Statement by IMF First Deputy Managing Director John Lipsky at the end of a visit by Lithuanian Prime Minister Andrius Kubilius

First Deputy Managing Director John Lipsky of the International Monetary Fund (IMF) met today with Prime Minister Andrius Kubilius of Lithuania to review recent economic developments and discuss the prospects for Lithuania’s economy.

Mr. Lipsky welcomed the adjustment effort already underway, including the substantial fiscal adjustment taken in 2009 and the additional steps taken to reduce spending in the context of the 2010 budget. “In a very difficult environment, the Lithuanian authorities have taken decisive steps that have limited the impact of the international financial crisis and bolstered the country’s credibility with international investors,” Mr. Lipsky said at the end of the meeting.

Given Lithuania’s goal to adopt the euro in 2014 and reduce the deficit accordingly, Mr. Lipsky added that advancing the ongoing adjustment through a permanent reform of the social security system and new measures to enhance revenues, will be fundamental.