Lithuania urged to continue reforms

VILNIUS - International Monetary Fund First Deputy Managing Director John Lipsky assesses measures taken by the Lithuanian government to tackle the economic crisis especially favorably and calls on Lithuania to now consolidate the budget by applying new measures to improve the collection of budget revenues, reports news agency ELTA. At a meeting with Prime Minister Andrius Kubilius on Feb. 4, Lispky emphasized that it was extremely important to continue consolidation actions in social security reform to reach Lithuania’s target to cut the public sector deficit to allow for euro adoption in 2014.

Lipsky also highlighted the importance of budget consolidation actions in the drafting and revising the 2009 budget and additional cost-cutting measures taken by the Lithuanian government when drafting the 2010 budget. “In this very complicated crisis situation the Lithuanian government institutions have taken significant and resolute decisions, which mitigated the impact of the global financial crisis and restored the confidence of international investors in Lithuania,” said Lipsky.

Kubilius thanked the IMF for its long-standing constructive cooperation and consultations. He stressed that the Lithuanian economic outlook started to improve at the end of 2009 and growth is expected this year. Kubilius stated that Lithuanian institutions would continue carrying out all measures to ensure a sustainable economic recovery. In 2010, special attention will be paid to structural reforms and measures to raise economic growth and employment while striving for protection of the most vulnerable groups of society.