Central government borrowing limit distributed
In order to manage the sustainability of general government debt and to enable central government entities themselves to borrow for important projects, on Wednesday, the Government distributed a borrowing limit of a total of EUR 590.6 million.
A borrowing limit of EUR 5 million has been set for the governance area of the Ministry of Transport and Communications, providing it for Inland Waterways Authority AB, for the governance area of the Ministry of Health – EUR 716 thousand (the limit was calculated by providing EUR 427 thousand for the Public Institution Klaipėda University Hospital and EUR 289 thousand for the Public Institution National Ambulance Service), ILTE UAB – EUR 250 million, LTG Link UAB – EUR 147 million, Valstybės investicinis kapitalas UAB – EUR 153 million, SE Turto bankas – EUR 20 million, Via Lietuva AB – EUR 15 million. This will allow central government entities to have an additional source of funding for their planned financial instruments and capital investments.
This year’s novelty is that, despite the established borrowing limit, institutions have to contact the Ministry of Finance each time before borrowing and/or using these funds and agree on these amounts. The aim is thus not to exceed the limits set in the budget for 2026-2028 for the growth of the general government balance and net expenditure.
The total borrowing limit for central government entities was approved last year together with the budget for 2026-2028. It stipulates that the limit of funds borrowed (withdrawn) by central government entities in 2026 under contracts signed in 2026 and previous years is EUR 590,616,000, and this limit does not apply to the Government, PI Deposit and Investment Insurance and state higher education institutions and vocational education and training institutions. This limit does not include debt liabilities that are incurred and settled in the same year and/or are intended to refinance previous debt liabilities.
Irrespective of whether a central government entity uses its own funds or borrowed funds, its expenditure affects the fiscal balance of the general government and the net expenditure of the general government, and the debt liabilities incurred count towards the general government debt. In order to manage potential negative risks due to the impact of these entities' debt liabilities on these fiscal indicators, appropriate limits are set.
Last updated: 30-03-2026
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