Lithuania secures a EUR 400 million defense loan from NIB, commemorating Baltics' 20-year milestone in membership.
In a significant move to strengthen Lithuania's defence capabilities, the Nordic Investment Bank (NIB) has announced a 20-year financing deal worth millions of euros. This partnership, which marks 20 years since Estonia, Latvia, and Lithuania became members of NIB, will focus on enhancing security and resilience in the Nordic-Baltic region.
The financing from NIB is intended to ensure long-term resilience, particularly in areas of conventional weapons and ammunition, IT and cybersecurity, transport and engineering equipment, vessels, modernisation of aircraft and helicopters, and other defence-related projects. This strategic approach is a response to evolving geopolitical challenges and increased demand for defence investment.
NIB, headquartered in Helsinki with a regional hub in Riga, has been a highly reliable partner to Lithuania for the past 20 years. The bank's focus has been expanded in 2024 to include investments in dual-use equipment and projects with both military and civilian applications.
André Kuüsvek, NIB President & CEO, emphasised the importance of security as a public good and its crucial role in economic development. He stated, "Security is a public good and is crucial for economic development."
The state borrowing limit in Lithuania has been increased by EUR 800 million in 2025, allowing for borrowing for national defence purposes. Strengthening security and addressing defence needs are top budget priorities for Lithuania in the years 2025-2027.
The investments under this deal will cover facilities, services, technology, and other defence equipment, excluding weapons and ammunition. Today, Lithuania is the first member country to directly use a loan from NIB for Lithuanian security projects. The financing will support the development of residential, administrative, and training facilities for the National Division and the incoming German Division in Lithuania.
NIB's recent investments also extend to digital security, AI, and surveillance technology. A notable example is a USD 190 million loan provided to Securitas AB to finance investments in digitalisation and AI. These investments aim to modernize security measures, improve monitoring, threat prediction, risk mitigation, and overall resilience of critical infrastructure in the Nordic-Baltic region.
Rimantas Šadžius, Lithuania's Minister of Finance, expressed his satisfaction with the results of financial diplomacy. He met with the NIB President in March to discuss borrowing for defence needs. Minister Šadžius stated, "I am pleased with the results of financial diplomacy."
The countries that own NIB are Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The special event held in Vilnius to mark 20 years since Estonia, Latvia, and Lithuania became members of NIB is being live-streamed on the NIB website.
This investment strategy supports the region's overall capacity to absorb shocks and adapt to evolving security threats, aligning with contemporary resilience-first approaches advocated globally. The financing deal between NIB and Lithuania underscores the commitment of both parties to ensure long-term resilience and security in the Nordic-Baltic region.
- The partnership between the Nordic Investment Bank (NIB) and Lithuania will focus on enhancing security and resilience in the Nordic-Baltic region, with investments in areas such as transport and engineering equipment, IT and cybersecurity, and defence-related projects.
- NIB's focus has been expanded in 2024 to include investments in dual-use equipment and projects with both military and civilian applications.
- André Kuüsvek, NIB President & CEO, emphasised the importance of security as a public good and its crucial role in economic development, stating, "Security is a public good and is crucial for economic development."
- The investments under the NIB financing deal will cover facilities, services, technology, and other defence equipment, excluding weapons and ammunition, and will support the development of residential, administrative, and training facilities for the National Division and the incoming German Division in Lithuania.
