The international bank distributes to the countries affected by the war in Ukraine – Lithuania will also receive money
“We will see that companies in the Baltic States and Lithuania, whose investors relied on the financing of Russian banks, as well as international banks and capital markets (…), also have some less confidence. Not necessarily only in Lithuania, but in the most emerging markets, ”said the EBRD Vice President.
Following the EBRD’s approval of billion-dollar support for Ukraine and its refugee countries defending Russia’s military aggression, the bank intends to focus on the private sector in Lithuania.
“With our package, we will focus especially on the private sector. As I mentioned, investors are shrinking, so you will see more of us filling the gaps in the capital market in the long, medium and short term. We are going to refinance a certain position, it can be in all sectors, “said Rigternik.
“We are shareholders of many Lithuanian companies, so if there is a need to strengthen the capital base, we will take this into account,” he added.
Mr Rigternik acknowledged that Lithuania was more affected by rising global energy and food prices than other Western countries.
“Looking at Lithuania, we can see higher energy prices in general. (…) I come from Germany, where about seven percent of household income is spent on utilities, and here it is more than twenty percent. We are also seeing rising food prices. “The share of household income spent on food is higher here than in some countries of the Western world,” J. Rigternik told BNS.
The EBRD’s board of directors approved $ 2 billion last week. a € 1 million support package to help the population, businesses and countries affected by the war in Ukraine and the Baltic States. According to J. Rigterink, if necessary, the EBRD may additionally approve more support packages this year.
According to Rigternik, the approved billion-dollar support will be distributed according to the specific needs of each country.
“It simply came to our notice then. Our decisions are based on need. (…) If we need to give two hundred million euros or three hundred million euros to a country this year, we will do it. If, for whatever reason, the state needs only a hundred million, we will do the same. It really depends on what we ask, especially private clients, ”J. Rigterinkas told BNS.
He also stated that after the EBRD’s board of directors recommended the bank’s activities to the bank in Belarus in early March, the bank’s office in Minsk was offered to move to Vilnius. According to him, 20 people moved to the capital with their families from Belarus.
The EBRD said last week that direct funding in Ukraine would finance public debt management and restructuring, deferrals of payments, as well as trade, including fuel imports, urgent liquidity support and urgent support for fundamental reforms. At that time, in countries receiving refugees from Ukraine, the aid package will be for utilities displaced persons and the urgent purchase of energy.