Suchergebnisse

This Master's thesis is dedicated to the analysis of investor protection mechanisms in case of state insolvency. The classic notion of state immunity provides that a state is the sovereign that is immune from judicial proceedings. However, Lithuania as well as other states waive the sovereign immunity and participate in financial markets as equal entities. Contractual relationship forms between a state and an investor who has purchased debt securities issued by the state. An investor who invests into the state securities and participates in the financial market shall be entitled to special protection, as he remains the weaker party to the relations in any case. The thesis has analysed interpretation of the notion of sovereign insolvency in international law; however, no such notion has been found. The research has shown that this notion is construed as a state's incapacity to comply with its financial liabilities. Thus, according to the world's practice, if a state has become insolvent, it is incapable of complying with the assumed financial liabilities to its creditors, i.e. high profile foreign and local banks and investors holding bonds or other debt securities of the state. Key factors determining a state's resolution to proclaim own insolvency are excessive indebtedness of the state, slow economic growth. State's insolvency and incapacity to comply with the assumed liabilities as well as debt restructuring have negative effects on financial markets, given that the state's, i.e. issuer's, debt securities have spread all over the world. In such a situation, the state launches a debt restructuring offer to its investors with the intention to amend terms and conditions of the bonds or postpone their repurchase. The Master's thesis provides comprehensive analysis of investor rights in case of a state's intention to restructure the debt. Hence, if a state is incapable of paying the nominal value of bonds to the respective bondholders, it launches an offer to exchange the bonds held to new restructured bonds and compensation of other sorts. Lithuania and other EU member states are subject to a Collective Action Clause (CAC) that establishes state securities restructuring conditions for the cases where a state is incapable of paying the primary nominal value of the securities. The European Parliament has established that all new more than one year maturity securities issued by Governments of the Eurozone, i.e. state-issued bonds, shall be subject to the CAC. These clauses are aimed at creating more favourable conditions for agreement between the state and its private sector creditors, considering that the private sector is involved. However, the concern is whether or not inclusion of such clauses into bond subscription agreements might create an obstacle for the investors to dispute such offer and reject debt restructuring. As a result, state debt restructuring would satisfy state's interests by compromising the investors' interests. Absence of the CAC from bond agreements might pose difficulties for the investors to protect the violated rights and reject debt restructuring on pari passu basis. Many scientists acknowledge that there is currently no universal system that would govern state debt restructuring and protection of investor interests. Witnessing the state bankruptcy and incapacity to pay the debt to the bondholders in Greece as well as the effect of it on other member states of the Eurozone, the European Union has adopted a resolution to establish the European Stability Mechanism (ESM) to tighten budget discipline and enforce coordination of economic and financial policies of the member states. The thesis also discusses the implications of legislative acts and institutions for investors protecting their violated rights. Analysis of investor protection mechanisms is unreasonable unless the possibility for investors to seek protection of the violated rights is discussed. Hence, the Master's thesis has also involved review of two options for the investors to protect the violated rights. The first option is to address the International Centre for Settlement of Investment Disputes, where investors initiate judicial disputes on the basis of the Bilateral International Agreement, or to apply to foreign national courts according to the governing law specified in the respective bond subscription agreement. Investors address the International Centre for Settlement of Investment Disputes primarily due to failure of national courts in a number of countries to directly ensure enforcement of investment agreements. This investor protection mechanism has proven its value as the specialized place for resolution of investment disputes, and is the most favourable rights protection mechanism that can be used by investors at present. There is little chance for the investors' claim to be satisfied if submitted to the respective country's courts. However, if the issued bond subscription agreement specifies the governing law of a country other than the issuing country's law (e.g. English law), investors have more chances when submitting the claim to the other country's courts.

In the Final Master's Degree Work there are evaluated Lithuania and Slovenia's inflations, government's annual budget deficit and gross debts, long-term government stock interest rate and national currency stability level conformity to the convergence criteria in 2000-2008. The first part of the paper explores theoretical aspects of inflation, government's annual budget deficit and gross debts, long-term government stock interest rate and participation of the countries in ERM II – conceptions of every of those criteria are presented, the reasons and outcomes of the appearance are being analysed, factors causing one or another occurrence are being examined, solving methods for the problems related to these macroeconomical indexes are being introduced. In the third part of the work Lithuania and Slovenia's inflation, long-term government's annual budget deficit and gross debts, long-term government stock interest rate and national currency stability level dynamics in 2000-2008 are researched and the factors and reasons that caused this kind of change are identified. Also, perspectives of Lithuania in the future to introduce the common EU currency – euro are being estimated and benefit of the Slovenia membership in the euro zone to the country is being discussed.

