Lithuania will talk to the IMF about a possible loan

December 2, 2008 at 11:53 pm 2 comments

arrow-downThe incoming Lithuania’s PM yesterday (Dec 1) was still maintaining that Lithuania will not ask the IMF for a possible loan, because there is not necessity for that.  “Such borrowing would mean that we are declaring ourselves a disaster area,” he said to BNS, adding that going to the IMF for loans could scare away potential investors and would place restrictions on the authorities.

However, that was yesterday.  Today it appears that the new PM could ask for a loan.

But only factors outside the government’s control, such as a deeper crisis in Latvia or Russian, could force Lithuania to turn to the IMF for help the MP maintained.  “Then we will be dealt blows that will be really hard to withstand,” Kubilius told BNS on Dec 2.

He said that there were no discussions yet as to what amount of money Lithuania could have to borrow from the IMF.  The incoming government plans to discuss a crisis management plan and planned structural reforms, as well as further cooperation with the fund, with members of a regular IMF mission due to arrive in Lithuania on Saturday.

A candidate to the Minister of Finance Mr. Algirdas Semeta, did not rule out on Dec 2 that the country might have to go to the IMF for financial aid, but said that would be “the last step” in trying to stave off an economic crisis.

“I do not rule out the possibility that such a situation could arise,” Semeta told reporters after meeting with President Valdas Adamkus, BNS informed.

Semeta said that “The [ruling] coalition’s position is that this [borrowing] would have to be the last step should we have to make it. We hope that there will no need to take this step”.

Some of the commentators suggested that the ‘Crises management plan’, which almost completed has being created to fulfil the IMF loan criteria in the first place.  However, incoming cabinet ridiculed this assumption.  I am sure there are some more interesting new to come.


Entry filed under: Baltic States, Economics, Estonia, Latvia, Lithuania, Northern Europe, Politics.

Allan Alaküla on the Baltoscandian TV Channel – an Estonian view Respect to the German Times!

2 Comments Add your own

  • 1. Lithuania; the IMF verdict « Lituanica  |  December 16, 2008 at 7:36 pm

    […] for Lithuania to borrow from the IMF. The authorities have not requested aid”.  Hence, a public message made by some politicians few weeks ago about a possible borrowing from the IMF was […]

  • 2. minnesota  |  May 8, 2009 at 9:51 pm

    what is payday? 🙂


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