The first partner of the European Investment Bank in the country in providing preferential renovation loans, Siauliu Bankas will contribute EUR 20 million of its own resources to be channelled through the JESSICA Holding Fund, the bank said in a statement.
"It took us just over a year not only to restore the trust of residents in the Renovation Programme, but also to attract investments of private business. The step made by Siauliu Bankas is an important recognition of the Programme as well as the definition of future prospects for the Programme in Lithuania. I believe that other commercial banks in the country will follow the example set by Siauliu Bankas," stated Daiva Matoniene, Deputy Minister of the Environment.
According to Matoniene, this step by Siauliu Bankas could be the beginning of a new model for financing renovation. The EU measures for 2014-2020 will be implemented and private investors will be involved in the financing of energy efficiency programmes.
"The decision of Siauliu Bankas to contribute its own resources into the Programme for Renovation of Multi-Apartment Buildings was natural as our experience in this area is the most extensive in Lithuania. We have been participating in the renovation process for over 15 years and we consider it one of our priority activities. As the demand for financing the renovation of multi-apartment buildings continues to grow in the market, the investment by Siauliu Bankas will further accelerate the renovation process," said Vytautas Sinius, Chief Executive Officer of Siauliu Bankas.
From February 2013 onwards, with the introduction of the preferential programme for renovation of multi-apartment buildings for administrators, Siauliu Bankas has approved financing for over 814 renovation projects. Their total value exceeds LTL 598 million (EUR 173 million). According to the data as of December 2014 even 367 credit agreements were signed with administrators. In 2010, Siauliu Bankas attracted first investments of EUR 22 million from the JESSICA Holding Fund – this money was used to finance 66 renovation projects in Lithuania.
Siauliu Bankas has been participating in housing renovation programmes since 1999 when the first projects were performed together with the Housing and Urban Development Agency (HUDA) under the Ministry of Environment. From 2002 onwards, in cooperation with the Central Project Management Agency, Siauliu Bankas has renovated a number of Lithuanian schools, kindergartens and hospitals.
In 2005-2009, the bank was financing renovation of 34 multi-apartment buildings in cooperation with Busto Paskolu Draudimas and INVEGA.
According to the data of the Housing Renovation Association, approximately 38 thousand multi-apartment buildings in Lithuania require renovation in total. Currently, approximately 8% of Lithuanian residents of multi-apartment buildings are implementing renovation projects or are prepared to do so.
