Parliament lets state borrow up to EUR 5.4b

The Seimas of Lithuania has on Tuesday increased the state's net borrowing limit from 904.6 million to 5.4 billion euros as additional funds are necessary to compensate for a drop in state revenue and mitigate the coronavirus crisis' impact on the Lithuanian economy.

107 lawmakers voted in favor of the changes. They approve the new limit for state guarantees for loans used to stimulate the country's economy affected by emergency situations and to increase liquidity. The total value of commitments assumed in 2020 will not be able to exceed 500 million euros.

Finance Minister Vilius Sapoka told the parliamentary Committee on Budget and Finance the government will borrow both in Lithuania and in international markets, adding that 5.4 billion euros is not the final amount.

In his words, more realistic amounts will be clear later and the parliament will have to give its additional permission to increase the state's debt.

Sapoka also said Lithuania has already started looking where to borrow.

"We have turned to international organizations to be the first in line, if that was necessary," he said.