Vilnius, October 15 (ELTA) – Minister of Foreign Affairs Kęstutis Budrys and ambassadors of the European Union member states accredited to Lithuania on Wednesday discussed intensifying Russian provocations in European countries.

Budrys stressed at the meeting that Russia’s escalation and repeated violation of airspace of EU countries prove that measures must be taken to deter such Russian actions in the future.

The minister said that enhancing European defence capabilities by implementing NATO’s decision to allocate 5% of GDP on defence should be Europe’s key priority.

The head of Lithuania’s diplomacy notes that Europe must clearly demonstrate that it is serious about its defence and security, and that it is determined to implement decisions related to this.

According to the minister, it is crucial for Lithuania that, at the EU level, there would be understanding on the collective need to devote greater attention to enhancing security and defence of EU countries that share a border with Russia and Belarus.

Moreover, Budrys emphasised that it is necessary to impose tougher sanctions on Russia when adopting the 19th package of sanctions, to disrupt the activities of Russia’s shadow fleet and to boost financial and military aid to Ukraine.

The meeting was held at the invitation of Ambassador of Denmark to Lithuania Grete Sillasen. Denmark holds the Presidency of the Council of the European Union from 1 July 2025 to 31 December 2025.

Vilnius, October 15 (ELTA) – More than EUR 1 billion investments are planned in 12 new defence industry projects, Deputy Minister of the Economy and Innovation Paulius Petrauskas announced Wednesday.

“We are currently planning 12 new investment projects, whose total value is EUR 1.35 billion,” the deputy minister said at a sitting of the Seimas Committee on Economics.

Funding is primarily focused on production of drones, explosives and ammunition, whereas the majority of investors are based in Europe.

“The main investors are Ukrainian, French, German and Canadian companies,” said Petrauskas.

Minister of the Economy and Innovations Edvinas Grikšas in September said that at least five foreign defence companies were interested in investment opportunities in Lithuania.

According to Petrauskas, approximately 80 companies are operating in Lithuania whose significant share of income comes from defence products. Twenty-three companies are manufacturing solely defence products and their revenue exceeded EUR 312 million in 2024.

“Seventy-three companies are exporters, which means that they bring money to Lithuania,” said the deputy minister.

As reported previously, German arms manufacturer Rheinmetall plans to begin construction of a munitions factory in Lithuania this autumn. The factory will employ 150 people producing tens of thousands of artillery rounds per year. US Northrop Grumman Corporation also plans to develop an ammunition production line at Giraitės ginkluotės gamykla (GGG), the largest ammunition producer in the Baltics.

Vilnius, October 15 (ELTA) – On Wednesday, President Gitanas Nausėda spoke by phone with Antonio Costa, president of the European Council. The conversation took place in preparation for the European Council meeting to be held on 23–24 October. The leaders discussed EU support for Ukraine, the strengthening of European security and defence, and the issue of irregular migration, reports the presidency.

The president expressed his hope that the upcoming EU summit would focus on European security and defence, particularly on the EU’s eastern flank, which faces direct threats from Russia and Belarus.

Lithuania strongly supports initiatives such as the Eastern Flank Watch and the “drone wall,” which aim to strengthen the air and drone defence capabilities of EU member states through the Security Action for Europe (SAFE) instrument and the European Defence Industry Program (EDIP).

The president emphasised the need to raise the issue of instrumentalised irregular migration – which negatively affects the security of the Schengen area – at the highest EU level.

He stressed that the upcoming EU summit must send a clear signal on continued large-scale military and financial support for Ukraine. Lithuania supports the launch of EU accession negotiations with Ukraine as soon as possible, based on the country’s tangible progress.

According to the president, it is also essential to maintain and intensify EU pressure on Russia by adopting the 19th package of sanctions targeting Russia’s “shadow fleet,” as well as its energy and financial sectors.

The discussion also touched upon the issue of enhancing EU competitiveness.

Vilnius, October 15 (ELTA) – On 15–16 October, Minister of National Defence Dovilė Šakalienė is conducting a visit to Brussels, stated the Ministry of National Defence.

