2026-03-05
The National Development Bank ILTE presented its future plans to the Seimas Committee on Budget and Finance – ambitious expansion and the goal of becoming the main state investment platform. ILTE would bring together both state and private capital financing for strategically important projects in Lithuania. The plan is to increase the volume of financing, lend more actively, attract private investors, and strengthen its role in sectors that are driving the country's economic breakthrough.
This would mean greater risk, larger financial flows, and greater responsibility for results and return on investment for the state. Therefore, the National Audit Office emphasizes that before accelerating development and striving to make it sustainable, it is necessary to eliminate the identified shortcomings and strengthen the foundations of operational efficiency.
The audit report "Use of financial instruments (loans, guarantees, venture capital investments) to provide state aid“ published last April stated that ILTE financial instruments are only partially managed efficiently.
The auditors found that almost half of the financial instruments assessed (loans, guarantees, venture capital investments) were insufficiently justified – it was not possible to ascertain whether they adequately covered the market shortfall. Nor was it assessed whether they competed with subsidies provided in the same areas.
In addition, 60% of the funding allocated to financial instruments did not reach the final beneficiaries for a long time but was invested in term deposits and securities. The auditors also noted that, as the company's activities expanded, there was a lack of independent risk supervision.
Following the audit, five recommendations were made to the Ministry of Finance and ILTE. These include clearer planning, more efficient use of funding, better risk management, and assessment of the impact of financial instruments. Implementing the recommendations would provide a solid foundation for a new phase of development. None of them have been implemented yet.
"ILTE's role in financing projects of strategic importance to the country's economy is undeniable. In order for the planned expansion to be successful and for the billions in investments to reach business and innovation as smoothly as possible, it is necessary to ensure the highest standards of financial planning. It is also necessary to properly implement the audit recommendations, as this will help ILTE become an even more reliable partner for private capital and ensure the efficient use of public finances," says Auditor General Irena Segalovičienė.
The National Audit Office emphasizes that there are billions at stake and that this has a significant impact on public finances. Therefore, decisions on expansion must be justified, and control mechanisms must function reliably and independently, while ensuring that processes are efficient and do not create an excessive administrative burden for either the state or business.
The recommendations of the audit "Use of financial instruments (loans, guarantees, venture capital investments) to provide state aid" and the progress of their implementation are publicly available. These data can be found here.