The Lithuanian Government and the Barclays Technology Centre formally endorsed an investment agreement on the establishment of an information technology centre in Vilnius.

This highest profile investment to Lithuania for many years since the previous government was famous for unfriendly attitude towards the potential investors.  Attracting new foreign investment is one of the highest present Government’s priorities.

The Lithuanian media wrote on 21 September that the Barclays IT centre was the sole foreign investor meeting the requirements of Invest LT+, a scheme developed by Lithuania’s Economy Ministry, and eligible for state support.  Under the eligibility criteria of Invest LT+, the foreign investment stimulus scheme, the investor shall invest at least 20 million Litas in Lithuania. Moreover, the investor shall be a ‘multinational company holding globally known trademarks’.

The Minister of Economy Dainius Kreivys said at a press conference after the deal was signed on 5 October – ’We have proved that we have certain competencies in the fields of knowledge and economy. Barclays is the first robin of the spring; we have superb specialists and infrastructure. We are currently in talks with several other banks. The IT sector is a priority for us.’

Frits Seegers, the head of retail and commercial banking at Barclays, Seegers said at the press conference that Barclays had selected Lithuania because of its high level of science and knowledge.  ‘We chose Lithuania from among several countries. When people take a closer look at this agreement, in several year’s time they will say that it was the right decision.’

The Minister of Economy Kreivys also expressed his hope that Lithuanian could attract to Lithuania large foreign banks for banking operations, including the UK’s Lloyds, Barclays Capital and HSBC.

However, Mr Seegers of Barclays stated to BNS ‘We are newcomers to this market. Before a decision can be taken, the market should be thoroughly analyzed. Now we are setting up an IT center in Vilnius. At the moment, it’s too early to speak about that (banking operations in Lithuania).’

Barclays intends to employ about 300 specialists at the centre, which it reportedly aims to invest about 170 million Litas.  Some of the employers will be the Lithuanians who were recruited from the UK.