SwedBank says Lithuanian billion-rescue-plan may be slowed down by red tape

SwedBank says Lithuanian billion-rescue-plan may be slowed down by red tape

As the Lithuanian government plans to invest 6.3 billion euros in the economy and human resources in 18 months, Swedbank has pointed to excessive red tape as weakness that could slow down the investments, LRT reports.

The Swedish lender noted in its May 26 report that Lithuania was well-placed for the economy to rebound quickly. However, excessive red tape hinders distribution of state aid.

According to the bank, “the pandemic highlighted the value of good policy and capable public administration, with the report praising the early lockdown action taken by the government, despite ill-preparedness of the country’s health system”.

The country is planning a «recovery spending spree» which presents an opportunity to improve digital infrastructure «that could facilitate green and sustainable growth».

The government’s willingness to dip into debt showed that, “probably for the first time since independence, the government has the fiscal firepower to enact a meaningful countercyclical policy.”

Pointing to weaknesses, the “excessive red tape and lack of administrative capacity, the distribution of support in many cases has been somewhat disappointing.”

Pic Credit: https://www.swedbank.lt/about/swedbank/about/board?language=ENG

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