BCC Paper No. 46

COBCOE Chamber of the Year 2013

The Euro, part 1: finance, insurance, and investment?

Dr. Gerda Žigienė

Kendra Ricenbaw

Lukas Mikelaitis

Tom Nicholson

Development of financial markets: why (not only) currency matters and why there is a need for additional efforts

Investment in Lithuania – Western Union’s Story

Euro campaign communication

Brits in Lithuania

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issue No. 46

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Lithuania on the way to Euro Zone With Lithuania's entry into the European single currency approaching fast, Lithuanian Minister of Finance Rimantas Šadžius has kindly agreed to answer some questions from the chamber.

What progress does the Lithuanian Presidency expect to make on the Single Resolution mechanism (SRM) of the Banking Union?

Rimantas Šadžius, Minister of Finance

The Single Resolution Mechanism (SRM) is a highly important element of the Banking Union, as it is linked up with the Single Supervisory Mechanism (SSM). The European Council emphasised that a fully effective SSM required the SRM for banks covered by the SSM and set the objective to reach agreement in the Council by the end of the year, so that the SRM could be adopted by the end of the current parliamentary term.

The Lithuanian Presidency aims to reach an agreement in the Council in December, so that an agreement with the European Parliament can be reached by the end of the current parliamentary term.

We have rather disciplined public finances, the banking sector reports over liquidity and lending for businesses is rather low cost. However, it seems that Lithuania is by-passed by investors into the real economy too frequently. Is the Government planning any specific actions to make investors choose Lithuania?

Promotion of foreign direct investments is one of the main activity areas of the Government of the Republic of Lithuania. This goal is reflected not only in its Programme, but also in the daily work of governmental institutions. The Government acknowledges the importance of FDI in order to ensure economic development, which would lead to job creation and technological development.

In accordance with the Baseline Profitability Index (BPI) that ranks markets for foreign investment based on asset growth, preservation of value, and repatriation of capital, the country ranks 16th in overall attractiveness for FDI in the world. Lithuania is also projecting a solid rate of economic growth of 3.7 per cent for 2013, which places it among the three fastest-growing economies in the EU. Lithuania’s attractive and busi-

ness-friendly environment is ranked 17th out of 189 economies by the World Bank Ease of Doing Business Report.

In order to attract new investors to Lithuania and to meet the expectations of existing ones, the Government of Lithuania is making efforts to further improve the investment environment in accordance with the analysis of concerns and suggestions expressed by foreign or local investors. The Government of Lithuania is constantly working to reduce the regulatory burden on business and to improve special planning processes and changes in the labour market legal system. The Government consults with businesses and conducts research on how to reduce red tape and the administrative burden and has introduced a consultative approach to the regulation. One of the latest initiatives is to simplify the requirements for businesses – for example, when carrying out business inspections, business supervisory institutions use control checklists. This is a unified list of requirements to be checked and is intended for both the inspector and the inspectee. An entrepreneur can more easily prepare for an inspection with the help of control checklists. continued on page 4 >

CAN THE GOOD SHIP EURO SURVIVE? Euro in Lithuania – investment in the future Howard Rosen, Immediate Past President and Chairman, Public Affairs Commission Council of British Chambers of Commerce in Europe (COBCOE)

The simple answer is “probably yes” because of a strong political will at EU level for it to do so. The more interesting question is: how will it survive the storms to come, bearing in mind that the Eurozone has lurched from crisis to crisis over the past few years?

To start with, it is not fair to blame the Greeks, or for that matter the other members of “Club Med” who have been forced to dramatically contract their economies in order to qualify for EU and IMF support. It is very easy to criticise their governments for profligate spending and “fiddling the books”, but to a greater or lesser extent, most countries within the Eurozone have been guilty of this offence over the past ten years. The key to understanding the Euro’s future is to examine how it has evolved so far, and look at what needs to be done to confront the Euro’s design flaws.

Because if the Eurozone is not to be condemned

to an (at best) slow growth environment for the foreseeable future, constantly losing ground against other more dynamic economies in the global market, several things must change.

The Euro was designed to replicate sound Deutsche Mark economics. A principal focus of the Maastricht criteria was debt, both in terms of limits for annual deficits and the ongoing relationship between government debt in a constituent country and its GDP. This is a cultural issue. As one shrewd German observer told me recently: “Never forget that in German, the word ‘Schuld’ means both debt and guilt.” The problem with this is not only that it seeks to impose a particular culture on other countries that have a very different approach, but it has happened while various Eurozone economies have been at different stages of development and at different points in the business cycle.

It’s important to remember also that there are different types of debt. Debt incurred for investment that will yield significant net benefits to society and the economy in future is a sensible course of action. Debt incurred to finance immediate consumer spending may not be. The prevailing metrics largely ignore this distinction.

Jekaterina Rojaka, Chief Economist DNB Baltics

It has already been almost a decade since Lithuania started to prepare itself for entering the euro zone. However, a lot has changed in those years, including the euro area itself. Now the entry-costs of the Euro club are higher due to the country’s participation in the European Stability Mechanism (ESM).

However, what has not changed are the underlying reasons for the introduction of the euro in Lithuania. The pros and cons of joining the euro area are a subject for discussion. Among the greatest fears is the increase in prices and “unnecessary” expenditures to support the troubled euro zone countries. The euro zone crisis has reduced the share of euro optimists in Lithuania from nearly 70 per cent in 2006 to below 30 per cent currently. Indeed, the one-off effect on

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price levels is inevitable, but a lot of efforts will be made to minimize its negative impact on the economy. In the meantime, the benefits of participation in the ESM should not be valued according to the current short-term experience.

In the long-run it aims at providing financial buffers for all the Member States in need and will help to soften the edges of the business cycle.

On the other side, the expected positive effects of euro adoption will become more apparent too – the number of operations and transactions with the euro area has increased several times; so both enterprises and households will benefit from the abolition of exchange costs.

From the business perspective, the ultimate beneficiaries will be the international companies working both within the euro zone and in Lithuania – the resident enterprises of foreign capital will enjoy less complicated accounting and simpler invoicing. Sector-wise, among the long-term winners will be wholesale and service companies. However, in the short-run and especially a year before the euro adoption the retail trade and real estate sector should also benefit as the amount of money, including unaccounted income, is expected to increase. The experience of the other countries joining the euro shows that part of the shadow economy usually becomes more visible, through transactions or via banking accounts. continued on page 6 >

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BCC paper issue No 46

BCC paper issue No 46

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BCC’s Corporate Social Responsibility

From the Chairman

Lithuania and the Euro

Members’ Discount Scheme Updates

Chris Butler, Chairman of the Board, BCC Lithuania

As a member of the British Chamber of Commerce and BCC Membership Card holder you can benefit from the following discounts and special offers: AVIS rent a car– 25 % discount for short-term rentals within Lithuania and the Baltic states; special quotes for outbound and chauffeur drive rentals; tailor-made full leasing and fleet management offers; corporate Charge and Avis Preferred cards. Please note that these discounts are only valid when making direct orders through the AVIS Lithuania office. Ąžuolyno klinika, a private hospital- 15% discount for medical consultations Baltic American Medical & Surgical Clinic -10% discount for all medical consultations Baltic Surveys -10% discount for market research services in the Baltic states Best Western Hotel Vilnius & Best Western Central - 10 % discount from the best available rate for accommodation and 10 % discount from the A la Carte Menu.

Biuro Pasaulis - 22% discount for stationery Bunnahabhain– 20 % discount for Bunnahabhain; 10 % discount for other products.

