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“It just came to our notice then. It may seem strange what you’re concerned about here. But just last year, bankruptcies were 50 percent. Lower, and historically, that level is more or less the same, so we can expect an intensification of bankruptcies this year and next, when state aid measures expire, “V Vasiliauskas, chairman of the Board of Directors of the Bank of Lithuania, told reporters on Friday.
According to him, the situation is similar in other countries: public finances are poured in in large quantities, so the market does not see the real situation as it would be under normal conditions.
Photo by Sigismund Gedvila / 15min / Money
“Obviously, there will be an increase in bad loans as such, because there is always a deterioration after the crisis. I think it can have a stronger impact in those jurisdictions where it already has a larger portfolio of bad loans, ”said V. Vasiliauskas.
It is true that the situation in Lithuania does not yet appear threatening. According to V. Vasiliauskas, after the first quarantine, an increase in bad loans was observed, but their scale did not reach the all-time highs reached during the financial crisis that occurred ten years ago.
“Before the first quarantine, it was 1.9 percent. We have seen an increase in bad loans throughout the banking sector, but in the percentage range, so we do not see anything very negative,” said the governor of the Bank. from Lithuania.
“We can certainly expect an increase in the proportion of bad loans, but in terms of scale, I would say we could talk about percentage points, but not ten percentage points,” he added, highlighting that in Lithuania’s loan portfolios.
A European asset management company is being considered
V. Vasiliauskas hinted that the problem of bad loans is considered to be solved on a European scale – currently the European Union (EU) is discussing the possibility of establishing a joint asset management company to which bad loans from the entire sector would be serviced banking. transferred.
Photo by Lukas Balandis / 15min / Vitas Vasiliauskas
“There are more or less contours, but the question of how the states will come to an agreement must be compromised. This issue is on the agenda of the Portuguese Presidency. Bankruptcy law issues are sensitive and the main sensitivity is related to the fact that these issues are the responsibility of the Ministries of Justice, and in the field of law, the protection of national interests is manifested ”, says the Governor of the Bank . from Lithuania.
He believes that it would be easier for the parties to reach an agreement if the finance ministries supervised insolvency law issues, as in Lithuania. In this case, it is easier to change the legal provisions, agree to a European decision.
With S.Krėpšta, I would bet on intelligence
In a few months the term of V. Vasiliauskas as Chairman of the Board of Directors of the Bank of Lithuania will end. In an interview with Verslo žinios, President Gitanas Nausėda stated that his current chief economic and social adviser, Simonas Krėpšta, is among the candidates under consideration.
Photo by Julius Kalinskas / 15min / Simonas Krėpšta
When asked to evaluate the candidacy of S. Krėpšta, V. Vasiliauskas stated that it would be unethical to do so, but joked that he would go with him to the recognition.
Meanwhile, when asked about his future plans, V. Vasiliauskas, who had served two terms as chairman of the board of the Bank of Lithuania, said that when talking about the future, “some things are clear, others are not clear.”
“It is clear that I will continue to teach at Vilnius University, which I have been doing for the past 20 years. It is clear that one year is a cooling-off period, so any movement anywhere can only take place with the consent of the corresponding committee of the European Central Bank. The world is open and there are many opportunities. I have two hands, one head, four eyes, if we have glasses, I am calm about the future, “summarized the outgoing Chairman of the Board of Directors of the Bank of Lithuania .
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