Noviti Finance and the Council of Europe Development Bank sign a €10 million financing agreement

Vilnius - Noviti Finance, a Lithuanian microfinance institution, and the Council of Europe Development Bank (CEB) have signed a €10 million financing agreement. The funds from this loan will be used to improve access to finance for Lithuanian micro-enterprises, encourage entrepreneurship and support sustainable economic growth and job creation. The loan is expected to reach over 2000 microentreprises.

Noviti Finance's new partnership with the CEB reflects the Bank's increasing focus on supporting non-bank lenders, such as the microfinance institutions. According to Noviti Finance CEO Linas Armalys, this cooperation was made possible thanks to Noviti's long-standing expertise in providing business loans to the smallest companies with fewer than 10 employees.

"We share a common goal with the CEB: to make business financing more accessible to small enterprises. These companies often find it difficult to secure traditional bank loans and are the least well-served business segment," said Armalys.

Cristian Tabacaru, Director of the CEB's Loans & Social Development Directorate, emphasised that the loan agreement would help to build a more inclusive and resilient economy. "We are delighted to support Noviti Finance in creating new growth and employment opportunities for small businesses in Lithuania," Tabacaru noted.

Noviti Finance currently serves over 2,000 business clients across Lithuania, Latvia and Poland, with a loan portfolio worth €27 million. Noviti Finance works closely with ILTE - the national development bank of Lithuania, and other financiers like the European Investment Fund (EIF). Noviti Finance is the only alternative non-bank lender in the Baltics to have partnered with the European Bank for Reconstruction and Development (EBRD). In 2024, Noviti Finance signed an agreement with the EBRD to increase business financing in Poland. Notably, 91% of companies that receive a loan offer from Noviti Finance accept it as the best available option compared to alternatives.

The Council of Europe Development Bank (CEB) is a multilateral development bank with an exclusively social mandate from its 43 member countries. The CEB finances investment and provides technical assistance in social sectors such as education, health and affordable housing, while focusing on the needs of vulnerable people, as well as on the social dimensions of climate change and the environment. Borrowers include governments, local and regional authorities, public and private banks, non-profit organisations and others. The CEB, which has a triple-A credit rating, funds itself through international capital markets. In addition, the CEB receives funds from donors to complement its activities.

Contacts:

Linas Armalys:

[email protected]

Communications at the CEB:

[email protected]