Lithuanian insurance companies will have to increase their authorised capital to at least Ђ1 million by July 2005 and to set up required minimum guarantee funds by April 2007, under new amendments to the country's Law on Insurance.
The minimum guarantee fund requirement will be Ђ2 million for a non-life insurance company, Ђ3 million for a company providing credit and guarantee insurance and Ђ3 million for a life insurance company.
The Lithuanian Cabinet approved the amendments to the Law on Insurance and accompanying regulations with the aim of safeguarding the interests of the insured and bringing the country's legislation into line with the EU directives, the government's press office said in a statement.
