Republic of Lithuania: 2008 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for the Republic of Lithuania
IMF Staff Country Reports, April 22, 2008
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- Republic of Lithuania: 2008 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for the Republic of Lithuania
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Bibliographic details
- Published: April 22, 2008
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451824186.002
Economic performance and context
- Discusses economic performance of Lithuania over the past decade.
- Attributes performance to EU accession, rapid financial integration, and generally sound macroeconomic policies.
- Notes findings of the Financial Assessment Stability Program (FASP) are welcome.
External and internal imbalances
- Highlights a rise in external and internal imbalances.
- Characterizes imbalances by:
- an unsustainable current account deficit
- an increase in domestic inflationary prices resulting from excess domestic demand
Financial sector and policy response
- Encourages the Bank of Lithuania’s measures in recent years to strengthen banks’ capital bases and encourage strong risk management.
- Notes rapid financial integration as a contextual factor affecting the banking sector.
Subject areas and keywords
- Subject: Balance of payments, Banking, Credit, Current account deficits, External debt, Foreign exchange, Money, Public debt, Real effective exchange rates
- Keywords: Baltics, banking system assets, CR, Credit, credit growth, Current account deficits, Global, ISCR, larger-than-estimated current account deficit, private sector credit growth, Real effective exchange rates, report, soft landing, staff appraisal, statement report