Lietuvos ir Islandijos valdžios užsienio skolos lyginamoji analizė 2000 - 2010 m

• Main Author: Kuodytė, Vaidota
• Other Authors: Buračas, Antanas
• Format: Master Thesis
• Language: Lithuanian; English
• Published: Institutional Repository of Mykolas Romeris University 2011
• Subjects: foreign debt; GDP; interest; Iceland
• Online Access: http://mru.oai.elaba.lt/documents/1900424.pdf; http://mru.lvb.lt/MRU:ELABAETD1900424&prefLang=en_US

Objective and timely evaluation of the situation and possibilities to timely and properly meet the commitments is necessary in the countries with developing markets, where macroeconomic indicators have significant influence on the results of credit ratings that predetermine the foreign markets’ response to the country’s need to borrow. Thesis topic: Lithuania and Iceland‘s Government foreign debt comparative analysis of 2000-2010. Research problem: Comparative analysis of reasons for growing national foreign debt. Thesis subject: Lithuania and Iceland‘s Government foreign debt of 2000-2010. Research objective: to evaluate the influence of the Lithuanian Government foreign debt on the country’s stability with respect to Iceland by carrying out comparative analysis of statistical data. Research hypothesis: It is not the country’s net debt surplus that leads the state to financial stability crisis but the country’s commitments made to foreign creditors who may lead the state to insolvency by demanding debt repayment. Thesis methods: analysis of documents: theoretical analysis of the authors’ works and articles, statistical data analysis; analysis of changes in the Lithuanian Government foreign debt in 2000-2010; Lithuania and Iceland‘s Government foreign debt comparative analysis of 2000-2010. The objective of the thesis determined the following thesis structure: the importance of national debt, its structure and reasons for debt formation are reviewed in the theoretical part; credit ratings given to Lithuania by credit rating agencies, the terms of the Lithuanian debt repayment and foreign debt is evaluated in the second part; the third part gives the review of Iceland’s macroeconomic situation and determines the reasons that lead the state to insolvency. After analyzing the situation in Iceland, the analysis of Lithuania and Iceland‘s foreign debt analysis was carried out. Other macroeconomic indicators, such as the countries’ GDP, part of budget revenue and export volumes during the period analyzed played a significant role in carrying out the analysis. The results of the Master’s Thesis in Finance Markets show that neither the country’s net debt surplus nor the country’s commitments made to foreign creditors lead the state to financial stability crisis. The hypothesis formulated was not proven correct.