The main goal of each country's debt management is to ensure public borrowing at the lowest possible cost and acceptable risk. It is the inefficient management and identification of the prevailing risks during government borrowing that could have a significant impact on the increase in government debt in the future. Thus, the main goal of the study is to examine the country risk factors for the level of public debt in the EU countries and to conduct the study on the basis of empirical data. The work consists of three main parts. The first part of the work analyzes the scientific literature describing the concept of public debt, the types of country risks and their interrelationship. The second part formulates the methodology of empirical research. The third part describes the results of an empirical study already performed and formulate conclusions.
The main goal of each country's debt management is to ensure public borrowing at the lowest possible cost and acceptable risk. It is the inefficient management and identification of the prevailing risks during government borrowing that could have a significant impact on the increase in government debt in the future. Thus, the main goal of the study is to examine the country risk factors for the level of public debt in the EU countries and to conduct the study on the basis of empirical data. The work consists of three main parts. The first part of the work analyzes the scientific literature describing the concept of public debt, the types of country risks and their interrelationship. The second part formulates the methodology of empirical research. The third part describes the results of an empirical study already performed and formulate conclusions.
Consumer rights protection in the extra-judicial debt collection procedures has become an increasingly acute legal and social problem during the recent years in various countries. Since 2008 economic crisis in countries in Europe, USA and others the consumers face the bitter consequences of over-indebtedness. So far, different methods of combating those problems have been applied in various European countries with ongoing legal discussion of whether more efficient methods should be employed. In the last 5 years some countries in Europe introduced the special legal regulations aimed at debt collection agencies in order to strengthen consumer protection. The aim of this study is to analyze the experience of foreign countries when regulating this area in order to help to decide if such kind of special legislation is needed in Lithuania, or if the current legal rules are able to solve those problems in accordance with social needs and the society's sense of justice. In case that a special legislation would be considered as relevant for Lithuania, the question arises, what can we learn from the good practices examples from abroad. In order to answer these questions this study analyses first, the meaning and definition of the debt collecting procedure and its possible impact on consumer rights, second, purposes to introduce the special legislation in Germany, Latvia and other European countries, third, the national approaches regarding states control over the debt collection agencies, forth, the national approaches regarding permissible amounts of expenses for recovery of a debt and the non-reimbursable expenses, fifth, other consumer rights protection measures such as right to the information and requirement for the communication culture with the consumers and sixth, the possible ways and suggestions for the improvement of the Lithuanian legal regime in area of extra-judicial debt collection related to the consumers. The conclusion was made that Lithuanian legislator in case that the study of factual situation would show that Lithuanian consumers face the same problems as consumers in other European countries should seriously consider the possibility of proposing solutions how to strengthen consumer rights in this area on the legislative niveau. By doing so Lithuanian legislator should weight the proportionality of the restrictions, because here an important issue is the conflict between the principle of social state and the fundamental right of entrepreneurship freedom.
Consumer rights protection in the extra-judicial debt collection procedures has become an increasingly acute legal and social problem during the recent years in various countries. Since 2008 economic crisis in countries in Europe, USA and others the consumers face the bitter consequences of over-indebtedness. So far, different methods of combating those problems have been applied in various European countries with ongoing legal discussion of whether more efficient methods should be employed. In the last 5 years some countries in Europe introduced the special legal regulations aimed at debt collection agencies in order to strengthen consumer protection. The aim of this study is to analyze the experience of foreign countries when regulating this area in order to help to decide if such kind of special legislation is needed in Lithuania, or if the current legal rules are able to solve those problems in accordance with social needs and the society's sense of justice. In case that a special legislation would be considered as relevant for Lithuania, the question arises, what can we learn from the good practices examples from abroad. In order to answer these questions this study analyses first, the meaning and definition of the debt collecting procedure and its possible impact on consumer rights, second, purposes to introduce the special legislation in Germany, Latvia and other European countries, third, the national approaches regarding states control over the debt collection agencies, forth, the national approaches regarding permissible amounts of expenses for recovery of a debt and the non-reimbursable expenses, fifth, other consumer rights protection measures such as right to the information and requirement for the communication culture with the consumers and sixth, the possible ways and suggestions for the improvement of the Lithuanian legal regime in area of extra-judicial debt collection related to the consumers. The conclusion was made that Lithuanian legislator in case that the study of factual situation would show that Lithuanian consumers face the same problems as consumers in other European countries should seriously consider the possibility of proposing solutions how to strengthen consumer rights in this area on the legislative niveau. By doing so Lithuanian legislator should weight the proportionality of the restrictions, because here an important issue is the conflict between the principle of social state and the fundamental right of entrepreneurship freedom.
