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2020.03.31 09:25

Lithuania seeks Nordic loan to deal with economic fallout

BNS2020.03.31 09:25

Lithuania is in talks with the Nordic Investment Bank (NIB) on a loan to help reduce the impact of the coronavirus crisis.

“We have applied to the NIB for a loan to alleviate the consequences of Covid-19,” the Finance Ministry told BNS. “The bank's board is to discuss the issue at its next meeting this week.”

Read more: Lithuania doubles business support to €1bn

The ministry gave no details as to the size and duration of the loan.

The Nordic and Baltic ministers, the NIB governors, called on the bank last week to maximise lending to the region's crisis-affected businesses.

On March 25, NIB extended a 15-year loan of 750 million euros to Estonia to help finance the measures taken to curb the impact of the coronavirus pandemic.

The loan carries a floating interest of six-month EURIBOR plus 0.32 percentage points.

The Lithuanian parliament has recently raised the government's net borrowing limit for 2020 to 5.4 billion euros, from 904.6 million euros, because of the coronavirus crisis.

Finance Minister Vilius Šapoka has said the government plans to borrow funds both in Lithuania and from international markets, adding that 5.4 billion euros is not the final sum.