Lithuania’s new centre-right government will slash the budget deficit to avoid being forced to seek help from the International Monetary Fund like neighbouring Latvia, Andrius Kubilius, the prime minister, said on Friday.

“I want to assure all rumourmongers: today I see no need to borrow from the IMF or to devalue the litas,” Mr Kubilius told parliament, as he also announced the government’s programme following his election victory in October.