Adolfas Šleževicius
Encyclopedia
Adolfas Šleževičius is a former Prime Minister of Lithuania
.
Previously a manager in a state dairy company, Šleževičius was appointed Prime Minister following the election of Algirdas Brazauskas
as President in February 1993. At the time, Lithuania was faced with monthly inflation of 10-30% despite the demonitization of the ruble and introduction of the talonas
(coupon money) on October 1, 1992. After initially promising large wage hikes to state workers, Šleževičius implemented a smaller increase and backed a tightening of monetary policy by the Bank of Lithuania
. This brought monthly inflation down from 25% in May 1993 to 13% in May, 6% in June, and 3% in July. With this progress in stabilization, the Litas Committee (composed of Šleževičius, President Brazauskas, and Bank of Lithuania President Visokavičius) announced the reintroduction of the Lithuanian litas
as national currency, to take place on June 25, 1993. The exchange rate strengthened from the equivalent of over 5 litai to 3.5 litai by August 1993.
In October 1993, Šleževičius announced that the value of the litas would be fixed in a manner similar to that of the Estonian Kroon
, that is, in a currency board arrangement with a fixed parity. The litas Stability Law (Law I-407) was enacted on March 23, 1994, and the exchange rate fixed at 3.9 litai per U.S. dollar on April 1, 1994. The fixing of the exchange rate contributed to large capital inflows from abroad, which helped to finance the modernization of the economy in the years to follow.
He was forced to resign on February 8, 1996, after a vote of no confidence in the Lithuanian Seimas following charges of corruption. Šleževičius had withdrawn his assets at the last minute from two banks which collapsed. He faced criminal charges regarding corruption and forgery, but after four years of investigation the case was dismissed before reaching a court. After abortive political career, Šleževičius turned to private business.
Prime Minister of Lithuania
The Prime Minister of Lithuania is the head of the executive arm of Lithuania's government, and is chosen by the Lithuanian parliament, the Seimas. The modern office of Prime Minister was established in 1990, although the official title was "Chairperson of the Council of Ministers" until 25...
.
Previously a manager in a state dairy company, Šleževičius was appointed Prime Minister following the election of Algirdas Brazauskas
Algirdas Brazauskas
Algirdas Mykolas Brazauskas was the first President of a newly independent post-Soviet Union Lithuania from 1993 to 1998 and Prime Minister from 2001 to 2006....
as President in February 1993. At the time, Lithuania was faced with monthly inflation of 10-30% despite the demonitization of the ruble and introduction of the talonas
Lithuanian talonas
The talonas was a temporary currency issued in Lithuania between 1991 and 1993. It replaced the Soviet ruble at par and was replaced by the litas at a rate of 100 talonas = 1 litas...
(coupon money) on October 1, 1992. After initially promising large wage hikes to state workers, Šleževičius implemented a smaller increase and backed a tightening of monetary policy by the Bank of Lithuania
Bank of Lithuania
The Bank of Lithuania is the central bank of the Republic of Lithuania. The Bank of Lithuania is a non-Eurozone member of the European System of Central Banks...
. This brought monthly inflation down from 25% in May 1993 to 13% in May, 6% in June, and 3% in July. With this progress in stabilization, the Litas Committee (composed of Šleževičius, President Brazauskas, and Bank of Lithuania President Visokavičius) announced the reintroduction of the Lithuanian litas
Lithuanian litas
The Lithuanian litas is the currency of Lithuania. It is divided into 100 centų...
as national currency, to take place on June 25, 1993. The exchange rate strengthened from the equivalent of over 5 litai to 3.5 litai by August 1993.
In October 1993, Šleževičius announced that the value of the litas would be fixed in a manner similar to that of the Estonian Kroon
Estonian kroon
In 1992, coins were introduced in denominations of 5, 10, 20 & 50 senti, as well as 1 kroon. The 1 kroon was struck in cupronickel, the others in aluminum-bronze. However, in 1997, nickel-plated steel 20 senti were introduced, followed by aluminum-bronze 1 kroon in 1998. 5 senti coins were not...
, that is, in a currency board arrangement with a fixed parity. The litas Stability Law (Law I-407) was enacted on March 23, 1994, and the exchange rate fixed at 3.9 litai per U.S. dollar on April 1, 1994. The fixing of the exchange rate contributed to large capital inflows from abroad, which helped to finance the modernization of the economy in the years to follow.
He was forced to resign on February 8, 1996, after a vote of no confidence in the Lithuanian Seimas following charges of corruption. Šleževičius had withdrawn his assets at the last minute from two banks which collapsed. He faced criminal charges regarding corruption and forgery, but after four years of investigation the case was dismissed before reaching a court. After abortive political career, Šleževičius turned to private business.