Lithuania Will Request the World Bank to Change the Status of the Country

Date

2006 09 06

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Vilnius, September 6, 2006. Lithuania will request to commence a change of the membership status from the recipient of the World Bank’s financial assistance to a donor country. Today Government granted authorisations to Mr. Zigmantas Balčytis, Minister of Finance of the Republic of Lithuania, to apply to the World Bank for commencement of the necessary procedures.

According to the World Bank’s assessment, Lithuania is attributed to the group of developed countries (in 2005 Lithuania’s gross national income per capita made up USD 7,210, i.e. by USD 6,055 crossed the graduation threshold applied by the World Bank) and currently, according to the procedures applied by the Bank, may initiate the graduation process. Lithuania’s graduation validates a high national development rate and has a positive impact on the image of the country.

From all the new EU members the graduation has been already formalised by Slovenia and the Czech Republic, this process has been commenced by Hungary, while Lithuania and Estonia plans to do the same in the near future.

Having formalised the graduation, Lithuania, as a donor country, would be able to become more active in contributing towards multilateral assistance to development provided via one of the World Bank’s organisations – International Development Association (IDA). The IDA membership and more active provision of assistance to developmental cooperation will ensure closer collaboration between Lithuania and international organisations, allow for effective contribution to the commitments made by the new EU Member States to increase the assistance to developmental cooperation, implementation of the commitments under United Nation’s Millennium Development Goals.

The membership status of the Republic of Lithuania in the World Bank has not changed since joining the organisation in 1992. Lithuania is still attributed to the group of recipients of the World Bank’s financial assistance, however, borrowing on international capital markets at more favourable conditions,  Lithuania does not employ financial resources of the World Bank since 2002 .

 

Public Relations Division