The scientific problem solved in the dissertation is the following: what impact does the institutional sector debts make on the financial stability of the country and how to assess that impact. It is aimed to conduct the complex assessment of the impact of the institutional sector debts on the country's financial stability in the European Union, while analyzing theoretical principles of the impact of institutional sector debt on the country's financial stability and the methods for assessing financial stability, developing the research methods and conducting empirical analyses. Different approaches to the theoretical principles of country's financial stability are presented, and the concept of country's financial stability is introduced. Micro and macro approaches to the country's financial stability were distinguished and compared. It has been concluded that the relationship between the institutional sectors and the country's financial stability is unevenly investigated, with little attention being paid to the institutional sector of the enterprises. For this reason, the need was identified for a comprehensive analysis of the impact of all institutional sectors on the country's financial stability, with an equal emphasis on all sectors and highlighting differences in their impact. Summarizing the scientific literature, a set of indicators has been singled out, which adequately reflects the state of country's financial stability while conducting macro-prudential research at European Union level. Having analyzed the theoretical assumptions of the impact of the institutional sectors on the country's financial stability and based on the results of the analysis of the models of the country's financial stability assessment, the model of the impact of institutional sectors on the country's financial stability assessment was proposed. The resulting model is complex, as it includes all institutional sectors and a selected set of financial stability indicators. It has been found that financial system malfunctions may be caused by over-borrowing in any institutional sector. Problems in one institutional sector may shift to other sectors. The financial crisis can be caused by over-indebtedness in one sector, while over-borrowing in the other sector can deepen and extend the same crisis. Through a complex analysis, the differences in the impact of each institutional sector on the country's financial stability were distinguished and the need to monitor the debts of all institutional sectors at the same time to maintain the country's financial stability was singled out.
The scientific problem solved in the dissertation is the following: what impact does the institutional sector debts make on the financial stability of the country and how to assess that impact. It is aimed to conduct the complex assessment of the impact of the institutional sector debts on the country's financial stability in the European Union, while analyzing theoretical principles of the impact of institutional sector debt on the country's financial stability and the methods for assessing financial stability, developing the research methods and conducting empirical analyses. Different approaches to the theoretical principles of country's financial stability are presented, and the concept of country's financial stability is introduced. Micro and macro approaches to the country's financial stability were distinguished and compared. It has been concluded that the relationship between the institutional sectors and the country's financial stability is unevenly investigated, with little attention being paid to the institutional sector of the enterprises. For this reason, the need was identified for a comprehensive analysis of the impact of all institutional sectors on the country's financial stability, with an equal emphasis on all sectors and highlighting differences in their impact. Summarizing the scientific literature, a set of indicators has been singled out, which adequately reflects the state of country's financial stability while conducting macro-prudential research at European Union level. Having analyzed the theoretical assumptions of the impact of the institutional sectors on the country's financial stability and based on the results of the analysis of the models of the country's financial stability assessment, the model of the impact of institutional sectors on the country's financial stability assessment was proposed. The resulting model is complex, as it includes all institutional sectors and a selected set of financial stability indicators. It has been found that financial system malfunctions may be caused by over-borrowing in any institutional sector. Problems in one institutional sector may shift to other sectors. The financial crisis can be caused by over-indebtedness in one sector, while over-borrowing in the other sector can deepen and extend the same crisis. Through a complex analysis, the differences in the impact of each institutional sector on the country's financial stability were distinguished and the need to monitor the debts of all institutional sectors at the same time to maintain the country's financial stability was singled out.
The state finances is the system of the economical fiscal relationships that emerge when the state accumulates, allocates and uses the financial means it needs. The financial system of the developed states covers the governments and local authorities' budgets, the finances of public enterprises and the state specialized funds. The state financial system provides the means (mainly from taxes, state credits, securities emissions, etc) for covering the growing expenses in the military, social, cultural spheres, in management and railway building, etc and for, obviously, covering the national debt. As expenses exceed income, the state is usually forced to cover this difference by borrowed means. Due to the borrowing of this kind, the loans and other financial duties carried in the name of the state create the ground for the national debt.
