Continuing his visit in the US, Prime Minister Andrius Kubilius met yesterday with First Deputy Managing Director John Lipsky of the International Monetary Fund (IMF) to review recent economic developments and discuss the prospects for Lithuania’s economy. Mr. Lipsky welcomed the adjustment effort already underway, including the substantial fiscal adjustment taken in 2009 and the additional steps taken to reduce spending in the context of the 2010 budget.
“In a very difficult environment, the Lithuanian authorities have taken decisive steps that have limited the impact of the international financial crisis and bolstered the country’s credibility with international investors,” Mr. Lipsky said at the end of the meeting.
Given Lithuania’s goal to adopt the euro in 2014 and reduce the deficit accordingly, Mr. Lipsky added that advancing the ongoing adjustment through a permanent reform of the social security system and new measures to enhance revenues, will be fundamental.
Lithuanian Prime Minister Mr Kubilius thanked the IMF for the long-term constructive cooperation and consultations. The Prime Minister pointed out that the drastic response to the crisis was absolutely necessary. Andrius Kubilius said that Lithuania's economic outlook began to improve at the end of 2009, while 2010 is expected to demonstrate growth. The Prime Minister assured that the Lithuanian authorities would continue to implement all measures necessary to ensure sustainable economic recovery. In 2010, special attention will be given to structural reforms and measures aimed at bolstering economic growth and employment with due consideration to the most vulnerable groups of society.