Analytics, Financial Services, Lithuania

A rise in interest rates, stricter loan restrictions and fewer exports are all possible. However, government officials urge people not to panic.

Diana Uselyte, an analyst for Finasta Bank, said that Lithuanian banks would merely experience the direct effects of the crisis; though, undoubtedly, according to her, they will suffer indirect effects.

She envisages that Lithuanian companies will experience problems in the export market and that general local product growth would slow. She recommended that residents and businesses consider carefully their future income, especially in relation to the increase in expenses for energy costs and rising interest rates.

Additionally, Gitanas Nauseda, advisor to the president of SEB Bank, said that not only will interest rates increase, but that there will be stricter conditions on receiving loans and that profits from investment funds will decrease.

Finance Minister Rimantas Sadzius has asserted that this week's announcement of the bankruptcy of Lehman Brothers – America's fourth largest and the oldest investment bank – should cause everyone great concern.

Additionally, according to him, rising energy costs will further increase the costs of financial resources and so a rational response to the crisis is absolutely essential.