In the Final Master's Degree Work there are evaluated Lithuania and Slovenia's inflations, government's annual budget deficit and gross debts, long-term government stock interest rate and national currency stability level conformity to the convergence criteria in 2000-2008. The first part of the paper explores theoretical aspects of inflation, government's annual budget deficit and gross debts, long-term government stock interest rate and participation of the countries in ERM II – conceptions of every of those criteria are presented, the reasons and outcomes of the appearance are being analysed, factors causing one or another occurrence are being examined, solving methods for the problems related to these macroeconomical indexes are being introduced. In the third part of the work Lithuania and Slovenia's inflation, long-term government's annual budget deficit and gross debts, long-term government stock interest rate and national currency stability level dynamics in 2000-2008 are researched and the factors and reasons that caused this kind of change are identified. Also, perspectives of Lithuania in the future to introduce the common EU currency – euro are being estimated and benefit of the Slovenia membership in the euro zone to the country is being discussed.

This diploma paper analyses impact of international tax competition to Lithuania's public finance sector and economy trough tax revenue level and structure, public expenditures level and structure, public debt and foreign direct investments change trends. This paper introduces main theoretical international tax competition issues, separating two dominant views to this phenomenon. Holistic view proposes negative altitude to tax competition, methodical individualism has positive view to tax competition. In order to achieve main paper's goal hypothesis about international tax competition and tax burden, tax revenue, expenditure structure, public debt, foreign direct investment connection in Lithuania during period of year 1993 – 2008 are held. Research results shows that in case of Lithuania international tax competition had more positive effects than negative.

This diploma paper analyses impact of international tax competition to Lithuania's public finance sector and economy trough tax revenue level and structure, public expenditures level and structure, public debt and foreign direct investments change trends. This paper introduces main theoretical international tax competition issues, separating two dominant views to this phenomenon. Holistic view proposes negative altitude to tax competition, methodical individualism has positive view to tax competition. In order to achieve main paper's goal hypothesis about international tax competition and tax burden, tax revenue, expenditure structure, public debt, foreign direct investment connection in Lithuania during period of year 1993 – 2008 are held. Research results shows that in case of Lithuania international tax competition had more positive effects than negative.

This diploma paper analyses impact of international tax competition to Lithuania's public finance sector and economy trough tax revenue level and structure, public expenditures level and structure, public debt and foreign direct investments change trends. This paper introduces main theoretical international tax competition issues, separating two dominant views to this phenomenon. Holistic view proposes negative altitude to tax competition, methodical individualism has positive view to tax competition. In order to achieve main paper's goal hypothesis about international tax competition and tax burden, tax revenue, expenditure structure, public debt, foreign direct investment connection in Lithuania during period of year 1993 – 2008 are held. Research results shows that in case of Lithuania international tax competition had more positive effects than negative.

Analysing implementation of natural bankruptcy, it is very important to make difference between concept of bankruptcy and insolvency. Insolvency is the main reason to go bankrupt. So these to concepts could not be used as synonym. Implementation of natural bankruptcy is very important in social and economic view. Natural bankruptcy can provide a possibility for individual to be discharged from debts and to make a "fresh start". Of course, individual is encouraged to work legal and not to hide his incomes and asset. In other hand, creditors can to cover obligations of individual. However, if the natural bankruptcy will be implemented wrongly, it could be a possibility to abuse of this institute. No doubts, that growth of loan cost and reduction of credit accessibility will be influenced by implementation of natural bankruptcy. Credit is a main reason for insolvency. Insolvency is caused by social and economic factors such as illness, unemployment or reductions of incomes, changes in family or credit risk was not properly evaluated. The prevention of insolvency is more effective mean than eliminations of insolvency results. So, it is very important to provide preventive means. The most important means of preventions that should be in Lithuania is financial literacy and debt counselling, and the system of credit assessment should be clear. To avoid similar situation in the Future, it is necessary to provide rehabilitation to individual. In most countries and in Lithuania too, one of the rehabilitation mean is Plan of debt payments. But individual should also be provides with such help as financial literacy, debt counselling, budget analysing and other similar items. Despite the fact, that there are not regulations of Prevention and rehabilitation means in Natural Bankruptcy Act Project in Lithuania, there are many other implementation issues. The most important issues are that there is not enough protection for interest of creditors. According to many countries insolvency law, petition in bankruptcy could make debtor or creditor. In Lithuania initiate process of bankruptcy can only debtor. Other Natural implementation issues is that concept of insolvency is not introduced correctly. There are no enough criterions to evaluate insolvency of the person. While Natural bankruptcy Act is not implemented in Lithuania, people use possibility of bankruptcy tourism. They can to go bankrupt in other European Union state and that decision should be automatically accepted in Lithuania. Such situation, when Natural Bankruptcy law is not implemented in Lithuania, encourages growth of emigration. Other problem is that creditors could not properly evaluate risk of credit.

