The Lithuanian Government and ultimately the taxpayers of Lithuania, is the
largest owner of commercial assets in the country. Each taxpayer in this
country has a share in this portfolio worth around LIT 16.000 per person.
Together we are now turning the page on the management of this common asset by
publishing this Annual Review. This is the first step, in obtaining a map over
this portfolio so that we will be able to take serious steps towards a more
professional management of these commercial assets.
The Prime Minister of Lithuania Andrius Kubilius said:
This is the start of structural reforms that will stimulate growth, increase
competiveness and reduce the budget deficit.
The value of State-Owned Commercial Assets are comparable to 25 per cent over
GDP. Transparency together with professionally management will have a positive
impact on the business climate in Lithuania as a whole. The portfolio of
commercial assets has a substantial potential for efficiency improvement and
thereby an ability to contribute in a material way to the state budget.
The first step in this process is setting the highest standard of transparency
for State-Owned Enterprises (SOE's). Transparency shall be easily understood
and give a fair picture of the state of the portfolio not only in an annual
statement but henceforth also through interim reports during the year
disclosing material events and the financial development, company objectives,
directors and senior management, and their remuneration, material foreseeable
risk factors, governance structure and policies. Today the Government has
approved its Transparency Policy to enforce this vision.
The Minister of Economy Dainius Kreivys said
Motivated to attract foreign investments Lithuania will adhere to international
best practice, understanding that global capital markets will insist upon
clear, relevant financial information and that capital has no memory, it will
flow where it sees reward and understands the risks. Volatility is the
inevitable by-product of a global, highly competitive, fast-paced marketplace.
With this report and commitment to the highest standards of transparency, we
are rising to the challenge to make Lithuania an internationally competitive
and attractive country for investments.
Further steps will involve separation of commercial assets, activities working
under market conditions, from assets with a policy purpose. State Commercial
assets deserve the best professional management so that the portfolio serve the
people by generating a relevant and transparent return that can be used by the
government for purposes of further improving the country and thereby the life
of the people. The government shall have a long-term strategic vision with
shareholder value at the core and executive compensation aligned to long term
performance.
The Government has ordered Ministry of Finance and Ministry of Economy to
prepare strategy for efficient management of state owned enterprises by
September 1st, 2010.
Editorial Comments
As described in Annual Review the Lithuanian Government is the largest owner of
commercial assets in the country. The Portfolio consists of more than 300
companies in various sectors. However, companies within Energy, Real Estate and
Forest sectors represent more than 80 per cent of the value of the portfolio.
Furthermore, we also have a number of strategically important assets in the
Transportation sector, as well as number of minor assets in a wide range of
sectors.
Further information:
Official web site for State-Owned Commercial Assets: www.lrv.lt/en/news/review/
Further question, please contact:
•Deividas Matulionis, Chancellor of the Prime Minister: +370 5 2663 844
•Lina Karsokaite, Director of Information Prime Minister‘s Office: +370 5 2663
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