Economy

Crypto-asset service providers will be required to provide information on crypto-asset users

2025-06-26T14:02:03+03:00

The Seimas approved the draft laws prepared by the Ministry of Finance introducing an obligation on crypto-asset service providers to provide the State Tax Inspectorate (STI) with information on their crypto-asset users. These amendments will facilitate the fight against tax fraud, tax evasion and tax avoidance at international level.

Under the new regime, which will enter into force on 1 January next year, the information provided by crypto-asset service providers in relation to their crypto-asset users will be exchanged with EU Member States and other States that have acceded to the OECD standard in a targeted manner by the STI and which at the same time will receive from them, accordingly, the data on Lithuanian residents who are crypto-asset users, in order to protect the tax revenue of the states.

Reporting crypto-asset service providers will have to collect and report information on their reportable crypto-asset users – residents of the EU Member States, including residents of Lithuania and third countries – to the STI once a year for the previous calendar year.

The adopted legislative amendments transpose the provisions of the Directive on administrative cooperation in the field of taxation and harmonise reporting standards for crypto-assets in line with the framework developed by the Organisation for Economic Cooperation and Development (OECD).

www.finmin.lrv.lt

Baltic AI 'giga' factory: Lithuania joins billion-euro ambition

2025-06-25T09:59:13+03:00

Together with Estonia, Latvia and Lithuania, Poland has submitted a proposal to the European Commission to establish an AI Giga Factory in cooperation with a consortium of private companies and research institutes. This is the first step in formally expressing interest in joining the initiative. The consortium is led by Poland.

The Baltic AI Giga Factory aims to accelerate the development of artificial intelligence in the region. The project's main outcomes will be the establishment of a high-performance AI centre in Poland and a significant increase in the use of AI technologies among businesses, citizens, and public administrations across the region. A key part of the project involves developing Polish and Baltic language models, such as PLLuM and Bielik, and integrating generative AI into administrative tools and processes.

Every major investment in Poland, Lithuania, Latvia or Estonia is an investment in the security and economic strength of the entire Baltic region. Therefore, we must act as a single region — fast, innovative and reliable. In areas such as defence, artificial intelligence and green technologies, we can and must grow together if we want to be equal players in the geopolitical arena," says Lukas Savickas, Minister of the Economy and Innovation of Lithuania.

According to the minister, it is important to ensure that the interests of Eastern European countries and smaller communities are represented in the development of AI in Europe, and that their niche competencies become a key contribution to common European AI goals. Together with Poland, Latvia and Estonia, Lithuania is seeking to establish the Baltic region as a potential centre for AI development.

Having received government approval, Lithuania is preparing a smaller-scale application to the European Commission for the establishment of a national AI factory. This would contribute significantly to the Baltic region's AI infrastructure and could form part of a regional AI 'giga factory'. The project is worth €100 million. The centre is planned to function as a national hub for artificial intelligence expertise and technology, bringing together advanced computing infrastructure, data, talent, and scientific and business knowledge in a single space. The public sector, businesses and academic institutions will collaborate closely to ensure that AI solutions are developed and implemented, from public services to industry and defence.

According to the proposal submitted by the Baltic States and Poland, the centre of the higher-value, larger-scale 'giga factory' would be located in Poland, primarily in two locations, to ensure efficiency, sustainability, and minimal data transmission delays. Several locations are currently being considered. All options must ensure sufficient infrastructure, access to green energy, and reliable cooling systems.

'I am proud that Poland is building a coalition of countries and stakeholders committed to developing artificial intelligence, together with other countries. The Baltic AI Giga Factory will provide world-class computing infrastructure for researchers, entrepreneurs, industry and citizens across the region. It would collaborate closely with national AI centres in Tallinn, Riga, Vilnius, Krakow, Poznań, Gdańsk, Wrocław and Warsaw to foster a connected innovation ecosystem," said Dariusz Standerski, Poland's Vice-Minister of Digital Affairs.

The project's planned budget is €3 billion. The majority of these funds will be allocated to the capital expenditure necessary for constructing the Giga Factory. The proposal provides for significant private investment, with the expectation that private funds will account for 65% of the total investment.

