The state railway company, which last year posted a net profit of 130.2 million litas, says that is in a "tight" financial situation and will have serious solvency problems if it pays out dividends.
Under a draft government resolution, drawn up by the Transport Ministry, if the company is allowed not to pay dividends, this will provide greater financial benefit than the money being transferred into the state's coffers.
LG says that if it pays dividends and, at the same time, finances its loss-making passenger services, the railway operator will exceed its borrowing limit by 337 million litas in 2015.
The company last year paid the state 122.668 million litas as dividends.
