The Special Investigation Service (STT) conducted an anti-corruption examination of the Startuok instrument and identified serious violations in loan distribution. The main emphasis is on the fact that the national development bank ILTE has “excessive freedom” in decision-making, which jeopardizes the transparent and efficient use of state and European funds.
“Unlimited Discretion” and Non-Transparent Rules
According to the STT, the current loan granting rules give ILTE bank too much freedom, which the service calls “unlimited discretion”. Procedures for evaluating applicants, their riskiness, and creditworthiness, as well as loan granting conditions, are regulated by internal, non-public documents. This creates conditions under which the bank can make different decisions in similar situations, violating the principle of equal rights for all.
Among the specific problems identified by the STT:
☛ Unclear criteria for collateral: The rules do not define on what criteria assets can be deemed “unsuitable security” or what constitutes “legal impediments”. This allows the bank to accept or reject collateral at its discretion.
☛ “Exceptional cases” without rules: The scheme does not specify what exactly constitutes an “exceptional case” where loan collateral may not be applied at all. This is particularly risky, given that the loan amount can reach 3 million euros.
☛ Lack of grant control: There are no clear criteria for writing off a portion of the loan (up to 20%) as a grant. Also, project summaries are not publicly available, which prevents an assessment of whether projects were properly implemented.
☛ Insufficient external oversight: There is no independent control over ILTE’s activities, which was also confirmed in the State Control of Lithuania’s report for 2021–2024.
Loans to Loss-Making Companies and “Shell Companies”
The STT report provides specific examples illustrating the problems:
☛ In 2025, a company that incurred losses in 2024 and had the highest level of credit risk received a loan of over 500 thousand euros.
☛ Another company, established in the same year and having only one employee, received a loan of over 1.3 million euros, which raises questions about its ability to meet financial obligations.
These examples, according to the STT, are a direct consequence of incomplete legal regulation and lack of oversight.
STT Requirements: Transparency and Independent Oversight
In conclusion of its anti-corruption examination, the STT proposed to the Ministry of Economy and Innovation to improve legal regulation. The service insists on the need to create clear, public, and equal conditions for all applicants and to establish independent oversight over ILTE’s decisions.
“Only in this way can the transparent, responsible, and socially beneficial use of state and European funds be achieved,” the STT statement emphasizes.
The Ministry of Economy must publicly report within two months on how it plans to address the comments and proposals outlined in the conclusion.
NEWSROOM IN notes: ILTE is Lithuania’s national development bank with a share capital of 203.438 million euros, 100% state-owned. It positions itself as a “green finance institution” — the first competence center in Lithuania and the Baltic States that advises on sustainable development and achieving EU Green Deal goals, founded on values such as “creative curiosity, balanced courage, and community in diversity.”
Startuok has been operating in Lithuania for several years and is intended for young, aspiring, or social impact project-implementing companies, as well as Ukrainian companies operating in Lithuania. What “social impact projects” are and how many young startups have received support could not be found on the website of the “green finance institution”. However, in 2024, information about 100 contracts under this program was available.