At this initial stage, the consortium consists of interested parties, including cloud service providers, leading AI companies, research institutes, and industry associations. It is expected that the consortium will grow to better meet market needs and the scale of the planned activities.

https://eimin.lrv.lt/

Corporate income tax set to rise to 17 %

2025-06-24T11:16:56+03:00

The Seimas has adopted amendments to the Law on Corporate Income Tax providing for an increase in corporate income tax from 2026.

Under the adopted amendments, both the standard and the reduced corporate income tax rates will increase by one percentage point to 17 % and 7 % respectively. The aim is to contribute to securing sustainable sources of revenue for the financing of defence.

As regards small businesses, it has been decided to extend the period — from one to two years —during which the profits earned by newly-registered companies will be subject to a 0 % corporate income tax rate, thus facilitating their growth and development. At the same time, the requirement for these small entities not to exceed the average number of 10 employees on the staff list to qualify for the tax relief has been abolished. The only eligibility criterion will now be a taxable income of no more than EUR 300,000 during a tax period.

As noted in the conclusion of the Seimas Committee on Budget and Finance, Lithuania ranks as a country with one of the lowest effective corporate income tax rates among the EU Member States, and raising the standard corporate income tax rate to 17 % would not significantly affect this ranking. ‘In 2023, Lithuania ranked 23rd out of 27 EU Member States, with an effective rate of 12.4 % (based on a nominal corporate income tax rate of 15 %), while Latvia ranked 18th with an effective rate of 16.5 % and Estonia ranked 20th with an effective rate of 15.7 %. Adding two percentage points to Lithuania’s rate to reflect the proposed 17 % nominal rate in 2026 would move Lithuania to the 22nd place in the ranking,’ the document states.

The amendments also provide for an immediate deduction of the acquisition cost of certain fixed assets, as an incentive for business investments that enhance productivity. In addition, deductions will be permitted for grants paid under trilateral agreements to students in natural sciences, technology, engineering or mathematics, and for scholarships granted to researchers working on research and experimental development (R&D) projects, thereby promoting advances in high-technology and innovation.

The amendments to the Law on Corporate Income Tax were adopted by 96 votes in favour, with 19 votes against and 8 abstentions.

www.lrs.lt

EIB backs new military base in Lithuania with €540 million loan

2025-06-23T15:51:18+03:00

The European Investment Bank (EIB) plans to lend €540 million for Lithuania to build a military base south of the capital Vilnius, highlighting Europe's collective commitment to bolster its defence infrastructure and deterrence capacity. The new base in Rūdninkai will host a German brigade, strengthening the rapid-response capabilities of the North Atlantic Treaty Organization in the region.

Construction of the Rūdninkai military site, which will be located 35 kilometres from the border with Belarus, is due to begin in 2026. The project will span 170 hectares, lay out 11 kilometres of roads and feature around 150 buildings including medical centres, residential units, training facilities, warehouses, hangars and helipads.

“This is a landmark step in how we support Europe’s security,” EIB Group President Nadia Calviño said in Luxembourg where she met Lithuanian Finance Minister Rimantas Šadžius. “By financing large-scale military infrastructure, we’re demonstrating our readiness to meet the region’s evolving defence needs. It reflects the EIB’s growing role in safeguarding stability across the European Union.”

The initiative is strategically important for NATO’s eastern defence. Rūdninkai is near a narrow corridor that represents the only land route between the Baltic states and the rest of NATO as well as of the EU. The corridor, known as the Suwałki Gap, is bordered by Belarus to the southeast and Russia’s Kaliningrad exclave to the northwest.

The financing from the EIB is part of its recently expanded scope of activities in the areas of security and defence to include military investments that align with the EU’s goals of bolstering preparedness and crisis management. The approved EIB loan will be to private partners to be selected by the Lithuanian Ministry of Defence to carry out the project.

“I greatly appreciate the invaluable expertise and financial support from the EIB in implementing the Rūdninkai project that will strengthen Lithuania's defense capabilities,” said Lithuanian Finance Minister Šadžius. “We are already seeing the results of financial diplomacy and we can confidently state that the EIB's involvement will contribute not only to Lithuania’s debt sustainability and stronger fiscal stance but also to the security of our country.”

The EIB Board of Directors approved the €540 million loan at a meeting on 19 June in Luxembourg. The endorsement paves the way for legal and financial negotiations over the loan that are expected to be completed in the coming months.