Analysing implementation of natural bankruptcy, it is very important to make difference between concept of bankruptcy and insolvency. Insolvency is the main reason to go bankrupt. So these to concepts could not be used as synonym. Implementation of natural bankruptcy is very important in social and economic view. Natural bankruptcy can provide a possibility for individual to be discharged from debts and to make a "fresh start". Of course, individual is encouraged to work legal and not to hide his incomes and asset. In other hand, creditors can to cover obligations of individual. However, if the natural bankruptcy will be implemented wrongly, it could be a possibility to abuse of this institute. No doubts, that growth of loan cost and reduction of credit accessibility will be influenced by implementation of natural bankruptcy. Credit is a main reason for insolvency. Insolvency is caused by social and economic factors such as illness, unemployment or reductions of incomes, changes in family or credit risk was not properly evaluated. The prevention of insolvency is more effective mean than eliminations of insolvency results. So, it is very important to provide preventive means. The most important means of preventions that should be in Lithuania is financial literacy and debt counselling, and the system of credit assessment should be clear. To avoid similar situation in the Future, it is necessary to provide rehabilitation to individual. In most countries and in Lithuania too, one of the rehabilitation mean is Plan of debt payments. But individual should also be provides with such help as financial literacy, debt counselling, budget analysing and other similar items. Despite the fact, that there are not regulations of Prevention and rehabilitation means in Natural Bankruptcy Act Project in Lithuania, there are many other implementation issues. The most important issues are that there is not enough protection for interest of creditors. According to many countries insolvency law, petition in bankruptcy could make debtor or creditor. In Lithuania initiate process of bankruptcy can only debtor. Other Natural implementation issues is that concept of insolvency is not introduced correctly. There are no enough criterions to evaluate insolvency of the person. While Natural bankruptcy Act is not implemented in Lithuania, people use possibility of bankruptcy tourism. They can to go bankrupt in other European Union state and that decision should be automatically accepted in Lithuania. Such situation, when Natural Bankruptcy law is not implemented in Lithuania, encourages growth of emigration. Other problem is that creditors could not properly evaluate risk of credit.

In recent years, Lithuania has been perfectly satisfying the convergence criteria for the national debt and the budget deficit, i.e. has not exceeded the settled 60 percent and 3 percent respectively of the reference values of the Maastricht Agreement. On the other hand, recently it has been more and more frequently noticed in the economist forums that the aspects of the country's borrowing are sufficiently problematic and an increase in the fiscal deficit seems inevitable at an early date, thus actually it will not be easy to shape fiscal policy. Taking into consideration the defined problematic arguments in terms of the state financial stability, it is relevant to analyse the tendencies of meeting the above mentioned criteria and the essential factors influencing them, to evaluate involvement with other macroeconomical indices which would help to disclose problematic aspects, possible ways of problem solution and to avoid the risk of not repeatedly becoming a full member of EVS in future. In order to investigate stability of Lithuanian economic convergence in the context of the fiscal provisions of the Maastricht Agreement, the article presents a conception of convergence and outlines possible ways of its cognizance and evaluation in terms of macroeconomical theory and the Maastricht Agreement. The analysis of the debt of the government sector and the budget deficit as well as of the tendencies of variation in percent indices compared to the GDP revealed the characteristics of the situation and the spread of the latter, cohesion was evaluated by applying regression analysis. [.].

