Macroeconomic Forecast Lithuania

Lithuanian gross external debt declined in the second quarter of 2012 from US$33.7bn to US$30.8bn, as a compression in the country’s sovereign Eurobond yields markedly reduced borrowing costs, and providing a favourable benchmark for corporates looking to repair their balance sheets. This marks a considerable decline on the US$35.6bn external debt pile recorded in Q211. Moreover, improving economic growth further helped to bolster revenue streams for corporates and the government alike, paving the way for a trend, which we believe will see the external debt pile come in at US$30.9bn by year-end.

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