Lithuania seeks new World Bank loan

VILNIUS (BNS) - Lithuania will seek a new 20-year loan from the World
Bank to finance energy sector reforms, solve urgent financial
problems and refinance outstanding debt.

Officials will look into the possibility of borrowing an undisclosed
amount of money during the annual meetings of the World Bank and the
International Monetary Fund in Washington next week.

Finance Minister Jonas Lionginas and Economics Minister Eugenijus
Maldeikis met Adamkus to discuss Lithuania's position and aims at the
world's largest forum of bankers Sept. 23.

The World Bank loan would be used to restructure the country's energy
sector and solve financial problems at the state-run social insurance
fund, Sodra, and the farming sector, Lionginas said after the meeting.

Lithuania is due to repay 1 billion litas' worth of loans carrying
high interest rates next year, so it could refinance the costly loans
by borrowing funds from the World Bank.

"This would also bring down the state borrowing costs and improve
financial and economic indicators," said the finance minister, a
member of the Lithuanian delegation which is leaving for Washington
Oct. 1.