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Lithuania Business News: Archive 2003-

WEEK 27.2007

Thursday, 5th of July

Adamkus signs the law for nuclear power plant
President Valdas Adamkus signed the law on nuclear power plant as adopted by the parliament on Wednesday. According to the President's Office, the president made the decision "having heard and considered specialists' comments and opinions on the provisions of the law." The law provides that a national investor enterprise will be set up to implement the power plant construction project, to be joined by strategic partners Latvia, Poland and Estonia.
Lietuvos Zinios, Kauno Diena, Respublika, Lietuvos Rytas

Teo LT speeds up
Teo LT, one of Lithuania's largest telecommunication companies, said it has boosted the speed if its direct international internet channels from 6 Gbps to 9 Gbps. The operator intends to boost the international internet connection speed by another 2 Gbps this year. The company was increasing the speed in order to meet the growing demand for a higher speed internet connection from both retail and wholesale customers.
Lietuvos Rytas

Swedbank evaluates Baltic States
The heads of Swedbank, which controls Hansabankas in Lithuania, claim that the macroeconomic situation in Lithuania is the best among all the three Baltic States. The Swedbank representatives claim that Lithuania’s budget was not redistributed this year and they see it as a very positive thing. Moreover, Lithuanian Government supported the project for the Fiscal Discipline Law on Wednesday.
Lietuvos Rytas, Verslo Zinios

Wednesday, 4th of July

Lithuania is invited to Davos gathering
Klaus Schwab, the founder and executive director World Economic Forum (WEF), has invited Lithuania's Prime Minister Gediminas Kirkilas to attend the annual gathering of political and economic leaders and the Energy Summit at the Swiss resort of Davos on January 23-27, 2008. The Energy Summit is an exclusive gathering of key global energy companies and energy ministers representing largest energy producing and consuming countries.
Lietuvos Zinios, Respublika, Kauno Diena

Ukio Bankas raises shareholding in Russkiy Karavay
A subsidiary of Lithuania's Ukio Bankas is set to raise its shareholding in Russkiy Karavay, a company that owns a building under construction in Moscow, from 75 percent to 99.03 percent. Ukio Bankas' board on Tuesday gave the go-ahead for Turto Valdymo Strategija, the subsidiary, to buy 14.5 million new shares in Russkiy Karavay for RUB 58. The new share issue will increase Russkiy Karavay's authorized share capital from RUB 2.32 million to RUB 60.32 million. Ukio Bankas said in its 2005 annual report that Russkiy Karavay owned a 22,300-square-meter business centre in Moscow's Sretenka area, which it intended to sell. The balance sheet value of the building was LTL 323 million
Verslo Zinios

Issues about sports arena in Kaunas
The municipality of Kaunas said it doubts if negotiations with France's Bouygues Batiment International (BBI) over the construction of a sports and entertainment complex in Lithuania's second largest city will produce a successful outcome. The doubts were expressed following Tuesday's meeting between the negotiating teams of the municipality and BBI. The Kaunas arena project manager, Jean-Francois Legrain, did not take part in the meeting. Kaunas City Mayor Andrius Kupcinskas said that the city's negotiating team would not be able to submit a concession agreement to the City Council on July 19, as planned. BBI has recently offered to build the complex on the Nemunas River Island in Kaunas for up to LTL 200 million down from its previous price tag of LTL 487 million.
Lietuvos Rytas, Kauno Diena, Respublika

Tuesday, 3rd of July

Vilnius Airport reports numbers
Vilnius International Airport, the largest in Lithuania, said it handled 756,900 passengers during the first quarter of this year, a rise of 14.8 percent compared with the same period a year ago. The total number of flights increased by 8.2 percent in the reporting period to 15,400. Some 174,600 passengers went through the airport in June, up 12 percent year-on-year. The number of flights rose by 6.8 percent to 2,900. Annual passenger traffic at Vilnius Airport is expected to reach 1.6 million to 1.7 million people this year.

Shell Lietuva changes name
Shell Lietuva (Shell Lithuania) is being renamed to Jungent to reflect its ownership by Jungent Group, which distributes various products in Latvia and Estonia. Shell Lietuva announced the change of its name to Jungent on Monday. Jungent Group has purchased the shares of Shell Lietuva, Shell in Latvia and Shell Eesti in Estonia and has become a distributor of Shell-branded lubricants in the three Baltic countries. Shell sold its retail fuel operations in Lithuania to Lietuva Statoil several years ago.
Verslo Zinios

Orion Securities praises City Service
Norwegian investment bank Orion Securities has issued a Buy recommendation on shares in the Lithuanian building maintenance company City Service with a target price of LTL 21 per share. Orion Securities expects that City Service will continue to grow in the years to come, both through acquisitions and organically, and will expand the facility space it serves. Orion Securities' analysts estimate that the fair value of City Service's shares is higher than the current market value even if the company fails to expand its facility space served to 27 million square meters in 2008 as planned.
Verslo Zinios

Monday, 2nd of July

Lithuanian central government debt
Lithuanian central government debt stood at LTL 1.427 billion at the end of May, accounting for 15.5 percent of this year's projected GDP, the Finance Ministry reported. The debt widened by LTL 117.3 million in May compared with April. Domestic debt increased by LTL 324.2 million during the month to LTL 4.505 billion. The central government sector owed almost LTL 4408.7 million to the domestic financial sector, LTL 54.2 million to the non-financial sector, and LTL 42.3 million to other creditors. Debt to international organizations was LTL 320.6 million. Respublika

Lithuania’s gross domestic product
Lithuania's gross domestic product (GDP) per inhabitant expressed in purchasing power standards (PPS) made up 58 percent of the average across the European Union (EU) last year. Moreover, Lithuania also surpassed Poland where the GDP per inhabitant expressed in PPS made up 53 percent last year, and EU newcomers Romania and Bulgaria with GDP per inhabitant at 38 percent and 37 percent, respectively, the EU statistics arm Eurostat said in its latest report. In Estonia, GDP per inhabitant made up 67 percent of EU27 average in 2006.
Verslo Zinios

Auctions bankrupt for Ekranas
The first attempt to auction bankrupt Lithuania's colour picture tube (CPT) make Ekranas has fallen through on no interest shown. The bankruptcy administrator Baklis expected to sell all company's assets with a balance value of LTL 420.2 million at the starting LTL 300 million or higher price at the auction, which was scheduled on Friday. "With the first auction cancelled, now we are making arrangements for the second auction, which is scheduled for July 13," Jolanta Bliujiene, a representative of Baklis, said.
Verslo Zinios

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