2013-09-23
The International Monetary Fund (IMF) European Department mission is completing its work in Lithuania today and notes increased resilience of the financial system as one of the positive changes in the country’s economic development.
The TVF mission’s final report, which will be presented today to the Bank of Lithuania and the Government, notes that the measures adopted in dealing with Ūkio bankas strengthened financial resilience. It also positively assessed the Bank of Lithuania’s efforts to strengthen supervision of credit unions, and stressed that the government institutions should pursue regulatory reforms to improve the functioning of the sector.
The IMF report stated that the banking system’s high level of liquidity and capitalization, with the decline in non-performing loans and the improving economic development prospects, should facilitate credit development.
The IMF mission welcomes plans to strengthen the powers of the Bank of Lithuania in implementing macro-prudential policy in Lithuania. This should help to ensure that credit growth remains sustainable, and will not pose a threat to financial stability.
The IMF European Department’s mission, which takes place every half-year and is led by this Department’s representative Julie Kozack, began work this year on 17 September. The IMF experts analysed the current macroeconomic situation in Lithuania and assessed general economic development patterns, the situation in the financial sector and the implementation of social policy measures. Meetings took place with representatives of the Bank of Lithuania, the Ministry of Finance and other government institutions, as well as representatives of the private sector.
The IMF mission’s final report will be published in the IMF website.