Analytics, Economics, EU – Baltic States, Financial Services, Legislation, Lithuania

Christine Lagarde and Dalia Grybauskaite. Vilnius, 17.07.2013. Photo: ltv.lt

"The Lithuanian experience shows that it is possible to climb out of an economic hole in a short period of time. Only a responsible financial policy can ensure economic growth and the trust of financial markets. Europe must continue its reforms – it is the only way to avoid the painful consequences of financial turmoil," the President said.

At the present moment, the Lithuanian economy is among the fastest growing in the European Union.

The President noted that the IMF played an important role in helping to deal with Europe's debt crisis. The IMF provided financial support to Ireland, Portugal, Cyprus, Greece, Latvia, Hungary, and Iceland.

Among the other topics discussed was the IMF World Economic Outlook. According to the President of Lithuania, the slowdown in global growth required that countries continue adhering to responsible fiscal policies and that they pursue measures to boost competitiveness and growth.

Dalia Grybauskaitė as leader of the EU presiding member state – and Christine Lagarde exchanged views about the creation of a banking union. The Lithuanian Presidency will seek progress in establishing a bank resolution mechanism – key element of the banking union which will provide for a single resolution system to protect the taxpayers from additional expenditure.

This is the first visit of an IMF managing director to Lithuania after 16 years. Lithuania became member of the IMF in 1992. The organization comprises 188 member countries. It works to secure financial stability, facilitate international trade, promote economic growth, and reduce poverty around the world.