State Guarantees for Defense and Security Industry Investments
The state will be able to provide guarantees for loans or non-equity securities, with funds allocated for investments in Lithuania’s defense and security industry. This is outlined in a draft resolution approved by the government on Wednesday, prepared by the Ministry of Finance.
Implementation of Legal Amendments
This draft resolution implements amendments to the State Debt Law adopted in November of last year. These amendments aim to promote innovation and investment in the defense and security industry, enhance its competitiveness, and create favorable conditions for supplying strategic goods and products for defense and public security needs.
New Purpose of State Guarantees
As a result, a new purpose for state guarantees has been established in the law. The state may provide guarantees for loans or non-equity securities, with funds directed toward investments in Lithuania’s emerging defense and security industry.
Up to 100% State Guarantees for Defense Industry Financing
The draft resolution specifies that for loans and borrowing instruments provided by international financial institutions to stimulate the economy and finance investments in the defense industry, the state may provide guarantees of up to 100%. In other cases, the guarantee may cover up to 80% of the loan.
Lietuvosvalstybe.com
Sources:Ministry of Finance of the Republic of Lithuania
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