The state finances is the system of the economical fiscal relationships that emerge when the state accumulates, allocates and uses the financial means it needs. The financial system of the developed states covers the governments and local authorities' budgets, the finances of public enterprises and the state specialized funds. The state financial system provides the means (mainly from taxes, state credits, securities emissions, etc) for covering the growing expenses in the military, social, cultural spheres, in management and railway building, etc and for, obviously, covering the national debt. As expenses exceed income, the state is usually forced to cover this difference by borrowed means. Due to the borrowing of this kind, the loans and other financial duties carried in the name of the state create the ground for the national debt.
The state finances is the system of the economical fiscal relationships that emerge when the state accumulates, allocates and uses the financial means it needs. The financial system of the developed states covers the governments and local authorities' budgets, the finances of public enterprises and the state specialized funds. The state financial system provides the means (mainly from taxes, state credits, securities emissions, etc) for covering the growing expenses in the military, social, cultural spheres, in management and railway building, etc and for, obviously, covering the national debt. As expenses exceed income, the state is usually forced to cover this difference by borrowed means. Due to the borrowing of this kind, the loans and other financial duties carried in the name of the state create the ground for the national debt.
The state finances is the system of the economical fiscal relationships that emerge when the state accumulates, allocates and uses the financial means it needs. The financial system of the developed states covers the governments and local authorities' budgets, the finances of public enterprises and the state specialized funds. The state financial system provides the means (mainly from taxes, state credits, securities emissions, etc) for covering the growing expenses in the military, social, cultural spheres, in management and railway building, etc and for, obviously, covering the national debt. As expenses exceed income, the state is usually forced to cover this difference by borrowed means. Due to the borrowing of this kind, the loans and other financial duties carried in the name of the state create the ground for the national debt.
The author of this thesis raised question if the insolvency of a State is the legitimate basis for suspension or repudiation on international financial obligations. Since there is no uniform way to deal with the issue, the attention is given to different practices and guidelines of court's reasoning. In order to answer the legal question, prove or neglect the hypothesis and fulfill goals descriptive, analytical and comparative methods are used. The paper consists of four major parts and proceeds in the following order. Part one provides general understanding of State as subject of international law, gives basic legal characteristics of Sovereign debt, introduces the legal definition of insolvent State and explores responsibility of the State in case of unilateral suspension or repudiation on external public debt. The second part explores the existing judicial regulation, defines the absence of international law containing a uniform or a codified insolvency law of states and outlines the main principles applicable to the dispute resolution between insolvent Sovereign State and its creditors. This section also analyzes the frequent practice of solvency crises resolutions and sifts through main judicial problems. It is concluded that current Sovereign crisis resolution violates the main fundamental principle of the rule of law: that one must not be judge in one's own cause. Author emphasizes that diversity among creditors creates uncertainty among all participants as to how the restructuring process will unfold and causes litigation problems. Absence of the order of priorities in creditor claims empowers insolvent Sovereign to choose the order of repayment among its creditors based not on justice but rather on its political imperatives or financing needs. Part three is dedicated to the analysis of circumstances precluding wrongfulness in case of unilaterally breaking the debt contract by refusing to pay or suspension of payments due to states inability to pay caused by state of insolvency. It is concluded in the paper that a Sovereign State has a right to repudiate or restructure if treaty provides such a possibility, or when debt contract was illegitimate, or creditor gave its consent to non-fulfillment of obligation. Finally author draws the conclusion that insolvency can be legitimate basis to repudiate or suspend fulfillment of State obligation, but only under limited circumstances - when the fulfillment of financial obligation infringes the basic needs of the people of insolvent debtor state and violates their human rights. The last part represents proposals for Sovereign crises resolution. Author analyses the benefits as well as limitations the foremost suggestions for Sovereign insolvency regulation, and makes the comparison of them.
