aA
Lithuanian economy entering a stage of growth
© Shutterstock nuotr.

The total debt of Lithuanian companies at the moment is around a billion euro. The level of debt is however decreasing, while crediting conditions and business liquidity have been improving, suggesting the beginning of a stage of growth DELFI reported.

Belated loan, goods and service payments by Lithuanian companies currently total €1.1 billion with 40,000 companies having some sort of indebtedness in the country. This is however on a decreasing trend, having dropped by 17% since the start of the year. It is particularly impacted by the sale of belated loans from the bankrupt Snoras bank.

“Even ruling out the influence of Snoras, the percentage of late payments is decreasing. One of the key reasons for it – a stable improvement in the financial status of businesses. Even though business income rose a little slower in 2015 than in the preceding year, the average profitability of companies rose greatly and contributed to improving money flows, liquidity and crediting conditions,” stated the Creditinfo Credit Risk Assessment Head Rasa Maskeliūnienė.

While some circumstances are similar to those prior to the 2008 crisis, economists currently do not observe any signs of crisis or bubbles on the verge of exploding. Businesses are undertaking new projects, profits are on the rise, wages are increasing, while business savings have reached record heights, approximately €6 billion.

“You could say that for a long time now companies have been licking their wounds after the crisis, focusing on arranging their balances, fearing to, you could say, invest, fearing to borrow. That situation has essentially come to an end because it has been a year now that we have observed companies borrowing and investing far more actively, while banks are more willing to provide loans. This, of course, is also related to recovered domestic consumption in Lithuania,” stated the Chief Baltic States Economist for Danske Bank Rokas Grajauskas.

|Populiariausi straipsniai ir video

Residents ordered to wear facemasks in public flouters face fines

It will be mandatory to wear facemasks in public in Lithuania as of Friday, the country's government...

Government decided: two more weeks of quarantine

The Lithuanian government on Wednesday extended the existing quarantine for another two weeks but...

4th week of quarantine: 912 coronavirus cases in Lithuania

On Wednesday morning Lithuania has already recorded 912 coronavirus cases since the start of the...

Lithuania to take part in “solidarity” clinical trial for COVID-19 treatments

Lithuania is joining an international clinical trial launched by the World Health Oranization (WHO)...

Parliament backs Jauniskis' appointment as SSD chief for 2nd term (2)

The Seimas of Lithuania on Tuesday backed the appointment of Darius Jauniskis as director of the...

Top news

Government decided: two more weeks of quarantine

The Lithuanian government on Wednesday extended the existing quarantine for another two weeks but...

Residents ordered to wear facemasks in public flouters face fines

It will be mandatory to wear facemasks in public in Lithuania as of Friday, the country's government...

4th week of quarantine: 912 coronavirus cases in Lithuania

On Wednesday morning Lithuania has already recorded 912 coronavirus cases since the start of the...

Korean in Vilnius: sometimes I feel I’m contained in jar of sardines (1)

It was not an easy two weeks for Lithuanians forced to spend time inside their homes and apartments...

Latakas wins competition for Klaipeda Port CEO

Algis Latakas , former production director at Klaipedos Juru Kroviniu Kompanija (Klaipeda Stevedoring...

|Maža didelių žinių kaina