Creditreform Lietuva: the situation with business debts in Lithuania is starting to heat up | Business
“According to Saulius Žilinskas, the director of Creditreform Lietuva, which owns CR.lt, the state tax inspectorate and Sodra announce that they will take strict measures against debtors soon,” the number of asset restrictions is growing for four months in a row. 508 arrests were registered in November, when in 2020. in some sectors, November saw the highest number of arrests in all of these years: 126 in construction and 99 in trade. “
It is true that the number of bankrupt companies is not a cause for concern yet, with 64 legal entities declared as such in November, with a record 75 per year. It is probable that due to the continuing pandemic and the two exhausting quarantines that have depleted accumulated reserves, the percentages of arrests and successful bankruptcies may be higher than before the pandemic, S. Žilinskas predicts. and more interest in regulating insolvency proceedings, which has changed significantly recently to minimize the losses you may incur.
A special inquiry has calculated the number of court reports of indebtedness and insolvency cases that are more sensitive to the plight of debt. The last of these reports was the largest this year – 98. A record number of new reports were also recorded in three of the five regional courts: Kaunas (25, up to a maximum of 12 – would be in July), Klaipėda (30, up to a maximum of October 13), Panevėžys (7, until the maximum was on February 6).
“Unfortunately, the new Law on Insolvency of Legal Entities, which has been in force since the beginning of 2020, with an unusual concept of insolvency, also adds a lot of confusion to the assessment of the market situation. The initial goal of this law is to speed up the process and transfer more responsibility to the head of the company, – the director of UAB Creditreform Lietuva – we notice that entrepreneurs who have been preparing insolvency assessment training for some time now have a bad idea of the possible consequences of non-compliance with this law.
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