Banks, Financial Services, Legislation, Lithuania, Transport

The meeting regarding the financial state of the company was attended by the heads and representatives of the Ministry of Transport and Communications, the Ministry of Foreign Affairs, the Lithuanian Shipping Company and SEB bank.

After the meeting, the prime minister revealed that dividend payments to the budget will be reduced for Lithuanian Railways by EUR 3 million because it will guarantee the loan of such amount. According to Butkevicius, it was decided that the application to initiate bankruptcy proceedings will be withdrawn today, Friday 24 July. A decision was made to create a transport holding, based on this decision Lithuanian Railways will submit a guarantee to SEB bank. The Lithuanian Shipping Company should continue its activities, once the plan on the company's future is prepared.

The prime minister said bankruptcy proceedings will be terminated because LSC's financial obligations are considerable, whereas its ships could be sold only at a low price. Information that the company is going to continue its activities will be relayed to seafarers on Friday. Next week financial transactions will be made and the vessels will continue sailing. The prime minister says there is no point to return them to Lithuania at the moment. The prime minister is sure that the company will bring profit after the holding is created. The idea of a holding had been rejected in the past.

"If we would not have saved the company today, we would have incurred tremendous losses and the ships would have to be sold at a very low price. I think confidence in Lithuania's maritime shipping would have decreased substantially as well. () Of course we have to take care of seamen who have not received wages for several months, and this is a state enterprise," the prime minister said.

The company's privatisation was not considered on Friday. The prime minister said it is one of possibilities.