Lithuania doesn't plan to draw from ESM credit line for now, finance minister says

  • 2020-05-11
  • BNS/TBT Staff

VILNIUS - Lithuania does not plan, at least for now, to draw from the European Stability Mechanism's special COVID-19 crisis support credit line approved last week, Finance Minister Vilius Sapoka said on Monday. 

Lithuania could receive around 1 billion euros, if needed. 

"We don't plan (to draw from the line) in the near future. We'd use this instrument only when necessary. We really don't see such a need now," Sapoka told BNS. 

"Currently, we give priority to raising financing in the capital markets and from international financial institutions," he added.   

Such a move could send a negative signal to the markets where Lithuania has borrowed on very favorable terms recently, according to the minister. 

Eurogroup finance ministers agreed on the terms of financing of the credit line last week.

Eurozone member states will have access to funds worth up to 2 percent of their GDP. They will be able to use the credit line to finance direct and indirect healthcare, treatment and prevention related costs due to the COVID-19 crisis.

The loans would have an average maturity of 10 years. The credit line will be available until the end of 2022.