Economists estimate that every week of the quarantine in Lithuania, introduced to slow the spread of the coronavirus, shrinks the country's annual GDP by 0.5 percent, Finance Minister Vilius Sapoka says.
Vilius Šapoka
Vilius Šapoka
© DELFI / Kiril Čachovskij

"Of course we feel the negative impact as economists estimate that one week cuts around 0.5 percent off the annual GDP growth. So, naturally, the longer the quarantine is, the bigger that impact will be," the minister told the national radio LRT on Tuesday.

In his words, if the spread of the coronavirus in Lithuania and the European Union is contained in the first half of this year, Lithuania's economy will shrink by a single-digit number, if not, it will be a double-digit number.

According to Sapoka, Lithuania is using both accumulated reserves and borrowed funds to mitigate the consequences of the coronavirus crisis. It was reported on Monday that the country had agreed on loans worth 1.5 billion euros from international financial institutions, and Lithuania also plans to issue Eurobonds and borrow in the internal market.

Lithuania will also use instruments EU institutions are preparing but the key decision, which has already been made and is being implemented, is the European Central Bank's 750 billion euro program to ensure financial stability, Sapoka says.

In his words, Lithuania is also considering the European Commission's proposed 100 billion euro temporary unemployment scheme, the European Investment Bank's guarantee scheme for small and medium enterprises, as well as the European Stability Mechanism, worth around 400 billion euros, which would provide a possibility for every member state to borrow around 2 percent of their GDP.

„Nothing has been agreed on any of these matters yet, and I think I will have more answers after this evening as we plan to hold a virtual meeting of eurozone finance ministers and we will look for answers regarding many details and common agreement in this pandemic context," Sapoka said.

It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
|Populiariausi straipsniai ir video

Skvernelis: no plans to put economy on hold if 2nd coronavirus wave comes (2)

The whole economy or its individual sectors in Lithuania will not be put on hold if a second...

Lithuania plans to establish anti-money laundering competence center

Lithuania plans to establish an anti-money laundering competence center as the Nordic and Baltic...

Minister: direct EU payments to farmers should be capped at EUR 100,000

Direct EU payments to Lithuanian farmer s in 2021-2027 should be capped at 100,000 euros,...

To start or not to start fintech company during recession?

Microsoft, IBM, HP, Disney, FedEx, 3M. What do these companies have in common? They started their...

Lithuania asks Slovenia to hand over detained businessman Kucinskas

Lithuania's Prosecutor General's Office has asked Slovenia to hand over Vidmantas Kucinskas , the...

Top news

Ex-president Grybauskaite urges Lukashenko to leave

Lithuania's former president Dalia Grybauskaite on Thursday urged Alexander Lukashenko to leave...

Foreign ministry: Lithuania bans entry to Hezbollah affiliates

The Lithuanian government has banned entry to people linked to the Hezbollah paramilitary movement...

Lithuanian journalists voice support for persecuted colleagues in Belarus and offer help

Editors of Lithuanian media outlets sent on Thursday a message of solidarity to their persecuted...

21 new coronavirus cases

On Wednesday Lithuania confirmed 21 new COVID-19 cases in the country. In total, 2330 cases have been...

Estonian president to visit Lithuania on Friday

On Friday President Kersti Kaljulaid will travel to Vilnius on a one-day working visit in order to...

|Maža didelių žinių kaina