In recent years, Lithuania has been perfectly satisfying the convergence criteria for the national debt and the budget deficit, i.e. has not exceeded the settled 60 percent and 3 percent respectively of the reference values of the Maastricht Agreement. On the other hand, recently it has been more and more frequently noticed in the economist forums that the aspects of the country's borrowing are sufficiently problematic and an increase in the fiscal deficit seems inevitable at an early date, thus actually it will not be easy to shape fiscal policy. Taking into consideration the defined problematic arguments in terms of the state financial stability, it is relevant to analyse the tendencies of meeting the above mentioned criteria and the essential factors influencing them, to evaluate involvement with other macroeconomical indices which would help to disclose problematic aspects, possible ways of problem solution and to avoid the risk of not repeatedly becoming a full member of EVS in future. In order to investigate stability of Lithuanian economic convergence in the context of the fiscal provisions of the Maastricht Agreement, the article presents a conception of convergence and outlines possible ways of its cognizance and evaluation in terms of macroeconomical theory and the Maastricht Agreement. The analysis of the debt of the government sector and the budget deficit as well as of the tendencies of variation in percent indices compared to the GDP revealed the characteristics of the situation and the spread of the latter, cohesion was evaluated by applying regression analysis. [.].

Fiscal decentralization creates preconditions for a more rapid socio-economic regional development; however, it may lead to financial difficulties in regions. Some municipalities are unable to collect revenues, are lacking funds to finance their main activities and perform functions delegated by the state. Recently the issue of public sector budget management and administration has started causing troubles and become relevant. Problems related to the structure and functioning of local government budgets have not been sufficiently analyzed in economics literature. The role of local government is very important for the life of the state; local government funds make up the biggest part of the public sector funds. It has been noticed recently that local governments have been facing financial difficulties. Regional disparities became evident after Lithuania's accession to the EU because region centres are less attractive and competitive than the major cities, are raising less funds and attracting less investment. Insufficient funding of local governments results in poor urban, transport, community, etc. environment and infrastructure. Research into municipality budgets may give light to the causes of regional disparities. Research aim: to evaluate expenses, revenues and debts of local government budgets in 2002–2010. Data on local government budgets are analysed in the paper. The period of 2002-2010 was chosen because the main political and economic changes happened in Lithuania (accession to the EU, economic rise and decline) and fluctuations and general trends in local government budgets appeared. Local government expenditures, revenues (from taxes, non-taxes and grants) and debts per capita were compared. The dynamics of these financial indicators and the structure of revenues were analysed. Statistical analysis was performed, variation coefficients, the Williamson index and the arithmetic average were calculated. [.]

Fiscal decentralization creates preconditions for a more rapid socio-economic regional development; however, it may lead to financial difficulties in regions. Some municipalities are unable to collect revenues, are lacking funds to finance their main activities and perform functions delegated by the state. Recently the issue of public sector budget management and administration has started causing troubles and become relevant. Problems related to the structure and functioning of local government budgets have not been sufficiently analyzed in economics literature. The role of local government is very important for the life of the state; local government funds make up the biggest part of the public sector funds. It has been noticed recently that local governments have been facing financial difficulties. Regional disparities became evident after Lithuania's accession to the EU because region centres are less attractive and competitive than the major cities, are raising less funds and attracting less investment. Insufficient funding of local governments results in poor urban, transport, community, etc. environment and infrastructure. Research into municipality budgets may give light to the causes of regional disparities. Research aim: to evaluate expenses, revenues and debts of local government budgets in 2002–2010. Data on local government budgets are analysed in the paper. The period of 2002-2010 was chosen because the main political and economic changes happened in Lithuania (accession to the EU, economic rise and decline) and fluctuations and general trends in local government budgets appeared. Local government expenditures, revenues (from taxes, non-taxes and grants) and debts per capita were compared. The dynamics of these financial indicators and the structure of revenues were analysed. Statistical analysis was performed, variation coefficients, the Williamson index and the arithmetic average were calculated. [.]