The author of this thesis raised question if the insolvency of a State is the legitimate basis for suspension or repudiation on international financial obligations. Since there is no uniform way to deal with the issue, the attention is given to different practices and guidelines of court's reasoning. In order to answer the legal question, prove or neglect the hypothesis and fulfill goals descriptive, analytical and comparative methods are used. The paper consists of four major parts and proceeds in the following order. Part one provides general understanding of State as subject of international law, gives basic legal characteristics of Sovereign debt, introduces the legal definition of insolvent State and explores responsibility of the State in case of unilateral suspension or repudiation on external public debt. The second part explores the existing judicial regulation, defines the absence of international law containing a uniform or a codified insolvency law of states and outlines the main principles applicable to the dispute resolution between insolvent Sovereign State and its creditors. This section also analyzes the frequent practice of solvency crises resolutions and sifts through main judicial problems. It is concluded that current Sovereign crisis resolution violates the main fundamental principle of the rule of law: that one must not be judge in one's own cause. Author emphasizes that diversity among creditors creates uncertainty among all participants as to how the restructuring process will unfold and causes litigation problems. Absence of the order of priorities in creditor claims empowers insolvent Sovereign to choose the order of repayment among its creditors based not on justice but rather on its political imperatives or financing needs. Part three is dedicated to the analysis of circumstances precluding wrongfulness in case of unilaterally breaking the debt contract by refusing to pay or suspension of payments due to states inability to pay caused by state of insolvency. It is concluded in the paper that a Sovereign State has a right to repudiate or restructure if treaty provides such a possibility, or when debt contract was illegitimate, or creditor gave its consent to non-fulfillment of obligation. Finally author draws the conclusion that insolvency can be legitimate basis to repudiate or suspend fulfillment of State obligation, but only under limited circumstances - when the fulfillment of financial obligation infringes the basic needs of the people of insolvent debtor state and violates their human rights. The last part represents proposals for Sovereign crises resolution. Author analyses the benefits as well as limitations the foremost suggestions for Sovereign insolvency regulation, and makes the comparison of them.
The author of this thesis raised question if the insolvency of a State is the legitimate basis for suspension or repudiation on international financial obligations. Since there is no uniform way to deal with the issue, the attention is given to different practices and guidelines of court's reasoning. In order to answer the legal question, prove or neglect the hypothesis and fulfill goals descriptive, analytical and comparative methods are used. The paper consists of four major parts and proceeds in the following order. Part one provides general understanding of State as subject of international law, gives basic legal characteristics of Sovereign debt, introduces the legal definition of insolvent State and explores responsibility of the State in case of unilateral suspension or repudiation on external public debt. The second part explores the existing judicial regulation, defines the absence of international law containing a uniform or a codified insolvency law of states and outlines the main principles applicable to the dispute resolution between insolvent Sovereign State and its creditors. This section also analyzes the frequent practice of solvency crises resolutions and sifts through main judicial problems. It is concluded that current Sovereign crisis resolution violates the main fundamental principle of the rule of law: that one must not be judge in one's own cause. Author emphasizes that diversity among creditors creates uncertainty among all participants as to how the restructuring process will unfold and causes litigation problems. Absence of the order of priorities in creditor claims empowers insolvent Sovereign to choose the order of repayment among its creditors based not on justice but rather on its political imperatives or financing needs. Part three is dedicated to the analysis of circumstances precluding wrongfulness in case of unilaterally breaking the debt contract by refusing to pay or suspension of payments due to states inability to pay caused by state of insolvency. It is concluded in the paper that a Sovereign State has a right to repudiate or restructure if treaty provides such a possibility, or when debt contract was illegitimate, or creditor gave its consent to non-fulfillment of obligation. Finally author draws the conclusion that insolvency can be legitimate basis to repudiate or suspend fulfillment of State obligation, but only under limited circumstances - when the fulfillment of financial obligation infringes the basic needs of the people of insolvent debtor state and violates their human rights. The last part represents proposals for Sovereign crises resolution. Author analyses the benefits as well as limitations the foremost suggestions for Sovereign insolvency regulation, and makes the comparison of them.
