Finance Minister Rasa Budbergytė
© DELFI / Karolina Pansevič

The black market is the reason for skyrocketing consumer prices in Lithuania, according to the country's Finance Minister Rasa Budbergytė.

“The reason [for high prices] is definitely not the adoption of the euro," she said during an interview to Žinių Radijas on Thursday.

"I truly believe that the main reason is the size of the black market in Lithuania, the imbalance between supply and demand, particularly in Vilnius. There is a large amount of illegal funds circulating, which is why we sometimes pay one euro now where we used to pay just one litas."

Economists say that the black market accounts for more than a quarter of the Lithuanian economy. Based on public surveys, 70% of respondents point toward excessive taxes as the main reason for the existence of the black market.

Žinių Radijas

Leave a comment
Commenting is allowed for registered users only!
By posting, you agree to terms
Read comments Read comments

Court: intelligence info about Lithuanian ex-minister as untrue

A Vilnius court recognized on Friday that the State Security Department 's (VSD) allegations about...

Russian suspect in visa bribery case released on bail

Rinat Nasirov , a Russian citizen suspected of giving a bribe to have a Schengen visa issued by...

Lithuania calls on Estonia to coordinate actions following Moscow visit

Lithuanian Minister of Foreign Affairs Linas Linkevicius on Friday called on Estonia to coordinate...

Presidential candidates identify threats to Lithuania's national security

Social exclusion, emigration, a lack of confidence in one's country, corruption. These and other...

MPs want only children vaccinated against measles in kindergartens

A group of Lithuanian lawmakers, representing the opposition conservative Homeland Union –...