International financial institutions have become part of the strategy to strengthen the ILTE by enhancing excellence, transparency and international confidence
The Ministry of Finance is purposefully implementing the strategy of strengthening the National Development Bank ILTE, one of the directions of which is close cooperation with the most important international financial institutions. International experts will be directly involved in the activities of the ILTE in order to achieve higher governance standards, greater transparency and international credibility.
The first step in the implementation of this strategy was the signature of a Memorandum of Cooperation with the European Stability Mechanism (ESM). At the same time, similar agreements are being prepared with the Nordic Investment Bank (NIB) and the European Investment Fund (EIF), thereby consistently consolidating the role of international financial institutions in the activities of the ILTE.
The Memorandum was signed by Kristupas Vaitiekūnas, Minister of Finance of Lithuania, Pierre Gramegna, Managing Director of the ESM, and Dainius Vilčinskas, Chief Executive Officer of the ILTE. The agreement foresees that the ESM will delegate a highly qualified risk management expert who will be directly involved in the activities of the ILTE and become a member of the Risk Management Committee.
"The involvement of international financial institutions is an essential part of the strategy to strengthen the ILTE. This not only strengthens governance and transparency, but also builds the international confidence needed to attract private and international funds. The ESM expert's experience will allow the ILTE to manage risks and financial flows even more professionally, expeditiously and transparently", Minister of Finance K. Vaitiekūnas states.
The goal of the Ministry of Finance is for the ILTE to become a fully-fledged national development bank operating in accordance with international best practices. It is planned that already in 2027 the ILTE will be able to independently issue bonds on international markets after receiving the ratings of international credit rating agencies.
To achieve this goal, the Ministry of Finance is consistently implementing a comprehensive plan to strengthen the ILTE by amending the necessary legislation and significantly increasing the authorised capital of the ILTE, which will allow to attract at least two billion euros of additional funds from other funders for financially profitable business, innovation, infrastructure, agriculture and municipal projects that lack financing in the market in 2026- 2030.
At the same time, mechanisms have been put in place for the effective use of temporary free funds, the governing bodies of the ILTE have been strengthened, involving representatives of international financial institutions, and a Letter of Expectations has been drawn up defining the objectives set by the State for the development bank. Banking supervision, accountability and transparency mechanisms have also been put in place to ensure a clear and reliable framework for the activities of the ILTE.
The shareholder of the ILTE is the State of Lithuania, which owns 100% of the shares of the company, and the rights and obligations of the shareholder are implemented by the Ministry of Finance. The involvement of international institutions such as the ESM marks a qualitative turning point in the development of the ILTE and confirms its strategic transformation into an internationally sound development bank.
The European Stability Mechanism (ESM) is an intergovernmental organisation that brings together all 20 euro area countries and provides financial assistance to countries facing financing difficulties. Bulgaria is about to join the ESM as a new member of the euro area.
Last updated: 22-12-2025
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