Defence loan: NIB lends EUR 400 million for Lithuania’s resilience
NIB and the Republic of Lithuania have signed a EUR 400 million uncommitted credit facility for national defence system investments during 2025–2027.
The 20-year financing is earmarked for budgetary expenditures related to dual-use and infrastructure developments aimed at strengthening Lithuania’s defence capabilities.
The investments include IT and cybersecurity enhancements, the purchase of transport and engineering equipment, vessels, and the modernisation of aircraft and helicopters. Moreover, the financing will support the development of residential, administrative, and training facilities for the National Division and the incoming German Division that will be stationed in Lithuania.
Rimantas Šadžius, Lithuania’s Minister of Finance, says: “I am pleased that financial diplomacy is yielding tangible results—in March, during a meeting in Helsinki with the NIB President, we discussed the possibility of borrowing for defence needs, and today Lithuania is the first member country that can directly use a loan from NIB for the development of Lithuanian security projects. This is a symbolic decision for today, demonstrating that for 20 years Lithuania has had a highly reliable partner that understands the country’s essential investment needs.”
André Küüsvek, NIB President & CEO, says: “Security is not only a public good but is also paramount for economic development. Through this cooperation, we can directly address the most pressing needs of our owners and ensure the financing needed for long-term resilience.”
In 2024, NIB’s Board of Governors invited the Bank to increase its focus on security and resilience, alongside its mandate to support productivity and environment. The financing is in line with NIB’s revised Sustainability Policy allowing investments for dual-use equipment and projects—those with both military and civilian applications—as well as facilities, services, technology and other defence equipment, except for weapons and ammunition.
Strengthening security and addressing the country’s defence needs are among Lithuania’s budget priorities for 2025–2027. Additionally, the state borrowing limit has been increased by EUR 800 million in 2025, providing for the right to borrow for national defence purposes.
Today at 14:00 EEST, the 20th anniversary of the Baltic States’ membership in NIB will be marked at an event in Vilnius. Finance Minister Rimantas Šadžius, former President of Lithuania Dalia Grybauskaitė, NIB President & CEO André Küüsvek, and representatives from other organisations will discuss the economic development of the past decades and the future prospects of the Nordic-Baltic region in light of geopolitical, economic and environmental challenges. The event will be broadcast live on our website.
NIB is the international financial institution of Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances projects that improve productivity and benefit the environment of the Nordic-Baltic region. The Bank is headquartered in Helsinki with a regional hub in Riga. NIB has the highest possible credit rating, AAA/Aaa, with S&P Global Ratings and Moody’s.
For further information, please contact
Dmitri Kouznetsov, Head of Public Sector & Utilities, at +358 10 618 0218, dmitri.kouznetsov@nib.int
Vilius Girkontas, Country Lead for Lithuania, +358 10 618 0240, vilius.girkontas@nib.int
Vytautas Brazaitis, Senior Communications Officer, at +358 10 618 0235, vytautas.brazaitis@nib.int
