‘COFACE LIETUVA’: IMPORTANCE OF CREDIT RISK MANAGEMENT TOOLS ARE INCREASING
November 17, 2010
‘Coface Lietuva’: Importance of credit risk management tools are increasing
‘Coface Lietuva’ and Danske bank organized risk management conference named ‘Business world after crisis – are we ready for the new challenges?’ where the discussion about tendencies of economy development and importance of credit risk management tools for business development was initiated.
In the conference Gabriele Düker, the member of ‘Coface Austria Kreditversicherung AG’ board, presenting existing situation of the world economy, development perspectives and country ratings, noticed that in the middle of June, regarding to improving situation of Lithuania economy, ‘Coface’ improved Lithuania rating, which currently stays A4 stable.
Estoniahas the same rating (A4) as Lithuania, but only with positive perspective. Economic perspectives of Estonia are the best valued among all Baltic countries – when Estonia adopts the Euro in 2011, it will be likely overcame crisis. Among Baltic countries Latvia has the lowest rating (B stable), which shows that the country is still in recession.
Improved rating for Lithuania shows, that ‘Coface’ looks positive to Lithuania business perspectives and at the same time, it can take bigger share of risk, improving extension of credit limits for companies, which operates in Lithuania. Since the situation is already stable in the market, ‘Coface’ takes more responsibility and helps their clients to manage possible insolvency risk of the customers. Representatives of ‘Coface’ notice, that the companies had valued importance of credit insurance, they collaborate more actively and provide the necessary information more open.
‘Through crisis the awareness of credit risk management tools, their perception, adaptability for situation and usability opportunities has changed. Business found the real benefit of these tools and they became the necessity. It confirms and active participation of companies representatives in the conference’, - states Mindaugas Sventickas, the deputy director of ‘Coface Lietuva’.
Violeta Klyviene, general analyst of Danske bank, agreed that now the situation is stable in Lithuanian market, although the Q3 2010 results indicate that the recovery is losing momentum. According to preliminary estimates, only industrial and service enterprises increased their outcome while construction, agricultural and retail sectors declined further in Q3 2010.
Katarzyna Kompowska, the manager of ‘Coface’ companies in Baltic region and Poland, after presenting Poland experience overcoming crisis, emphasized that in Poland GDP increased 1,7 % and it was the only country in EU, which growth was positive last year. This result was determined by plenty of the beneficial factors: strong market of internal consumption, less dependence on export, strong bank sector, solid fiscal expansion policy done by Poland Government and etc. According to K. Kompowska, Poland market is characterized as dynamic and competitive, that’s why the growth is stable.
The rate of export growth did not slow down, so the level of export is expected to keep growing. Presenting export support tools of Lithuania, Daumantas Lapinskas, the vice-minister of Lithuania Minister of Agriculture, encouraged to expand the services export, so that it will conclude 50 % of all export. Priority of the export markets stays the same: the region of Baltic Sea, EU market, Eastern market. New potential markets for the export diversification are Kazakhstan, Transcaucasia, Arabic countries, Israel.
In the conference was noticed, that recovery signs of Lithuanian internal demand are still weak because of high unemployment level, decreased income and weak credit supply. Stabilization signs of unemployment level are already seen, but probably it will remain high for some time and it can decrease in the sectors, which are oriented to the export.
About ‘Coface Lithuania’:
‘Coface Lithuania’ is the only group of companies in the country, which provides comprehensive business risk management package: trade credit insurance, debt collection, company activity monitoring and credit-financial reporting.
‘Coface Lithuania’ is owned by international group of ‘Coface’, which having work experience of more than 60 years and the database of 50 millions companies, sets the global standards valuing creditworthiness and protecting companies from nonpayment risk. ‘Coface’ has offices and branches in 67 countries around the world.