“This investment marks a historic milestone for Lithuania’s national security and NATO’s collective defence,” said Lithuanian Minister of National Defence Dovilė Šakalienė. “The Rūdninkai military base will not only strengthen our defence posture but also serve as a permanent home for the German brigade – a cornerstone of NATO’s deterrence in the region. The EIB’s support is a clear sign that European resilience begins with shared responsibility."

The EIB backing for the Rūdninkai military site will help spread the costs of the project, easing the burden on Lithuanian finances and on companies involved in an initiative that takes the form of a public-private partnership (PPP). The EIB is also providing advisory services to ensure that the PPP agreements meet market standards and follow best practices.
The Rūdninkai base will accommodate around 4,000 German troops and 750 civilian personnel.

In April 2025 Germany activated the 45th Panzer Brigade of the German Armed Forces (Bundeswehr), also known as the Lithuania Brigade. For Germany, it's the first brigade-sized unit to be based abroad permanently since World War II.

Background information:
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, the EIB finances investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, the capital markets union and a stronger Europe in a more peaceful and prosperous world.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

The EIB Group stepped up its support to Europe’s security and defence industry by expanding the scope of projects eligible for financing and setting up a one-stop shop to streamline processes, doubling investment to €1 billion in 2024. The EIB Group expects to multiply this amount in 2025 to new record.

The Board of Directors in March approved a series of additional measures to further contribute to European peace and included peace and security as a cross-cutting Public Policy Goal to finance large-scale strategic projects in areas such as land-border protection, military mobility, critical infrastructure, military transport, space, cybersecurity, anti-jamming technologies, radar systems, military equipment and facilities, drones, bio-hazard and seabed infrastructure protection, critical raw materials and research.

www.finmin.lrv.lt

Defence bonds issued for EUR 14.2 million during the ninth issue

2025-06-17T19:43:18+03:00

Individuals, businesses and other organisations purchased defence bonds for EUR 14.2 million during the ninth issue placement, where 741 transactions were concluded. Following the launch of the distribution of defence bonds this year, buyers purchased these bonds for a total of EUR 51.6 million through nine issues.

The ninth issue of the defence bonds was distributed on 2-16 June 2025 and will be redeemed on 17 June 2026. This issue will be subject to a 2 % annual interest rate.

During that period, Swedbank concluded 521 contracts for the purchase of the defence bonds for EUR 8.7 million, SEB – 220 contracts for EUR 5.5 million.

The defence bonds are targeted Government savings notes (GSN) to finance defence needs. The peculiarity of the defence bonds is that the State borrows from individuals and businesses cheaper than in the markets, and the latter thus contribute to the financing of the national defence.

The preliminary schedule for the issue of the defence bonds foresees that the tenth issue will be placed on 7-21 July 2025 and redeemed on 22 July 2026. The schedule is updated on a monthly basis and published on the website of the Ministry of Finance.

The defence bonds will be offered through the distributors selected by the Ministry of Finance, i.e. Swedbank and SEB. Natural and legal persons will be able to subscribe the defence bonds in Swedbank or SEB online bank, as well as in SEB bank branches. More information on the acquisition of the defence bonds can be found at www.gynybosfondas.lt and on the website of the Ministry of Finance.

The interest rate for the defence bonds for each issue shall be set taking into account the average interest rate for borrowing by the Government on behalf of the State of an appropriate maturity, but in any case, it may not exceed 2 %, as decided by the Seimas on 20 June 2024. The interest rate will be set and published together with other terms and conditions of the issue placement of the defence bonds on the website of the Ministry of Finance at least one working day before the commencement of the placement of the defence bonds.

When the time comes to redeem the defence bonds, nothing will have to be done - the money for the redeemed defence bonds and the interest due will be automatically transferred to the same account from which the payment for the purchased defence bonds was made.

More information on the defence bonds can be found in the special column “Frequently asked questions” here.

About the Defence Fund:

Please note that the Defence Fund entered into operation on 1 October with the aim of increasing the national defence funding, foreseeing additional sustainable sources of financing.

