Lithuania’s state-owned railway operator Lietuvos Geležinkeliai (Lithuanian Railways) will provide a 3-million-euro loan to financially-troubled Lietuvos Jūrų Laivininkystė (Lithuanian Shipping Company, or LJL).
© DELFI / Šarūnas Mažeika

Transport Minister Rimantas Sinkevičius has said that the companies have reached a preliminary agreement and the contract should be signed – and money transferred – on Tuesday or Wednesday.

“A preliminary verbal agreement has been reached. Now they are negotiating individual articles of the contract. The parties have found a commercial effect from lending and Lietuvos Geležinkeliai is inclined to lend 3 million euros to LJL,” Ričardas Slapšys, an aide to the transport minister, told BNS.

The term of the loan or its interest has not been disclosed. However, Slapšys said that the interest rate was “commercial”.

Lietuvos Geležinkeliai was the only one to respond to a call from LJL for a 3-million-euro loan. Lietuvos Energija (Lithuanian Energy), Klaipėdos Nafta (Klaipėda Oil) and the port of Klaipėda have all refused to lend any money to LJL, which has a debt of more than 20 million euros.

Last Friday, SEB Bankas deferred the repayment of nearly 15 million euros worth of LJL loans by another nine months – until April 2016. This enabled the authorities to withdraw a petition for LJL bankruptcy.

LJL is quoted on the Secondary List of the NASDAQ OMX Vilnius Stock Exchange.

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