In the first three months of this year alone, Lithuania’s economy declined by 13.3%. The Baltic states of Estonia, Latvia and Lithuania are affected by a deep recession due to severely declining of property values, tightening credit conditions and reduced exports.

The three states that between 2004 and 2006 had the highest rates of development from EU are currently facing the steepest drop among emerging economies, according to the latest World Bank report.

SEB AB, the largest bank in Lithuania and Swedbank, the largest bank in Estonia and Latvia, is facing huge losses from bad loans. Both banks reported net losses in the second quarter because of that and reduced the volume of new loans.

“Economic decline is very fast, but we expect macroeconomic indicators to improve in the second half of the year,” said agency Bloomberg Vilija Tauraite , economist at SEB Bank. The “hard landing” of the economies of the Baltic states has been anticipated by the rating agencies, the IMF and the World Bank since 2007.

What was surprising for banks was the trigger time and the scale of crisis, says Demyanyk. “Most likely, the crisis was not surprising, but its magnitude and time were,” the economist insists.

Since the start of the crisis, several studies have shown that banks were aware at one time that the situation would get rid of control. Two months ago, The Center of Public Integrity published a report which showed that “Mega-banks that have financed the sub-prime industry were not victims of the financial system collapse, as they say. “

These banks were deliberately facilitating financing home loans which now threaten the financial system, the report shows.

Difficult situation in which is Hungary’s economy, affected by a severe recession, made that the number of companies from the position of liquidation to achieve the highest level in the history of the country, in May, quoted by a local publication Hungarian.

The annual rate of firms in liquidation increased by 51 percent last month, the number of companies affected reaching 1. 330 units, that is, on average, in Hungary entered in bankruptcy about 45 companies each day.

Also, in May in Hungary were created 3296 new companies. The number of firms that are in liquidation, during the period January to May increased by 29%, compared to the same period of 2008.

Many of the people who lost their jobs when Woolworths went down are still having trouble finding alternative work four months down the line. Debt advice agencies are filled with people who feel themselves to be under an enormous strain because they have no idea how they are going to pay back the money that they owe when they have no job. Add to that the prospect of paying for children’s college educations and the stress just mounts.

When you have money coming in every week or month then it is all too easy to fall into a pattern of spend, spend, spend and when you run out of cash then you just start in on the credit cards. While things are ticking along nicely and you are still working then the debt is not a problem, but if your fortunes are suddenly reversed then you could find it a lot harder to pay back what you owe. Debt agencies, doctors and even Government ministers are well aware of the stress that is caused when people are in debt and have no way of meeting their financial obligations.

Money worries can ruin your life and some people take their debt so seriously that they can’t see any way out; unable to cope with any more stress they may try to kill themselves and even their families. Although it is extremely stressful if you have unmanageable levels of stress; it is not the end of the world. There are ways through the morass of debt that people get themselves into when they overspend on credit cards, are shopaholics or have a gambling problem, it is still possible to pay off what you owe and come out the other side.

If you are suffering from stress because you have a number of creditors then the first thing that you should do is to seek professional advice. The Citizen’s Advice Bureau is a voluntary agency that counsels people who are in debt and tries to help them manage their money and pay off their creditors. If you have a good counselor then they may even speak to your creditors on your behalf to see if they can’t arrange a voluntary agreement between you and your creditors where you have a period where the interest rate is cut to give you a chance to catch up on what you owe.

If you have a debt problem that is causing you stress then the sooner you seek help the better, debt is not worth losing your life over.

The transaction would represent one of the biggest sales of assets runed by AIG, to repay government debts created after the state aid received in the last months from the United States.

The moment of reaching an agreement is not clear, since Japanese markets remain closed until Wednesday for a national holiday, the publication says.

AIG the largest insurer in the world in early 2008 after the market capitalization, was saved from bankruptcy in the last quarter of last year through a state aid of 85 billion dollars, extended, so far to over 170 billion dollars.

The group now runs a campaign for the sale of assets and operations around the world to repay debts to the state.

The analysis was based on an approach that estimates the best interest rate on the rate of unemployment and inflation.

A central bank cannot reduce interest rates below zero, but the study suggests that the institution headed by Ben Bernanke should maintain a series of unconventional policies that provide incentives to broadly equivalent to an interest rate of minus 5 %.

Separately, the study’s authors estimated what type of unconventional operations would be needed and what scale should have it, to generate this level of stimulation. They suggested that the central bank should expand its purchases of assets even over the level, which was agreed in last meetings of Fed strategists.

IMF estimated that financial sectors in the U.S., Europe and Japan faced with the loss of nearly 4 trillion dollars (3.1 trillion euro) in the period 2007-2010, according to the Wall Street Journal.

In total, banks have accumulated losses of 2.5 trillion dollars (1.9 trillion euro), insurance companies’ losses of 300 billion dollars (230 billion), while other financial institutions crisis had cost about 1.3 trillion dollars (1 trillion euro).

“There was an improvement in confidence in the business environment, signs of stabilization on mortgage market, but it is still early and should not expect a return on the increase too soon “said Charles Collyns, deputy director of the research department of the IMF.

“We don’t expect to return on growth in the United States only during the next year “. According to statements made by Collyns, China is showing a considerable resistance and reacted strongly to combat the crisis.

IMF estimated that the global economy will curb by 1.3% in 2009 and that growth will resume in 2010, when will advance by 1.9%. Thus, the fond returned to the estimates from January, under which domestic product Gross world would be followed to decrease to 1.8% in 2009 and 1.1% next year.

But regard to developed economies, the IMF shows that the GDP of the United States will decrease by 2.8% in 2009 and will stagnate in 2010, while in the euro area economy will be compressed by 4.2% this year and 0.4% in 2010.

This would also help you when you have unsecured debts with high interest rates, such as outstanding medical bills, credit card debts, unpaid utility bills and departmental store cards. If your unsecured debts and student loans are hindering you from accomplishing financial independence, then student loan consolidation services may be the solution that you are searching for. You can easily consolidate your unsecured debts and college education loans as one single loan and you can enjoy a reduced monthly payment with minimized interest rates and late fees.

A large number of companies offer free and no obligation online student loan consolidation quotes. You can even save a considerable amount of money through consolidating your unsecured debts and student loans.

Following are some of the advantages offered by student loan consolidation:

• A repayment plan is arranged according to your affordability.
• You can get one monthly statement rather than many.
• You can become eligible for a student loan consolidation program in spite of the fact that your college education loans are at default.
• The debt management counselors working under these consolidation companies ensure efficient handling of your debts and suitable management of your accounts.
• You can qualify even if you are a school student.
• You can utilize student loan consolidation even though you have only one credit card debt or one loan.
• It is really advantageous for you since you can consolidate your Private, Direct, Federal and/or Medical Student Loans into a single loan irrespective of the number of debts you are paying off.

You can sign up for a student loan consolidation program even if you do not have any student loan. This program can reduce your debt burden to the extent of 70% and help you save a significant amount of money. You can also avail training from the counselors about how to avoid falling into debt in the future and how to suitably handle your finances.

ICBC has attracted deposits worth 1300 billion U.S. dollars (986 billion euro) to the end of past mounth, outgrowing bank groups JPMorgan Chase (1.000 billion U.S. dollars at the end of 2008) and Mitsubishi UFJ (1290 billion dollars at the end of March).

The gained leading position of ICBC suggests that Chinese banks have escaped relatively from global economic crisis, being among the biggest and most profitable lenders in the world, while Western institutions have been affected by turmoil from the market.