Discount is valid in all Mineraliai Vandenys stores.

Calenberg- 15 % discount for local and international moving, relocation and transportation services for private and corporate accounts Cormack Consultancy Group: 15% discount for market research, export strategy, partner search services in the Baltics, Russia, Romania, India, Italy and the UK

Kernaves Bajoryne, Conference and Leisure Centre - Free use of the outdoor tennis court facilities, 10% discount on guest houses for double rooms and separate wooden houses, 10% discount on events and 10% discount on saunas.

Le Meridien Vilnius Hotel -20% discount for "Green fee" at the V Golf Club; 10% discount for one time entrance to the Health Club + SPA Oasis; 15% discount for 3, 6 and 12 month Health Club + SPA Oasis memberships; 20% discount for combined Golf + Health Club + Spa "Oasis" Membership. 15% discount in restaurant "Le Paysage"; 10% discount from the best available rates of accommodation.

London International School of Languages - 15% for all our services and an initial promotional class or consultation for free Motieka & Audzevičius, Law firm – free of charge first consultation for BCC members ODONTIKA, Dental surgery - 15% off all treatment & 5% off prosthetic work

Peritus sprendimai – first consultation free off charge Quantum Capital - 10% discount for all services and free of charge first consultation Radisson BLU Astorija Hotel – 10% discount for official accommodation rates

Delta Management Solutions - FREE Recruitment; FREE Replacement; ZERO Admin Fee for 1st Month (Waived) for Temporary Staffing Services.

Finreda – 10 % for corporate, accounting, audit organisation, legal, financial, tax and business consulting, and translation services

Regus - 15% discount on all products

ISM - 5 % for the open-programs (seminars, academies, long-term trainings) JURIDICON Law firm - 20% discount for services, no hourly fee.

This year the British Chamber of Commerce has developed a broader Corporate Social Responsibility (CSR) framework to bring the Chamber and its members closer to a number of selected organisations operating in Lithuania. Through the course of the year the Chamber will support and promote the activities of these organisations through joint events and through communications to our membership.

The four organisations are introduced here: Transparency International is a global movement sharing one vision: a world in which government, business, civil society and the daily lives of people are free of corruption. It is today represented in more than 100 countries and works relentlessly to stir the world’s collective conscience, and bring about change. The Chamber will be supporting the activities of Transparency International’s branch in Lithuania. www.transparency.lt Sekmes Mokyla (The School of Success) is an NGO that specializes in non-formal education, and aims to contribute in developing a society of successful, active and responsible youth in Lithuania. To achieve this, the School organises a range of activities for students to engage in, providing them with both knowledge and personal learning that is not typically provided in the school classroom. Events include conferences for youth, a Saturday school and the Student Work Experience Week featured in another article in this paper. www.sekmesmokykla.lt The Roderick F. Tuck Foundation was established by British national, Roderick Tuck, in 2009. The charitable foundation aims to support young and talented musicians by providing them with better conditions for the growth of their musical skills. During 2014 the current intake of students will conduct a tour around Lithuania performing in small towns and communities. The Chamber aims to provide financial support for the tour through its existing fund-raising events. www.rftfondas.lt

Shakespeare Boutique Hotel - 20 % discount for Shakespeare Hotel accommodation; - 15 % discount on all regular priced menu items in Sonnets Restaurant and The Globe Bar. VARUL, Law firm - free of charge first consultation; 10 % discount for all services Vinkleris and partners, Law firm - 25% discount for the services, no hourly charge, special priority while providing service.

When contacting the companies, please indicate that you are a BCC member, provide your company name and BCC Membership Card number. For more detailed information about special offers & discounts please visit our website www.bccl.lt.

Students keen to taste the real working world This November fifty more highly motivated students left the sanctuary of their more familiar school surroundings, and stepped out into the adult world of work. This was the fifth time that the School of Success (‘Sekmes Mokykla’) has organised its “Student’s Work Experience Week” (‘Praktikos savaite’). The project provides students between the ages of 16-18 with the opportunity to step into the real working world by spending one week within an organisation.

The project attempts to mirror the real world as much as possible, with students completing an application form and conducting a ‘job interview’ before being allocated a particular organisation to join for a week. Students participate in a wide range of tasks, individually and in teams, and at the end of the week he or she meets with a member of the management team to share their experience, and provide their own insights and feedback to the organisation.

The project ran in Kaunas and Šiauliai earlier this year and this autumn saw the return to Vilnius with support coming from Vilnius Municipality’s Youth Council, who sponsored eight students. The School of Success has been impressed by both

the amount of interest shown from students, and the willingness of Lithuanian and international organisations to join the project.

Algirdas Pekšys, a Partner with the law firm SORAINEN and a member of the BCC Board reflected: “If by providing an opportunity for students to test themselves in the daily activities of a law firm helps them make up their mind about their future career, then our goal in this project will have been achieved. “ Each year the School of Success is seeing a greater demand from students and the only limitation currently is the number of participating organsiations. According to Simona Lacionaitė, the project leader, this indicates that students are becoming more interested in thinking about their future careers at an earlier age.

The School of Success would like to thank the BCC team for their support, and to thank all the organisations for another fantastic week for students! Of the 41 participating organisations in the November stream, eight are BCC members.

If your organisation would like to get involved, or to learn more about “Student’s Work Experience Week” please visit www.sekmesmokykla.lt

The Pranas Daunys School for the Blind & Visually Impaired in Kaunas is one of two state funded schools in Lithuania for blind and visually impaired children. The school provides support to families with visually impaired children, and runs a school from 1st to 10th Grade. Currently 57 students are enrolled with some living on site. Through its existing fundraising events the Chamber aims to provide financial support to purchase school supplies, particularly specialist paper for producing tactile diagrams, as well as games, toys and books. www.kasuc.lm.lt Burns Night remains the Chamber’s main fundraising event to support local children and youth charities. Since the year 2000, 137.000 Litas has been raised which, over the years, has been donated to sixteen different children and youth charities operating in Lithuania.

Students during „Student‘s Work Experience Week“ with 8 BCC members and partners: British Embassy Vilnius, Kempinski Hotel Cathedral Square, Barclays Technology Centre, Baltic American Clinic, Ąžuolyno klinika, Deloitte, Taem Urbanistai and SORAINEN.

Finally, the Chamber’s website will soon be updated to create a separate menu highlighting the Chamber’s CSR activities. Information will be provided about our partners and the various organisations and projects that the Chamber has supported since its establishment in 1999.

Developing integrity within education

Publicum - 10% for all services and free of charge first consultation!

Radisson BLU Hotel Lietuva- 10% discount on food and non-alcoholic drinks in the Riverside restaurant, Lobby Bar and Skybar; Special accommodation offers at Radisson BLU Hotel Lietuva, as well as REZIDOR Group hotels worldwide.

Hotel Vanagupe & Amber SPA ( UAB Eskom) – 20 % discount of rack rates for accommodation in the hotel; 10% discount on food and beverages in the hotel restaurant, terrace and bar; 10% discount for SPA procedures

Lithuania has a long history with the Euro – almost as long as the existence of the Euro as a physical currency.

The Euro was first introduced as a physical currency replacing the national currencies of 11 EU countries on 1 January 2002. One month later the Lithuanian Litas was transferred from its 4:1 currency board peg to the US dollar to a mathematically much less convenient rate of 3.4528:1 to the Euro – based on the Dollar: Euro exchange rate as of 1 February. From that time onwards, Lithuania has for all practical purposes been a Euro-ized economy.

