Summed up

CENTRAL BANK TO BOLT RKB: The Bank of Latvia will sell its shares in Rigas Komercbanka at the first opportunity, Helmuts Ancans, the monetary policy chief of the Bank of Latvia, told reporters Sept. 1. "We would like to remain in that bank for as short a period as possible. Our plans are to restore operations of that bank and then withdraw from it. We are not set to be Komercbanka's shareholders for several years," said Ancans. The Bank of Latvia will invest some 15.5 million lats ($26.7 million) into Komercbanka by capitalizing its loan to the bank. The central bank suspended Komercbanka's operations on March 7 and the Riga District Court has declared the bank insolvent. Revitalization of the bank is under way.

DECLARED BANKRUPT: The Harju County Court declared the bankruptcy of AS Estimpeks, a former trade and real estate company, which had admitted its own insolvency. Debts of the company, one-third state-owned, total 63.3 million kroons ($4.26 million) and the book value of its current assets, which according to trustees is greatly overestimated, is 45.6 million kroons. The overly high risks on the Estonian and the Russian securities markets and unsuccessful investments into real estate were named the main reasons of Estimpeks's bankruptcy.

PLANNING EXPANSION: Ericsson and the Lithuanian mobile telephone operator Bite GSM have signed a three-year supply contract for the expansion of Bite's GSM network. The total value of the contract is more than 150 million litas ($37.5 million), and it will enable Bite GSM subscribers to use Ericsson's latest equipment and technology for both voice and data communications. Bite GSM, one of the two GSM operators in Lithuania, also plans a 200 million litas investment in improving the service quality.

CHOOSING STRATEGIC INVESTOR: Latvian juice-producer Gutta will receive a credit from the European Bank for Reconstruction and Development after the company chooses its strategic investor. The company is presently considering the offers made by several strategic investors but it is uncertain yet when the final choice will be made. EBRD approved a $14 million credit to Gutta last October, signing the credit agreement late November 1998. No disbursement has been made so far. Gutta recovered from the 1998 losses and finished the first half of 1999 with profits.

LAUNCHING VEGETABLE OIL FACTORY: Estonia's Werol Factories Ltd is planning to launch a 134 million kroon ($9 million) vegetable-oil factory in Painkula in eastern Jogeva county. Experimental production at the factory, which will create jobs for 70 people, has been going on for a week already and next week the company is hoping to gear the factory at full capacity. The factory's daily capacity planned for this year is 60 tons, and the yearly capacity target is 40,000 tons. The factory plans to use Estonian-grown rape as its raw material, to be supplemented by imported sunflower seeds.

UNFULFILLED POTENTIAL: Lithuania's light industrial enterprises exported 1.8 billion litas ($450 million) worth of goods over the first seven months of this year, a growth of 3.1 percent in year-on-year terms. Yet, the industry is far from working at its full potential. Some 26 companies are on the brink of bankruptcy, and the further growth of the light industry is hindered by insufficient domestic market protection, smuggling, inadequate export promotion and an inefficient tax system. The Lithuanian light industry employs some 60,000 people and its main trade partners are Germany, Denmark, England, Russia, Sweden, the United States and Italy.

CONTRABAND COMBATING: A contraband fighting coordination center designed to coordinate contraband combating measures of various state institutions will be set up in Latvia within two weeks, Finance Minister Edmunds Krastins said. The coordination center, whose operations and functions will be expanded to make it more efficient, will be headed by the customs administration director. An important part of its work will be ensuring the sufficient information exchange between the services dealing with contraband fighting.

POWER EXPORTS RUSH TO WEST: A high-voltage line has to be built from Lithuania to Poland to export Lithuanian electricity to the West. From Poland electricity will be channeled further by the Polish partners. Sections of the power line to the mutual border will be built at their own expense. The Lithuanian and Polish ministers of economy have agreed that the project should be translated into reality without delay. The attempts by the previous Lithuanian government to start launching the energy bridge to the West have been followed by dramatic scandals.