She will attend the NATO defence ministers’ meeting on strengthening the Alliance’s air defence, NATO response to drone threats, planning of increasing the defence spending, and capability development. Another key point on the agenda is support to Ukraine and further aid to the country in its self-defence.

The Ukraine Defence Contact Group meeting will take place on Ukraine’s critical needs and coordination of international assistance. Also, an informal meet of the NATO-Ukraine Council (NUC) will address the security situation in Ukraine and further Allies’ aid. 

On the sidelines of the NATO Defence Ministerial the Memorandum of Understanding will be signed on training and equipping the Ukrainian Brigade implemented by the Baltic and Nordic countries with Poland.

Minister Šakalienė will also attend the informal EU defence ministers’ meeting on strengthening the EU defence capabilities, development of the defence industry and commitments to the defence of the eastern EU border.

The minister is also planned to take part in bilateral and other format meetings with Allied defence ministers to address more issues of regional security.

Vilnius, October 15 (ELTA) – The National Development Bank ILTE, together with the European Investment Fund (EIF), has signed the first agreement under the financial instrument “Private Debt Funds.” The agreement was concluded with the Sound Asset Management team, whose managed fund, Sound Senior Private Debt Fund 1, will receive up to €24 million in investment from ILTE. The fund has also attracted investments from EIF as well as pension funds managed by Swedbank and Luminor in Lithuania. The total size of the fund amounts to €70 million, which will be used to finance small and medium-sized enterprises (SMEs) operating across the Baltic countries, ILTE said in a press release.

The fund will provide loans ranging from €0.5 to €7 million, which may be used for investments, expansion into foreign markets, the development of new products or services, business acquisitions or mergers, real estate projects, and working capital. It will also offer refinancing opportunities for existing loans.

“This is yet another effective tool for both companies seeking capital and investors looking for returns. This is our first investment in this type of fund, but we plan to make more in the future. By creating such financial instruments, ILTE aims to strengthen the country’s economic potential and competitiveness internationally, attract greater interest from private investors, and develop alternative sources of financing,” says Inga Beiliūnienė, Head of International Partnerships, Acting Head of Business Development unit at ILTE.

“We are proud to support the launch of Sound Senior Private Debt Fund 1, which brings much-needed financing alternatives to SMEs and midcaps across the Baltics. In a region with a concentrated banking market, this fund offers flexible and targeted lending solutions. Backed by InvestEU, our investment reflects the EU’s commitment to strengthening Europe’s financial ecosystem and supporting sustainable business growth,” said Marjut Falkstedt, CEO of the EIF, which is also responsible for selecting private debt fund managers.

Such funds offer investors not only potentially higher returns but also more flexible structures, which are often unavailable in public markets. Sound Asset Management plans to issue loans with maturities of up to five years. The fund is managed by five seasoned investment professionals with experience in both the public and private financial sectors.

“We are delighted that a local private debt fund, backed by institutional investors and focused on senior lending, has finally been launched in the Baltic countries. This is particularly important in a relatively concentrated banking market, where lending to SMEs is so much needed. We believe this fund will make a significant contribution to the development of the private debt asset class and, more broadly, to the growth of alternative financing in Lithuania and across the Baltics.

The fund will focus on providing loans to SMEs as well as Small-Midcaps and Midcaps across various sectors. Particular emphasis will be placed on financing mergers and acquisitions (M&A) and leveraged buyouts (LBOs). The fund will also provide loans for investments (CAPEX), including real estate development, as well as for working capital. The fund will offer both senior and subordinated loans.

We have already approved the fund’s first investments and are now working closely with other companies in need of financing. I invite SMEs and Midcaps seeking such funding to contact us,” says Andrius Sokolovskis, CEO of Sound Asset Management.

“The extensive experience of the Sound Asset Management team, combined with their sustainability-driven approach, aligns perfectly with the long-term objectives of Luminor’s pension funds – to foster the growth of Baltic businesses, support them in achieving their strategic ambitions, and generate lasting value for both the regional economy and our investors. This partnership will open new opportunities for the SME sector, drive innovation, and promote sustainable growth throughout the Baltic region,” says Vytenis Lapinskas, Fund Manager at Luminor Investment Management.

