Lithuania to get loans

  • 1998-11-19
VILNIUS (BNS) – Lithuania is the first to break the Western bank's blockade for loans to the Central and Eastern Europe, its Prime Minister Gediminas Vagnorius said.

Vagnorius said Lithuania plans to receive loans from Western financial institutions soon. "Lithuania is very successful," he added.

Finance Minister Algirdas Semeta said talks with the investment bank JP Morgan are coming to the end and a contract for a $18.1 million bridging loan for a one-year period should be signed in the near future.

The government allowed the finance minister to sign a loan agreement with JP Morgan Securities Nov. 11. This was the only bank which agreed to place a Lithuanian state bonds issue in foreign markets.

As was announced earlier this year, Lithuania did not succeed in placing a planned 200 million euro bond issue, organized by CS First Boston and Dresdner Bank.