OFF THE WIRE

FARM AID: The Latvian Agriculture Ministry and the state-owned land bank Latvijas Hipoteku un Zemes Banka signed an agreement March 8 to provide long-term, low-interest loans to farmers. Under the agreement farmers will receive loans at 7 percent interest beginning in April as part of an agriculture development lending program that is funded in part by the World Bank. About 8 million lats ($12.5 million) will be made available through World Bank, and Latvijas Hipoteku un Zemes Banka will provide another 16 million lats. The bank will use 50 percent of available funding for direct loans and the other half will be used to refinance loans granted by other banks, according to bank President Inesis Feiferis. Preference will be given to projects that will create more jobs and help diversify the agricultural sector. The funds will also go to support new construction and renovation and to support licensed fish farming. The minimum loan amount is set at 5,000 lats and the maximum will be 100,000 lats for dairy and hog farmers, 50,000 lats for crop farmers and 20,000 lats for other sectors. (Baltic News Service)

EARLY MAZEIKIU NUMBERS: The Lithuanian oil company Mazeikiu Nafta reported an unaudited loss of 271.15 million litas ($69.17 million) to Lithuania's stock exchange on March 8. Company spokesman Tadas Augustauskas stressed that the results were preliminary. Mazeikiu Nafta's sales totaled 5.35 billion litas in 2001, up 26.6 percent from 2000, according to a company statement. The U.S.-based company Williams International owns a 33 percent stake in Mazeikiu Nafta and the Lithuanian government holds a 59.3 percent stake. (BNS)

TAX BATTLE: Despite stiff opposition from European Union negotiators, Prime Minister Siim Kallas is still pushing the EU to grant Estonia a transition period for tax-free trade. But Kallas has said publicly that Estonia's insistence on the transition period could keep the country from concluding talks this year. A study by the consulting group Ernst and Young showed that Estonia could lose 3 billion kroons ($168.54 million) to 5 billion kroons if tax-free trade is nullified despite up to 400 million kroons per year flowing into state coffers from value added and excise taxes. The lost trade would hurt the shipping industry. Kalev Jarvelill, director general of the shipping company Tallink, said his company would need a minimum of 500 million kroons per year in state support to maintain boat traffic between Estonia and Finland and Sweden at the present level. "We need to develop some kind of support scheme for our shipping companies to be able to carry on their investment policies and to maintain (the passenger flow), Kallas said in address to Parliament on Feb. 27. (BNS)

PULP BILL: Latvian Agriculture Minister Atis Slakteris said the state's involvement in the proposed billion dollar pulp mill to be built near Jekabpils should be further scrutinized and that perhaps the state should not be involved at all. "My personal opinion is that such a project would only be beneficial if it were undertaken by private investors," he said. The proposed pulp mill was planned to be a joint venture between the Latvian government, Finland's Metsalitto and the Swedish consortium Sodra. The mill, which would be the largest in the Baltics, has been years in the planning and would cost an estimated $1 billion. Under one plan Latvia would pay for its 33 percent share in the company by providing long-term logging rights on state land, a proposal that has been severely criticized by environmentalists and others. The Latvian newspaper Diena reported that the government is considering reducing its share in the project or pulling out of the project altogether. Officials refused comment, saying the ongoing negotiations were confidential. (BNS)

LAND CONCESSIONS: The Lithuanian Parliament approved the first reading of a constitutional amendment allowing for the sale of land to foreigners, a move required for European Union membership. In a 119-4 vote the Parliament passed the proposal on March 7. The amendment requires another vote in at least three months to go into force. MPs said the bill would include some measures designed to protect farmers. Farmers' groups proposed a seven-year transition period for the sale of farmland to foreigners as one of the measures. Opposition parties criticized a proposed transition period, saying it would slow the recovery and modernization of the Lithuanian agricultural sector. Members of the opposition Conservative Party said they would vote against the amendment if the transition period were included. (BNS)

ORACLE GOES LOCAL: The IT-solutions company Oracle will open representative offices in the Baltics this month, the company announced this week. In the past Oracle has been represented through "virtual" offices, which were run from Sweden, Finland and the Netherlands. The opening of real offices will do away with the "unnecessary formalities concerning deliveries, products and services," said Oracle Latvia Director Gints Bukans. All prices will now be provided in local currencies to simplify payments and the company will produce more information in local languages. (BNS)

ESTONIAN TRADE FIGURES: Estonia's foreign trade grew 11 percent in 2001 compared with 2000, the business newspaper Aripaev reported March 11. Exports grew 7 percent and imports grew 4 percent. The country's 10 main trading partners remained unchanged, though there was a significant increase in exports to Finland (up 2.1 billion kroons, $117.98 million), Norway (300 million kroons) and Russia and the Netherlands (each 300 million kroons), the newspaper reported. Exports to Sweden fell 2.9 billion kroons and exports to Germany decreased 600 million kroons. Imports from China grew 4 billion kroons last year, while imports from Finland fell 4 billion kroons. The increase in exports showed mainly in the food, furniture and textile industries. The largest import increases were found in the transport equipment and food sectors. (BNS)