Due to Cautious Borrowing Policy, in May the Public Debt Decreased by Additional LTL 181 million


2003 06 27


Vilnius, 27 June, 2003. In May the total public debt decreased by LTL 181.5 million – to LTL 13,146.9 million. According to the data provided by the Ministry of Finance, the total public debt accounted for 24.4% of the projected GDP in the event of admissible 30% of GDP limit.

The decline in the public debt was caused by the tight debt management policy pursued by the Ministry of Finance and exchange rate fluctuations. In May the government's borrowing requirement was met by borrowing domestically and no credits were taken from foreign creditors, however, the repayment of credits to foreign creditors amounted to LTL 90 million. The total foreign debt decreased by another LTL 93.4 million due to fall in the foreign currency exchange rates against Litas. 

Within the month both the direct and contingent liabilities decreased. As of 31 May   liabilities on behalf of the State (direct liabilities) fell by LTL 106.1 million as compared to those in the previous month and amounted to LTL 11,557.3 million, or represented 87.9% of the total public debt. Government guarantees on loans (contingent liabilities) decreased by LTL 75.4 million to LTL 1,589.6 million (12.1% of the total debt).

In April, the direct foreign debt decreased by LTL 183.5 million to LTL 7,565.2 million. Upon issuance of the government securities on the domestic market, the direct domestic debt increased by LTL 77.4 million – to LTL 3,992.1 million.

In April, the contingent foreign debt decreased by LTL 79 million, whereas the contingent domestic debt increased by LTL 3.6 million.

The total long-term debt (including government guarantees) comprised LTL 12,563.7 million, or 95.6% of the total debt. The short-term debt amounted to LTL 583.2 million, or 4.4% of the total debt.

As of 31 May, the total foreign debt amounted to LTL 8,975.9 million, or made 68.2% of the total public debt. Lithuania was indebted in foreign currency: to international development organisations (the World Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Nordic Investment Bank and other international organisations) – LTL 1,626.7 million, to foreign government institutions – LTL 455.7 million, to the International Monetary Fund – LTL 173.9 million and to other creditors (commercial banks and financial institutions) – LTL 6,719.6 million.

In the end of May, the total domestic debt amounted to LTL 4,171 million, or represented 31.8% of the total public debt. The government was indebted in litas: to commercial banks – LTL 2,122.3 million, to financial institutions and individuals – LTL 1,933.8 million, to other public sectors – LTL 114.9 million.