When financial difficulties are encountered

We are ready to help you overcome these challenges

Long-term and sustainable cooperation with clients is one of our key goals. Since a business situation has been lately changing every day, we are ready to be your trusted business partner during both a successful period and tough times.

Even if a situation seems to be complicated, consulting a bank specialist in order to find a way out may help avoid negative consequences due to overdue payments. If you experience any difficulties with regard to fulfilment of your current financial obligations, please submit an application for a grace period for loan/leasing payments with or without maturity prolongation.

Apply for grace period

If you cannot currently ensure timely repayment of your loan or making of your leasing payments, you may choose from among these options:

  • Grace period for 6 months. Loan/leasing payments will be deferred for this period and deferred payments will be proportionally added to the outstanding loan/leasing payments for the remaining agreement maturity that is not changed (in this case, the amount of monthly payments will increase after the grace period is over).
  • Grace period for 6 months and maturity prolongation for 6 months. The loan/leasing maturity will be extended for 6 more months and each loan/leasing payment will be deferred for this period.

Important to know

  • We have the right to refuse to grant your application.
  • A grace period is applicable only for loans, repaid amounts whereof cannot be granted repeatedly, and for leasing. If you would like to change the terms and conditions of the credit line, overdraft, direct payment loan, business credit card, guarantee limit, factoring or operational leasing, please submit your application by writing a free-form message on the Internet Bank for Business.
  • You should also write a free-form message if you are not satisfied with our offered grace period possibilities.
  • The application must be submitted by the head of a company or a farm owner.
  • The application is not applicable for private persons’ loans or leasing – if you have such, you may submit an application for a grace period of payments through the Internet Bank for private clients.
  • A grace period is applicable only to the payment of principal of loan/leasing – you will continue paying the interest, insurance premiums and other payments as per the agreement.
  • You will be able to cancel the grace period at any time. Swedbank will not apply any additional conditions to agreements and will not calculate any additional charges due to the grace period.
Fill in an application

Answers to many questions about the changes in banking services due to quarantine are available here.

Swedbank has entered into an agreement with the financial entity INVEGA incorporated by the State in regards to implementation of the measure of promotion of business “Loans for businesses that suffered from COVID-19 mostly”. The loans are granted from the funds of this measure. Swedbank acts as an intermediary between INVEGA and borrowers and lends the funds of the measure at the risk and expense of INVEGA. Swedbank may assign its claim under the loan agreement to INVEGA. The loan is the State aid to the borrower. Further information on the terms and conditions of this measure is available here.

The purpose of loans is to finance the essential working capital (wages, real estate rental, utilities, etc.). The expenses incurred or planned to be incurred in the period from 16 March 2020 to 31 July 2020 will be financed. We will calculate the loan amount to be granted.

  • Maximum loan amount – EUR 100 000.
  • Loan period – up to 24 months (with a possibility to submit an application within the first 12 months for period prolongation for up to 36 months).
  • Loan repayment is deferred for 6 months from the day of loan disbursement; subsequently, the loan is repaid in equal monthly instalments.
  • The interest rate is fixed and depends on the loan period: up to 12 months – 0.1 per cent, over 12 months – 0,19 per cent.
  • No securities are required.
  • The administration fee is 2 per cent of the granted loan amount, but not less than EUR 130 and not more than EUR 1 300.

The loans are targeted at small and medium enterprises which have successfully operated, yet encountered financial difficulties upon declaration of quarantine. You may apply for this loan if:

  • your turnover has shrunk by more than 30 per cent upon declaration of quarantine (not applicable to businesses established in 2020);
  • you have preserved at least 50 per cent of jobs (compared to 1 March 2020);
  • your company is not undergoing bankruptcy, liquidation or restructuring proceedings;
  • the borrower of a soft loan operates in the Republic of Lithuania;
  • the borrower of a soft loan meets the minimum criteria set for reliable taxpayers in Article 401 of the Republic of Lithuania Law on Tax Administration;
  • and other conditions set out in the application.

By 31 July 2020 you will have to provide the following documents:

Note: The Company’s financial data for the year 2019 must be submitted to the State Enterprise Centre of Registers (they do not have to be separately provided to the bank).

Please email the completed documents signed with a qualified digital signature to: covid19@swedbank.lt

The bank’s employee will personally contact you concerning the application received and the decision made.

Important! One applicant may only be granted this loan once. If you have submitted this application to another bank or another financial institution, do not resubmit it to us.

Information about potential risks

Improper fulfilment of financial obligations increases your financing costs and may have a negative impact on your credit history, and if the agreement is terminated due to a material breach from your part, debt recovery might be enforced and you may be deprived of the ownership right to the pledged property, whereas in terms of leasing you may not only lose the payments made, but also be deprived of the rights to the financed property.

This offer is not considered to be Swedbank’s obligation to grant financing under the above terms and conditions. An obligation to grant financing will arise only having evaluated the applicant’s documents, made a favourable decision and concluded the respective agreements.

Swedbank has entered into an agreement with the financial entity INVEGA incorporated by the State in regards to implementation of the measure of promotion of business “Portfolio guarantee programme 2” (PGP2). This measure is aimed at reducing the credit risk for corporate customers and has a purpose to help businesses preserve liquidity as well as boost the economy. The PGP2 measure is financed with the funds from the state budget of the Republic of Lithuania and the PGP2 guarantee is State aid to corporate customers. Further information on the terms and conditions of this measure is available here.

The financial incentive measure “Portfolio guarantees for loans 2” is targeted at businesses which are suffering shortage of funds due to the COVID-19 outbreak. This measure may reduce the financing risk, thus facilitating access to loans and leasing transactions in order to improve liquidity of corporate customers.

  • The maximum loan / leasing amount – EUR 5 million, depending on the size of a company.
  • Loan / leasing maturity – up to 72 months.
  • 80 per cent of the loan/leasing amount is secured by the guarantee.
  • The annual guarantee fee is 0.2–1.8 per cent of the guarantee amount, depending on the size of a company and agreement maturity.
  • The standard terms and conditions of financing apply.
  • The measure is suitable for current investment loans and leasing (not suitable for leaseback) as well as current working capital loans (that have been adjusted to improve conditions for customers), and new working capital loans (preserve liquidity) and leaseback.

A corporate customer (as well as an economic entity who owns a corporate customer) who did not experience difficulties before 31.12.2019; however, who has encountered financial difficulties after 16.03.2020 due to the COVID-19 outbreak. You may apply for this guarantee if:

  • Your turnover has shrunk by at least 30 per cent upon declaration of quarantine
  • Or the quick ratio (critical liquidity) (Current assets - Stock / Current liabilities) is less than 1 (the ratio has worsened compared to 31 December 2019)

By 31 December 2020 you will have to provide the following documents:

Please email the completed documents signed with a qualified digital signature to: verslas@swedbank.lt

The bank’s employee will personally contact you concerning the application received and the decision made.