Special Obligations
According to the Law on the Management, Use and Disposal of State and Municipal Property of the Republic of Lithuania, the Minister of the Economy and Innovation of the Republic of Lithuania is required to approve, by order, special obligations assigned to state-owned enterprises and their subsidiaries.
Special obligations assigned to Turto bankas:
- Collection of debts owed to the state and administration of loans, state guarantees, and other financial obligations transferred under mandate agreements with the Ministry of Finance of the Republic of Lithuania, as well as other activities related to debt recovery and administration as defined by legal acts.
- Privatization of shares owned by the state and municipalities, and other related activities as specified by legal acts.
- Organization and coordination of the renovation of state-owned real estate.
- Management and maintenance of state-owned administrative and other real estate transferred for centralized management under lease agreements; provision of administrative premises to state institutions and agencies; implementation of renovation and energy efficiency improvement projects for centrally managed administrative buildings, as well as other activities related to centralized real estate management as defined by legal acts.
- Sale of state-owned real estate, including associated land plots and other immovable property; conclusion and administration of sale transactions of state land assigned to municipal property being sold.
- Performance of functions as the administrator of the State Property Information Search System (VTIPS), including mandatory coordination of decisions made by property managers regarding the lease, loan-for-use, or trust-based transfer of state-owned property; conducting efficiency analysis of property management; and preparing annual state property management reports using VTIPS.
- Administration, sale, and/or privatization of ownerless, confiscated, inherited, or otherwise transferred state-owned property and shares of public and private limited liability companies, as well as other related activities defined by legal acts.
- Liquidation of legal entities.
- Organization of demolition works for decommissioned state-owned real estate.
- Representation of the state, under procedures established by the Government, in court cases related to the establishment of ownership rights or the protection of state-owned real estate rights, where such property has not been transferred to other state institutions.
Company revenue from special obligations consists of:
- Remuneration for the performance of each special obligation activity, as defined by the Law on the Centralized Management of State Property and calculated in accordance with the procedure approved by the Government of the Republic of Lithuania.
- Rental income from leasing state-owned real estate to public institutions for the execution of governmental functions, calculated according to the procedure approved by the Minister of Finance.
- State budget allocations to compensate for the company’s costs incurred in fulfilling special obligations.
Company expenses related to the performance of special obligations are incurred in accordance with procedures set by the Minister of Finance of the Republic of Lithuania.
Result of special obligations (profit/loss)
The result is calculated annually by assessing direct and allocated indirect costs incurred during the reporting period and subtracting the share of corporate income tax attributable to the special obligations. The result must be calculated once per year, no later than the deadline for completing the company’s mandatory financial audit.
EBITDA from special obligations
EBITDA is calculated by adding depreciation and amortization expenses to the result of activities related to the performance of special obligations.