The document summarizes a microcredit project between the Lithuanian Central Credit Union (LCCU) and local credit unions. The LCCU will coordinate the project and provide consultations to credit unions on business plans. Credit unions have a close connection to local communities and knowledge of potential businesses. Together, the LCCU and credit unions can provide a deeper evaluation of business ideas through their combined expertise. The project aims to establish new businesses, boost income, reduce unemployment, and empower communities through increased access to microcredit and entrepreneurship training. Challenges include economic uncertainty and lack of business skills, but these can be addressed through motivation, training and consultations.

1. 1 CAPACITY BUILDING BETWEEN LITHUANIAN CENTRAL CREDIT UNION AND CREDIT UNIONSMICROCREDIT PROJECT 1

2. 2 WHAT IS A CREDIT UNION? A credit union is a financial institution organised on co-operative basis which provides services only to its members. Credit union members set up a mutual saving fund from which they grant loans to each other under acceptable conditions established for themselves. Members join together on the basis of a territorial criteria and democratically manage the credit union in observance of applicable laws.

3. NETWORK OF CREDIT UNIONS

4. STRUCTURE OF CREDIT UNIONS NETWORK IN LITHUANIA CENTRAL BANK OF LITHUANIA (SUPERVISOR) ~ 112.000 MEMBERS 61 credit unions ( +115 BRANCHES) STATE DEPOSIT INSURANCE FUND (UP TO 100.000 EUR PER PERSON) 0,2% CENTRAL CREDIT UNION ASSOCIATION OF LITHUANIAN CREDIT UNIONS FINANCIAL PARTNERS DEPOSITS, CREDITS, INVESTMENTS ... STABILIZATION FUND LIQUIDITY FUND ELECTRONIC PAYMENTS SYSTEM (CENTRAL BANK) PAYMENTS SYSTEM OTHER SERVICES (TRAINING, IT...) INSPECTIONS AND MONITORING OTHER BANKS 61 credit unions and 115 branches, 340 mln.EUR in assets, 112.000 members in 15 years

6. Loans, overdrafts, credit lines

7. Interbank local payments

8. Support of payment cards (debit and credit)

9. Internet banking

10. Liquidity fund and liquidity management

11. Stabilization fund and management of cu solvency

12. Credit unions monitoring and inspections

13. Consultancies

14. Legal assistance

15. Development and maintenance of IT systems

16. Training

17. Marketing

19. 7 MICROCREDIT PROJECT Project – Microcredit project Lead Partner - Lithuanian Central Credit Union Partners - 57 credit unions in Lithuania (154 outlets/points of sales)

20. 8 ROLE OF LCCU Coordination and administration of project activities Consultation of credit unions on evaluation of business plans Cooperation with social partners Dissemination of information

21. STRENGTHS OF LCCU LCCU has extensive experience in organizing trainings for employees, board members and credit unions. Every year it organizes in average about 40 trainings, in which about 600 employees and board members participate. Experience in 2 training projects supported by European Social Fund.

22. Direct contacts with potential participants of the project Support to start-up businesses Evaluation of business plans Supervision of businesses financed 10 ROLE OF CREDIT UNIONS

23. STRENGHTS OF CREDIT UNIONS Close to local communities Active in regions Know how in working with small loans Broad network of points of selling Knowledge of local possibilities, businesses potentials, local businesses

24. 12 LCCU - CU Project consultants provide consultations and analysis/expertise on business plans submitted to credit unions. Credit unions - deeper knowledge of local market and business possibilities. Joint efforts – more realistic and deeper evaluation of business ideas and business plans – capacity building on both sides.

25. COOPERATION WITH TRAINING PARTNERS 13

26. Business Support/Advice Centres Experience, relationship with small and medium businesses, know how in trainings and consultations in business development issues. Dissemination of information about new financial resources/possibilities to local businesses. Provision of trainings and individual consultations on business establishment/development, cooperation with credit unions.

27. 15 COOPERATION WITH SOCIAL PARTNERS Labour exchange offices Non-governmental organizations Local communities Dissemination of information to priority groups about microcredits and trainings on business development.

28. 16 LCCU - CU Project consultants provide consultations and analysis/expertise on business plans submitted to credit unions. Credit unions - deeper knowledge of local market situation and business possibilities. Joint efforts – more realistic and deeper evaluation of business ideas and business plans – capacity building on both sides.

29. SOCIAL ASPECTS AND IMPACT Establishment of new businesses More income Decrease in unemployment More active communities

30. CHALLENGES Uncertanty of economical situation Lack of entrepreneurship skills and knowledge Fear to start own business MOTIVATION, TRAININGS, CONSULTATIONS

31. 19 THANK YOU! 19