Activities of the Bank of Lithuania in the First Half of 2006 presented in the Seimas

The report noted that the Bank of Lithuania consistently made preparations for the adoption of the single currency of the European Union from early 2007. The European Central Bank and the European Commission stated in the convergence reports of May 2006 for compliance by Lithuania with all criteria for the adoption of the euro except for that of price stability. Therefore the European Commission arrived at a conclusion that meanwhile the status of Lithuania, as a European Union member state subject to a derogation to use temporarily its national currency, is not to be changed.

“The Bank of Lithuania has accomplished all the tasks envisaged in its own and the European Central Bank’s plans for this stage of preparation for the adoption of the euro and in late 2006 would have been fully prepared for the adoption of the euro and integration into the Eurosystem. Preparations for that will be continued”, noted Reinoldijus Sarkinas.

The report for the Seimas described the main developments of the world economy, assessed the current development of the Lithuanian economy, presented the monetary policy instruments applied by the central bank, foreign reserve and cash management, functioning of payment and securities settlement systems, statistics development and improvement; it noted how the transparency of the Bank of Lithuania’s operations is ensured. Also, the activities of domestic credit institutions were reviewed.

Reinoldijus Sarkinas answered the questions of members of the Seimas.

The Chairman of the Board of the Bank of Lithuania twice a year delivers reports before the Seimas of the Republic of Lithuania.