Experts of IMF about bank crisis in Lithuania
the bank crisis which has Burst in Lithuania has got political character. According to the order of the president of republic of Algirdas Brazauskasa, next week the parliament will consider the problem on resignation of the prime minister of Lithuania Adolfasa Shlezhjavichusa (the material more in detail see p. 4). In the meantime the commission of experts of the World bank and the IMF, working in republic, has brought the first results of crisis. By their estimations, expenses for its overcoming will make nearby 1,3 mlrd lits ($325 million), have informed yesterday agencies BNS and “ Interfax “.
In the end of last week the prime minister - the minister of Lithuania Adolfas Shlezhjavichjus has spent in Vilnius a press - the conference devoted to signing with the World bank of the contract on the help to Lithuania in re-structuring of bank system. Speaking about measures on liquidation of consequences of crisis, g - n Shlezhjavichjus has underlined that “ in the budget of necessary money for it is not present “. In this connection the government of Lithuania intends to let out securities approximately on 1,1 mlrd lits ($275 million). It is supposed to direct the received means, in particular, on a covering of the savings lost by investors as a result of closing of insolvent financial institutions. Lacking for overcoming of consequences of crisis of the sum, according to Adolfasa Shlezhjavichjusa, it is planned to collect at the expense of foreign credits, and also in frameworks “ realisation of fiscal measures in power, agriculture and social security sphere “.
I an island The chairman of the board of Bank of Lithuania Jonas Njaura on a press - conferences has informed that with representatives of IMF and the World bank the arrangement on creation till July, 1st of this year of incorporated bank on the basis of Lithuanian joint-stock - innovative bank and bank Litimpeks which activity has been suspended past December in connection with their insolvency is reached.
at the same time, according to the president of Lithuania Algirdas Brazauskasa, with association of banks “ it is not necessary to hasten “. If it will be possible to find money, and also sensible heads, it is possible to restore these banks separately. Under the message a press - services of the president of Lithuania, at a meeting g - on Brazauskasa and the IMF was discussed with representatives of the World bank a question on association not two, but three banks which have suffered financial wreck - Joint-stock - innovative, Litimpeks and Vakaru bankas.
Analyzing the reasons of difficulties which many Lithuanian banks have faced, representatives of the World bank and IMF have specified in too weak supervision of commercial banks from the state, and also excessive intervention of shareholders in work of boards of banks, and the governments - in a policy of distribution of credits. Experts have suggested to pass new laws which would eliminate these lacks.
DEPARTMENT of the FINANCE