Lithuania’s political commitment to the Euro was severely tested during the crisis year of 2009 which saw the economy contract by approximately 15% and the budget deficit widen to double figures. The government was faced with the fundamental decision whether to abandon the peg and allow the currency to devalue, or to hold the peg and cut the budget – the process that has become known as internal devaluation.

As is well known, Lithuania and her Baltic neighbours chose the latter path of internal devaluation – in essence the same path as those European countries such as Greece, Portugal, Ireland and Spain who are already in the Euro have also had to follow. Having survived such a test it has really become only a question of time before Lithuania joins the Euro for real.

Some of you who may remember that Lithuania had a false start in terms of Euro entry back in 2006 - 2007. At the time Lithuania was compliant with four out of the five Maastricht criteria but by mid-2006 inflationary pressures were pushing consumer prices up and the price stability criterion was missed by 0.1%. The European Commission took what was essentially a political decision

not to allow Lithuania to join as of 1 January 2007 since Greece, Italy and even Belgium has all joined the Euro whilst meeting only four of the five criteria – but in any case the chance was missed.

Lithuania now has a second chance, as all the indicators are that the Maastricht criteria will be met in time to ensure full Euro entry on 1 January 2015. Much depends on the 2014 budget that is currently being drafted, but there seems to be a high degree of political will to ensure that it will happen. It is a fair bet that this unity will be only strengthened by the fact that Latvia will join as from 1 January 2014, leaving Lithuania as the only Baltic state not to have the Euro.

It remains to ask the question – is it right that Lithuania should join the Euro as soon as it can?

I ought first to declare my own position, which is that I believe the Euro to be a flawed project which has condemned the economies of the European periphery to many more years of recession that would have been the case had they not surrendered their ability to make their own monetary policy. Speaking from the point of view of the United Kingdom, we can see that our macro economic position going into the current recession was not better than many of the southern European economies, particularly in terms of the burden of state debt. However it seems that the UK’s recovery from recession has been significantly helped by the fact that we were able to cut interest rates, carry out a qualitative easing programme and in that way devalue the currency.

Despite that opinion, I also believe that Lithuania as a small, import-export based economy has proved over a period of almost 20 years that it can survive and even thrive without an independent monetary policy. In general Lithuania is far more philosophically convergent with Germany, the dominant Euro member, than many of the southern European countries and as such it is less problematic for Lithuania to keep to the fiscal discipline required by Euro membership.

However, Lithuania will need to be vigilant. The Lithuanian economic bubble of 2004 – 2008 was at least partly caused by interest rates that were too low for an overheating economy, the same as it was for Ireland, Greece and the others.

For me therefore the position is clear – proceed with caution towards full Euro membership and reap the benefits that will come from being part of the Eurozone proper.

BCC Lithuania launches its Corporate Social Responsibility framework for 2013/2014

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The BCC Paper is a quarterly English language newspaper, with a print run of 4000 copies per issue, covering a wide variety of subjects related to business between the UK and Lithuania. Every edition focuses on a different business sector. It also provides an outlet for the chamber and its members to publish their latest news and offer their professional views on current political, economic, European and cultural topics. The paper is widely circulated: available from Lithuania’s two main airports, business centres, hotels and the UK and Lithuanian embassies, in addition to being sent to all BCC members and business contacts, meaning it offers premium advertising space to companies wishing to engage with the Lithuanian business community.

Next publication date: : March-April 2014 BCC paper team: Editor in Chief – Chris Butler Editor – Alistair Day-Stirrat – Alistair.Day-Stirrat@odontika.com Members section - Jurga Prakapaitė, e-mail: jurga@bccl.lt , themed articles, advertising – Sandra Kundrotė, e-mail: Sandra@bccl.lt , tel. +370 5 2690062 Proofreading – Shaun Harvey Layout - Tautmilė Stanevičiūtė Advert sizes and prices Prices Size

Size mm

BCC Member rate

BCC Non member rate

Back page 1000 cm²

273x366

1250 LTL

363 €

1560 LTL

453 €

Full page right 1000 cm²

273x366

1125 LTL

326 €

1400 LTL

405 €

Full page left 1000 cm²

273x366

1000 LTL

300 €

1250 LTL

363 €

½ page 129 cm²

133x368

700 LTL

210 €

850 LTL

256 €

½ page 129 cm²

273x183

700 LTL

210 €

850 LTL

256 €

1/3 page 326 cm²

273x119

420 LTL

130 €

600 LTL

180 €

1/3 page 326 cm²

133x245

420 LTL

130 €

600 LTL

180 €

Small 129 cm²

273x47

200 LTL

65 €

300 LTL

95 €

Small 129 cm²

133x97

200 LTL

65 €

300 LTL

95 €

Small 129 cm²

63x200

200 LTL

65 €

300 LTL

95 €

For further information or to book your ad space, please contact the chamber: Tel. +370 (5) 269 00 62/84, e-mail: Sandra@bccl.lt

In October, the British Chamber of Commerce and Transparency International invited members and representatives from education organisations and business to join for an informal and lively discussion on the topic of corruption in education.

The discussion was titled “A Cheat today, a thief tomorrow? Preserving integrity within education” and was directly linked to the recently launched Global Corruption Report on Education by Transparency International. The report provides an in depth look into the sometimes startling state of corruption levels in the education system around the world. Published in October the report calls for immediate action and offers examples on how to ensure greater integrity in both schools and universities.

“This is a topic that affects us all - whether you are an employer who wants to have faith in the qualifications listed on a CV, or a parent who wants their child to learn in a fair and just environment”, said Sergejus Muravjovas, head of Transparency International Lithuania and a member of the International Board of Directors of Transparency

International, who led the discussion. Ben Harvey, a BCC Board Member, was pleased that members of the Chamber accepted the invitation to debate this topic: “It’s good to see our members from both the business and education sectors coming together to discuss the reports findings, as well as the state of play here in Lithuania. Businesses, schools and universities are right to see this as a shared issue and I’m pleased that Transparency International received a number of concrete suggestions. “

British Ambassador David Group discussion Hunt opens the discussion

The Chamber would like to thank the British Ambassador David Hunt for both hosting and opening the event.

100% of the participation fees were donated to the Youth Integrity programme of Transparency International Lithuania.

Group discussion Photos by Jurga Prakapaite

Sergejus Muravjovas, head of Transparency International Lithuania introducing recently launched Global Corruption Report on Education

BCC paper issue No 46

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BCC paper issue No 46

The Euro, part 1: finance, insurance, and investment?

The Euro, part 1: finance, insurance, and investment?

Lithuania on the way to Euro Zone < continued from page 1

Tax authorities and other business supervisory institutions are improving the way they interact with business. They are increasingly turning into consultants. Business also acknowledges that it has become easier to consult with local tax authorities and other regulatory bodies.

The Lithuanian tax system aims for effective promotion of economic development and competitiveness in the region. The general corporate income tax rate of 15 per cent makes it one of the most attractive in the EU, and the main corporate income tax incentives are applied to enterprises investing into research and development (R&D) and into substantial technological improvements.

For example, taxable profit can be reduced to 50 % by the amount of expenses incurred acquiring new technologies. Any expenses exceeding the 50 % limit can be carried forward for four years.

A stable, healthy and reliable banking system is also one of the most important preconditions for an attractive investment environment. The Lithuanian banking sector, which is largely foreign owned, is well placed in terms of high liquidity and capitalisation alongside strengthened financial stability and stable economic outlook and could meet lending for business needs, thus it could be attractive to foreign investors.

