On February 28th European Business Network held a networking event at the Austrian Embassy, where Director General at Creditreform Lietuva Mr. Saulius Žilinskas gave a presentation on the Employers Debt Index DIX: its understanding and dynamics.
Employers Debt Index is calculated by dividing the debt of companies-employers by a number of companies, which have at least one employee and is expressed in Litas.
Mr. Žilinskas started his speech with an overview of data provided by Sodra. From the beginning of February in 2012 the data about the number of employees in enterprises and companies debts for Sodra became public. This data is provided every day in the morning, however it is not saved the next day. The data of one enterprise’s debt can be accessed online in real time.
After that he commented on a chart of Sodra debts dynamics:
According S. Žilinskas, the maximum amount of debt occurs when new debts are published, 35-50% of new debts are covered within one week and the more risky debts are those that are already in the system before new debts are published.
Mr. Žilinskas says that Employers Debt Index has its advantages, it is an effective processing tool it can be used to compare with other data and analysts observation and it enables observation of the most recent economic tendencies, for example the influence of increased minimal wage and others.
After the presentation, S. Žilinskas kindly agreed to answer a couple of questions:
Why did you decide to start publishing Employers Debt Index?
The data published by Sodra have three amazing qualities. Firstly, they are published daily. Secondly, they cover the whole Lithuania, all other researches are usually done by the principle of sampling, and nobody else can collect the data from the whole Lithuania. Thirdly, because the date is provided by Sodra it means that it is very clean. Because of these reasons the provided data is very clean and accurate.
EBN reporter Edgaras Savickas