VILNIUS - As Lithuania looks to boost economic growth and raise additional funding for defense, the national development bank ILTE will be reinforced by doubling or tripling its share capital, Finance Minister Rimantas Sadzius said on Thursday.
"The directions in which we'll be working are strengthening ILTE's capacity and balance sheet, increasing its authorized capital, consolidating its financial instruments, and making sure it operates using its own capital rather than state subsidies," he told the Liberal Movement's political group in the parliament.
Sadzius told reporters later that ILTE's share capital could be increased by two or three times, from the current 203.4 million euros.
He added that the capital increase will come after preparatory work, which will take several months.
At the meeting with the Liberal MPs, the minister described ILTE as a key instrument for strengthening the economy and investing in major infrastructure projects.
He also noted that the European Investment Bank (EIB) and the European Stability Mechanism, which ensures stability in the eurozone, are expected to provide "significant technical and human support" in strengthening ILTE.
Sadzius plans to meet with Robert de Groot, the EIB vice-president for defense and security, when he comes to Lithuania this month.
President Gitanas Nauseda's office considers economic growth and borrowing to be among the main sources of defense funding as Lithuania aims to raise defense spending to 5-6 percent of GDP annually from 2026 to 2030.
Vaidas Augustinavicius, Nauseda's chief economic and social policy advisor, has said that ILTE could invest funds from people's savings accounts into the defense industry and infrastructure projects, helping to boost economic growth.
ILTE's authorized capital was increased nearly fourfold, from 53.44 million to 203.44 million euros, last May.
It was granted national development bank status in November.
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