Ministry of Finance: by integrating company Valstybės investicinis kapitalas into ILTE, we will be able to mobilise around EUR 1 billion for defence
The Minister of Finance signed an order initiating the transfer of shares of Valstybės investicinis kapitalas UAB (VIK) to the National Development Bank ILTE. With the Government's approval of the changes, this will allow for more efficient planning and management of long-term investments, speed up decision-making and allow the defence sector to mobilise an additional EUR 1 billion.
This proposal is part of the broader efforts of the Ministry of Finance to modernise public finance management and a step forward in the optimisation of public finances. This is not a technical overhaul but a significant financial management reform that will allow for a more strategic and responsible planning of public investment. This will ensure long-term and sustainable defence funding and create an added value of around EUR 1 billion for the development of the defence sector", Minister of Finance Kristupas Vaitiekūnas states.
According to the Minister, it is very important that the integration of VIK into ILTE would create conditions for mobilising an additional EUR 1 billion in defence funding in addition to the EUR 4.8 billion already approved in the national budget.
After the merger of VIK, which would take approximately 4 months, ILTE's authorised capital would increase to EUR 900 million and one strong national development bank (NDB) responsible for raising funds would ensure significantly greater opportunities to raise private funds for defence needs.
The estimated investment volume of EUR 1 billion to be mobilised for the development of the defence sector has been calculated on the basis of the planned effect of VIK capital multiplication (funds planned to be raised), the merging of defence funding sources and effective coordination within ILTE (one-stop-shop). This, in turn, will allow to work with large investors, for whom individual projects in the Lithuanian market are too small, to co-invest in the establishment of large defence industry companies in Lithuania, etc.
The benefits of this integration would be felt by both customers and all stakeholders: a one-stop-shop to all types of financial instruments would be applied and competition between two companies managed by the Ministry of Finance, which mainly carry out similar activities in the field of investments in defence and other sectors, would be avoided. This would make it possible, inter alia, to optimise the use of State resources.
More effective synergies with the financial instruments implemented or planned by ILTE would prevent the creation of competing financial instruments. At the same time, a centralised pooling of defence and other sector funding and fundraising competences in one place would help to compensate for VIK resource shortfalls.
Additional information: VIK’s assets amount to EUR 158.3 million, its equity to EUR 108.1 million, its authorised capital to EUR 101.2 million and its liabilities to EUR 50.2 million, the main part of which is for bonds. VIK has invested in Rheinmetall project through EPSO-G InvestUAB (EI), which has acquired 49% of the shares in EI (for EUR 18.4 million), while VIK has additionally committed to invest EUR 52.7 million in this project, with a maximum investment amount of EUR 71.1 million.
Last updated: 26-02-2026
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