Baltic companies to get €138 million credit boost under EIF accord with Latvia-based Citadele Bank

• Favourable financing of up to €138 million planned for companies in Estonia, Latvia and Lithuania
• EIF guarantees to enable Citadele Bank to provide loans to range of Baltic businesses  
• Part of InvestEU programme, deal to increase jobs, competitiveness and investments across the region

Riga/Luxembourg: A range of Baltic companies will be eligible for preferential loans totalling up to €138 million as a result of guarantees by the European Investment Fund (EIF) for Latvia-based Citadele Bank. The EIF guarantees will enable Citadele Bank to direct the new financing to small and medium-sized enterprises (SMEs) as well as microbusinesses in Estonia, Latvia and Lithuania.     

SMEs in the three Baltic countries will be eligible for loans from Citadele Bank, with a total amount of up to €100 million available. Microbusinesses—defined as those with fewer than 10 employees—will have access to up to €38 million of this funding. Beneficiaries will benefit from relatively low interest rates and from lower or no collateral and downpayment requirements.   

The EIF is part of the European Investment Bank (EIB) Group and the accord was made possible by the European Commission`s InvestEU programme.

“Our support for Baltic businesses increases job security, facilitates new investments and strengthens the competitiveness of local companies in times of global economic uncertainty and international trade challenges,” said EIF Chief Executive Marjut Falkstedt. “This is an excellent example of how European collaboration can unlock new investment opportunities for even the smallest of companies.”

“Medium, small, and microbusinesses are crucial to the Baltic economy and identity,” stated Rūta Ežerskienė, CEO and Chair of the Management Board of Citadele Bank. “They often embody the soul of regional communities, create jobs, and inspire innovation, improving the economic situation. This program will make financing more accessible for young companies and new development plans, thereby contributing to overall economic growth in the Baltic countries.”

Microbusinesses play a vital role in the Baltic economies, accounting 95% of all companies in Estonia, 93% of enterprises in Latvia and 95% in Lithuania.

Under the agreement with the EIF, Citadele Bank will have three years to build the loan portfolio, with a maximum individual financing amount of €1 million. As part of the lending process, Citadele Bank will also provide advisory support to companies, helping them identify the most suitable borrowing arrangements.

Background information

About the EIF:

The European Investment Fund is part of the European Investment Bank (EIB) Group. Its central mission is to support Europe’s small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF furthers key European Union policy objectives such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital and climate action and environmental sustainability. The EIF and Citadele have cooperated before, namely, in 2022, the EIB Group provided capital relief to Citadele Bank, facilitating at least €460 million in additional loans and leases to Baltic businesses.

About the InvestEU programme:

The InvestEU programme provides the EU with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the EU’s policy priorities such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the EU, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment. 

About Citadele Group    

Citadele Group is focused on modernizing the financial industry and expanding opportunities for individuals and businesses across the Baltics. Alongside traditional banking services, Citadele offers cutting-edge technology solutions, including a modern mobile app, contactless and instant payments, as well as innovative features like selfie-based account opening, payment rings, and mobile number payments. Businesses benefit from advanced services such as remote account opening, the Citadele phone POS card acceptance app, and the Klix universal e-commerce tool. Citadele Bank, headquartered in Latvia, leads the Group with subsidiaries and branches in Latvia, Lithuania, and Estonia.

Press contacts

EIB Group

Kristiina Randmaa

M. +352 4379 72894, e-mail:  k.randmaa@ext.eib.org
Website: www.eif.org — press@eib.org

Citadele Bank

Līga Ratniece-Vanaga

M. +371 28378366,

E-mail: liga.ratniece-vanaga@citadele.lv