WASHINGTON, July 26, 2000 - The World Bank has approved a US$98.5 million equivalent (EURO 108.2 million) Second Structural Adjustment Loan (SAL II) to support the Government of Lithuania's reform program which aims to reduce poverty by putting the economy on a path of rapid and sustainable growth in a setting of macro-financial stability.
The loan's main goals are to restore growth, reduce the vulnerability growing out of high and variable twin deficits, limit immediate and longer-term poverty, and ensure smoother integration into the European Union (EU). Enhancement of medium-term fiscal sustainability and removing bottlenecks to higher efficiency are the backbones of the reforms to be supported by the SAL II.
The loan will build upon and deepen the reform program supported by the first Structural Adjustment Loan, approved by the World Bank's board on October 15, 1996, as well as by subsequent analytical work and policy advice from the Bank. The SAL has also been designed to complement policy measures being supported under ongoing and proposed World Bank projects, which have recently focused on social and human development.
The loan will be disbursed at the standard rate for LIBOR-based fixed based loan in EUROS, repayable in 11 years. Since joining the Bank in 1992, commitments to Lithuania total approximately US$446.5 million for 15 projects.