In April, Lithuania is due to receive 360 million euros in a soft loan from the European Union's Recovery and Resilience Fund (RRF), the Finance Ministry of Lithuania said, Report informs via Interfax.
The European Commission (EC) has positively assessed the first loan application under the updated New Generation Lithuania plan. It is noted that the government requested the allocation of 387 million euros, but the funds will be provided minus the advance already paid.
The funds are intended for the development of green, digital and innovative business technologies that will create high added value and will be export-oriented, as well as the production of electricity from renewable resources.
“We will soon receive funds for further investments for both business and the population, which will increase the growth potential of the Lithuanian economy, resilience to future shocks, expand the possibilities of using renewable energy sources, and improve energy efficiency and cybersecurity,” Finance Minister Gintare Skaiste said.
In October 2023, the EC approved Lithuania's updated investment plan. The country included additional investments in the plan, its total cost was increased to 3.85 billion euros (2.3 billion euros in grants and 1.55 billion euros in loans), almost double the original estimate. The plan reflects Lithuania's new goals, in particular encouraging business transition to green and high-value-added technologies. Lithuania has also expanded measures to strengthen the country's cybersecurity capabilities.
The updated New Generation Lithuania plan provides for more than 1.8 billion euros in additional investments.
The first payment of subsidies under the RRF to Lithuania amounting to 542.3 million euros was made in May last year. Meanwhile, the provision of 26 million euros was then temporarily delayed due to two unmet targets, but in December last year, the EC allowed Lithuania to use almost 9 million euros of this amount.