Lithuania’s SOE reforms presented at the International Monetary Fund regional forum

On February 23–24, during the meeting of the Caucasus, Central Asia and Mongolia Cooperation Network organized by the International Monetary Fund (IMF) in Almaty, Kazakhstan, best practices in state-owned enterprise (SOE) governance were presented remotely, including Lithuania’s successful SOE reform experience.

The third high-level forum organized by the IMF’s Caucasus, Central Asia, and Mongolia Regional Capacity Development Center (CCAMTAC) focused on the role of SOEs in the economy and public finances, the management of fiscal risks, and the exchange of practical reform implementation experiences among countries in the region and beyond.

At the international IMF forum, Lithuania was invited to share its best practices as one of the countries that has implemented consistent SOE reforms yielding tangible results. The development of Lithuania’s SOE sector was presented by Vaidotas Rudokas, Head of the Enterprise Policy Group at the Ministry of Economy and Innovation, together with Jurgita Bagdonienė, Acting Head of the Governance Coordination Centre (GCC).

“Over more than a decade of consistent reforms, Lithuania has developed a clear and transparent SOE governance model. Throughout this transformation, we worked closely with partners and adopted OECD best practices. Today, we can not only learn from others but also share our experience with countries seeking solutions to optimize their SOE portfolios, strengthen the State’s role as owner, and increase operational efficiency,” says Bagdonienė.

She notes that the consistent SOE reform has delivered tangible financial returns: since the beginning of the reforms, return on equity has increased nearly fourfold, financial returns to the State have grown more than fourfold to €232.5 million, and SOE assets have doubled despite a reduction in the total number of enterprises. According to Bagdonienė, strengthening SOE boards has also been a key reform outcome – since 2018, boards have been depoliticized, and the majority of members – currently 67% – are independent.

The high-level meeting in Almaty brought together representatives of the Ministries of Finance of Armenia, Azerbaijan, Georgia, Kazakhstan, the Kyrgyz Republic, Mongolia, Tajikistan, Turkmenistan, and Uzbekistan, as well as experts from international institutions and reform leaders from other countries, to discuss how to strengthen public finance sustainability and improve SOE performance.

Through the CCAMTAC platform, the IMF aims to strengthen countries’ capacities to manage macro-fiscal challenges, promote peer learning, and share practical lessons from reform implementation.