Lithuania to seek next SAFE defence loan payment by September 30
Saturday 15th August 2026 on 22:30 in
Lithuania
Lithuania plans to submit an application to the European Commission for the next payment from its Security Action for Europe defence loan by the end of September, LRT reports. The funds are expected to reach Lithuania within two months of the application.
Lithuania received a 956 million euro advance at the end of June, equivalent to 15 percent of its total 6.375 billion euro SAFE loan.
The Finance Ministry said further payments would depend on meeting set targets, including announcing public procurements, signing contracts, paying manufacturers’ advances and receiving military equipment.
The ministry said the next application must be submitted by September 30. It will prepare payment requests based on information provided by the Defence Ministry and seek partial disbursements as the targets are achieved.
The Finance Ministry stressed that SAFE loan payments are not directly linked in time to defence procurements carried out by the Defence Ministry. The loan funds will be included in the state’s overall borrowing needs, while procurements will be financed from allocations approved in the state budget.
The Defence Ministry said the loan would finance defence investments already planned in the state budget, but under more favourable borrowing conditions. It said the funds would be used to develop Lithuania’s national division, with a significant share directed to air defence.
The loan will also finance combat, support and logistics systems, ammunition, counter-mobility measures and mines for the Baltic Defence Line, as well as the maintenance and development of other Lithuanian military capabilities.
The SAFE loan has a 45-year term and carries the same interest rate at which the European Commission borrows. Lithuania will have a 10-year grace period on repaying the principal and will pay only interest during that period.
SAFE is a temporary European Commission instrument for strengthening defence that will operate until the end of 2030. It has a total volume of 150 billion euros and allows EU member states to conduct joint defence procurements in priority areas including ammunition, land forces, air defence, maritime capabilities, cybertechnology, space technologies and artificial intelligence.