Press Release: Lithuania teams up with EIB to support sustainable cities

The European Investment Bank (EIB), the Ministry of Finance and the Ministry of Environment of the Republic of Lithuania signed an agreement on 11 June, 2009, to strengthen co-operation in financing sustainable urban development. The agreement was under the joint European Commission and EIB initiative, supported by the Council of Europe Development Bank, Joint European Support for Sustainable Investment in City Areas (JESSICA). The agreement foresees the establishment of a special JESSICA Holding Fund. The initial capital of the fund will amount to EUR 227 million. This consists of an allocation from the European Regional Development Fund (ERDF) and a budgetary contribution from Lithuania, financed through an EIB loan. This is the largest JESSICA Holding Fund set up so far and the first one focused on energy efficiency for urban areas investments. The fund will provide financing for energy efficiency projects in the housing sector through the Lithuanian banks. Promoters like owners of multi-apartment buildings, will receive soft loans with promotional interest rates and long maturities. The fund will therefore contribute to reduce energy consumption and achieve other associated goals, such as reduction of emissions and improvement of quality of life.