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2020.04.10 15:31

Around 2,000 people lose jobs in Lithuania each day – experts

Paulius Viluckas, BNS2020.04.10 15:31

Around 2,000 people lose their jobs every day due to the ongoing quarantine in Lithuania, according to Paulius Kunčinas, an analyst taking part in the Pandemic Economic Group forum in Lithuania.

"Based on the information I have managed to receive from the [the national heath insurance fund] SoDra, we are losing around 2,000 jobs. I think we'll have 2–3 times more in a week," said Kunčinas.

Read more: Every quarantine week shrinks Lithuania's GDP by 0.5 percent – finance minister

Pandemic Economic Group is an informal forum of experts who gather and analyse information on economic challanges posed by the pandemic, and provide advice on possible solutions in Lithuania.

Simonas Gustainis, managing partner at private capital fund manager BaltCap, said Lithuania's response to the coronavirus is conservative and delayed.

"When looking into states' promises, we see that Lithuania is [acting] modestly, in terms of its scope and attitude," he said, adding that all proposed instruments aim to distribute risk, but not provide liquidity.

Read more: Government support for businesses and workers – when to claim

Meanwhile, Lithuania did learn from the financial crisis in 2008–2009, but its response is outdated, according to a public administration expert, Klaudijus Maniokas.

"The initial reaction, when [the government] started to plan actions, was right. But we have been stuck so far with the same products and the same procedures" as during the financial crisis, Maniokas said.

In March, the Lithuanian government endorsed an unprecedented economic stimulus package, which will allocate one billion euros for economic stimulation. Measures to presenve jobs, improve healthcare, and ensure business liquidity will each receive 500 million euros.

Last week, the government announced its decision to double its business liquidity assistance to 1 billion euros.

Read more: Lithuanian government approves €2.5bn business relief plan