“We believe that directing funds from the Swedbank-managed second-pillar pension plans into a private debt fund will broaden our investment portfolio and enable clients saving for their future retirement to benefit from the return opportunities offered by the expanding private lending market. In addition, this initiative will give a further boost to the growth of our country’s economy and businesses,” says Tomas Bakutis, Fund Manager at Swedbank Investment Management.

Private debt refers to various forms of debt investments that fall outside the scope of traditional banking products (such as loans, credit lines, leasing, factoring, etc.) and publicly traded debt instruments (e.g., bonds). Globally, private corporate debt is typically financed by specialized private debt funds, which help smooth out fluctuations in financing supply, encourage best practices in the private debt market, and benefit from the involvement of the state as one of the main reliable investors.

The selection of private debt fund managers is carried out by the European Investment Fund (EIF).

Vilnius, October 15 (ELTA) – In just 8 months from its first closing, INVL Private Equity Fund II has completed its final close raising a total of EUR 410 million, surpassing both the initial target of EUR 250 million and the hard cap of EUR 400 million. It marks the most successful private equity fundraising in CEE region in recent years, completed despite the challenging fundraising environment and global uncertainties, Invalda INVL said in a press release.

The second-generation INVL Private Equity Fund II, surpassed the size of its predecessor by c. 2.5x.   

Darius Šulnis, CEO at Invalda INVL, commented: “We have been investing and will continue to invest in our region. The fund’s success in raising capital is great news for companies across the Baltics, Poland, and the broader region that are seeking new capital or liquidity. The current environment favors those prepared to acquire strong, growing businesses, and we intend to make the most of it for the benefit of our investors.”

Deimantė Korsakaitė, Managing Partner at INVL Private Equity Fund II and INVL Baltic Sea Growth Fund, commented: ”We are thankful to our long-standing and new investors for their trust. Securing this level of commitments from a diversified investor base in the current turbulent global environment is a strong endorsement of our work and confidence in our strategy, and we will work relentlessly to deliver the returns that investors expect. Since the first closing we have announced the signing of deals to invest in Eesti Keskkonnateenused, Estonia’s largest waste management group, and POLMED, one of Poland’s leading private multi-profile medical service providers. Both transactions are expected to close this year.”

The Fund has diverse base of investors that includes institutional investors, and some of the most successful entrepreneurs and family offices from the Baltics. It has received strong backing from institutional investors with commitments coming from the European Investment Fund, and the pension funds managed by asset management companies SEB, Luminor, and Artea, as well as IPAS INVL Asset Management in Latvia, and life insurance company UAB Artea Life Insurance. Investors with tickets below EUR 10 million had a possibility to invest via feeder fund INVL Private Equity Capital Fund II. Its final size reached EUR 166 million. 

Asta Jovaišienė, Head at INVL Family Office, said: “INVL Family Office provides its clients with access to exclusive investment opportunities, offering exposure to alternative asset class. One of the most notable examples in recent years is INVL Private Equity Fund II. At INVL Family Office, we believe this fund aims to deliver not only financial returns but also purpose – the chance to contribute to real economic growth by indirectly investing in ambitious businesses. It aligns well with our clients’ values and meets their needs, as they seek responsible investments backed by proven expertise and a clear long-term vision.”

Deimantė Korsakaitė continued: “Since the launch of our first-generation fund in 2019, we have not only more than doubled in size but also significantly expanded our team. Today the team, managing the funds, spans not only through Lithuania and Latvia, but as well Poland headed by the recently appointed Head of Poland. With full speed and focus ahead, we look forward to backing companies mainly in Baltics, Poland, Romania and across the broader EU that are aiming to seize growth opportunities. We are looking to acquire majority or significant minority stakes investing equity tickets of EUR 10 to 60 million with a sweet spot of c. EUR 35 million.”

The INVL Private Equity Fund II’s management team consists of nearly 20 professionals. To strengthen its footprint and local presence in Poland, senior investment professional Sylwester Urbanek, with more than 25 years of experience in private equity and investments, recently joined the fund team as Head of Poland. He will lead the expansion into Poland, which is one of the core investment markets for the fund.

