Bloomberg indicates the steady improvement of Lithuania's financial situation
Latest positive developments in global financial market are becoming apparent in Lithuania too. The CDS (Credit Default Swap) index announced by Bloomberg, the leading global provider of data, analytics and news to the financial and legal markets, indicates the steady improvement of Lithuania’s financial situation for the last three months.
This index is a financial instrument that allows investors to evaluate a country’s ability to repay debts over a certain period of time. The evaluation and attitude of foreign investors towards the country in terms of CDS is directly linked with borrowing costs in global financial markets. The higher the CDS implies the higher borrowing costs for the country. The 5-year CDS index for Lithuania as well as nearly all other Central and Eastern European countries jumped in September-October last year: on 19 September 2008, Lithuania’s CDS were 188.3 basic points, a month later (on 24 October 2008), the index quickly climbed to 631.7 points. Later on, Lithuania’s CDS went seesaw, but on 24 February 2009 the credit-default swaps climbed to a record 849.9 basic points. Since then Lithuania’s CDS took a steadily downward tendency and yesterday it stood at 389.98 points. “The evaluation of Lithuania’s financial risk keeps on improving, implying our success in managing the crisis. The expectations of foreign investors on Lithuania’s ability to repay debts in the future have grown due to the successful macroeconomic policy of the Government as it made somewhat painful, yet necessary decisions that should positively contribute to the situation in the long-term perspective”, Prime Minister Andrius Kubilius said.
20-05-2009