There isn't enough information about the components that influence a business solvency in scientific literature. In order for business to prepare for a change in solvency. Methodological analysis evaluates the resulting variables: cash flow, obligations, fixed asset and current assets change, Share capital, their relative indices, but it excludes external influence on these variables. The goal of the research was to evaluate the business environment factors impact to the solvency of businesses. During the evaluation of the business environment only macroeconomics influence on solvency was analyzed, because of the research goal, internal insolvency reasons weren't evaluated. We chose these independent variables: GDP value and its change in Lithuania and the European Union, inflation, unemployment rate, tax burden, shadow economy scale, corruption control index , the amount of companies in the sector, the amount of bankrupt companies in the sector and Lithuania, interest rates, cargo turnover change in the country, political stability and government efficiency indicators. Business environments influence on companies solvency was assessed using the linear regression method. Sample for the research – warehousing and logistics related services businesses divided into groups by their employee quantity. According to the findings made, businesses solvency is statistically highly correlated with external influences and every one of these influences were calculated individually using linear regression equations. This showed the external influences severity on the chosen variable. A conclusion was made that business environment influence on a companies solvency is different from dependent variable solvency rating and companies size. During the evaluation statistically important ties were found in companies, which employ more than 49 employers. Other relationships that were found: interest rates and inflation growth reduce a companies solvency rating, Shadow economy decrease and the increase of corruption control increases the companies debt coefficient. The increase of businesses in the particular sector reduce companies debt coefficients.

There isn't enough information about the components that influence a business solvency in scientific literature. In order for business to prepare for a change in solvency. Methodological analysis evaluates the resulting variables: cash flow, obligations, fixed asset and current assets change, Share capital, their relative indices, but it excludes external influence on these variables. The goal of the research was to evaluate the business environment factors impact to the solvency of businesses. During the evaluation of the business environment only macroeconomics influence on solvency was analyzed, because of the research goal, internal insolvency reasons weren't evaluated. We chose these independent variables: GDP value and its change in Lithuania and the European Union, inflation, unemployment rate, tax burden, shadow economy scale, corruption control index , the amount of companies in the sector, the amount of bankrupt companies in the sector and Lithuania, interest rates, cargo turnover change in the country, political stability and government efficiency indicators. Business environments influence on companies solvency was assessed using the linear regression method. Sample for the research – warehousing and logistics related services businesses divided into groups by their employee quantity. According to the findings made, businesses solvency is statistically highly correlated with external influences and every one of these influences were calculated individually using linear regression equations. This showed the external influences severity on the chosen variable. A conclusion was made that business environment influence on a companies solvency is different from dependent variable solvency rating and companies size. During the evaluation statistically important ties were found in companies, which employ more than 49 employers. Other relationships that were found: interest rates and inflation growth reduce a companies solvency rating, Shadow economy decrease and the increase of corruption control increases the companies debt coefficient. The increase of businesses in the particular sector reduce companies debt coefficients.

There isn't enough information about the components that influence a business solvency in scientific literature. In order for business to prepare for a change in solvency. Methodological analysis evaluates the resulting variables: cash flow, obligations, fixed asset and current assets change, Share capital, their relative indices, but it excludes external influence on these variables. The goal of the research was to evaluate the business environment factors impact to the solvency of businesses. During the evaluation of the business environment only macroeconomics influence on solvency was analyzed, because of the research goal, internal insolvency reasons weren't evaluated. We chose these independent variables: GDP value and its change in Lithuania and the European Union, inflation, unemployment rate, tax burden, shadow economy scale, corruption control index , the amount of companies in the sector, the amount of bankrupt companies in the sector and Lithuania, interest rates, cargo turnover change in the country, political stability and government efficiency indicators. Business environments influence on companies solvency was assessed using the linear regression method. Sample for the research – warehousing and logistics related services businesses divided into groups by their employee quantity. According to the findings made, businesses solvency is statistically highly correlated with external influences and every one of these influences were calculated individually using linear regression equations. This showed the external influences severity on the chosen variable. A conclusion was made that business environment influence on a companies solvency is different from dependent variable solvency rating and companies size. During the evaluation statistically important ties were found in companies, which employ more than 49 employers. Other relationships that were found: interest rates and inflation growth reduce a companies solvency rating, Shadow economy decrease and the increase of corruption control increases the companies debt coefficient. The increase of businesses in the particular sector reduce companies debt coefficients.