(Adds analysts, quotes)
By Nerijus Adomaitis
VILNIUS, Dec 5 (Reuters) - Lithuania will have informal talks with the IMF on the possibility of borrowing money but has no need at the moment for extra funds, the central bank said on Friday, with analysts predicting it would require aid.
The Baltic state's economy is slowing rapidly, punching a hole in budget revenues, although it is not yet in the recession that has hit neighbouring Latvia and Estonia.
Latvia has already had to appeal for EU and IMF help. An IMF mission is due in Lithuania next week and a regular IMF visit to Estonia is scheduled for next week.
"We should come to an agreement that we can borrow if needed," said central bank governor Reinoldijus Sarkinas.
"It will be more informal talks, because there is no official decision to address the IMF, and at the moment we cannot discuss any sums," told Reuters. "I don't expect that such a decision (to start talks with the IMF) will come soon."
Sarkinas' comments followed comments by incoming Finance Minister Algirdas Semeta, who said earlier this week he did not rule out seeking international financial assistance as a last resort.
Outgoing Finance Minister Rimantas Sadzius told Reuters: "I still think Lithuania will not need to borrow from the IMF. The need to cover the budget deficit is not a reasonable argument to apply for assistance."
Latvia has estimated it needs 5 billion euros ($6.39 billion) from the IMF and EU. Eight out of 13 analysts, some at the same bank, polled by Reuters said Lithuania also needs aid.
The average lowest value of the ranges they gave was 5.6 billion litas ($2.07 billion) and the average of the highest estimates was 10.5 billion litas ($3.89 billion).
The lowest sum mentioned was under 1 billion litas ($370.4 million) and the highest was 20 billion litas ($7.41 billion).
The money would be needed to cover both this and next year's budget deficits and boost banks' stability. The outgoing centre-left government has forecast the 2008 budget gap at above 2 percent of GDP and 2.9 percent in 2009. The new centre-right government wants a deficit of 1 percent.
DOMESTIC PRESSURE
"The government should start talking to the IMF as the situation is very volatile, and if it waits longer it will be more difficult to borrow," said Jekaterina Rojaka, a senior analyst at the DnB Nord bank.
"If not with the IMF, Lithuania should start talking to other international institutions, such as the European Investment Bank," she added.
Bronislovas Lubys, one of Lithuania's wealthiest businessmen, told journalists this week the government had to talk to the IMF as soon as possible.
"If we wait to the end of next year ... devaluation of the litas might be put on the table," he said.
The litas is pegged to the euro under a currency board, Estonia's kroon operates under the same system. Latvia has a pegged currency with a 1 percent fluctuation band.
Three of the five analysts who said Lithuania will need no aid said this depended on balancing the budget, retaining a stable government and Latvia avoiding a devaluation, which would have a knock on effect in the rest of the region. (Reporting by Nerijus Adomaitis; editing by Patrick Graham)