The government is extending another 250 million euros in soft loans for the defence industry in order to attract more investors and grow the sector, the Economy Ministry and the Finance Ministry have said.
Foreign companies not yet established in Lithuania but planning to invest here will also be able to apply, said Economy Minister Aušrinė Armonaitė.
“This will make it easier to attract high value-added projects and world-class companies from various sectors, which will create well-paid jobs and thus strengthen the Lithuanian economy,” Armonaitė said in a statement.
Finance Minister Gintarė Skaistė said that the additional support will boost defence companies that find it harder to access bank loans or EU funding.
Companies will be able to obtain investment or working capital loans from subordinated, syndicated or direct loans from the state-run finance company Invega.
“At the moment, many companies in this sector are just starting up in Lithuania, which makes it even more difficult for them to find the necessary funds,” said Inga Beiliūnienė, Invega board member and head of business development.
She said that banks do not lend to defence companies because of the risk that the funds could be used to finance terrorism or end up on the black market.
In April, the Government granted 850 million euros in soft loans to companies to invest in environmentally friendly technologies, high value-added products, and defence and security industries.
The measure is funded by the EU’s NextGenerationEU facility for economic recovery and resilience.
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