Lithuania receives first tranche of EU loan for defense modernization
Lithuania received a €956 million first payment under the EU's SAFE program, which provides loans for member states to strengthen their defense capabilities.
Lithuania received on Wednesday the first tranche of €956 million under the European Union's SAFE (Security for Europe) program, which offers loans for member states to rearm and modernize their armed forces. The amount represents 15% of the total €6.375 billion loan that Lithuania is eligible to receive. The funds are expected to help Vilnius cover about half of the costs needed to develop a national division.
Lithuanian Finance Minister Kristupas Vaitekūnas noted that Lithuania was among the first to complete bureaucratic procedures and sign SAFE agreements. "This is an extremely important tool, especially for the eastern flank countries of the European Union. These funds help accelerate the strengthening of our defense capabilities and achieve the goal of forming a division equipped with the most modern weapons by 2030," he said.
Lithuania plans to use the EU funds to build a national division, short- and medium-range air defense systems, artillery systems, howitzers, ammunition, and other military needs. A portion of the financing will also be allocated to support Ukraine.
The SAFE program includes 19 EU member states. The European Commission is currently signing final agreements with member countries. Poland was the first to sign the agreement and is the largest beneficiary, set to receive over €40 billion. In May, Warsaw received its first tranche of €6.6 billion, also equivalent to 15% of its total allocation.
