The Lithuanian government approved a proposal to establish a Public Investment Development Agency. This agency would handle and manage all former functions done by the JESSICA fund. The JESSICA fund controls all resources earmarked for the renovation of the multi-family buildings, from the European Investment Bank (EIB).

JESSICA, a special 227 million euros vehicle managed by the EIB, controls and manages funds earmarked for renovation. Those funds are distributed by Siauliu Bankas, SEB and Swedbank. Approximately 149 million euros were transferred to the fund so far. 28 million of them were transferred to the previously mentioned banks. On June 11th, 2009, the EIB signed an agreement with the Finance Ministry and the Environmental Ministry allowing for the EIB to administer such fund for a period of 3 years. Afterwards, a Lithuanian institution will handle its finances.

Acting prime-minister, Andrius Kubilius, expressed to reporters that “the logic is clear enough, the experience, which we have gained until now, shows that such an authority is necessary. We have made many changes, which makes it possible now to implement the renovation programme at a much faster rate,” Kubilius said.

The Ministry of Finance expressed its hopes that the newly established agency will allocate funding in a timely, rational and effective fashion. The newly-established agency would manage and gain the experienced required for the creation of a national fund during the EU’s structural aid programming period (2014-2020). The new company will count with 350,000 litas (EUR 101,449) initial investment from the government (e.g. Finance Ministry).

The Kubilius administration did not get the housing renovation programme running at a faster speed. Nonetheless, households avoided borrowing from banks with the state providing some 30% support to renovation projects.