EU assistance may also enhance the country's ability to attract foreign direct investments and multi-national companies, which could create new jobs, provide higher added value and boost smart, sustainable and inclusive economic growth – that is in line with the Europe 2020 Strategy. Regarding this issue, Lithuania intends to provide specific measures which will be elaborated by responsible stakeholders. The priority would be FDI attraction in RIS3 priority areas.

Similarly, many Lithuanian SME’s are reporting difficulties in acquiring adequate bank financing which is hampering growth. What measures are the Ministry taking to support and encourage SME’s in this regard?

Improving access to funding for small and medium enterprises (SMEs) is a global concern, raised by world leaders both at G20 and EU Council levels. Currently the EU Finance Ministers are discussing the innovative risk-sharing instruments provided by the European Commission and Euro-

pean Investment Bank (EIB).

Lithuania pays extensive attention to making access to finance affordable and appropriate for small and medium-size enterprises (SMEs), including the financial engineering instruments.

The foundations for this was laid in October 2008 when Ministries of Finance and Economy and the European Investment Fund (EIF) signed a funding agreement to establish a holding fund in Lithuania under the European Commission’s initiative for SME’s (JEREMIE). Although the recent global financial crisis had an unprecedented and immense effect on the whole real economy in the country, most recent surveys already show that SMEs report an increase in external financing needs for bank loans. In addition, SMEs also report deterioration in the availability of bank loans. On the other hand, banks claim that the trend is positive and rejection rates for SMEs when applying for loans have decreased.

Nevertheless, it goes without saying that changes in the financial sector affect SMEs access to finance (bearing in mind, for example, Basel III, etc).

According to the most recent research conducted by Lithuanian national agency INVEGA, the most common reasons why it is difficult to get external financing for business companies are prohibitive financing requirements, lack of collateral, the high cost of financing (interest rates, guarantee fees, administrative costs, etc.) and financial intermediaries are not likely to lend to start-up companies.

Financial Engineering instruments play a key role in Lithuania ensuring that eligible SMEs that require external financing for their business expansion find it accessible and, particularly, affordable. Therefore, a wide spectrum of measures have been offered and implemented by the State in the form of Soft loans (i.e. small credits up to EUR 101 K; EUR 434 K), Loans based on a risk sharing basis (credits in the amount of up to EUR 4.8 million), Guarantees (the State guarantees the repayment to credit institutions of the first loan instalment of up to 80 % of the principal amount; the State also provides guarantees for SME's leasing transactions, it guarantees up to 60 % of the leased asset price) and Portfolio Guarantees as well as Portfolio Guarantees for Leasing (up to 80 % of the lease amount).

Risk capital funds are also currently operating in Lithuania, financed from EU Structural Funds.

External equity financing does not have a real tradition in the SME sector. However, the equity market in Lithuania is rapidly developing and is on an upward trajectory, establishing itself as a strong market player.

Joining the euro is expected to increase foreign direct investment flows to Lithuania. Does the Government have any expectations on the scale of these flows? Are you planning any programs to promote Lithuania using the excellent exposure generated by financial media reports on the introduction of the euro?

One may say that Lithuania has the euro already, only it is called not the euro, but the litas. Our country chose to link its monetary policy to the euro and from 2nd February 2002 pegged the litas to the euro at a fixed exchange rate. Thus, the euro changeover in Lithuania will not bring substantial changes to the monetary regime or fiscal policy. The introduction of the euro will only strengthen the existing advantages for investments in our country (a stable macroeconomic environment, highly qualified labour force, developed infrastructure, etc.) to attract more FDI. Firstly, by increasing the country’s credibility, with currency rate risk disappearing and, secondly, as observed in A.Mundell’s Optimum Currency Areas theory, countries joining the common currency area bring additional impulse for investment from the currency area. Thus, looking at the currency changeover practice in other countries, we expect an increase in investments from both inside and outside of the Eurozone.

Speaking about the particular advantages of the changeover for the economy, the latest case study from the Bank of Lithuania shows that, the common currency will clear the litas/euro exchange costs currently constituting 0.14 per cent of GDP in the non-banking sector. Decreased interest rates would save 0.14-0.26 per cent of GDP in 2014-2022 and would also ease access to credit.

Exports are projected to increase by 5 per cent which would add 1.9 per cent to GDP growth in 2014-2022.

The introduction of the euro in other countries was usually followed by significant inflation. What tools does the government see as effective in controlling inflation and will any anti-inflation measures be taken by the government?

The statistical data analysis of previous euro accessions shows that the introduction of the new currency had a temporary impact on inflation performance adding 0.2-0.7 per cent to the consumer price index, and this only occurred in a limited number of sectors (restaurants, vending machines, etc.), where prices were rounded to a more convenient value. In order to avoid bad practices of price rounding, a number of measures are foreseen in the National euro Changeover Plan. For example, starting from 30 days after the Council‘s decision to invite Lithuania to the euro area and continuing for 1 year after the changeover, the period of dual price display will be compulsory. Social benefits and wages will have to be rounded for the benefit of recipients. Businesses will be encouraged to sign the Memorandum of Good Business Practice that will allow consumers to recognize fair business, and violations will be made public.

• Business Angels Fund (Investment size - from EUR 50,000 up to EUR 400,000 per company). – The Fund invests in equal proportions together with a Business Angel.

• 2 Risk capital funds: LitCapital Fund I and BaltCap Fund (Risk capital fund provides start-up and expansion financing, taking equity stakes of up to EUR 3 million).

• Seed and Venture Capital Funds (2 funds providing seed, start-up and expansion capital from EUR 200 K to EUR 1.5 M).

• Baltic Innovation Fund (BIF) (Fund-of-Fund initiative launched by the EIF in close co-operation with the Governments of Lithuania, Latvia and Estonia. The BIF will invest EUR 100 million into private equity and venture capital funds focusing on the Baltic States).

Prepared by the British Chamber of Commerce in Lithuania

In the end of September 2013 the Lithuanian Minister of Finance Rimantas Šadžius met with over 50 representatives of the British, the French-Lithuanian, the Swedish and the GermanBaltic Chambers of Commerce in Vilnius at a business lunch in Vilnius Novotel Centre Hotel.

The Minister in his speech focused on main issues concerning the EU Presidency Agenda and answered to questions from the audience.

The Lithuanian Minister of Finance Rimantas Šadžius

Marta Tarasiuk, Barclays Technology Centre and Nerijus Nedzinskas, PwC

Members of the British, French-Lithuanian, Swedish and German-Baltic Chambers of Commerce

Representatives of 4 Foreign Chambers with Minister of Finance (in the middle)

Šarūnas Šiugžda, LitCapital

photos by Jurga Prakapaite

< continued from page 1

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CAN THE GOOD SHIP EURO SURVIVE?

The Euro was introduced without any proper independently enforceable budgetary supervision. There was also a lack of clarity about the role of the European Central Bank (ECB). Then, very belatedly, heavy budgetary restrictions were imposed on certain countries within the Eurozone at the point of a gun, without taking into account the long-term social and economic consequences. For example, with 50% plus youth unemployment in many southern European countries, this is a bomb waiting to explode.

Politicians still refuse to face up to the consequences of the route they have embarked upon.

Many European banks have been close to insolvency over the past few years. Some may have even crossed the line, but policymakers refuse to face up to the consequences of this. The stress tests run by the European Banking Authority have been hopelessly fudged. It is far from clear even now that all the European banks have correctly written-down non-performing assets, and

there remains complete ambivalence on how to deal with over-indebted banks and states. Should there be bail-outs by the stronger countries, or bail-ins whereby creditors are forced to write down the assets they hold at banks? And there is still no long-term solution in sight for over-indebted Eurozone states, particularly as the forced contraction of many of these economies is exacerbating the problem by increasing those states’ debt-to-GDP ratios.

