Adoption of the Euro enables to borrow cheaper

9 April 2015

A smooth adoption of the Euro enabled not only to improve international credit ratings of Lithuania but also to actually reduce borrowing costs. For instance, the interest rate on 10-year nominal term Government securities issued in March this year compared to that of the April 2014 Government securities emission decreased from 3.087% to 0.766%.

Today the penultimate meeting of the Coordinating Committee on the Euro Adoption in Lithuania has taken place where they stated that the adoption of the Euro in Lithuania was coordinated and well organised, and a successfully implemented communication strategy enabled to ensure that as many as 92% of the Lithuanians felt being well informed on the subject.

The business in Lithuania was actively joining the Memorandum of Good Business Practice during the Adoption of the Euro; it was signed by 5,023 economic entities (13,639 places of provision of goods and services), i.e. 4 times more than in Latvia and almost 10 times more than in Estonia.

It has been emphasized in the meeting that the biggest fear of the public that after adoption of the Euro prices of goods and services would increase has not materialised: in comparison to the same month of the last year, in January 2015 the annual deflation of all consumer goods and services of 1.5% (prices of services increased by 2.6%, prices of goods decreased by 2.8%) was recorded. In February 2015 the deflation was 1.8% (prices of services grew by 3.1%, prices of goods dropped down by 3.3%).

It should be noted that the Euro awareness campaign conducted by the Ministry of Finance in Lithuania cost 20% less than those conducted in other countries earlier; 50% of the incurred costs are to be reimbursed by the European Commission.