Lithuania moves to widen non-bank financing for growing companies

Lithuania’s government has approved legislative amendments aimed at expanding the role of alternative investment funds in financing companies and long-term projects, as Vilnius seeks to reduce the economy’s dependence on traditional bank lending.

Alternative investment funds already channel private capital into SMEs, venture capital, private debt, real estate, renewable energy and infrastructure. One practical constraint is the Lithuanian depositary market: the Finance Ministry says demand for depositary services currently significantly exceeds supply, while limited competition increases costs.

Under the proposed changes, supervisors would be able to permit Lithuanian alternative investment fund managers to obtain depositary services in other EU member states. The package also changes rules governing fund managers and investor protection.

The amendments still require parliamentary approval before entering into force.

Source: Lithuanian Ministry of Finance, 23 September 2026.
https://finmin.lrv.lt/en/news/ministry-of-finance-presented-proposals-that-will-help-growing-companies-to-raise-funds-and-reduce-dependence-on-the-traditional-banking-sector-6JsG/