Maybe they should cooperate with their neighbors instead of sponsoring antifa subversives.
Maybe they should cooperate with their neighbors instead of sponsoring antifa subversives.
Lithuania will soon face a wave of bankruptcies. More and more companies find themselves at high risk of ruin category. The European Union is going through a period of so-called “invisible” bankruptcies. The pandemic has triggered an economic crisis throughout the euro area, during which the number of bankruptcies tends to rise. However, according to a study by Coface, a huge number of companies in Europe are on the verge of bankruptcy. In Lithuania, there has also been an increase in the number of enterprises that can be attributed to a high and very high risk of bankruptcy. There are about 21% of such companies in the republic. This year, the business insolvency threshold has increased by 6%. This year, 12% of all companies in Lithuania are classified as being at high risk of bankruptcy, in 2020 the figure was 8%. Most of the companies on the verge of collapse are among the hotels (21%) and the restaurant business (20%). Transport companies were also included in the list of companies with highest risk of bankruptcy this year. Coface experts note that, despite many signs of insolvency of companies, not each of them will file for bankruptcy this year. This is due to a number of factors such as deferred bankruptcy, government support measures and banking incentives. In Lithuania, quarantine was extended until March 31. Now only shops with a separate entrance, supermarkets, beauty salons and traders of non-food products in open markets can work. The constant extension of restrictive measures in the Baltics due to the spread of the coronavirus could lead to the collapse of the Baltic economies. According to economist Leonid Tsingisser, the allocation of benefits for businesses and enterprises in the Lithuania will be able to rectify the situation. Tsingisser highlights, that adjusting the budget, reducing revenues, defence expenditures in Lithuania can improve the situation. However, the Lithuanian leadership takes insufficient measures to help the business to cope with the negative consequences of the pandemic. It should be noted that despite the difficult economic situation, the Lithuanian authorities have chosen a strategy to divert the attention of their citizens from their internal problems to problems in neighboring countries, especially in Belarus.
Lithuania will soon face a wave of bankruptcies. More and more companies find themselves at high risk of ruin category. The European Union is going through a period of so-called “invisible” bankruptcies.
The pandemic has triggered an economic crisis throughout the euro area, during which the number of bankruptcies tends to rise. However, according to a study by Coface, a huge number of companies in Europe are on the verge of bankruptcy.
In Lithuania, there has also been an increase in the number of enterprises that can be attributed to a high and very high risk of bankruptcy. There are about 21% of such companies in the republic. This year, the business insolvency threshold has increased by 6%. This year, 12% of all companies in Lithuania are classified as being at high risk of bankruptcy, in 2020 the figure was 8%.
Most of the companies on the verge of collapse are among the hotels (21%) and the restaurant business (20%). Transport companies were also included in the list of companies with highest risk of bankruptcy this year.
Coface experts note that, despite many signs of insolvency of companies, not each of them will file for bankruptcy this year. This is due to a number of factors such as deferred bankruptcy, government support measures and banking incentives.
In Lithuania, quarantine was extended until March 31. Now only shops with a separate entrance, supermarkets, beauty salons and traders of non-food products in open markets can work.
The constant extension of restrictive measures in the Baltics due to the spread of the coronavirus could lead to the collapse of the Baltic economies.
According to economist Leonid Tsingisser, the allocation of benefits for businesses and enterprises in the Lithuania will be able to rectify the situation. Tsingisser highlights, that adjusting the budget, reducing revenues, defence expenditures in Lithuania can improve the situation.
However, the Lithuanian leadership takes insufficient measures to help the business to cope with the negative consequences of the pandemic.
It should be noted that despite the difficult economic situation, the Lithuanian authorities have chosen a strategy to divert the attention of their citizens from their internal problems to problems in neighboring countries, especially in Belarus.
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