The second issue of the defence bonds was distributed on 4-18 November and will be redeemed on 19 November 2025. This issue will be subject to a 2 % annual interest rate.
During that period, Swedbank concluded 257 contracts for the purchase of the defence bonds for EUR 1.3 million, SEB – 112 contracts for EUR 1 million.
The Ministry of National Defence would consider purchasing different anti-drone systems for EUR 2.3 million, the value of which per unit ranges from approximately EUR 20 to 100 thousand. This may include different types of systems such as portable handheld anti-drone, drone detection systems, mobile drone detection systems, etc.
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 third issue will be placed on 2-16 December 2024 and redeemed on 17 December 2025. 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.
About the Defence Fund:
We would like to note that the Defence Fund entered into operation on 1 October with the aim of increasing the national defence funding up to 3% of gross domestic product (GDP) in the long term, foreseeing additional sustainable sources of financing. Proceeds from taxes – diverting part of revenue from the corporate income, excise, municipal autonomous income to civil protection and extended Solidarity contribution for a year – will reach the Fund starting from 2025, while the opportunity to contribute to the Defence Fund for everyone started on 1 October by making a voluntary contribution (more information can be found on the Defence Fund’s website www.gynybosfondas.lt).
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.
