The resource is endangered because of heavy demand for timber by the furniture industry.

"The major share of these funds - 93 million litas - will be used to plant trees in areas designated for agriculture," Albertas Vasiliauskas, Lithuania's Deputy Environment Minister said in a statement.

He said most of the money would go to the owners of private forests.

Lithuania has some two million hectares of forests, with almost a third being privately owned.

Timber is in great demand, as three major furniture companies have long term contracts with Swedish furniture company Ikea, which buys about 90 percent of the production.

Lithuania is to become a member of the EU on May 1, 2004.

TERRA.WIRE