aA
Ingrida Simonyte, proposed for the position of prime minister in Lithuania, says the growing state debt has become a problem already.
Šimonytė: growing state debt becomes problem
© DELFI / Domantas Pipas

If nothing is done, the debt level will soon exceed the 60 percent GDP level, she says, therefore, bringing it back onto a sustainable track will not be easy.

"The state debt will jump significantly this year and will continue growing next year," Simonyte told lawmakers on Thursday after President Gitanas Nauseda nominated her for prime minister.

"We can thank the euro area that the price of that debt is favorable for us today," she added.

In her words, the debt level will go up almost as much in 2020-2021, with economic loses being considerably lower, as it did during he 2009-2019 crisis when the economy shrank almost a fifth.

Lithuania's state debt stood at 35.9 percent at the end of 2019 but is estimated to get closer to 48 percent at the end of this year due to the coronavirus crisis, and is expected to cross the 50 percent threshold in 2021. Under the Maastricht criteria, a country's debt level should not exceed 60 percent GDP.

Lithuania's state debt level stood at only 14.6 percent at the end of 2008, but grew to 36.3 percent over the next two years.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

Democrats For Lithuania nominate Savickas in Vilnius mayoral race

A general meeting of Vilnius branch of Democrats For Lithuania has approved MP Lukas Savickas as the...

Former chief epidemiologist suspected of document forgery

It has transpired that the Special Investigation Service (STT) made allegations of document forgery...

Dulkys: no need to consider lockdown or state of emergency yet

Minister of Health Arūnas Dulkys told reporters Thursday that so far there is no need to introduce a...

Changes announced in team of deputy ministers at Ministry of Economy and Innovation

Minister of Economy and Innovation Aušrinė Armonaitė will appoint her current adviser Karolis...

Two more monkeypox cases detected

Two more monkeypox cases have been confirmed in Lithuania. Minister of Health Arūnas Dulkys made the...

Top news

NATO eFP Commander Lt Col Maulbecker: we will deter, and if necessary, we will defend territory of Lithuania

On 10 August, a handover-takeover of the NATO enhanced Forward Presence mission ceremony took place at...

Minister of Foreign Affairs: expansion of export markets increases Lithuania’s resilience to geopolitical challenges

There are reasons to be optimistic about Lithuania’s trade data for the first half of 2022. The...

Adviser: state could compensate up to 150 kWh of electricity

As the state is set to pay new subsidies for electricity in Lithuania from next year, a consumption...

Democrats For Lithuania nominate Savickas in Vilnius mayoral race

A general meeting of Vilnius branch of Democrats For Lithuania has approved MP Lukas Savickas as the...

Former chief epidemiologist suspected of document forgery

It has transpired that the Special Investigation Service (STT) made allegations of document forgery...