Lithuania is requesting between 5-8.76 billion euros in loans from the European Defence Fund, the Finance Ministry of confirmed on Wednesday, following the European Commission’s announcement that 18 EU member states are collectively seeking at least €127 billion in funding.
"In its application drawn up by the Ministry of Defence, Lithuania indicates the preliminary amounts of a minimum of €5 billion and a maximum of €8.76 billion. These amounts are based on an assessment of Lithuania's defence capability development needs and the preliminary compliance of the proposed procurement with the SAFE [Security Action Programme for Europe] regulation," the ministry told BNS.
In late May, Prime Minister Gintautas Paluckas stated that Lithuania hoped to borrow up to €7 billion from the EU defence fund.
The ministry said the European Commission will review member states’ applications when deciding on initial loan allocations. Countries will then have until the end of November to submit detailed defence investment plans for evaluation.
The final loan amount allocated to Lithuania will depend on the Commission’s assessment of whether the proposed spending aligns with the objectives of the SAFE programme.
"This does not mean that Lithuania should receive exactly the same or similar amounts," the Finance Ministry noted.
According to the ministry, the loans would be used to fund the development of Lithuania’s planned military division, acquisition of combat and logistical support systems and ammunition, the Baltic defence line, other capabilities of the Lithuanian Armed Forces, as well as military aid to Ukraine.
SAFE loans may also be used to cover part of the defence expenditure included in the national budget.
Newsletter
Every Friday morning.
