OREANDA-NEWS. April 30, 2008.
1. Results of the inspection of the Central Credit Union of Lithuania
The Board of the Bank of Lithuania was presented information of the Credit Institutions Supervision Department on the recent inspection of the Central Credit Union of Lithuania. During the inspection, individual issues related of credit union management and internal control and credit and liquidity risk management were inspected, reported the press-centre of Bank of Lithuania.

During the presentation of the inspection results, it was noted that one of the main functions of the Central Credit Union is the support of liquidity and solvency of credit union members. In the beginning of 2007, one credit union was allocated funds from the Stabilisation Fund to re-establish its solvency, and the Central Credit Union, acting as a temporary administrator of this credit union, successfully reorganised the activity of that credit union. During the period under inspection, several loans were also granted for supporting credit union liquidity.

The Central Credit Union further expanded its activities by providing financial and non-financial services to credit unions and managing the risk related to this activity. Over the period under inspection, the quality of the portfolio of loans granted to credit unions was good: the loan value was not impaired.

Some deficiencies in the operation of the union were identified. One of the deficiencies indicated was that the decisions adopted in the general shareholders’ meeting of the Central Credit Union to reduce the credit union member contributions to the stabilisation and liquidity funds were not conservative at this stage of changes in the domestic and global financial markets.

The Board of the Bank of Lithuania instructed the Central Credit Union of Lithuania to remove all deficiencies indicated in the inspection report by 1 July 2008.

2. Permission to register amendments in the articles of association of AB Ukio bankas
The Board of the Bank of Lithuania permitted AB Ukio bankas to register amendments to its articles of association related to the change of competence of the bank’s general shareholders’ meeting and the board adopted at the ordinary general shareholders’ meeting of 27 March 2008.

The amended articles of association establish that the approval of the bank’s general shareholders’ meeting is not required for the board’s decisions to acquire fixed assets for the price that exceeds 1/20 of the bank’s authorised capital. As indicated in the bank’s request, this amendment will establish conditions for the improvement of the bank’s operation by making more urgent decisions and more flexibly responding to the asset market changes.

3. Permission to register amendments to the articles of association of AB Siaulio bankas
The Board of the Bank of Lithuania permitted AB Siaulio bankas to register an amendment to Article 3.5 of its articles of association related to the increase of the bank’s authorised capital to LTL 180,357,533 adopted at the ordinary general shareholders’ meeting on 27 March 2008.

At present, the registered share capital of the bank amounts to LTL 161,033,512.

4. Information on the operations of credit institutions and the activities of the Credit Institutions Supervision Department in the first quarter of 2008

The Board was presented the information on the operations of domestic credit institutions and the activities of the Credit Institutions Supervision Department of the Bank of Lithuania in the first quarter of 2008.

5. Approval of the forms of statistical reports
The Board of the Bank of Lithuania approved the forms of two statistical reports and explanations regarding their completion: the quarterly statistical report form B-09-01 “Report for the compilation of the balance of payments” and explanations on its completion; and monthly statistical report form B-09-02 “Report for the compilation of the balance of payments” and explanations on its completion.

The indicated statistical report forms were amended to make it possible to accept and process the data required for the compilation of the balance of payments using the multidimensional statistical data encryption model implemented at the Bank of Lithuania. It will ensure a more secure data transmission. In addition, the quarterly report form was supplemented with several indicators, which will allow calculating foreign direct investment balances at market value. It is planned to divide the deposit and correspondent account indicator to short-term and long-term.

It was established that the provision of the new quarterly report to the Bank of Lithuania will be started by providing the data of Q3 2008, while the monthly report will be provided from October 2008 by providing the data of September.

6. Review of the economy of Lithuania (April 2008)
The Bank of Lithuania was presented the information of the Economics Department on the current situation of the economy of Lithuania and its potential development and adopted the medium-term macroeconomic forecasts of the Bank of Lithuania. The report about it published on the Bank of Lithuania website: www.lb.lt.