VILNIUS — Following a better than expected start to the year, Lithuania will likely be able to go without international borrowing, the finance minister said.
Lithuania has rebounded faster than expected after government austerity measures were put in place in 2009. Though initially criticized, the measures seem to have worked and quarter-on-quarter growth has slowly returned to the economy.
Minister of Finance Ingrida Šimonytė told a [private_supervisor]meeting of European finance ministers in Madrid that demand for the country’s currency, the litas, was strong and that future bonds would be issued in the currency. Šimonytė underlined that the bonds would not be issued in U.S. dollars.
In international markets, Lithuania borrowed a record $2 billion, or around 4.9 billion litai (€1.42 billion) at the time, in order to finance 2010’s budget deficit, which is expected to be around 8.1 percent of gross domestic product. Domestically, the government has borrowed 685 million litai (€198 million).
With unexpected revenue flowing in, the finance ministry cashed 279 million litai (€81 million) more than expected into government coffers in the first quarter. In March alone, 75.6 million litai (€22 million) more than expected came in as tax.
Figures that came out earlier this year led the finance ministry to predict a rebound to growth this year.
“Newly revised figures for economic as well as export growth in 2010 released by the Ministry of Finance of the Republic of Lithuania show that the country is poised for a rebound in 2010-2011,” a press release from the ministry said. “Recovery in Lithuania’s investment climate will translate into GDP growth of 1.6 percent this year and 3.2 percent in 2011.”
Before the figures were released, the finance ministry had predicted a 4.3 percent contraction for this year. The International Monetary Fund’s most recent prediction remains at a 4 percent contraction of GDP this year.
The all important export figures began to improve at the end of last year, a trend that the ministry expects to continue. Export growth could reach 18 percent, the ministry predicted. [/private_supervisor] [private_subscription 1 month]meeting of European finance ministers in Madrid that demand for the country’s currency, the litas, was strong and that future bonds would be issued in the currency. Šimonytė underlined that the bonds would not be issued in U.S. dollars.
In international markets, Lithuania borrowed a record $2 billion, or around 4.9 billion litai (€1.42 billion) at the time, in order to finance 2010’s budget deficit, which is expected to be around 8.1 percent of gross domestic product. Domestically, the government has borrowed 685 million litai (€198 million).
With unexpected revenue flowing in, the finance ministry cashed 279 million litai (€81 million) more than expected into government coffers in the first quarter. In March alone, 75.6 million litai (€22 million) more than expected came in as tax.
Figures that came out earlier this year led the finance ministry to predict a rebound to growth this year.
“Newly revised figures for economic as well as export growth in 2010 released by the Ministry of Finance of the Republic of Lithuania show that the country is poised for a rebound in 2010-2011,” a press release from the ministry said. “Recovery in Lithuania’s investment climate will translate into GDP growth of 1.6 percent this year and 3.2 percent in 2011.”
Before the figures were released, the finance ministry had predicted a 4.3 percent contraction for this year. The International Monetary Fund’s most recent prediction remains at a 4 percent contraction of GDP this year.
The all important export figures began to improve at the end of last year, a trend that the ministry expects to continue. Export growth could reach 18 percent, the ministry predicted. [/private_subscription 1 month] [private_subscription 4 months]meeting of European finance ministers in Madrid that demand for the country’s currency, the litas, was strong and that future bonds would be issued in the currency. Šimonytė underlined that the bonds would not be issued in U.S. dollars.
In international markets, Lithuania borrowed a record $2 billion, or around 4.9 billion litai (€1.42 billion) at the time, in order to finance 2010’s budget deficit, which is expected to be around 8.1 percent of gross domestic product. Domestically, the government has borrowed 685 million litai (€198 million).
With unexpected revenue flowing in, the finance ministry cashed 279 million litai (€81 million) more than expected into government coffers in the first quarter. In March alone, 75.6 million litai (€22 million) more than expected came in as tax.
Figures that came out earlier this year led the finance ministry to predict a rebound to growth this year.
“Newly revised figures for economic as well as export growth in 2010 released by the Ministry of Finance of the Republic of Lithuania show that the country is poised for a rebound in 2010-2011,” a press release from the ministry said. “Recovery in Lithuania’s investment climate will translate into GDP growth of 1.6 percent this year and 3.2 percent in 2011.”
Before the figures were released, the finance ministry had predicted a 4.3 percent contraction for this year. The International Monetary Fund’s most recent prediction remains at a 4 percent contraction of GDP this year.
The all important export figures began to improve at the end of last year, a trend that the ministry expects to continue. Export growth could reach 18 percent, the ministry predicted. [/private_subscription 4 months] [private_subscription 1 year]meeting of European finance ministers in Madrid that demand for the country’s currency, the litas, was strong and that future bonds would be issued in the currency. Šimonytė underlined that the bonds would not be issued in U.S. dollars.
In international markets, Lithuania borrowed a record $2 billion, or around 4.9 billion litai (€1.42 billion) at the time, in order to finance 2010’s budget deficit, which is expected to be around 8.1 percent of gross domestic product. Domestically, the government has borrowed 685 million litai (€198 million).
With unexpected revenue flowing in, the finance ministry cashed 279 million litai (€81 million) more than expected into government coffers in the first quarter. In March alone, 75.6 million litai (€22 million) more than expected came in as tax.
Figures that came out earlier this year led the finance ministry to predict a rebound to growth this year.
“Newly revised figures for economic as well as export growth in 2010 released by the Ministry of Finance of the Republic of Lithuania show that the country is poised for a rebound in 2010-2011,” a press release from the ministry said. “Recovery in Lithuania’s investment climate will translate into GDP growth of 1.6 percent this year and 3.2 percent in 2011.”
Before the figures were released, the finance ministry had predicted a 4.3 percent contraction for this year. The International Monetary Fund’s most recent prediction remains at a 4 percent contraction of GDP this year.
The all important export figures began to improve at the end of last year, a trend that the ministry expects to continue. Export growth could reach 18 percent, the ministry predicted. [/private_subscription 1 year]
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