Central Government Debt Accounted for 18.7% of 2004 GDP

Date

2005 02 01

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Vilnius, February 1, 2005. According to the data presented by the Ministry of Finance, the central government debt increased by LTL 83.6 million in December 2004 and at the end of the year amounted to LTL 11.58 billion. Over the year the debt increased by LTL 161 million.

“We are gald that the debt grew at a much lower pace than we expected in the beginning of the last year and its growth rates were also lower than those in the previous years”, said Mr. Lukas Tursa, Director of the State Treasury Department of the Ministry of Finance. “It may be considered as the result of the tight fiscal policy pursued by the Government of the Republic of Lithuania, as well as the outcome of the State Treasury’s sound cash management. We also rejoice over the fact that the central government debt to GDP ratio keeps decreasing obviously: in 2003 the debt represented 20.3%, while in 2004 it made up only 18.7% of GDP”.

During the year the central government debt increased by LTL 5 million and at the end of the year amounted to LTL 4,104.4 million, or accounted for 35.5% of total central government debt. The central government was indebted to domestic creditors: financial sector – LTL 3,285.5 million, non-financial – LTL 412.9 million, other creditors – LTL 406 million.

The central government foreign debt increased by LTL 156 million over the year and on 31 December was LTL 7,473.3 million, or made up 64.5% of total central government debt. In end-year the central government was indebted to foreign creditors: international organisations – LTL 969.5 million, foreign government institutions – LTL 194.2 million, the International Monetary Fund – LTL 66 million, other creditors (commercial banks and financial institutions) – LTL 6,243.6 million.

During the year the central government issued the Treasury bills with the value of LTL 459.718 million and bonds with the value of LTL 590.633 million. During the year 2004, the redemption value of the Treasury bills made up LTL 691.484 million, that of bonds – LTL 411.353 million, of savings bonds – LTL 289.796 milion and that of securities issued under special laws – LTL 45.788 million. In 2004 the redemption value of eurobond issue amounted to EUR 250 million and the value of successfully floated eurobond issue amounted to EUR 600 million.  The central government borrowed abroad under the loan agreements previously signed – LTL 71.8 million, while repayments of loans to foreign creditors amounted to LTL 987.7 million. Due to changes in exchange rates the debt narrowed by LTL 93.7 million. The short-term loans raised from domestic creditors equalled LTL 517.9 and repayments of these loans made up LTL 172.6 million.

Total long-term central government debt amounted to LTL 10,929.7 million, or represented 94.4% of total debt; short-term debt made up LTL 648 million, or accounted for 5.6 % of total debt.