05-03-2025

The State will be able to provide up to 100% guarantees for loans for investments in the defence industry

The State will be able to provide guarantees for loans or non-equity securities, the funds of which are allocated for investments in the Lithuanian defence and security industry. This is provided for in the draft resolution prepared by the Ministry of Finance which was adopted by the Government on Wednesday.

This draft resolution implements the amendments to the Law on State Debt adopted last November, which aim to promote innovations and investments in the defence and security industry, increase the competitiveness of this industry, create favourable conditions for supplying institutions of the national defence system and ensuring public security with strategic goods, products intended for defence and/or public security needs.

Therefore, the Law established a new purpose for providing the State guarantee, i.e. that State guarantees may be granted for loans or non-equity securities, the funds of which are allocated for investments in the defence and security industry being developed in Lithuania.

The draft resolution provides that, in respect of loans and/or borrowing facilities provided by international financial institutions to stimulate the economy and finance investments in the defence industry, it is envisaged that up to 100% State guarantees may be provided, and in other cases – up to 80%.