So the future of the Euro (and for that matter, which countries will be members of the Euro) will very much depend on whether EU governments and the IMF can learn from the mistakes of the past, rather than qualifying for Einstein’s definition of insanity: “doing the same thing over and over again and expecting different results”.

Difficult decisions have to be made. There is no point announcing banking unions without ensuring consistent and uniform application of the rules

Development of financial markets: why (not only) currency matters and why there is a need for additional efforts

Dr Gerda Zigiene, CEO at Lithuanian Financial Markets Institute, Assoc. prof. at Vilnius University Kaunas Faculty of Humanities, Department of Finance and Accounting

The increased attractiveness of local financial markets should be one of the most obvious advantages of the introduction of the euro. Simplified settlements and accounting procedures should be a great incentive for investors. The reduction of transaction costs and the elimination of exchange rate risk fluctuation should also have a positive effect on the improvement of the investment climate. Elimination of uncertainty and increased confidence in the euro could strengthen the reputation of Lithuania as an attractive business environment. In reference to the effect on financial market participants “despite short term negative affects due to commission loss in the foreign exchange area, other parts of financial markets would definitely benefit in the long term from Eurozone membership. A single currency would add liquidity into debt capital markets shifting government debt securities trading to a higher level. That might create a good background for expanding the corporate debt market as bank lending prevails today. The balance sheets of financial institutions and foreign investors will become more effective in reducing capital costs and facilitating liquidity management. Market participants will be able to manage interest rate risks as liquidity of the local currency is too low in order to create the Litas derivatives market” said deputy head of SEB markets Evaldas Cepulis.

It is believed that minimising the cost of trading in securities, the positive affect on interest rates, the possibility to compare stock prices without interference, the more profound use of arbitrage opportunities, and greater confidence in public finances (due to the implementation of the mandatory requirements of the Maastricht criteria) will be able to create a positive domino effect by increasing the confidence of market participants and attracting new investors. The Estonian experience has shown an increased flow of foreign direct investments, especially from the Nordic countries.

However, it should be pointed out that in order to yield positive results, it might be necessary not only to have some patience, but also to put in our own efforts.

With regard to capital raising, the impact of the introduction of the euro will depend on how we are able to exploit a favourable moment, both when announcing this event in foreign markets, as well as being able to take advantage of the situation ourselves.

A positive affect could be generated if we were able to develop the capital market, i.e. companies would go beyond the moral barrier and try to get money taking not only bank loans, but by issuing debt securities. Historically banks are the main players in financial systems, however, recently in neighbouring countries, banks have not only offered loans, but have also sought alternative methods of funding, especially for long-term funding projects. Therefore, eventually banks will be able to offer certain bond products more often.

It is misleadingly assumed that only large companies can borrow by issuing bonds, but in Europe there is popular practice in small and medium sized businesses to borrow by issuing e.g. the project (rather than general obligation) bonds.

Some processes have already started earlier; therefore, a significant breakthrough in some areas cannot be expected. For example, since 22 November 2010 stock trading and settlement for securities transactions in NASDAQ OMX Vilnius have been taking place in euros, so the introduction of the euro will have no direct impact on the trading platform. Having joined the Eurozone the denomination of securities will change, and companies will pay dividends in euros as well as new emissions of shares or bonds.

It should be said that the development of financial markets depends not only on our currency, but on our efforts in the development of financial markets, and our actions in exploiting a favourable moment. Changing the currency itself does not make the development of the financial markets more active, if it is not being worked continuously and in favour of increased awareness in the importance of the capital market and the impact on the overall development of the economy. It cannot be ignored that the currency is only the means of payment, and that economic development is based on a number of macroeconomic factors, monetary and fiscal policy, rather than the type of currency.

The Positive effects of the introduction of the euro are likely to appear in the long run, but the process will not dramatically change the impact of the global macro-economic situation’s effect on small economies. It is important not to deter natural economic processes in order to meet the Maastricht criteria, thus, reducing the impact of some economic factors for a further period.

In summary, the adoption of the euro could put Lithuania on the financial map immediately since we have strong economic background and we can create the positive spillover effects of global awareness of the country itself, if we manage to combine both the introduction of the euro and the development of financial markets simultaneously. There is no quick solution; market expansion consists of many segments and decisions on various levels. Nevertheless, Lithuania has possibilities, all that is necessary is to choose the paths and stick to them.

to all parties, supervised independently away from political interference, and a lender of last resort in the ECB. A common currency requires fiscal union. This means an independent budgetary control system alongside clear and institutionalised acceptance of the fact that the strong economies must help out the weaker ones. Not just by lending money, or pushing out maturity dates on existing debt, but by making real cash transfers to reduce the debt burden on these economies.

Moreover, the metrics must be reassessed. We have to move to a more sophisticated approach that differentiates between the different types of debt, and even sponsors investment programmes through mutually guaranteed European bond issues.

And what if the ship’s pilots stick to the bad old charts? The risk is that the social and economic pressures on the poorer countries within the Eurozone will become intolerable, leading to growing resistance to further austerity, and a popular

move towards political extremism. There could also be a splintering of the Eurozone, perhaps between the strong and the weak economies.

Currency unions come and go. Who today remembers the Latin Monetary Union, an interchangeable currency created in the 1860s between France, Belgium, Italy and Switzerland, which expanded to cover Spain, Greece and a host of other countries before finally collapsing about a century ago? As the Baltic states gradually join up to the Euro, they must take an active role in navigating the Eurozone so that it can have a sustainable future. They are coming on board a big ship. Let us hope that its crew are sane and will steer around the rocks rather than rearranging the deck chairs as the boat sinks beneath the waves.

The views expressed in this article represent the personal opinion of the writer and not an official policy or view of COBCOE.

BCC paper issue No 46

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BCC paper issue No 46

The Euro, part 1: finance, insurance, and investment?

The Euro, part 1: finance, insurance, and investment?

Euro in Lithuania – investment in the future

Euro campaign communication: what lessons have to be learned from Estonia?

< continued from page 1

Björnar Lund, DNB bank CEO

„The introduction of the Euro will definitely have one-off cost/investment effects on businesses because of the need to adjust the systems to the new „home“ currency. For banks the EURO project will also take up a significant amount of resources in 2014 both in terms of financial and human capital. We are also likely to see a significant drop in foreign exchange business and that will come as a certain material challenge if we talk in the short term perspective.

Taking a broader perspective we believe that the euro’s introduction will definitely bode well for Lithuania‘s economy, serving as a stabilizing factor important for attracting more foreign direct investment to the economy. Banking business is a mirror of the economy so if Lithuania is doing well the banks in general will do well.“

Another crucial stimulus will stem from the reduced cost of credits. The Private sector’s behaviour has been rational so far: most of the credits (about 70 per cent) are taken in euros, and most of the deposits (77.5 per cent of residents and 59 per cent of companies) are put in Lithuanian litas as the interest rate of the latter is slightly higher. The euro will be a game changer: after adopting the common currency, the flexible interest rates for credits is expected to drop by nearly 15 bp, i.e. a risk-premium the businesses and households are paying now for the internal currency risk. Moreover, as the introduction of the euro is backed by stronger macroeconomic prudence (close-to-balanced budget deficit, controlled general government debt, price stability, etc.) the country’s risk assessment is forecast to improve, which, in turn, will have a positive impact on country’s borrowing costs. Lithuania’s general government debt soared dramatically from 16.8 per cent of GDP in 2007 to 40.5 per cent of GDP last year.