The resources of the Defence Fund will be dedicated for acquisition of weapons, equipment and ammunition necessary for the development of a division-level military unit capacity, infrastructure necessary for the German brigade in Lithuania, acquisition and development of counter-mobility measures, military mobility and double-purpose (civil and military needs) transport infrastructure projects, strengthening and development of the civil protection foreseen in the Law on Crisis Management and Civil Protection.

www.finmin.lrv.lt

flydubai to Launch Direct Flights Between Vilnius and Dubai Starting December 2025

2025-06-16T10:54:02+03:00

A new airline is entering the Lithuanian aviation market. Flydubai has announced plans to launch direct scheduled flights between Vilnius Airport (VNO) and Dubai International Airport (DXB) in the United Arab Emirates (UAE), starting December 2025. This will mark flydubai’s debut in Lithuania. The airline is expected to operate three weekly flights from December 11, continuing through both winter and summer seasons.

“We are expanding Lithuania’s aviation map. This direct connection with one of the key hubs in the Middle East opens up new opportunities for tourism and business alike. It also allows passengers to reach hundreds of other global destinations more quickly and conveniently,” said Lithuania’s Minister of Transport and Communications, Eugenijus Sabutis.

The direct flight between Vilnius and Dubai will take just over six hours. Flydubai will operate the route using modern Boeing 737 aircraft, offering both Economy and Business Class options. Tickets are already available for purchase on the airline’s official website.

“The planned launch of flydubai at the end of 2025 marks another important step in consistently improving air connectivity in Lithuania. The airline offers a high-quality travel experience, and when flying through Dubai in partnership with Emirates, passengers will benefit from seamless connections to more than 200 destinations worldwide. This expansion will further strengthen Lithuania’s ties with strategically important regions – the Middle East, Africa, and Southeast Asia,” said Simonas Bartkus, CEO of Lithuanian Airports.

Commenting on the launch of flights, Jeyhun Efendi, Divisional Senior Vice President of Commercial Operations and E-commerce at flydubai, said:

“Europe remains an important market for flydubai and we are excited to grow our network with the launch of flights to Vilnius. This new gateway into the Baltic region reflects our ongoing commitment to stimulating free flows of trade and tourism and providing a reliable and elevated travel experience. With the start of operations to Vilnius, we look forward to offering passengers more opportunities to explore Dubai, the GCC region and onwards on the flydubai network including Kenya, the Maldives, Tanzania, Thailand and Sri Lanka.”

Whether you’re looking for a beach getaway or a city break, Dubai is the perfect destination where you can look forward to luxurious resorts, world-class shopping and dining, as well as plenty of activities for families and adventure seekers. Marvel at the Burj Khalifa or discover the stunning natural landscapes of Dubai’s surrounding deserts. Visitors can also spend the day wandering through the Dubai Mall or exploring the city’s souks and markets.

Dubai – A Global Hub for Business and Tourism

Dubai is a vital shipping port in the Middle East and a global business hub. It is home to many major international aviation service providers and is continuously expanding. As the largest city in the UAE, Dubai also hosts a sizeable Lithuanian community. Dubai International Airport (DXB) is the largest airport in the Middle East and the world’s busiest airport in terms of international passenger traffic.

In total, 16 airlines will operate regular flights from Lithuanian airports in 2025.

www.vno.lt

Lukas Savickas opens Lithuanian laser laboratory in California

2025-06-12T12:56:05+03:00

The Minister of the Economy and Innovation, Lukas Savickas, officially opened the laser processing applications laboratory of the Lithuanian company, Light Conversion, in California. The company is expanding its operations in the United States by setting up in Silicon Valley, one of the world's most important technology hubs.

'The Lithuanian high-tech sector is becoming increasingly active in global value chains. Even in challenging international trade conditions, our companies are finding ways to establish themselves in markets such as the United States. This demonstrates their technological potential and ability to not only enter the global market, but also grow within it," said the Minister of the Economy and Innovation, L. Savickas.

During the visit, the minister discussed Light Conversion's expansion plans, opportunities to strengthen cooperation with local industrial companies and ways to boost competitiveness in local and international markets with the heads of the US division.

The new Light Conversion laboratory is located in Silicon Valley, California. It will develop and test advanced laser processing solutions for manufacturing semiconductors, electronics, medical devices, and other high-value products. The technologies implemented in the laboratory will enable industrial customers to test laser system applications under real conditions, accelerating their integration into manufacturing processes.

