Lithuanian Central Credit Union (LCKU) which is coordinating issuance of VSF loans is projecting that by the end of loan issuance term on 30 June, up to 150 entrepreneurs will have used preferential credit conditions.
Tomas Valauskas, Head of the European Union Project Division at LCKU, said that in three and a half years entrepreneurs received loans from VSF totalling to LTL 34.1 million (EUR 9.9 million).
"Taking into account loan issuance rate, it can be assumed that by the end of June 2014 all of the funding limit, LTL 42 million (EUR 12.2 million), will be used," said Valauskas.
According to LCKU data, in 2013, 57 credit unions concluded 287 loan agreements financed from VSF – by 34% more year-on-year, when 214 agreements were signed. More active crediting was encouraged by the new possibility for credit recipients to recover a portion of the payroll under the measure Subsidies for Entrepreneurship Promotion.
In 2013, VSF funds were most frequently used to establish and expand trading companies, beauty and massage salons, vehicle workshops, timber processing and biofuel production businesses.
The average VSF loan in 2013 was LTL 61,300 (EUR 17,800). Meanwhile, the highest credit amount is LTL 86,000 (EUR 25,000).
One of the main advantages of the credit is a return of 95% of interest actually paid. In three and a half years, 530 companies were compensated LTL 1.64 million (EUR 0.47 million) in interest. Applications for interest compensation may be submitted by 31 May 2014.