Bearing in mind the country’s debt maturity profile, this would be a substantial help relief to an economy, as in 2015-2016 Lithuania is due to roll over about EUR3bn of debt together with interest payments. Reduction of borrowing costs will bring respite not only to the public sector, but also to companies and households as escalating general government debt is creating additional

pressure on taxation. Moreover, the market usually reacts in advance, so the first fruits may begin to ripen as early as the middle of next year, if Lithuania qualifies for euro entry in 2015.

Recently, the Bank of Lithuania (BOL) introduced a thorough quantitative assessment of the benefits and costs of Euro adoption in Lithuania. It also emphasises the importance of the euro for the public sector and concludes, that the longterm benefits of the adoption of the euro could significantly exceed the one-off costs. The study suggests that joining the euro area in 2015 would provide the Lithuanian economy with additional momentum starting from next year, and by 2022 Lithuanian GDP is forecast to be almost 2 per cent higher than if the euro is not adopted.

Moreover, BOL is cautiously optimistic about the positive effect of euro introduction on exports and foreign investments. Indeed, it is difficult to assess the impact of the euro on FDI for a country that has been a member of the EU for a decade with a fixed exchange rate. Nonetheless, I believe the impact will be positive as the euro is not only more effective at hedging against future shocks in the financial system, but It is also an investment in macroeconomic and political stability, which always is a core criterion for business investments, both domestic and foreign.

Investment in Lithuania – Western Union’s Story expanded to 530 employees. During 2013, our employee headcount exceeded 950.

Why was Lithuania chosen to establish the company’s operations center and has it met your, as investor’s expectations so far?

Originally, Western Union had three sites for regional operations centers. Two of them were located in the Americas region - one in Costa Rica and one in Mexico. The third center was in Asia Pacific – Manila, Philippines. It was evident, that an operations gap existed in the Europe, Middle East and Africa region. In addition we wanted to position ourselves for the Payment Services Directive which was just coming in Europe, so we felt it was important for us to establish an operation center within the European Union.

Kendra Ricenbaw, Managing Director of Western Union Processing Lithuania

Western Union, the global money moving company established its operations center in Lithuania in 2010 and in three years has created more than 950 jobs.

Was it a worth-while investment and what were the main reasons to choose Lithuania for its establishment? We are talking to Managing Director for Western Union Processing Lithuania, Kendra Ricenbaw.

Could you briefly introduce Western Union Processing Lithuania and its main activities today?

Western Union Processing Lithuania is one of four regional operations centers of Western Union.

Internally, we call it the European Regional Operations Center (EUROC) and currently we work with both our internal and external customers all over the world. The functions we have established in Vilnius include Compliance, Finance, Operations, Technology and many others. We support most of Western Union’s business lines and products.

EUROC enables Western Union to simplify and streamline business processes as well as improve operational productivity in pursuit of global strategies.

Could you cover a bit of a history on how the sites transformation started three years ago and where is it now?

EUROC started its operations in 2010 with a small team of full time employees. By the end of 2010 we employed 271 employees. By the end of 2011, this number had almost doubled and we

In choosing the location for the fourth operations center, many factors were taken into account, including a professional, supportive investment environment. The main reason we chose Lithuania was pretty straightforward: our primary goal was to find a location where we could get the right caliber of staff with the right education levels and skills. We were looking at various options throughout Europe and we were happy with the education levels that we found in Lithuania.

As far as I understand, for WU as an investor, people are the main asset. Have you been satisfied so far with the quality and required skills in Lithuania to fulfill the company needs?

Our employees here in Vilnius are dedicated, adapt well to change and are always keen to innovate. They are multi-lingual, have a real passion for their work, and have an ability to create strong connections with their global colleagues.

It’s because of them that we have far exceeded our original expectations and now employ more than 950 people.

Would you personally recommend other International companies to expand to Lithuania and if so, what would be the main reasons?

A large talent pool of highly educated and skilled professionals remains one of the key success factors. In addition, there are many other benefits why to expand to Lithuania, including stable political climate, good infrastructure and supportive investment environment. In our experience, from the very beginning of our discussions with local representatives there’s been a real business approach towards our project. There is a clear commitment to helping businesses succeed in Lithuania.

What were the main challenges for WU so far since its establishment in Lithuania?

Managing the significant growth in the number of employees and the continual setting and addressing of the business priorities and needs to meet all stakeholders’ expectations were the most interesting challenges we’ve dealt with in the last few years.

Since our main theme of this BCC paper issue is Lithuania’s preparation to possibly join the EURO zone in 2015, could you possibly comment if this is going to effect in any ways Western Union Operations in Lithuania?

As the regional operations center is mainly a support function for the Western Union business across the globe, the impact of the change of local currency will be minimal and will be limited to the fact that over 950 employees will be paid in Euros.

But on a more general note, the introduction of the Euro currency is certainly a great success for Lithuania and I am convinced that it will further stabilize the Lithuanian economy as it limits the exchange rate risk for international companies operating out of Lithuania.

Could you comment on the company’s Corporate Social Responsibility approach globally and in Lithuania?

Giving back in communities in which we do business is a core value at Western Union. With the support of the organization, its employees,

agents, and business partners, the Western Union Foundation works to realize this vision by supporting education and disaster relief efforts as pathways toward a better future.

By Lukas Mikelaitis, Account Director at vipcommunications The Prime Minister's promise to join the Euro by 2015 has sparked many debates in public , about whether Lithuania needs the Euro and if it will bring more positives than negatives. At present 56 percent of Lithuanians oppose the introduction of the Euro, and it is essential to decrease this percentage. If the Euro is introduced with such negative opinion from society, it may cause political instability and lower trust in politicians even more than is already the case. Communication will play a crucial role in the Euro campaign, explaining what benefits the currency will bring, and helping to lower resistance to it.

The Majority of benefits (lower interest rates,

Western Union Processing Lithuania will remain crucial in supporting Western Union business in Europe, Middle East, Africa, and Asia and across the globe in the coming years. We look forward to continue our success story here in Vilnius.

Kendra, thank you for your time and on behalf of the British Chamber of Commerce in Lithuania, we would like to wish Western Union in Lithuania growth and success in the future.

that the cost of products and services will not begin skyrocketing the day the new currency is introduced. The Estonian experience shows, that having multiple opinion leaders makes the message more credible. The Euro campaign was not simply displayed as the current government's idea, but instead ex-Presidents, ex-Prime ministers, members of the European Parliament and people from different academic and cultural institutions, i.e. all opinion leaders from across society were actively utilized as messengers with a unified opinion.

Even after many goals are achieved: the communication is understandable for the general public and conveyed through channels that people trust, and the Euro is successfully introduced, there is still a lot of work to be done. Recent weeks and months have reminded Lithuanians that Russia is still out there and that its interest in Lithuania has not diminished. Whenever Lithuanians spirits are down and they don't trust the Government or, even worse, are against something that symbolizes European Union, this is a win for the Russians and helps them maintain their influence in Lithuania. Therefore, the possibility of negative Russian propaganda, even after the Euro is introduced, is very real and this is exactly why communication should be continued even after 2015. Mr. Raussi has confirmed this fear from the Estonian experience, when even after the Euro was introduced,

Lithuanians on the doorstep of the Euro: what personal finance story can we tell? could be financial literacy problems in Lithuania.

