According to the Small Business Act (SBA) Fact Sheets in this SBA area Lithuania scores slightly above the EU average and can also boast, as we saw previously, a positive trend (e.g. the relative difference between larger and smaller loans fell to 12% from 20% between 2010 and 2011, and only 9% of respondents indicated that banks had become less willing to provide loans, down from 30% in 2010).
Only one indicator, measuring the strength of legal rights, comes in at below the EU average, while four are above the average. In particular, Lithuanian SMEs enjoy good access to public financial support; In 2011 compared to 2010, fewer entrepreneurs reported deterioration in the banks the willingness to grant loans. The difference between the interest charged on smaller loans and larger ones is smaller than in the average EU country (12% as against 19%); and Lithuania possesses a good credit information system. The remaining indicators can be considered within the EU-wide average score.
Policy-wise, 2011 has seen the continuation of previously established measures rather than the introduction of new ones. Nevertheless, some specific action has been taken which will have an impact on access to finance and investment. One example is the amendment to the Law on Profit Tax, whereby the income threshold under which firms are allowed to pay a 5% profit tax rate has been increased from 500000 to 1 million Litas (EUR 289620). This measure will encourage greater investment by increasing net revenues.
Research, articles etc.
|Key indicators on access to finance|
For details on SMAF index and methodology please click here.
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Source: Chart compiled using ECB data
Note: Loan volumes and interest rate data for 2012 are to the period September 2012 only (due to data availability as at November 2012).
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Appendix: ACTIONS SUPPORTING ACCESS TO FINANCE FOR SMEs (PDF) [296 KB]