Special Obligations
Special obligations refer to functions assigned to a state-owned enterprise by decisions of public authorities. A state-owned enterprise may not carry out these functions for commercial purposes or charge a price higher than that set. All activities of ILTE fall under the performance of special obligations.
ILTE’s Special Obligations
1. Provision of Guarantees
- Providing individual guarantees for loans, leasing, export credit, and travel organizers’ liability insurance.
- The provision of guarantees under guarantee instruments financed by managing funds or fund-of-funds is attributed to the activities of managing these funds (managing funds, fund-of-funds, and special funds), as well as to the implementation of individual financial engineering instruments, promotional financial instruments, and financial instruments.
To ensure that individual guarantees are provided under preferential conditions and have a promotional nature, part of the guarantee payments made under granted guarantees is compensated or financed from state budget appropriations.
In cases where individual guarantees are provided to promote investment in the agricultural sector, part of the guarantee fee payable by the loan recipients is subsidized from the state budget.
2. Provision of grants and/or subsidies and mediation in the management and administration of EU Structural Funds for 2024-2020
This function includes:
- Provision of financial support in the form of subsidies or grants to SMEs and other entities operating in state-supported sectors, or to funding recipients who meet the required criteria;
- Full administration of funding, including but not limited to: assessment of applications, decision-making, calculation of compensation or other funding amounts, disbursement of funds to final beneficiaries, monitoring of indicators, spot checks, and performance of other functions of the implementing body and/or general grant administrator.
3. Supervision and Management of Funds, Fund-of-Funds, Special Funds, and Individual Financial Engineering and Financial Instruments
This function includes the establishment and management of managing funds, fund-of-funds, and special funds (hereinafter in this section referred to as Funds), as well as the performance of fund manager functions.
- The manager of a given Fund performs the following functions:
- Implements the procedures for establishing the Fund and defining its operational framework;
- Designs and ensures the implementation of instruments financed by the Fund in line with its investment strategy and plan;
- Reviews the Fund’s investment strategy and plan;
- Selects the managers (financing partners) of Fund-financed instruments, conducts negotiations, and signs agreements with the selected managers;
- Manages the portfolio of instruments financed by the Fund;
- Monitors and controls the performance of the managers (financing partners) of Fund-financed instruments.
The manager of financial engineering, incentive financial, or other financial instruments (hereinafter referred to as Instruments) performs the following functions:
- Implements the Instrument in line with the agreed investment strategy;
- Reviews the investment strategy of the Instrument;
- Evaluates applications submitted by final beneficiaries and makes decisions on their approval and funding;
- Monitors the implementation of projects funded under the Instrument, including tracking expected outcomes and collecting relevant information;
- Manages the portfolio of projects funded under the Instrument.
4. Activities of the Green Finance Institute (GFI)
In implementing the actions set out in the Lithuanian Green Finance Action Plan for 2023–2026, the GFI carries out the following functions:
- Coordinates public and private sector cooperation in the area of green (sustainable) finance, thus promoting the development of a green finance ecosystem in Lithuania and contributing to the green transformation of the country’s economy;
- Provides consultations, technical and expert assistance to public and private sector entities in implementing green transitions;
- Prepares methodological tools (e.g. methodologies, guidelines) for assessing the sustainability (greenness) of projects;
- Enhances access to sustainability-related data and promotes the dissemination of information on green finance;
- Organises training sessions and events on sustainability;
- Initiates and submits proposals for resolving issues related to green (sustainable) finance and supports their implementation.
Under the Law on the National Development Bank, ILTE has specific functions in the field of green finance, which are implemented by the GFI within its remit:
- Provides proposals and expert (technical and methodological) assistance to state and municipal authorities and institutions in the field of sustainable (green) finance, including recommendations for improving the investment climate and access to finance for project implementers;
- Develops the ecosystem for sustainable finance labelling;
- Initiates and supports research in the field of sustainable (green) finance, and carries out public education and awareness activities;
- Coordinates public and private sector cooperation in sustainable (green) finance;
- Promotes Lithuania’s leadership in the field of sustainable (green) finance internationally.
GFI activities also reflect the expectations set by the Shareholder:
- To become a leading knowledge and competence centre in sustainable (green) finance in the Baltic region. To fulfil this, GFI plans to strengthen cooperation with public sector entities in the region, share best practices and sustainability initiatives, implement joint projects, and organise international conferences;
- To take an active role in promoting the financial literacy of Lithuanian businesses. To achieve this goal, GFI implements various measures that not only provide knowledge about sustainable financial solutions but also encourage companies to make responsible, long-term decisions.