Lithuanian Railways to guarantee loan for Lithuanian Shipping Company’

Lithuanian Shipping CompanyLithuanian Railways will guarantee the AB SEB bank’s additional loan to save the Lithuanian Shipping Company. The value of the loan is EUR 3 million loan. As a result, a draft resolution submitted by the Ministry of Transport and Communications will reduce the dividend payments to the budget of the Lithuanian Railways. The payable dividend amount will be reduced from 50% to 36.88% of the company’s distributable profits
“After the agreement to postpone the debts repayment term with the bank was reached, the company is now able to arrange with other creditors and maintain its activity. AB SEB bank will provide an additional EUR 3 million loan, guaranteed by JSC ‘Lithuanian Railways’,’ said Rimantas Sinkevičius, Minister of Transport and Communications of the Republic of Lithuania.
The decision was made, taking into account the company’s economic projects that are particularly important to the state and the necessity to take immediate care of LSC vessels and crews, arrested in international seaports. The Ministry of Transport and Communications was obliged to ensure the continuity of LSC activities and draft an action plan so that the company in the future functions efficiently and profitably.

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