This division complements the Light Conversion USA representative office, which has been operating in Montana since 2006, strengthening the company's position in one of its key export markets: the United States.

Light Conversion is one of the world leaders in the field of ultra-short pulse lasers.The company's laser systems are used by more than 9,000 scientific and industrial customers around the world, including all of the top 50 universities, such as Harvard, MIT, Yale and Columbia.

https://eimin.lrv.lt/en/

IMF: Lithuania's economy demonstrates resilience, but strategic decisions are necessary to ensure sustainable growth and fiscal stability

2025-06-10T15:49:27+03:00

Experts from the International Monetary Fund (IMF), who analysed Lithuania’s economy for two weeks, presented their conclusions, stating that, against the backdrop of geopolitical tensions, Lithuania’s economy demonstrates resilience to external shocks. The economy is forecast to continue to grow significantly this year and inflation is expected to remain sustainable. However, the challenges facing the economy are increasing: rising defence spending, deteriorating demographics, changes in labour supply. IMF experts underline the need to accelerate the implementation of structural reforms, increase economic productivity and manage public finances more effectively to ensure continued sustainable economic growth.

“The Lithuanian economy has repeatedly demonstrated its resilience to various shocks, but uncertainty in the external environment is still in the air. Taking into account the geopolitical situation and the need to strengthen national and regional defence capabilities, we must provide sustainable sources of income and improve revenue collection, as well as increase the productivity and competitiveness of the economy, make the necessary decisions in the area of structural reforms in order to keep the economy firmly on the growth path and prepare for various future challenges", Minister of Finance Rimantas Šadžius states.

“We are consistently strengthening competition in the financial sector and improving access to services for the Lithuanian population. From this year, housing loans can be refinanced more easily and cheaper, and lenders must offer fixed interest rates to anyone applying for a housing loan. In FINTECH we focus on quality and successfully attract international market leaders. I am particularly pleased that IMF experts have noted Lithuania's significant progress in strengthening the prevention of money laundering," Gediminas Šimkus, Chairman of the Board of the Bank of Lithuania, says.

In 2024, Lithuania's economy grew by 2.7%, far ahead of many other European countries. According to IMF estimates, Lithuania's economy will remain firmly on the growth path in 2025, with growth expected to reach 2.8%, and inflation, although slightly rising, will be kept under control at 3.1%. Growth will be supported by increasing population consumption, rising real income and public sector investment supported by EU funds. However, Lithuania needs to be prepared for potential risks, such as geopolitical divisions and tensions, international trade uncertainty and mounting restrictions, demographic changes, which can negatively affect the labour market, investment and productivity.

While revenue collection in the country is higher than planned, the general government deficit and the country’s debt are still increasing, mainly driven by increases in pensions, social benefits and public sector wages. Given the growing demand for defence funding – the planned increase in the defence budget to 5-6% of gross domestic product (GDP) in 2026-2030 – fiscal policies will need to be more sustainable in the coming years, requiring additional revenue and more efficient management of public spending.

The proposed changes to the tax system, which are currently being discussed at the Seimas of the Republic of Lithuania – increased progressivity, review of tax reliefs, taxation of profits and real estate – are a step in the right direction. However, according to the IMF, these changes would have a rather limited impact on the State budget revenue. The IMF is therefore pushing for an even more progressive personal income tax system that is socially fairer and reduces income inequality. It is also necessary to address the gap in value added tax (VAT) collection in order to increase budgetary revenue and strengthen the fiscal stability of the country. In addition, the IMF stresses the importance of spending management tools alongside revenue increases, such as improving cost-effectiveness and optimising systems in a wide range of areas, including health, social protection and education.

Strengthening the multi-pillar pension system would help to reduce the medium-term burden on public expenditure, which is compounded by unfavourable demographic changes in the country, such as an ageing population and rising pension costs. The reform of the 2nd pillar of pension accumulation currently under discussion, which provides for voluntary participation in pension accumulation and wider options for its discontinuation, is likely to have a significant impact on public finances and replacement rates in old age, and the IMF therefore calls for a responsible assessment of all possible social and fiscal consequences of this reform.

The IMF also encourages attention to the implementation of structural reforms in the country to ensure productivity improvements, investment improvements and the strengthening of the labour market. It is important to ensure adequate funding instruments for small and medium-sized enterprises, to promote innovation, digitalisation and the uptake of artificial intelligence. In addition, the proper and effective integration of migrants into the labour market is essential to ensure a shrinking supply of local labour.

