Lithuania requests €1.06 billion loan from European Commission

Lithuania has submitted its first request to the European Commission for a €1.06 billion loan under the Strengthening European Defence Capabilities (SAFE) instrument. Once approved, this amount, combined with a previous advance received in June, will bring Lithuania’s total under this measure to €1.86 billion, representing 29% of the €6.375 billion total credit allocated to the country.

Finance Minister Taurimas Valys stated that the SAFE instrument allows for significant national security investments under highly favorable conditions while reducing state borrowing costs. After accounting for the previous advance, the net transfer from this specific request will be approximately €905 million. The funds are designated for combat systems, military equipment, ammunition, and various modernization projects.

Specific defense priorities include the formation of a land forces division, the creation of the Baltic defense line, and the strengthening of air defense capabilities. The SAFE instrument offers a 45-year loan term with a 10-year grace period on principal repayments. Lithuania has the capacity to borrow up to €6.375 billion through this mechanism to support national defense and projects aiding Ukraine.