Estonia receives first €351.6 million from EU's SAFE facility

TALLINN - Estonia has received its first payment of €351.6 million from the European Security Measures Facility (SAFE), representing 15 percent of the country's total allocation of €2.3 billion.

SAFE is a €150 billion financing facility that provides loans to member states. It primarily finances the joint procurement of EU-produced ammunition, guided missiles, and air and ground combat systems. This is part of the European Commission's 'ReArm Europe' / 'Defence Readiness 2030' plan, which aims to generate over €800 billion in defence investments within the European Union.

Commissioner for Defence and Space, Andrius Kubilius, said that this first SAFE payment helps Estonia move forward quickly with crucial defence investments and strengthen its preparedness and resilience. "We are acting fast to help the member states on the EU's eastern border. The SAFE facility aims to enable member states to invest faster, procure jointly more effectively, and strengthen the European defence industry's industrial base."

Further payments to Estonia will follow once agreed intermediate and final milestones have been met.

SAFE is funded by EU borrowing on financial markets, which allows for providing member states with competitively priced and attractively structured long-term loans. The terms of the SAFE loans are favorable due to the EU's strong credit rating. Over time, the recipient member states will repay the SAFE loans.