||Lithuania Business News: Archive 2003-
Saturday, 12th of May
Minimum salary will rise
The minimum salary in Lithuania should be raised by LTL 100, to LTL 700 from October. The Tripartite Council should make final adjustments and advise the government to pass a relevant decision on coming Tuesday.
"I think that the decision should be made on Tuesday. All parties, including the government, employers, industrialists and trade unions, agree that the minimum salary should be raised to LTL 700. Yet, we proposed to effect the increase in July, while the government postponed that date till October," Algirdas Kvedaravicius added.
A year later, i.e. in October 2008, the minimum salary should be raised to LTL 800, in line with the government's commitments.
Kaunas power plant will double generation capacity
Kauno Termofikacijos Elektrine (Kaunas Combined Heat and Power Plant, or KTE), which is owned by Russia's gas giant Gazprom, plans to double its electricity generation capacity within several years by building a new combined-cycle/cogeneration gas turbine power plant with a total capacity of 320 megawatts (MW).
KTE intends to invest around LTL 800 million in expanding its power production capacity. Antanas Pranculis, the plant's CEO, said that the implementation of the capacity expansion project would be completed in 30 to 32 months.
KTE last year announced an international tender for a contractor to implement the project but has not named the winner yet.
Three international concerns, Siemens, Alstom and General Electric, are seen as potential contractors.
Some repu Color table international pharmaceutical companies allegedly use dubious business schemes to avoid paying taxes in Lithuania.
They sell their products in such a way that most of the money goes abroad. That costs Lithuania up to LTL 100 million in lost budget revenue per year. Estimates of unpaid taxes for the years before 2004 reach as high as 300 million annually.
Reportedly, the local subsidiaries of Pfizer, Eli Lilly and AstraZeneca have attracted the most attention from tax inspectors.
Friday, 11th of May
Pensions will rise
Old-age pensions for citizens with a record of work over 30 years will receive an almost LTL 8 add-on for each year of work history.
The amount of long-service pay would depend on the size of basic pension since it would comprise 3 percent of the latter amount.
Based on current basic pension of LTL 266, the add-on for each extra year of work exceeding the 30-year employment term would total LTL 7.8.
Lietuvos Zinios, Lietuvos Rytas, Respublika, Kauno Diena Verslo Zinios
Lithuanian export grows
Lithuanian exports grew by 6.2 percent, year-on-year, to reach LTL 9.6 billion in the first three months of this year, while imports rose by 13.4 percent, to LTL 13.4 billion, the Statistics Department reported.
The country's foreign trade deficit soared by 37.1 percent year-on-year to LTL 3.8 billion, according to preliminary data based on customs declarations and Intrastat reports.
In March alone, Lithuania's exports increased by 3.4 percent.
The list of imports commodities was topped by machines, mechanical and electrical equipment (16.9 percent of the total), transport vehicles and auxiliary equipment (16.3 percent) and mineral products (16.3 percent).
The country's biggest export partner was Russia, accounting for 14 percent of three-month exports.
Lietuvos Zinios, Verslo Zinios
Annual inflation in Lithuania
The twelve-month average and annual inflation rates as measured by HICP exceeded the rates estimated under national standards by 0.1-percentage point, while the monthly inflation rates were identical, the Statistics Department reported. Lithuania's average twelve-month inflation rate, as measured by the EU Harmonized Index of Consumer Prices (HICP), stood at 4.2 percent in April, Annual inflation, i.e. compared with April 2006, made up 4.9 percent. Compared with March, consumer prices in the country edged up by 0.9 percent last month, the department said.
Verslo Zinios, Lietuvos Zinios
Thursday, 10th of May
Inflation in April
April's inflation was pushed up by rises of 2 percent in food and soft drink prices, 1.7 percent in transport costs, 1.6 percent in clothing and footwear prices, and 1.2 percent in healthcare costs. This was in part offset by a 1.6 percent decline in communication costs, the department said. Oil went up by 4.8 percent per one month. Consumer prices in Lithuania rose by 0.9 percent in April.
