The funding will support improvements in IT and cybersecurity, the procurement of transport and engineering equipment, and the modernisation of aircraft and helicopters. It will also contribute to constructing residential, administrative, and training facilities for both Lithuania’s National Division and the German Division to be stationed in the country.
Lithuania’s Minister of Finance, Rimantas Šadžius, commented: “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.”
NIB President and CEO André Küüsvek said: “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 directed the Bank to expand its focus on security and resilience in addition to its traditional roles supporting productivity and environmental goals. The financing aligns with NIB’s updated Sustainability Policy, which permits investments in dual-use equipment and facilities—those serving both military and civilian purposes—while excluding weapons and ammunition.
Defence spending remains a priority in Lithuania’s national budget for 2025–2027. To accommodate this, the government has raised its borrowing limit for 2025 by €800 million, enabling further access to funding for defence-related initiatives.
The Nordic Investment Bank is the international financial institution of eight Nordic and Baltic countries, including Lithuania. Headquartered in Helsinki with a regional hub in Riga, the Bank holds top-tier credit ratings (AAA/Aaa) from S&P Global Ratings and Moody’s.
