Lithuania To Advance Key Weapons Payments With Higher Borrowing Cap

2025-08-16 07:08:11

(MENAFN- Trend News Agency) BAKU, Azerbaijan, August 16. Lithuania's new government has opened the floodgates by raising the 2025 borrowing limit for defense needs by 800 million euros, allowing the Ministry of National Defense to hit the ground running with advance payments for critically important weapons platforms and equipment, Trend reports.

“Collective defense is our fundamental pillar, and Lithuania's main contribution to it is a NATO-standard mechanized division. Tanks are the primary platform in such a unit. Their integration into the forces is time-intensive, so any delay is unacceptable,” said Minister of National Defense Dovilė Šakalienė.

The move follows the NATO regional defense plans and the agreement signed in Berlin by Minister Šakalienė and German Defense Minister Boris Pistorius for the purchase of 44 Leopard 2A8 tanks. The goal is to speed up production and ensure delivery by 2030, bringing the National Division closer to full operational capability.

The Leopard 2A8 tanks will come equipped with state-of-the-art protection systems, boasting sensors, laser warning receivers, and top-notch electronic and kinetic anti-drone defenses designed to keep pace with the fast-moving world of drone warfare.

According to Minister Šakalienė, the procurement is not merely critical for the unit's operational efficacy and a transformative phase in defense modernization but also a pivotal component of synergy with the German contingent designated for the protection of Lithuania.

Lithuania is poised to execute the preliminary financial disbursement for the armored battalion in the third fiscal quarter of the current calendar year.

In accordance with the fiscal framework established by the 2025–2027 state budget legislation, the Ministry of Finance is empowered to engage in borrowing activities to address national defense imperatives, encompassing enhancements to military mobility infrastructure and strategic capital allocations within the domestic defense sector.

Lithuania is already allocating 4 percent of its GDP to defense this year, with plans to increase that share to 5.25 percent next year.

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