Moody’s declares Lithuanian Finacial System to be Stabile and Reliable

Vilnius, 22 April, 2003. Moody’s Investors Service, a global credit rating, research and risk analysis firm, having assessed Lithuanian economic progress and having acknowledged a striking success  in its implemented economic reforms, reiterates the country’s financial system to be stable and reliable.

According to Moody’s annual report and its today’s press release, the country has made a considerable progress in implementation of structural reforms, in consolidation of national finances, in modernisation of its economy and in its integration into the EU economic area within the latter period. According to the experts of the firm, the majority of the most vital reforms in the areas of social security, labour market, municipal finances and taxation system have been successfully implemented or face a rapid on-going implementation.

Moody’s press release emphasises that the medium-term economic policy implemented by the Government of the Republic of Lithuania and rapid changes in the modernised economy served as an anchor for a marked strengthening of the country’s economic stability, decrease of the vulnerability of its financial system and enhancement of immunity from potential external shocks. The necessity of pursuance of the prudent fiscal policy implemented by the Government during recent years is also stressed.  

According to the assessment carried out by Moody’s experts, the country’s economic situation fully conforms to recently upgraded credit ratings.

 In March 2003 Moody’s Investors Service upgraded long-term foreign currency ratings prospects on the Republic of Lithuania from stable into positive.

Upon assessment of macroeconomic indicators and improved business environment, that made a great contribution towards the economic growth , in November 2002 Moody’s upgraded the country’s foreign currency credit ratings  from Ba1 (positive prospects) up to Baa1 (stable prospects).