EKN upgrades Latvia, Lithuania and Iceland

Press release - 7 SEP 2017

The financial crisis hit Latvia, Lithuania and Iceland hard. Since then the countries’ economies have strengthened continuously and the credit risk has receded.

Latvia is upgraded from country risk category 3 to 1

Latvia has benefited from the introduction of the euro in 2014 and the country has proved to be a stable member of the EMU. Its economy grew by two per cent in 2016 and is expected to grow by more than three per cent in 2017.

 “The global financial crisis hit Latvia hard but it has been handled well. Today, economic growth has once again speeded up,” says Martin Ingvarsson, country analyst at EKN.

 EKN’s guarantees outstanding for exports to Latvia amount to SEK 2 million.

Lithuania is upgraded from country risk category 2 to 0

Like Latvia, Lithuania has benefited from the introduction of the euro in 2015. With the present rate of growth, the risk of economic overheating is small. Lithuania’s GDP grew by more than two per cent in 2016 and inflation is currently around three per cent.

EKN’s outstanding guarantees for exports to Lithuania amount to SEK 1 million.

Iceland is upgraded from country risk category 3 to 2

The financial crisis of 2008 triggered a banking crisis in Iceland, which led to EKN placing Iceland in country risk category 5. The economy improved and in 2011 EKN upgraded Iceland to country risk category 4. Since 2015, EKN has placed Iceland in country risk category 3. GDP grew by 4.1 per cent in 2015 and by 7.2 per cent in 2016. In 2017, growth is expected to be 5.8 per cent.

 “Iceland’s GDP growth has been strong over the last two years and national debt has fallen,” says Jennifer Dahlin Ivarsson, country analyst at EKN.

 EKN’s guarantees outstanding  for exports to Iceland amount to SEK 146 million.