Meeting of the Board of the Bank of Lithuania
1. The Board resolved to announce the 50 litas denomination banknotes of 2003 issue legal tender and to issue the banknotes as from 27 March 2003.
The new issue was produced because the reserves of this denomination banknote are running out.Along with the traditional security features, the new issue 50 litas banknote contains an additional anti-colour-copier security feature and some other changes.
The banknote of 2003 issue, same as the 1998 issue, was produced by the German banknote printing company Giesecke & Devrient GmbH.
The older 50 litas banknotes of 1993 and 1998 issues will also continue to circulate as legal tender along with the new 2003 issue banknotes.
This banknote is the latest litas banknote to be issued into circulation.
2. The Board approved the General Provisions for the Assessment and Classification of Doubtful Assets and Making Specific Provisions.
The new provisions will allow banks to make better assessment of doubtful assets and related risks; they are more liberal than the current provisions and provide only for minimal requirements set by the Bank of Lithuania, while each bank will have to draw their own rules for the evaluation and classification of doubtful assets on the basis of these requirements.
The new provisions specify intervals for the specific provisions on doubtful assets, in contrast to particular rates of provisions required under the current rules. Doubtful assets will continue to be classified into five risk categories. However, the use of evaluation and classification methods and models developed by the banks themselves will result in better evaluation of the quality of doubtful assets.
The new provisions will become effective as from 31 December 2003.
3. The Board acknowledged that AB Parex Bank meets the requirements and criteria to the participants of Government securities auctions. The Board also decided to accept the application of this bank to conclude the Auction Participant’s Agreement with the BoL.
Until now, six companies had agreements with the BoL and could participate in Government securities auctions held at the BoL: AB Hansa-LTB, AB Agricultural Bank of Lithuania, AB Bank Snoras, AB Vilniaus Bank, the financial brokerage company Finasta and UAB Sampo Bank.
Note: Information about Government securities auctions and the requirements to the participants is available on the website of the Bank of Lithuania at http://www.lb.lt/eng/about/agent.html#part.
4. The Board decided to authorise a representative of the BoL to vote at the General Shareholders Meeting of the Central Securities Depository of Lithuania for the allocation of the major part (LTL 639,897) of the 2002 net profit to the general profit reserve used for the acquisition of long-term assets, development of the Depository’s activities and payment of dividends.
5. The Board approved the BoL Information Systems Security Policy.The Policy establishes information system principles, risk management, etc.It replaces the current Information Technology Security Concept which was used as the basis for information system security management.
The new Policy is based on international practices in information technology and applied standards.