BNS: Lithuania's government is urgently considering an EUR 1.16 b plan to revive flagging economy - PM
Updated 2009-01-22
VILNIUS, Jan 22, BNS - Lithuania's government is urgently considering an approximately 4 billion litas (EUR 1.16 b) worth economic recovery plan, the implementation of which will be funded from various sources, Prime Minister Andrius Kubilius has said in an interview on Thursday.
"We are considering that - the whole economic recovery plan, the scale of which may be rather significant. We think that the package could reach up to 4 billion litas, although it will still require a lot of work," he said in an interview to the news radio station Ziniu Radijas.
"We see that 4 billion litas package as one of the key tools for resuscitating all economic sectors, it is also relevant for macroeconomic stability," Prime Minister added. He expected the Cabinet to submit the basic provisions of the plan to the parliament in February. Until then the plan would be discussed with business community.
"Some of those monetary resources could be released earlier, and some EU funds could be allocated for that. Some other funds, let us say, saving certificates, will require specific urgent work. We have to search for sources of that funding and borrow on international markets in such a way so as to avoid any increase in our fiscal deficit," Kubilius said.
Earlier the government's representatives said that the authorities and the European Investment Fund (EIF) had set up a holding fund which would accumulate about 1 billion litas for business financing. Money would be loaned for the co-funding of projects implemented with the European Union (EU) assistance.
Some resources of the fund are expected to be obtained from the European Investment Bank (EIB) in March. Moreover, the authorities are holding talks with other international financial institutions, including, inter alia, the Nordic Investment Bank (NIB).