A lot of people are still in the vicious circle situation when there is not enough knowledge about how they could act with their money which leads them into inevitable financial problems in the future.

We are very happy to do business in Lithuania and proud that our operations center in Lithuania is an extraordinary part of the Western Union story. We are happy to have established our Western Union Foundation Lithuania. Through the Western Union Foundation Lithuania we support local programs that help others reach their dreams and expand opportunities. Our employees are actively participating in local volunteering opportunities.

In September 2013, Western Union Foundation Lithuania granted 25,000 Litas each to four nongovernmental organizations: EXCEL program, Big Brothers Big Sisters, Save the Children and National Student Academy.

And finally, what are the future perspectives for Western Union Processing Lithuania?

increased exports and investment etc.) might seem quite intangible to the general public and are much more difficult to understand than the main fear - increased prices. Timo Raussi, an experienced PR professional, who witnessed the Euro campaigns in Finland and Estonia from within the PR industry, has stressed that one of the biggest mistakes during Euro communication in Estonia, was that communication was too B2B-like, i.e. it should have been more simple, and adapted for the general public. In order to convince society, creative and very clear communication tools will have to be adopted in Lithuania. One of the main challenges to the agencies working with Euro communication will be translating complicated European Central Bank and Lithuanian Bank economic forecasts about the positive impact of the Euro into clear and logical messages that will be easy to understand for the public in both urban and rural areas.

56 percent of Lithuanians are against the Euro and only 33 percent trust the media - these two statistics make it obvious that in order to achieve a significant drop in Euro-pessimism in rather a short period of time (12-18 months), communication via traditional media will not be enough.

Direct communication and messages passed by opinion leaders (both national and regional) might become the main methods of successfully explaining what measures will be taken to ensure

Asta Grabinskė, CEO, Aviva Lietuva

The introduction of the Euro will be an important step, not only for governmental institutions, but for each individual household in Lithuania as well. It seems that Lithuanians will enter the Eurozone as the currency zone's most optimistic nation, an Aviva group international survey has revealed.

Exceptional optimists Lithuanians are the most optimistic people in Europe. A survey has revealed that 1 in 3 adults in Lithuania is expecting their household financial position will get better in the next year. This is the best result in all European countries surveyed, with the European average being three times less optimistic.

“According to our forecasts and statistical data, Lithuania should be one of fastest growing economies in the European Union next year. This kind of positive mood passes from official statistics to the ordinary life of each household so it is a good time to start thinking about finding the various ways that each of us could improve the stability of our personal finances and to be prepared for any unexpected situations” said Asta Grabinske, CEO of life insurance and pension funds company Aviva Lietuva.

Living for today Lithuanians are not so interested in planning their long term finances.

Half of adults in Lithuania admitted to having no savings to cope with the unexpected.

Also there are almost half of people who are saying that it is much better to live for today than save their money for the future.

Perhaps the main answer to justify these results

Material well-being Lithuanians think they have all the material things they need. More than half of Lithuanian people said they are feeling like there are no more essential things they would need for living right now. According to these results Lithuanians are more positive about their material well-being than people in United States of America by 7 percent.

In contrast: people from Poland are about three times less optimistic about their material condition than Lithuanians.

Source: „Aviva" group survey, performed by Ipsos

Relying on friends and savings in cash Although good friends are very important for the majority of us, it should not be an axiom in the context of getting financial advice. The Aviva survey revealed that Lithuanians are very liable to rely on their friends and relatives for financial advice: “Almost 1 in 3 adults in Lithuania told us that it is much better to get an advice from a friend or relative than from a professional financial advisor or a company. It might seem like a good way to start looking for the information about personal finance with the help of your friends but in most cases it will not be as professional as it could be with a financial expert who can adapt each financial service to specific needs” Aviva Lietuva's CEO commented.

Do you think it is better to keep your savings as cash at home than to keep them in a bank or invest them? 1 out of 5 adults in Lithuania think, it is.

Worried about retirement income Though we are the most optimistic country in Europe regarding future financial worries, we still have a few strong doubts: 6 out of 10 people in Lithuania are worried about their retirement income.

“Simply relying on the government to provide for retirement income is no longer an option, as state pension systems come under increasing pressure from ageing populations living longer” Asta Grabinske life insurance and pension funds company Aviva Lietuva CEO said.

Encouragement to save Lithuanians are not so determined about starting saving and investing for their future without help from outside sources.

The Aviva survey revealed that more than half of people in Lithuania claim governmental encouragement to save for the future is an essential factor in their decision.

“If there is no example of encouragement to save and invest for the future, it is hard to expect that the country will have a financially strong and self- sufficient society. State encouragement for personal saving is very important for those fast growing countries like Lithuania” A.Grabinske concluded.

Social - financial portrait of Lithuanians • The most optimistic in Europe • They have all the material things they need but are only living for today • Worried about their retirement income • Not prepared for unexpected financial problems • Governmental encouragement to save and invest is needed • Financial recommendations from their friends and relatives are very important The Aviva group CAS survey is an annual quantitative study of consumer sentiments about such topics as financial risk, advice, recommendations, investment and retirement including Aviva’s key markets in such regions as Europe, Asia and North America.

It is a nationally representative survey of adults aged 18 plus to identify and track various data for a better understanding of our potential future financial problems and the possibilities of avoiding them.

7

Russian propaganda could be noticed in Estonia, constantly trying to make people doubt the added values that the Euro brings.

All in all, the main advice given to Lithuania by our Estonian colleagues is to start communicating as early as possible and involve as many different social groups of society as possible. The early introduction of communication helped the Estonian government show the public that leaders of the country had really thought about the Euro for a long period of time and consciously guided the country towards it. Furthermore, engaging people in public discussions will help them understand that they are part of the decision making process, and that the Euro is not being forced upon them

by Government or other institutions. People have to feel that they are actively participating and that their opinion is being listened to.

Vipcommunications is the second largest PR agency in Lithuania, according to the Association of Public Relations Agencies. Besides PR, vipcommunications also provides integrated communication solutions, offering event management, creative, media planning and digital marketing services. Clients from finance, IT, law, pharmacy, tourism, transport and other sectors are being serviced by a team of 25 communication professionals.

BCC paper issue No 46

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BCC paper issue No 46

Chronicle of BCC Events

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Chronicle of BCC Events

BCC Traditional Season Opening in September

Breakfast Technical Briefings BCC Breakfast Technical Briefings continued to be a success in 2013 second quarter and kept an interest from chamber members and friends alike. In September and beginning of October, the topic “The Lithuanian Economy: out of the woods?” was presented by Jekaterina Rojaka, Head of Economic Research Unit at DNB Markets in Vilnius and Klaipėda. The presentation focused on external environment, internal growth engine, exports and domestic demand, labour markets and demographic trends, RE and financial market and business competitiveness in Lithuania and was met with high interest by participants in both cities.

The British Chamber of Commerce is intending to continue with Breakfast Technical Briefings in Klaipėda 3-4 times a year aiming to raise awareness about the chamber and engage branch offices of BCC members operating in Klaipeda and areas around. The next Breakfast Technical Briefing in Klaipėda will be held on February 13th, 2014.

In September, the British Chamber of Commerce invited members and friends to its traditional Season Opening event, which was held this year in Anyksciai and included a trip on the unique Narrow Gauge Railway, known as “Siaurukas”, which celebrated its 114 anniversary this year.

