The Government of the Republic of Lithuania has approved a borrowing limit of EUR 89.5 million for UAB Valstybės Investicinis Kapitalas in 2025. The company will be able to borrow this amount through the capital markets or directly from financial institutions to finance its planned projects.
The company is classified as a central government entity, and its borrowing commitments increase the national debt. In order to sustainably manage the national debt, the Ministry of Finance approves borrowing limits for central government entities every year.
Some time ago, the Ministry of Finance adopted the necessary legal amendments enabling UAB Valstybės Investicinis Kapitalas to issue non-equity securities with a 100% state guarantee for investments in Lithuania’s defence and security industry. It should be noted that this will foster joint cooperation between foreign defence industry businesses and Lithuanian enterprises, drive innovation in the defence and security sector, and boost investment in the industry.
Over the course of this year, the company plans to make capital investments contributing to the expansion of German artillery ammunition manufacturer Rheinmetall AG in Lithuania. There are also plans to contribute to financing other significant investment projects in the defence industry in the future.