Lita not to be devalued- PM

VILNIUS 's Lithuanian Prime Minister Andrius Kubilius has again rejected the notion that the Lita will be devalued. He went on to say that there must be more budget cuts.

'"The lita was and is to remain stable, and rumors will not be enough to change its rate," he told parliament on March 10.

"Today, Lithuania faces no fewer challenges than 19 years ago, when it was on the eve of its declaration of independence," he said.

According to Reuters Kubilius said that Lithuania was hit hard by a credit crunch in the Baltic states, shrinking export markets in the European Union and Russia, and a fall in the value of neighboring currencies.

'In this context, our main objective is to secure the stability of the litas, and that we can do by securing the stability of our financial system,' he said.

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Lithuania is aiming to adopt the euro by 2014.