V. Vasiliauskas: development of alternative sources would encourage business financing and create greater competitiveness for banks

“Small- and medium-sized enterprises experience greater and smaller financing difficulties during the crisis; therefore for Lithuania the new European initiatives are particularly important, which encourage a variety of financing sources and create greater competitiveness for banks,” says V. Vasiliauskas.

The European Commission in March published a document for discussions on long-term financing of the European economy. It states that small- and medium-sized enterprises depend more on financing of banks, but alternative financing sources should be encouraged as well. According to V. Vasiliauskas, a larger role in financing businesses could be had by other long-term institutional investors — insurance undertakings and pension funds. In addition, enterprises could attract more capital by issuing bonds.

The Chairman of the Board of the Bank of Lithuania will also introduce in Athens the newest information on Lithuania’s economy and will discuss the preparedness for the Euro adoption in Lithuania.

During the visit of the Governor of the Bank of Lithuania, bilateral meetings should take place with the Chairman of the Banco de Portugal, Carlos de Silva Costa, and the Chairman of the Central Bank of Greece, George A. Provopoulos.

The Chairman of the Board of the Bank of Lithuania this is meeting with heads of other euro area country central bank heads, to whom he will present Lithuania’s economic development trends and the prospects of euro adoption in Lithuania. Meetings with the heads of the central banks of Germany, France, Italy, Spain, Belgium, the Netherlands, Luxembourg, Austria, Cyprus and Malta have already taken place.