Summed up

WATER: The Tallinn City Council on June 15 confirmed a scheme for
privatization of water utility Tallinna Vesi. The city is going to
sell 50.4 percent of the shares. The subscription and starting prices
will be equal to the par value or 580 million kroons ($35.3 million),
of which 280 million kroons are to go into city coffers. Some 100
million kroons of the privatization income will be used to partly
cover a supplementary budget for this year. The City Council decided
to open a special account for the use of the income to be spent to
cover the costs of sewerage construction, asphalting, building of
fireplugs and connecting them with the sewer system. Among companies
interested in buying the utility are the U.S. Azurix, International
Water, the concern Vivendi Water formed by the merger of French
Generale des Eaux and U.S. Filter, and the French Lyonnaise des Eaux.

JOBLESS BENEFITS: Estonian lawmakers on June 14 adopted laws
expanding the rights of the jobless and extending the period during
which unemployment benefits are paid. The labor market service law
wipes out former restrictions and widens the circle of people
eligible for labor market services. Labor exchanges until now
provided their services during six months to people who had had jobs
previously, but under the new law, they deal with all registered
unemployed starting from age 16 till pension age. The law on social
protection of the unemployed abolishes a time frame for keeping the
jobless on labor exchanges' files and extends the period during which
unemployment benefits are paid, from 180 to 270 days. During this
time, the state will pay the social tax for the jobless that entitles
one to health insurance. The law also wipes out a 60-day waiting
period for unemployment benefits for those who left their last job of
their own free will, to protect people who have been pressured into
resigning.

DIALING FOR DOLLARS: The Lithuanian mobile operator Bite GSM has
secured a $93.7 million syndicated loan from 10 major European banks.
"We will use the loan to build new base stations, expand our network
and launch new integrated services. The money also will be used for
data transmission and internet service development," Bite GSM
managing director Gintautas Pangonis said. This is the largest loan
ever granted to a Lithuanian telecommunications company without
guarantees from the government or shareholders, he said. The
syndicate is led by the Netherlands' ING Bank N.V. The European
Investment Bank is one of the major contributors. Bite GSM, owned by
the Danish company TeleDanmark, covered 93 percent of the Lithuanian
territory and had over 120,000 subscribers at the end of 1999.

UPPING THE ANTE: The Tallinn City Council on June 15 ruled to sell
land in the port area through bidding with preliminary negotiation
and set an 800 million kroon ($48.63 million) investment obligation
as an additional condition. Further conditions require the buyer to
develop the four plots to be sold in accordance with a detailed local
plan. The buyer will also have to place a tender for building new
streets and communications in areas adjoining the plots that will
stay in the city's hands.

STAY OUT: Lithuanian's parliament voted on June 15 to accept a legal
amendment keeping the ban on foreign investment in the country's
lottery business. President Valdas Adamkus put forth the amendment
after vetoing an earlier amendment to the Investment Law which would
have lifted the ban. Adamkus said foreign investment in lotteries
would boost capital outflows from Lithuania and worsen the country's
payment balance.

PORK WAR RESUMES: The State Veterinary Service has imposed a
temporary ban on pork and live pig imports from Russia and Italy. The
ban on import from Russia was imposed because of an outbreak of pig
disease in the Leningrad and Voronezh regions. The ban on imports
from Italy rested on an outbreak of vesicular pig disease there. The
SVS also has imposed a temporary ban on poultry from Italy because
of an outbreak of bird disease.

BLOWING THE WHISTLE: One joint stock company has submitteda complaint
to Riga Mayor Andris Argalis a complaint about giving a 2,000 lat
($3,273) bribe to a manager of one structural unit of the City
Council to solve the question on rent of premises in city center. A
city council representative said the complaint outlines details of
the incident, including the place, the name of the official to whom
the bribe was given and who was present at that time. The City
Council has received such an application for the first time and has
sent it to the prosecutor's office.