/Second paragraph corrected/

Vilnius, October 15 (ELTA) – The Lithuanian government debt is forecast to grow by 5%, from 39.9% of the gross domestic product (GDP) in 2025 to 45.3% in 2026, stated the Ministry of Finance.

Lithuania plans to borrow EUR 7 billion this year, whereas based on the Finance Ministry’s projections the Government will borrow more than EUR 10 billion in 2026.

The government debt is projected to grow to 49% of GDP in 2027 and to 50.9% of GDP in 2028.

Debt-servicing costs are forecast to stand at 0.7% of GDP in 2025 and at 1% of GDP in 2026, which in monetary terms is EUR 600 million and EUR 800 million respectively.

In coming years, debt-servicing cost may stand at EUR 1 billion.

Vilnius, October 15 (ELTA) – On Wednesday, President Gitanas Nausėda received letters of credence from ambassadors of Switzerland, SLanka, and South Africa, said the Office of the President.

Upon receiving the credentials of Swiss Ambassador Anja Zobrist Rentenaar, the president emphasised the continuity of friendly relations between Lithuania and Switzerland and the growing potential for cooperation. He recalled that Lithuania had resumed the activities of its embassy in Bern in 2023 and invited Switzerland to open an embassy in Vilnius. The president also highlighted two anniversaries to be celebrated in 2026: the 105th anniversary of the establishment of diplomatic relations and the 35th anniversary of their restoration.

Discussing economic relations, the president invited Swiss businesses to invest more actively in Lithuania, particularly in high value-added sectors. The president thanked Switzerland for its humanitarian aid to Ukraine and emphasised Lithuania’s determination to maintain its military support for Ukraine at no less than 0.25% of GDP per year.

Upon receiving the credentials of South African Ambassador Zenani Nosizwe Dlamini, the president welcomed the strengthening of ties between Lithuania and South Africa in the fields of culture, science, and the economy. He underlined that South Africa is one of Lithuania’s most important trading partners on the African continent and noted the great potential for cooperation in high-tech and life sciences sectors. The president also acknowledged the valuable contribution of the Litvak community to relations between the two countries. He called for active defence of the international rules-based order and for rallying global support for Ukraine.

During his meeting with Sri Lankan Ambassador Kapila Thushara Fonseka, the president discussed opportunities for strengthening bilateral relations and economic cooperation. He noted that Lithuania is increasing its engagement in the Indo-Pacific region and seeks closer cooperation with countries in this area, including Sri Lanka. The president highlighted prospects for economic cooperation, particularly in the fields of information technology and cybersecurity, and emphasised the potential for collaboration in culture and education.

Vilnius, October 15 (ELTA) – On 15-19 October, Deputy Minister of Finance Januš Kizenevič will visit Washington, DC, where he will attend the annual meetings of the International Monetary Fund (IMF) and the World Bank (WB), announced the Ministry of Finance.

The events will discuss the global economic outlook and the aim to maintain stability in a context of geopolitical fragmentation and uncertainty, Europe's goal of increasing defence spending to strengthen regional security, and the continuity of financial support to Ukraine. On the margins of the annual meetings, an agreement will also be signed with the IMF on technical assistance to Lithuania in closing the value added tax (VAT) gap.

"The role of international financial institutions, such as the World Bank and the International Monetary Fund, is extremely significant in this period of uncertainty – both in the context of managing geopolitical risks, analysing the situation and providing important policy recommendations that help keep the global economy on the path to stability, and in coordinating the response to global crises, providing support to developing economies and continuing to support Ukraine, which is courageously fighting against Russian aggression", Deputy Minister of Finance Kizenevič stated.

On 15 October, the deputy minister of finance will discuss the macroeconomic situation and prospects of Europe and Lithuania with IMF Mission Chief for the Euro Area Malhar Nabar as well as participate in a high-level roundtable discussion on Ukraine, meet with World Bank’s Executive Director for the Nordic and Baltic countries Sigrun Rawet and representatives of CITI Bank.

