K. Vaitiekūnas: more attractive defence bonds is an alternative to those withdrawing from 2nd pillar pension funds
Minister of Finance Kristupas Vaitiekūnas states that defence bonds may become an attractive investment alternative for individuals who decide to withdraw from the 2nd pillar pension funds. In order to increase the attractiveness and availability of these bonds, the Ministry of Finance proposes to move away from the interest rate ceiling and plans other changes that would allow investors to get a higher return and choose more flexible investment periods.
“The Ministry of Finance is consistently increasing the attractiveness of defence bonds. We give up the interest rate ceiling, which means that, depending on the cost of borrowing on behalf of the State, the interest of more than 2% could be paid to those who have purchased defence bonds. We are also expanding investment opportunities and making this tool as easily accessible as possible to anyone who wants not only to invest but also to contribute to the national defence funding”, Minister of Finance Kristupas Vaitiekūnas states.
The draft Law on the State Debt proposes to change the conditions and restrictions of borrowing by the Government on behalf of the State for this purpose to finance projects related to national security and defence implemented by the Ministry of National Defence, i.e. to abandon the restriction that the annual profitability of the respective borrowing must not exceed 2%. Following the adoption of the draft Law, the interest paid would be determined on the basis of the interest corresponding to the borrowing on behalf of the State.
“This is one of the ways to create the preconditions for the consistent development of the Defence Bond Facility,” Minister of Finance K. Vaitiekūnas notes. “Defence bonds need to be economically attractive and as easily accessible as possible for individuals and businesses, so we plan to offer more innovation to investors in February through the continued distribution of defence bonds and the possibility to choose from a wider range of investment periods.”
Defence bonds are targeted Government Savings Notes (GSN) to finance defence needs. Since the launch of the defence bond placement in October 2024, over 15 issues, buyers have purchased these bonds for a total of EUR 216.7 million. The 16th issue of defence bonds is currently being distributed (until 19 January) and will be redeemed on 20 January 2027. This new one-year issue will be subject to a 2 % annual interest rate.
Last updated: 13-01-2026
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