The average annual inflation rate was 4.1 percent, and the 12-month inflation rate was 4.8 percent, it said.
Lietuvos Zinios, Kauno Diena
Food testing in Lithuania
The State Inspection of Non-Food Products has made more than 1.7 thousand of testing of non-food products in various business companies. Different violations were found in 47.5 percent of these companies. The consumers were complaining 485 times this year, it is by 17.7 percent more than last year at the same time. 71 percent of complaints were confirmed. The biggest violations were detected in electronic, construction, leather and shoes, textile, cosmetic and furniture products.
Invalda posts net profit
The group of companies controlled by the Lithuanian investment company Invalda posted LTL 75.6 million in consolidated net profits for 2006, up 93.1 percent from LTL 39.122 million the previous year. Invalda's share of the 2006 net profits reached LTL 65.5 million. Invalda alone posted a net profit of LTL 28.816 million last year.
The group's audited net result is up from the previously reported pre-audit profit figure of LTL 66.5 million, with the parent company's share at LTL 58.5 million. The company said the difference was due to auditors classifying Sanitas and Kauno Tiltai as associated companies, rather than subsidiaries.
Wednesday, 9th of May
Sanitas consolidated sales
Sanitas, which owns pharmaceutical plants in Lithuania, Poland and Slovakia, posted consolidated sales of LTL 107.696 million for the first four months of this year. The consolidated sales figure is 5.1 times higher than that in the same period last year, when results from Poland's Jelfa, were not yet included into the group's results. Sanitas turnover went up by 16.9 percent up to LTL 13.263 million. The major selling was in Poland for the company this year; it made 57 percent of all markets.
Lithuania economy is slow
According to the newest forecasts of The European Commission, Lithuanian economy will grow by 7.3 percent this year and next year it will slow down to 6.3 percent. The inflation will reach 4.7 percent this year in the country and it is going to be 4.4 percent next year. The growing of the economy in Lithuania is the slowest comparing to other Baltic States according tot eh Commissions forecasts. Moreover, the inflation in Lithuania is going to be the smallest among the three regions.
MG Baltic posts sales
MG Baltic, the leading Lithuania's conglomerate active in manufacturing, trade, real estate and media businesses, posted LTL 288 million in unaudited consolidated sales for the first three months of 2007, a surge of 60.5 percent from the year-earlier figure. Profit before tax and minority interest, excluding change in fair value of investment properties, soared by 4.8 times, year-on-year, to LTL 27.6 million, the concern said in a statement.
Tuesday, 8th of May
National budget revenues
Lithuania's national budget revenues, including the EU funds, should reach LTL 27.34 billion next year, a rise of 23.3 percent from this year's projected revenues, according to preliminary estimates by the Finance Ministry. It is planned that the states budget, including the EU funds, should rise up to LTL 23.925 billion which is by 24.5 percent more than I n 2007. The preliminary national budget estimates for the next three years will be submitted to the Cabinet for approval next Wednesday. Respublika, Verslo Zinios, Lietuvos Rytas
International reserves in Lithuania
Lithuania's official international reserves reached LTL 15.5 billion at the end of April, rising by LTL 0.9 billion or 6 percent from a month earlier.
According to the Bank of Lithuania, The growth in reserves resulted from a rise of LTL 656.1 million in other monetary financial institutions' deposits with the central bank and of LTL 303.8 million in the amount of currency in circulation. An increase of LTL 21.9 million in the central bank's external liabilities also contributed to the growth.
Chewing gum prohibition
It is prohibited to sell the 1.5 tons of chewing gum Eclipse Lemon Ice for Wrigley Baltic in Lithuania. It was done due to the fact that the exceeding concentration of the sweetener was found inside the gum. There was aspartame, which is 200 times sweeter than sugar. Wrigley Baltic has to safely destroy the chewing gum or to return the production to the supplier.
Back to Baltic Business Monitor