KARPAVIČIENĖ, Egidija. (2010) The Impact of Loan Capital on the Lithuanian district heating Companies Investment and Growth. MBA Graduation Paper. Kaunas: Kaunas Faculty of Humanities, Vilnius University. 59 p. SUMMARY KEYWORDS: Loan capital, direct investment, growth opportunities, company value. Scientific reserches performed by Y. Spiegei (1994), R. Inderst, H. M. Müler (2003), S. Larson, A. Malberg (1990), S. C. Meyrs (2001), R. Norvaišienė, J. Stankevičienė, R. Krušinskas (2008) confirmed realationships between company capital structure, investment, its market behavior and company value. The investment of Lithaunian distric heating companies, and its market value are conditioned by the laverage of loan capital, interests and viewpoint of owners and managers and state regulation. Lithuania is tempertate zone country, so distric heating corporate activity, quality of service and heat energy price is relevant to most of the population. Object ot the research – company capital structure, direct investment, corporate growth opportunities. Aim of the research is to investigate the impact of total and long – term debt level on the enterprice investment and growth opportunities of Lithaunian distric heating companies in the period of 2004 – 2008 y., and determine the state regulatory power. Tasks of the research is to determine investment and debt levels and other activity results correlation, to determine debt level and growth opportunities and investment correlation of different ownership forms companies, to determine debt level and and growth opportunities correlation. Two hypotheses have been raised: H1 – state regulation leads to the occurrence of under –investment effect, H2 – the laverage of loan capital has a negative impact on companies growth opportunities. Absence of dependence between the level of investment ratio and total debt level ratio shows, that state regulation had no clear impact on investment and not confirms hypothesis H1. Most of Lithaunian distric heating companies, whose shareholders are local authorities, laverage of loan capital is significantly lower, then companies whose shareholders are private companies. The obtained strong possitive dependence between total debt and long – term debt level and the level of of investment ratio shows, that this companys borrowed money flows to projects of direct investment. Such relationship is a sign of ower – investment effect. The obtained strong negative dependence between medium–sized companies debt debt level and growth opportunities, confirms hypothesis H2, which states that loan capital has a negative impact on companies growth opportunities. This hypothesis was confirmed in large and small companies, the reason for this is political factors influence on large companies and relatively low loan capital level in small companies.
KARPAVIČIENĖ, Egidija. (2010) The Impact of Loan Capital on the Lithuanian district heating Companies Investment and Growth. MBA Graduation Paper. Kaunas: Kaunas Faculty of Humanities, Vilnius University. 59 p. SUMMARY KEYWORDS: Loan capital, direct investment, growth opportunities, company value. Scientific reserches performed by Y. Spiegei (1994), R. Inderst, H. M. Müler (2003), S. Larson, A. Malberg (1990), S. C. Meyrs (2001), R. Norvaišienė, J. Stankevičienė, R. Krušinskas (2008) confirmed realationships between company capital structure, investment, its market behavior and company value. The investment of Lithaunian distric heating companies, and its market value are conditioned by the laverage of loan capital, interests and viewpoint of owners and managers and state regulation. Lithuania is tempertate zone country, so distric heating corporate activity, quality of service and heat energy price is relevant to most of the population. Object ot the research – company capital structure, direct investment, corporate growth opportunities. Aim of the research is to investigate the impact of total and long – term debt level on the enterprice investment and growth opportunities of Lithaunian distric heating companies in the period of 2004 – 2008 y., and determine the state regulatory power. Tasks of the research is to determine investment and debt levels and other activity results correlation, to determine debt level and growth opportunities and investment correlation of different ownership forms companies, to determine debt level and and growth opportunities correlation. Two hypotheses have been raised: H1 – state regulation leads to the occurrence of under –investment effect, H2 – the laverage of loan capital has a negative impact on companies growth opportunities. Absence of dependence between the level of investment ratio and total debt level ratio shows, that state regulation had no clear impact on investment and not confirms hypothesis H1. Most of Lithaunian distric heating companies, whose shareholders are local authorities, laverage of loan capital is significantly lower, then companies whose shareholders are private companies. The obtained strong possitive dependence between total debt and long – term debt level and the level of of investment ratio shows, that this companys borrowed money flows to projects of direct investment. Such relationship is a sign of ower – investment effect. The obtained strong negative dependence between medium–sized companies debt debt level and growth opportunities, confirms hypothesis H2, which states that loan capital has a negative impact on companies growth opportunities. This hypothesis was confirmed in large and small companies, the reason for this is political factors influence on large companies and relatively low loan capital level in small companies.