In the field of energy security, Lithuania has achieved significant results: in 2025, the Baltic States completely disconnected from the Russian electricity system, and renewable energy generation capacity increased significantly. However, climate change risks remain relevant and therefore the green transformation and adaptation measures need to be given consistent and adequate attention against the backdrop of other structural reforms and public spending needs.

The IMF estimates that the banking system remains liquid and well-capitalised and is therefore well equipped to absorb unexpected shocks. Banks’ profitability levels, although declining somewhat in 2024 as a result of falling key interest rates, will remain high. The recovery in credit demand and falling interest rates have boosted borrowing for both companies and residents, while the housing market is becoming more active and prices are rising moderately.

The IMF underlines that risks in the financial sector are currently well managed, but that it is necessary to further strengthen cyber resilience and to continue significant progress in the fight against money laundering, especially in the context of the growing financial technology sector. Risks to financial stability must also continue to be closely monitored.

More information: IMF.org.

Lithuania has been a member of the IMF since 1992. The IMF currently is an organisation of 191 countries. The annual consultation of the IMF is carried out in accordance with Article IV of the IMF Agreement, which obliges IMF member countries to pursue economic and financial policies that ensure the financial and economic stability of the country and the world.

www.finmin.lrv.lt

Lithuania Submits Applications for Three Long-Term Projects to Be Included in ENTSO-E’s Ten-Year Electricity Development Plan

2025-06-02T15:56:04+03:00

The electricity system operators of Lithuania, Latvia and North-East Germany, namely, Litgrid, Augstsprieguma tīkls and 50Hertz, are submitting a joint application for the inclusion of the Baltic Hub hybrid offshore electricity interconnection project in the 2026 Ten-Year Network Development Plan (TYNDP) of the European Network of Transmission System Operators for Electricity (ENTSO-E). Litgrid is also submitting two other international projects: a project submitted jointly with Poland, Latvia and Estonia to synchronise the Baltic countries with the continental European networks, and a project to expand the capacity of power transmission with Latvia.

All three projects contribute to integrating the regional electricity market, increasing system reliability and achieving national and European sustainability goals. The preservation of vital infrastructure for Baltic synchronisation is also given careful consideration. To make sure that development aligns with the EU's energy and climate goals, the ENTSO-E TYNDP involves scenario building, stakeholder discussions, and collaborative modelling of the European electrical system. In addition, it includes evaluating the economic, technical, and social effects of the projects through a cost-benefit analysis. The TYNDP projects that meet the requirements can be recognised as Projects of Common Interest and are eligible for EU funding.

“The application we are submitting today is a real step forward for Lithuania, Latvia and Germany towards a maritime electricity connection, which will increase the resilience of critical energy infrastructure across the entire region. The Baltic Hub serves as a clear illustration of how we are promoting the growth of renewable energy and energy security not only through declarations, but also through practical action. Today’s step will ensure that the offshore power link between Germany and the Baltic States appears on the EU’s energy infrastructure map,” Lithuanian Energy Minister Žygimantas Vaičiūnas said.

“We are consistently implementing the EPSO-G group’s strategy. We are striving for greater integration and increased capacity in the region. By enabling renewable energy and increasing resilience in a broader sense, we have the opportunity to partner with Germany in two sectors: energy and defence. We are proud to contribute to the energy transition and the security of Lithuania’s defence capabilities,” Mr Mindaugas Keizeris, CEO of EPSO-G, noted.

“In February this year, we successfully disconnected from the Russian power grid and connected to the continental European networks. However, our commitment to ensuring future energy integration and security does not end there. The potential for offshore wind energy production in the Baltic Sea is around 93 GW, compared to less than 5 GW currently installed. We are responsibly assessing the possibilities for developing new connections with Germany and Latvia and carefully protecting the existing infrastructure to ensure that Lithuania achieves its goal of becoming a renewable electricity exporting country,” Rokas Masiulis, CEO of Litgrid, said.

