Lithuania has a population of 2.8 million people, including about 177,000 Russians as an ethnic minority. The Russian-speaking population in Lithuania is concentrated in the capital Vilnius.
Statistically measured prosperity in Lithuania is growing continuously. In 2023, Lithuania’s gross domestic product was around $77.9 billion. The GDP forecast for 2024 is around 81.2 billion US dollars.
As in many other European countries the inflation rate during the Corona pandemic in Lithuania was very high: 18.86% in 2022, 8.69% in 2023. For the year 2024 it is expected to be only 1.46%.
The richest man in Lithuania owns a fortune of 1.33 billion euros. On the other side, 22.1% of men and 26.3% of women in Lithuania are at risk of poverty. They have difficulty paying their rent, energy costs or other financial obligations. Around 14% of the Lithuanian population is over-indebted. One in three people in Lithuania has no savings at all. The lack of financial reserves is the biggest risk factor for over-indebtedness.
In 2022, a study by the National Bank of Lithuania identified the following risks that often lead to over-indebtedness: salary cuts, loss of a regular source of income, family growth (!), unforeseen expenses and the increase in the cost of living.
In addition, in Lithuania the garnishment-free income is not really protected. Bailiffs have the option of seizing up to 30% of the income that is not subject to seizure. For many Lithuanians, this is a reason to save themselves in illegal work. There is little support for people in financial need. The municipalities offer free basic legal advice. Some NGOs help over-indebted people at project level. For example, the organization “Pactum” supports over-indebted people who have problems finding employment with debt counselors and psychologists and also helps with mediation with creditors.
Other organizations involved in this field include the National Poverty Network, the Lithuanian Consumer Alliance, the Financial and Credit Management Association (FICMA), the Lithuanian Association of Social Workers and CARITAS Vilnius.
As part of the European PEPPI project, a website has been developed for Lithuania that supports over-indebted people and counsellors in finding a way out of over-indebtedness.