A meeting of the Baltic countries with IMF Deputy Managing Director Bo Li will also take place on that day, where the situation of the Baltic economies in this tense period will be discussed, the possibilities of a new IMF programme for Ukraine, and the possible design of the programme will be discussed.

On 16 October, the World Bank Nordic-Baltic Group and the Development Committee will meet, where the country representatives will discuss the global economic situation and expected risks, guidelines for overcoming them as well as ways to promote countries' development and the resilience of economies to external shocks. The IMF Nordic-Baltic Group meeting will focus on Ukraine's economic prospects, ongoing reforms, and further securing financing needs for the country, which is experiencing Russian aggression. Later, these issues will also be discussed with IMF Ukraine Mission Team Leader Gavin Gray and IMF Europe Department Deputy Director for Ukraine Uma Ramakrishnan.

At the meeting with representatives of the IMF Mission to Lithuania, the deputy minister of finance will present the development of the Lithuanian economy and potential challenges, the main aspects of the draft Sate budget, and discuss the current situation of defence spending.

On Friday, the plenary session of the annual meetings of the IMF and World Bank Boards of Governors will be held, and a technical assistance project with the IMF will be signed, on the basis of which the IMF will provide consultations to Lithuania on reducing the VAT gap and shadow taxation. The deputy minister will also have a bilateral meeting with Vice-Minister of Finance of Ukraine Olga Zykova.

On Saturday, meetings are planned with World Bank Vice President Antonella Bassani and IMF First Deputy Managing Director Daniel Katz, and a meeting of finance ministers and central bank governors of the IMF Central, Eastern and Southeastern Europe (CESEE) region will be held.

During his visit to Washington, the deputy minister will also meet with EU Ambassador to the United States Jovita Neliupšienė and Ambassador to the United States Gediminas Varvuolis.

Vilnius, October 15 (ELTA) – On Wednesday, President Gitanas Nausėda presented letters of credence to Audronė Markevičienė, ambassador of Lithuania to the Republic of Latvia, and Lina Antanavičienė, ambassador of Lithuania to the Republic of Korea, reports the president’s press service.

During his meeting with the new ambassador to Latvia, the president emphasised that Latvia is Lithuania’s closest neighbour and strategic partner, with whom it is essential to further strengthen bilateral dialogue and cooperation within regional formats, the EU, NATO, and international organisations.

The discussion highlighted the need to ensure progress in implementing infrastructure projects important for military mobility – Rail Baltica and Via Baltica – and to secure EU funding for their completion. The strengthening of strategic partnerships in the fields of security and defence, energy security, and the protection of critical infrastructure was also discussed.

The president underlined the importance of cooperation on issues such as border protection with Belarus and Russia, migration management, strengthening NATO’s eastern flank, and developing the Baltic Defence Line.

Audronė Markevičienė is a graduate of Vilnius University, where she studied economic informatics and automated management systems. She has over 30 years of diplomatic experience at the Ministry of Foreign Affairs of Lithuania, as well as in Lithuanian embassies in Austria, Poland, and Ireland, and at the Permanent Representation of Lithuania to the European Union.

During the meeting with the new ambassador to South Korea, the prospects for strengthening bilateral relations were discussed, with a focus on security policy, economic cooperation, and the promotion of soft power.

The president and the ambassador reviewed political and security dialogue with South Korea, strategic partnership objectives, and the promotion of economic ties in high value-added sectors, including the defence industry. They also discussed cooperation with the United States and key partners in the Indo-Pacific region within the NATO framework.

The meeting further addressed the expansion of the honorary consular network, the consolidation of the Lithuanian community in South Korea, the planning of cultural diplomacy activities, and the organisation of joint events.

Lina Antanavičienė graduated from Vilnius University with a degree in economics and has completed internships in Canada, Taiwan, Norway, and Japan. She has more than 30 years of diplomatic experience, having served as ambassador to China and Israel, chief adviser to the president on economic affairs, chief adviser at the Office of the Government, and general commissioner of the Baltic Countries’ Pavilion at Expo 2025 in Osaka.