Analytics, Banks, Business, Lithuania, Loan, Markets and Companies

While enterprises’ assessment of credit institution lending conditions is similar to that a year ago, enterprises which reported that credit for business is fully or partly limited declined by 14 percentage points in number, as compared to the survey conducted a year ago. Moreover, the number of enterprises which intend to finance their business needs with internal financial resources alone dropped from 57% to 44%.

About 14% of surveyed enterprises claim that their borrowing needs will in the near future increase, which is an increase of 5 percentage points from the previous half-year. Small enterprises and trade enterprises (60% and 55% respectively) mainly tend to finance their business with internal resources alone. As previously, the main factors behind such a decision were sufficient internal resources (44%) and the high price of credit offered by credit institutions (25%).  

More than a third of enterprises (34.5%) with debt obligations last year applied to banks for a new loan or asking to change the terms and conditions of existing loans. Banks fully satisfied more than half (52%) of such applications, lent the entire amount requested for one-third of enterprises (31%), but under additional conditions, and rejected only 3.2 per cent of applications. The latter indicator fell by 9 percentage points (from 11% to 3%). This is suggestive of features of the easing of the terms and conditions of credit to enterprises.

Nearly three-fourths of enterprises with loans from banks (71.7%) have currently asset-backed their obligations, about a fourth (26.7%) secured them with warranty from natural persons.