New funding for a green lithuania

Sustainable urban development in Lithuania has been given a boost with the news that The European Investment Bank (EIB), the Ministry of Finance and the Ministry of Environment of the Republic of Lithuania have signed an agreement to strengthen co-operation in financing the much-needed development...

A fund of almost £200 million has been put in place to finance new sustainable urban developments in the country, particularly in the capital of Vilnius.

The agreement is 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 money will go towards energy efficient projects in the housing sector through the Lithuanian banks. Owners of multi-apartment buildings will receive soft loans with promotional interest rates and long maturities.

The fund will contribute to reduce energy consumption and achieve other associated goals, such as reduction of emissions and improvement of quality of life.

The Lithuanian property market has suffered amid an astonishing economic slump. Property prices in the capital of Vilnius have depreciated by around 30 per cent over the past year, while the country's economy contracted a preliminary 12.6 per cent in the first quarter of this year.

Lithuania's economic decline is the third-deepest in the European Union after Latvia, and Estonia.

Picture of Vilnius by mteson