In early April, Energy Minister Vaičiūnas, together with Latvian Climate and Energy Minister Kaspars Melnis and Volker Oschmann, Director-General for Electricity at the German Federal Ministry for Economic Affairs and Climate Action, presented the planned project for an offshore electricity interconnection between the Baltic States and Germany.The project concept presented by Litgrid, Augstsprieguma tīkls, and 50Hertz encompasses a 2 GW hybrid offshore connection, known as the Baltic Hub, which is approximately 600 km long. The connection point in the Baltic countries is planned to be on the border between Lithuania and Latvia, with the exact location to be determined following technical studies. The project is expected to be completed between 2035 and 2037.

In addition to facilitating the integration of up to 2 GW of offshore wind capacity in Lithuania and Latvia and increasing onshore renewable energy generation, the Baltic Hub project would allow electricity trading between the Baltic nations and Germany. This project would increase the reliability of the electricity supply to all three countries.

The other two international projects submitted by Litgrid are related to the strengthening of onshore electricity infrastructure. The Baltic synchronisation project is being submitted with a view to the smooth implementation of the Harmony Link interconnection project and to strengthening the protection of existing critical infrastructure, while a new electricity interconnection with Latvia will ensure market integration as the capacity of renewable energy power plants grows rapidly in Lithuania.

https://enmin.lrv.lt/

About state borrowing in 2024 – in the publication "General Government Debt"

2025-05-30T14:34:19+03:00

The Ministry of Finance has prepared a publication "General Government Debt 2024", which provides a detailed annual overview of Lithuania's borrowing - the level and structure of debt, borrowing instruments, loans on-lent by the state, and guarantees provided.

In 2024, the Government implemented all the set borrowing targets and ensured the necessary financing needs, provision of on-lent loans and fulfilment of the state's obligations with borrowed funds. The Government also adhered to all borrowing and state guarantee limits and properly managed the risks of interest rate fluctuations, refinancing, exchange rate changes and guaranteed debt.

Public debt in 2024 at a glance:

In 2024, the Government borrowed EUR 5,522.3 million to cover the Government’s financing needs and debt obligations.
45.3% of the total required amount in 2024 was borrowed through the placement of government securities (GS) on foreign markets via a joint placement (syndicate) in the form of Eurobonds, with two issues of EUR 1.5 billion in nominal value over a 10-year period and EUR 1 billion in nominal value over a 7-year period.
Following the announcement of 49 GS auctions in 2024, EUR 1,560 million of nominal value GS registered in Lithuania were distributed or replenished and EUR 685 million of nominal value Eurobonds were replenished.
Also, in 2024, the Ministry of Finance continued the distribution of Government Savings Notes (GSNs). Last year, EUR 78.4 million in nominal value savings notes were distributed, of which EUR 13.3 million were defence bonds (launched in October).
Loans amounting to EUR 698.8 million were received under contracts signed with the Council of Europe Development Bank and the European Commission in 2024 and previous years.
At the end of 2024, the outstanding balance of state on-lent loans granted to economic entities amounted to EUR 352.2 million.
The State guarantees granted amounted to EUR 1,026.2 million or 1.3% of gross domestic product (GDP) at the end of the year.
General government debt stood at EUR 29,972.4 million at the end of 2024, i.e. 38.2% of GDP.
Last year, the costs of managing debt on behalf of the State amounted to EUR 391.7 million, of which EUR 388 million was paid in interest on the loans taken out on behalf of the State and the GS distributed.

The full publication “General Government Debt 2024” is available here.

The Government plans to borrow around EUR 8.8 billion in 2025. The general government debt is forecast to stand at around EUR 35 billion at the end of 2025, or 42.4% of projected GDP.

Additional information:
Government securities (GS) are the main instrument of government borrowing. These are debt securities issued on behalf of the State on the domestic or foreign markets, confirming the right of the holder to receive, within the prescribed time limits, an amount corresponding to their nominal value, interest or other equivalent.
Joint distribution (syndicate) means a method of distributing GS whereby a group of financial institutions (syndicate) jointly organises and carries out the distribution of GS issue.
Eurobonds are a form of GS. These debt securities are issued by the state in foreign currency on international markets.
GS auctions means a method of distributing GS where the issuer of the GS (Ministry of Finance) accepts and executes bids to acquire the GS on the primary securities market through the organiser of the GS auction.
Government savings notes are one of the forms of GS. It is a safe and return-generating investment, similar to term deposits in a bank.