1.
The Board resolved to give permission to Vilniaus Bank to recognise the
seven-year 22 million euro loan from the International Financial Corporation as
a subordinated loan and include it into its eligible capital.
Permissions on including subordinated loans into eligible capital are granted in
cases when the loan is a long-term loan in cash and is not expected to have a
negative impact on the financial standing.
2. The Board discussed the participation of the Bank of Lithuania in the
processes of Lithuania’s preparation for EU membership.
Most preparation measures of Lithuania are based on the Community Law (acquis
communautaire) that consists of 29 chapters. The functions of the Bank of
Lithuania are directly related to the adoption and implementation of legal acts
pertaining to three chapters of the acquis:
Economic and Monetary Union, Free Movement of Capital and Freedom to Provide
Services.
The main fields in the work of the Bank of Lithuania include harmonisation of
the legislation regulating the operations of credit institutions, improvement of
monetary policy instruments (by bringing them in line with the requirements of
the European Central Bank), improvement of the balance of payments, banking and
monetary statistics and modernisation of the payments system.
Negotiations on the chapters Freedom to Provide Services and Free Movement of
Capital were started in the second half of 2000, while the negotiations on the
chapter Economic and Monetary Union are expected to start in the first half of 2001.
Lithuania’s progress within the chapter Economic and Monetary Union has for
three years been viewed by the European Commission as related to the adoption of
the Law on Amendments to the Law on the Bank of Lithuania. With the adoption of
this law compliance with the acquis
requirements under this chapter, such as institutional, financial and personal
independence of the central bank and prohibition of direct financing of the
public sector by the central bank will be implemented. While the Bank of
Lithuania does not lend to the public sector directly, in the opinion of the
Commission, Lithuania should adopt legislation expressly prohibiting such
lending by the central bank.
Lithuanian legislation related to the subchapter Monetary and Exchange Rate
Policy, with the exception of requirements for the introduction of the euro,
will be fully harmonised with the acquis
of this subchapter upon the adoption of the draft Law on the Amendments of the
Law on the Bank of Lithuania.
As Lithuania prepares for EU membership, it is intended to retain the fixed
exchange rate of the litas. A key task in the medium term is to ensure a smooth
transition from its present peg to the US dollar to the euro peg. The peg of the
litas to the euro at a fixed rate of exchange will allow meeting Treaty
requirements on the common exchange rate policy and create conditions for the
participation of Lithuania in the Exchange Rate Mechanism after EU accession.
3. The Board resolved to announce the 50 litas denomination silver commemorative
coin issued to mark the New Millennium as legal tender for payments and
settlements and issue it into circulation as of 27 December 2000.
The weight of the silver (925) coin is 28.28 g, diameter 38.61 mm, and mint 3000
pieces. The coin has a mirror surface with a matt relief and an inscription on
the edge in Latin SALVE NOVUM MILLENNIUM.
The author of the coin is Rytis Balcevičius.
Event date
December
07
Meeting
of the Board of the Bank of Lithuania
1.
The Board resolved to give permission to Vilniaus Bank to recognise the
seven-year 22 million euro loan from the International Financial Corporation as
a subordinated loan and include it into its eligible capital.
Permissions on including subordinated loans into eligible capital are granted in
cases when the loan is a long-term loan in cash and is not expected to have a
negative impact on the financial standing.
2. The Board discussed the participation of the Bank of Lithuania in the
processes of Lithuania’s preparation for EU membership.
Most preparation measures of Lithuania are based on the Community Law (
acquis
communautaire)
that consists of 29 chapters. The functions of the Bank of
Lithuania are directly related to the adoption and implementation of legal acts
pertaining to three chapters of the
acquis
:
Economic and Monetary Union, Free Movement of Capital and Freedom to Provide
Services.
The main fields in the work of the Bank of Lithuania include harmonisation of
the legislation regulating the operations of credit institutions, improvement of
monetary policy instruments (by bringing them in line with the requirements of
the European Central Bank), improvement of the balance of payments, banking and
monetary statistics and modernisation of the payments system.
Negotiations on the chapters Freedom to Provide Services and Free Movement of
Capital were started in the second half of 2000, while the negotiations on the
chapter Economic and Monetary Union are expected to start in the first half of
2001.
Lithuania’s progress within the chapter Economic and Monetary Union has for
three years been viewed by the European Commission as related to the adoption of
the Law on Amendments to the Law on the Bank of Lithuania. With the adoption of
this law compliance with the
acquis
requirements under this chapter, such as institutional, financial and personal
independence o
Last update: 07-12-2000