Lithuanian Minister of Economy Dainius Kreivys lauded the program as a job saver.

VILNIUS — Lithuanian economy minister Dainius Kreivys said that the government’s economic stimulus plan, implemented last year to resuscitate the flow of credit, saved 40,000 jobs.

The stimulus program, paid for with European Union structural funds and state-guaranteed private loans, was set up after the country’s banking sector severely tightened credit in light of the economic crisis that sent the gross domestic product plummeting. The Ministry of Economy says the plan has disbursed 3.38 billion litai (€978 million) to small and medium-sized businesses.

“While the macroeconomic indicators and market sentiment are improving not as fast as expected, it is important that companies actually feeling the benefits of the economic stimulus measures in the plan,” Kreivys said.

Meanwhile the company set up by the government to disperse the funding, Invega, said interest will be charged on portions of the funds still held by banks to encourage lending.

Polishing his record

The announcement comes as reports in the Lithuanian media, citing anonymous sources claim that Kreivys along with five other government ministers are set to be replaced. Speaker of the Seimas Irena Degutienė has told the press that some ministers are “ineffective.”

Last month members of the newly-formed United Lithuania Party said they were promised a ministerial position in return for support of the controversial 2010 national budget, but the prime minister’s office has denied this.