (legal entities and individuals) – operating < 1 year Up to LTL 86k (EUR 25k) for one credit per SME Up to 90% financed by ESF and 10% by credit union Credit union’s interest rate – < 3.49% Compensation of 95% of interest paid

Priority Groups Unemployed Disabled Young people under 29 years old People over 50 years of age The measure aims to tackle unemploying problems. It consists of set of combination of finansce and facilitation actions aiming to promote self employment andd entrepreneurship. The measure is socialy oriented in a sense it prioritizes unemployed, disabled, young people under 29 years old and people of more than 50 years age who find it very dificult to find a jod.

Conducted trainings Business Plan creating Accounting Management and Tax Basics Business and Labor Law Basics Business Management Basics Marketing Basics Human Resources in Business Trūksta informacijos apie konsultavimą. As I note earlier, this is not only financial measure but also it paralel conduct with trainnings. Central Credit Union organize six training modjuls in which people can learn Basics of Acounting management and tax, business and labour laws, business management, marketing, human resources in business and also they can learn how to create a business plan which is needed to get a loan from Credit Union.

Implementation of EPF Activities Date Signature of the threerateral agreement between MoSA, MoF and INVEGA 30 Dec 2009 International Public procurement launched 31 March 2010 Agreement between INVEGA and Consortium of CU signed 30 July 2010 First trainings started 20 Sept 2010 First loan issued 8 Nov 2010 This is a graph showing the development of measure. After that when in 2010 International Public procurement was lounched on 30th of July was signed agreement between Invega and Consorcium of Credit Unions. First trainings started on 20th of September and first loan issued on 8th of November.

Results achieved Target Results as of 31-07-2013 Implementation, % Number of individuals attended the trainings 4500 3552 78% Number of loans disbursed 1200 536 45% Amount of loans disbursed (ESF), EUR m 12.2 9 74% Number of jobs created 1000 1091* 109% This is a graph showing the development of measure. After that when in 2010 International Public procurement was lounched on 30th of July was signed agreement between Invega and Consorcium of Credit Unions. First trainings started on 20th of September and first loan issued on 8th of November.

Financial Instrument funded by National budget Financial Instrument funded by ESF Financial Instruments funded by ERDF and reflows Entrepreneurship Promotion Fund EUR 14.5m INVEGA fund (HF) EUR 199m Micro credits for SME EUR 8m Small credits EUR 6m Entrepre- neurship Promotion EUR 14.5m Guarantee Fund - Individual guarantees EUR 37.4m Small credits_2 EUR 27.5m Open credits fund EUR 43.4m FRSP EUR 110m FLPG EUR 11.3m CID EUR 11.6m BIF EUR 20m Enterpreneurship Promotion Subsidies EUR 2.9 m Global Grant First Employment EUR 9.3 m Global Grant Compensation of interests EUR 21.4 m Individual guarantees

Entrepreneurship Promotion Subsidies Global Grant instrument Amount: EUR 2,89 m. Applicants: Loan borrowers of the Entrepreneurship Promotion Fund Subsidies: EUR 7240,5 if the applicant belongs to a priority group (youth till 29 years of age, unemployed, disabled, persons senior than 50 years of age). The applicant status is determined on the date of submission to a credit union of the application to receive the EPF loan; EUR 5792,4 if the applicant does not belong to a priority group; to compensate partially an employee(s) salary costs a month's fixed fee of EUR 379,9 has been set. the amount of costs eligible to finance per employee working with the applicant under an employment contract is calculated multiplying the fixed fee (EUR 379,9 ) by the number of calendar months, for which the employee's calculated salary before taxes (gross salary) is not less than the minimum monthly wage, and multiplying by 75 percent of the financing rate. Responsible ministry: MoSa

Financial Instrument funded by National budget Financial Instrument funded by ESF Financial Instruments funded by ERDF and reflows Entrepreneurship Promotion Fund EUR 14.5m INVEGA fund (HF) EUR 199m Micro credits for SME EUR 8m Small credits EUR 6m Entrepre- neurship Promotion EUR 14.5m Guarantee Fund - Individual guarantees EUR 37.4m Small credits_2 EUR 27.5m Open credits fund EUR 43.4m FRSP EUR 110m FLPG EUR 11.3m CID EUR 11.6m BIF EUR 20m Enterpreneurship Promotion Subsidies EUR 2.9 m Global Grant First Employment EUR 9.3 m Global Grant Compensation of interests EUR 21.4 m Individual guarantees

Support for the first job Programme budget: EUR 9.27 m. The programme term: up to 30 Sep 2015 Compensation: fixed part of a salary of an employee (i.e. 23.3% of a salary calculated) Young emplee: a young person, 16 to 29 years of age, employed for the first time, with no previous work experience under employment contract Manager of instrument: INVEGA Number of decision: 7 236 Responsible ministry: MoSa

Number of services provided to SMEs, p.a.

Contacts Follow INVEGA on UAB „Investicijų ir verslo garantijos“ (INVEGA) Konstitucijos pr. 7 (16th floor), 09308 Vilnius, Lithuania Tel. +370 5 210 7510, fax. +370 5 210 7511 Email to: info@invega.lt www.invega.lt Follow INVEGA on