The Lithuanian government on Wednesday, a day after the country formally joined the European Stability Mechanism (ESM), gave the green light for transferring the first tranche of paid-in capital.
© Reuters/Scanpix

Lithuania is to pay 65.44 million euros into the ESM within 15 days after becoming its member.

"Since this transaction has to be done urgently, the government's resolution was submitted for approval as a matter of urgency. By this resolution, the ministry is authorized to make this transfer," Finance Minister Rimantas Šadžius said during the Cabinet's meeting.

The minister said that this has to be treated as an investment rather than an expense.

"This is an acquisition of financial capital, like an equity investment. This is not Lithuanian money spent and irretrievably gone. It is our asset," he said.

Lithuania is to contribute a total of 327.2 million euros to the ESM over five years and to make a further payment of 159.4 million euros after 2027, when the 12-year temporary correction applied to it as a country with a GDP per capita of less than 75 percent of the EU average, ends.

The ESM was founded in October 2012 as a permanent crisis resolution mechanism for the eurozone's member states in financial difficulty, with a maximum lending capacity of 500 billion euros.

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