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.

Swedbank has concluded an agreement with the state-established financial institution INVEGA on the implementation of the business promotion measure “Loans to businesses most affected by COVID-19”. Loans from the funds of this measure were provided until 31.07.2020. Swedbank acts as an intermediary between INVEGA and borrowers and lends the funds at INVEGA’s at risk and expense. Swedbank may transfer its claim under the loan agreement to INVEGA. The granting of the loan involves state aid to the borrower. Click here to find out more about the terms and conditions of this measure.

  • The maximum duration of the loan is 72 months. The borrowers who have concluded an agreement for a shorter period and who wish to extend the loan term may apply to the bank by submitting a free form request for the extension of the term.
  • Send the filled-in request certified with the authorised electronic signature of the company's manager by e-mail covid19@swedbank.lt
  • Please be informed that the loan interest and/or loan extension fee may be recalculated when extending the term.
  • Loan interest is fixed and its amount depends on the loan duration: up to 12 months - 0.1%, up to 36 months - 0.19%, up to 72 months - 0.69% When extending a loan for a period with higher interest rates, interest must be recalculated on the entire loan amount, applying a higher interest rate for the entire term of the loan from the date of signing the loan agreement. Additional accrued interest is paid after the loan extension, on the next interest payment date.

If the borrower:

  1. received a loan on the basis of an application, registered in the INVEGA database before 19 June 2020 (inclusive) and
  2. applied for the extension of the loan within the first 12 months from the date of signing the agreement; and
  3. requests to extend the loan up to 36 months from the date of signing the agreement,

the loan agreement extension fee does not apply.

In all other cases a standard bank extension fee is applied

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.