VILNIUS - Lithuania's government has launched the third phase of its real estate compensation scheme that will give thousands of Lithuanians shares in Lietuvos Telekomas, the telecommunications operator, and Vakaru Skirstomieji Tinklai, the power grid in western half of the country.
The shares reserved for the third phase of the compensation scheme, which will close on June 30, comprise a 7.93 percent stake in Lietuvos Telekomas, valued at 109.8 million litas (31.8 million euros) and a 0.26 percent holding in VST valued at 1.5 million litas.
The value of Lietuvos Telekomas shares has been pegged at 1.7 litas and VST's at 1.5 litas.
In total, 5 percent state-owned stakes in RST and VST, a 10.03 percent stake in Lietuvos Telekomas and a 6.58 percent holding in Lietuvos Juru Laivininkyste, the shipping operator, have been earmarked for compensation in the scheme that is expected to proceed until the end of June 2005.
The equity compensations are being paid pursuant to the Law on Restitution of Real Estate Ownership to Citizens, according to which all property required for the state's needs that cannot be restored in kind must be compensated. Residents are offered four options: agriculture land, forest land, cash or shares of state-owned enterprises. The latter option is widely regarded as the most convenient form of reimbursement.
The state has pledged to settle payments for redeemable land, forest and bodies of water by 2009 and to pay compensation for residential houses and apartments until 2011.