Steel Magnolia speaks out

  • 2009-08-05
  • By Rokas M. Tracevskis

NOW YOU SEE IT, NOW YOU DON'T: On July 30, President Dalia Grybauskaite says "no" to IMF help though The Financial Times tells a slightly different story.

VILNIUS - On July 30, newly elected Lithuanian President Dalia Grybauskaite gave her first wide-ranging press conference in the presidential palace. She spoke in her usual tough style proving that Edward Lucas, a senior writer at The Economist, was right nicknaming her the 'Steel Magnolia' because of her tough character. Among other topics, Grybauskaite spoke about the International Monetary Fund, the building of a new nuclear plant in Ignalina, Guantanamo prisoners, and future foreign visits.

"Addressing or not addressing the IMF depends solely on the reaction of external markets. As long as Lithuania can refinance its debt, there is no need to address the IMF," Grybauskaite said at the press conference.
She also added that it would be good to avoid applying to the IMF, which she in her usual tough speaking manner described as "international finance policeman who are necessary when there is no trust in the national government."

However, on the same day, July 30, on the Internet page ft.com of the Financial Times, there was published a slightly different version. According to ft.com, Grybauskaite has admitted that her country could be forced to seek help from the International Monetary Fund. In an interview with the Financial Times, she acknowledged that an IMF loan might prove necessary "if external conditions will not allow Lithuania to refinance our debts . . . if the markets are closed."

Some time ago, starting her election campaign, she spoke rather roughly on the possible IMF help issue. "Governments, which practically are forced to announce on their insolvency, demonstrate their political impotence by appealing to international organizations," she said then.
During the July 30 press conference, Grybauskaite said that she is not sure if it is worth building a new nuclear plant in Ignalina despite all of last year's enthusiastic agreements with state leaders of Poland, Latvia and Estonia, on common efforts in building such a new plant in Lithuania. Lithuania will close its Soviet-built Ignalina nuclear plant at the end of this year, according to Lithuania's Treaty of Accession to the European Union of 2003.

"Old Ignalina closes Lithuania's path to the alternative energy sources. Old Ignalina is a monopolist and corrupts our governmental institutions - everybody was defending Ignalina's interest. Using its monopolistic position on the Lithuanian market, Ignalina produces one kilowatt of electricity for six centas (0.17 eurocents) while the Lithuanian people pay 37 centas (10.7 eurocents) for one kilowatt of electricity," Grybauskaite said.

She added that she will make her decision on the new nuclear plant project after serious analysis. Grybauskaite said that Poland, Latvia and Estonia will meet her final decision with understanding. "Our partners would have no trust in the virtual project anyway," Grybauskaite said.
She said that she hopes that Leo.lt, a company of mixed state and private capital, which was created for the building of the new nuclear plant, will cease to exist in the coming fall.

Grybauskaite, unlike current Lithuanian Foreign Minister Vygaudas Usackas, showed no enthusiasm about taking Guantanamo prisoners. "We need to evaluate the risks for the Lithuanian people. We need to know if such risks are manageable," Grybauskaite said vaguely.
Grybauskaite also announced the list of her foreign visits for August 's October. She has already visited Sweden and Latvia. The list is as follows: Brussels, Poland, France, the headquarters of the United Nations in New York, Estonia, Finland, Germany, and Brussels again. The list confirms her election slogan "More Europe in Lithuania, more Lithuania in Europe".