Vilnius - Lithuania's President Valdas Adamkus confirmed Friday that Andrius Kubilius, leader of the the Homeland Union - Christian Democrats political party, will be the next prime minister of the Baltic country.

Kubilius' candidature had been backed by the Lithuanian parliament or Seimas, on Thursday, but according to the Lithuanian constitution, the prime minister also needs to receive formal presidential assent, which Adamkus duly provided.

Vilnius  - Lithuania's finance ministry confirmed Thursday that it is in talk with unnamed lenders to secure a loan to cover a budget shortfall in the Baltic country.

Outgoing Prime Minister Gediminas Kirkilas told the Lithuanian parliament about the move, which was confirmed by finance minister Rimantas Sadzius in an interview with the Baltic News Service.

"Mistrust is raging in financial markets, which forces us to be cautious. Therefore, there is no openness either from the state, or from banks, or from other players," the minister said.

Vilnius - Lithuanian President Valdas Adamkus sent a letter to his Georgian counterpart, Mikheil Saakashvili, Friday congratulating him on five years in power and criticizing Russian "brutality".

"Five years ago, Georgia proclaimed to the world its resolve to embark on the path of freedom, democracy and reforms. You well knew that it would be a difficult road. But nobody expected that your decision would be challenged by brutal military force unleashed against the freedom of Georgia," Adamkus wrote.

Vilnius - The first sitting of a new Lithuanian parliament took place Monday afternoon with the incoming centre-right coalition administration announcing its list of policy priorities and likening the situation it inherits to a "time bomb".

Vilnius- Official data released by Statistics Lithuania Tuesday showed that inflation fell in October to 10.5 per cent year- on-year from 11.0 per cent in September, despite a 1.0 per cent rise in prices for consumer goods and services from September to October.

Violeta Klyviene, senior Baltic analyst with Danske Bank, said a slightly larger fall had been expected in Lithuania, the largest of the three Baltic states.