Hansabankas will use a credit line to finance municipalities in Lithuania
2005-04-26 Back
Hansabank and Kreditanstalt für Wiederaufbau (KfW) signed a 30 million euro credit line for financing small and medium sized municipalities in the Baltic countries. The credit line is co-financed by Council of Europe Development Bank.
Lithuanian Hansabankas will use 10 million euro of that line to finance municipalities in Lithuania.
In addition to the credit line, municipalities are also eligible for a grant to finance any expenses (legal, conducting research, etc) in relation to preparing the various projects under this programme. The grant is financed by the European Union out of the Phare budget.
The credit line is meant for infrastructure development projects. Being long-term funding, the conditions of this credit line are more favourable than those of traditional loans in terms of the interest rate, longer maturity and the additional grants. Exact conditions of each individual loan depend on the project in question.
According to Daniela-Henrike Klau-Panhansi, project manager for KfW, this is already the third credit line signed with Hansabank. "This is the first pan-Baltic credit line under the European Union support programmes for financing local municipalities."
In the past Hansabank and KfW have signed a bilateral loan agreement and a credit line for financing small and medium-sized companies in Estonia and Latvia.
