LFMI is seeking to prevent the introduction of excessive regulations and restrictions on leasing as well as to advocate replacement of tax regulations discriminating against leasing activity. LFMI evaluated a draft law on leasing prepared by the Economic Ministry and formulated recommendations. With minor changes to the Civil Code, according to LFMI, an appropriate legal framework for the leasing system can be completed.

Analysis of the draft law showed that the proposed rules would be likely to complicate the legal structure for leasing and to introduce too many restrictions and government interventions. LFMI participated in the policy debates at the Economic Ministry to the effect that a decision was made to reject the proposed draft law and to incorporate necessary provisions on leasing in the Civil Code. LFMI evaluated a newly drafted supplement to the Civil Code and submitted a policy paper with comments and proposals to the Economic Ministry. LFMI's position was featured in the business Verslo Žinios paper of November 27.

The policy advocacy from LFMI effected a number of material changes. Restrictions imposed on the objects of leasing, leasing for consumption purposes, and the lessor were removed. Excessive requirements placed on leasing contracts were eliminated. The concept of leasing was limited to financial leasing. A number of technical changes to the formulated provisions were made. LFMI will continue to influence the policy debates until the supplements to the Civil Code are adopted.

In addition, LFMI assisted the Finance Ministry in formulating tax rules for leasing activity. The government adopted a decree, simplifying VAT regulations and improving the procedures for VAT drawback applicable to leasing companies.

LFMI initiated fundamental revision of the law on joint stock companies in order to strengthen corporate governance, to eliminate restrictions on enterprise borrowing and other business contracts, to simplify the procedures for merger and acquisition, to reduce limitations on enterprises' investments in other companies, and to remove the provisions allowing companies to pay old debts to the budget with assets and shares. LFMI submitted a project of amendments to a working group under the auspices of the president of Lithuania. Following consultations and revisions, the president sent the final version of the proposal to the government and subsequently to parliament for consideration.

This initiative was featured in the Respublika daily of December 15. Remigijus Šimašius commented on the proposal in the Veidas journal of December 17. The proposed amendments were supported by the Lithuanian Industrialists Confederation. At the same time, the Confederation expressed disapproval of the new draft law on joint stock companies, which is being prepared by the Economic Ministry, on the ground that it envisages overly restrictive and stringent regulations for joint stock companies. The Confederation's position was highlighted in the Respublika and Lietuvos Rytas dailies of December 16.

After debates on December 16, the parliament declined the proposal to consider the president's submitted amendments. The amendments were acknowledged as constructive and valuable. Yet, it was suggested that they should be returned for governmental revision and included in the new draft law on joint stock companies. The policy debates were featured by the Respublika daily of December 17, the BNS news agency as well as the LTV and LNK televisions, December 16.

LFMI will participate in revising and completing the new draft law on joint stock companies at the Economic Ministry. LFMI's conference on business deregulation was highlighted in the business Verslo Žinios paper of December 23. Elena Leontjeva contributed an opinion column on business deregulation to a December issue of the Russian language Litovskij Kurier paper.