Lithuania has been too slow to absorb EU aid for the 2014-2020 financing period, which may decelerate economic and wage growth and result in losing a part of European support, the Finance Ministry has warned.
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In its report on the implementation of the 2014-2020 action program and funding reallocation, the ministry says that a mere 13 percent of EU funding allocated to Lithuania has been disbursed since 2014. In the first quarter of 2017, the country used just 48 million euros, or 4.8 percent of the amount planned for the year.

"The insufficient funding utilization rate adversely affects the country's economic growth and poses a risk of losing funds in the performance reserve: 399 million euros, or 6 percent of the EU funds allocated to Lithuania for 2014-2020. Currently, the performance fund, whose risk of loss is high, amounts to 146.9 million euros," it said.

According to the ministry, 2.14 billion euros worth of EU-funded contracts are planned to be concluded this year, about 20 percent lower than the amount planned at the start of the year. The optimal use of EU funds per year is 1 billion euros.

Lithuania has secured 8.39 billion euros in support from European Structural and Investment Funds (ESIF) for 2014-2020. The government is to provide 1.56 billion euros in co-financing during the period.

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