This traditional social event was enjoyed by 50 members and friends of the chamber including the British Ambassador David Hunt and his family. The participants were taken on a jolly ride inside the two First class Carriages to Troskunai XIX century Old Railway station, where lively and interesting introduction to local winemaker B. Karazija was made by Gintaras Kerbedis, Director of Vsi “Aukstaitijos Siaurasis Gelezinkelis”. The members were introduced to B. Karazija’s family history and to 3 different wine types, followed by excellent food prepared by local catering company.

The kids had an excellent time playing outside in the natural countryside environment.

Should you be interested in experiencing the unique trip on the Narrow Gauge Railway in Lithuania with your family or friends, please visit www.siaurukas.eu for more information.

Breakfast Technical Briefing in October hosted Andrius Šiaudinis from Peritus Sprendimai, who made a presentation “New EU funding period 2014-2020: main evolutions. Lessons learned from 2007-2013”. The presentation analysed the Lithuania’s most pressing challenges that are related to an innovation-friendly business environment, modern infrastructure for growth and jobs, maximizing the use of the labour force potential, reducing youth unemployment, and sustainable and efficient use of natural resources, and look at how Lithuania is planning to tackle these challenges with EU funds support. The topic attracted an interest from members and involved considerable amount of audience interaction after presentation.

The 5 th Guy Fawkes (Bonfire) Night in Vilnius On November 9th, the British Chamber of Commerce organised the 5th Guy Fawkes (Bonfire) Night.

This year it was held in a new venue - Kairėnai Botanical Garden.

A record number of 90 members, friends of the chamber and over 50 children gathered to enjoy this traditional English celebration. The weather was more than perfect for an outdoor event. The Guy Fawkes (Bonfire) Night in Vilnius followed the time-honoured British traditions of having a bonfire, a Guy effigy, mulled wine, traditional Shepherd’s pie and Parkin cake this year kindly sponsored by Novotel Vilnius Centre.

Chris Butler, Chairman BCC Lithuania in his welcome speech looked back to the history of the Gunpowder plot in London in 1605, and recited the famous "Remember, remember" poem, which was followed by the lighting of the bonfire. While the adults were socialising, the children were enjoying the sparkles and marshmallows. For the entertainment this year Juggler Viačeslav Mickevičius invited everybody to watch the magnificent show, which was thoroughly enjoyed by the children and adults.

The event ended in a traditional manner with a fabulous professional firework display delivered by professional company.

The British Chamber of Commerce expresses great gratitude to 5th Guy Fawkes (Bonfire) Night Sponsors for their outstanding input:

for sponsoring Fireworks and the Juggler

UAB HIGHLIFE Jekaterina Rojaka, Head of Economic Research Unit at DNB Markets

Andrius Šiaudinis, Peritus Sprendimai

BCC Regional Business Trip to Utena On October 11th, the British Chamber of Commerce organized its first ever Regional Trip to Utena for BCC members with kind support by Utena District Municipality and BCC Member BIKUVA,UAB. The aim of this visit was to introduce BCC Members to Utena, Lithuanian industrial city, known for its clothing, food and beverage factories such as “Utenos trikotažas”, “Utenos mėsa”, ŠvyturysUtenos alus and other. There are more than 650 companies registered in the Utena District. In recent years, with its large areas of the parks Utena District started focusing also on recreation and tourism. A number of joint Danish - Lithuanian and Norwegian - Lithuanian capital ventures are successfully operating in the Region. Utena District Municipality is recognized as one of the most active Municipalities in Lithuania and a reliable and supportive partner for private sector.

During the trip, BCC members met with Utena

District Vice-Mayor Mr Vidmantas Valinčius, who gave a brief overview about business conditions and existing investment opportunities in this district. BCC members also visited an impressive family company “Umaras”, local manufacturer of polyethylene films since 1993, represented by Vaidas Damidavicius, company commercial director. Later, the BCC members were invited to “Švyturys-Utenos alus” brewery, where all in attendance were taken on excursion and to tasting of 5 different types of beer. The trip ended up with an excellent networking lunch in “Alaušo slėnis” recreation centre outside Utena, where a number of representatives from local business community were presented.

The British Chamber of Commerce thanks enormously to Utena District Municipality and BCC member Bikuva for their initiative and great support in organising the first BCC Regional trip to Utena.

photos by Jurga Prakapaite

BCC Members in Utena District Municipality, where ViceMayor Vidmantas Valinčius is presenting achievements of the Municipality and introducing the investment opportunities

BCC members inside “Švyturys-Utenos alus” brewery

for sponsoring the Bonfire and the Guy effigy

Visiting “Umaras UAB”, local manufacturer of polyethylene films since 1993

BCC members jointly with Utena District business representatives in “Alaušo slėnis” recreation centre

for sponsoring Parkin cake for sponsoring the packs of sweets for the children

BCC paper issue No 46

BCC paper issue No 46

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11 Brits in Lithuania

The UK is Set to Join Recession Club in 2013

Interview with Tom Nicholson, entrepreneur, who has moved from London to Vilnius half a year ago and happily settled with a family

By Daniel Tarling-Hunter, Economist at Euromonitor International

Since the global financial crisis of 2007-2008, the European Union (EU) has suffered repeated bouts of recession, with those in the peripheral economies including Greece, Italy, Portugal, Ireland and Spain the worst affected. However, in 2013, the core countries are at risk of recession as growth remains flat, demand is subdued and the private sector continues to pay down debt. Some are facing their third recession since the crisis began, causing significant pain in the economies involved.

Tom Nicholson with wife Beata and children Izabelė and Jurgis When did you first come to Lithuania, and what attracted you in the first place?

I first became aware of Lithuania when I met my wife back in 2002. She was in London visiting a friend and we met and were married a year later. I honestly did not know anything about Lithuania before this life changing event and I would have struggled to place it on a map. However with my wife to be living Vilnius and I in London I started making frequent trips in Lithuania. I probably visited hundreds of times over the next 10 years, before finally moving here early 2013.

Has much changed since you were first in Lithuania?

Vastly. Over the last decade I’ve watched Lithuania evolve into an exciting, modern and dynamic country. These days it’s so much easier to get around, English is much more widely spoken than before. Back then foreigners were treated as a bit of a novelty and were misunderstood. Over the past few years with so many tourists visiting Vilnius in particular, foreigners have become a normal part of daily life to many Lithuanians.

I’d have never considered living here when I first started visiting, but now I really am very pleased to be here.

Your wife Beata cooks some fantastic food.

What are your favourite Lithuanian Dishes she makes?

Yes, Beata is an amazing cook – I’m such a lucky man. We have a wide variety of food at home. She is pioneering bringing new tastes and flavours to the nation and our family meal times are often a testing ground. However she is also very humble to her roots. Tasty beetroot soup is a staple on our family's menu.

Was it a difficult decision to move from the UK to Lithuania?

The decision took a long time to make. Our professional and family lives needed to be in the right places. I established a business in London 6 years ago and was now ready for fresh challenges. I am an entrepreneur and Lithuania excites me - I can see so many opportunities in this growing country.

What are the best things about being in Lithuania?

Moving to Lithuania has invigorated me. I’ve enjoyed getting to know Vilnius as my home, rather than being a visitor. It’s a really cool city, the vibe is good and it’s young and fresh. It feels like the city is 'going places' and it’s great to be a part of that. Lithuania has been very kind to me and I’m excited about the years ahead. I’m an optimistic person, definitely a glass half full kind of person.

Negativity and gloominess can be a Lithuanian national trait, but I believe that this will diminish over time.

The quality of life is good. Vilnius is a perfect size for me, small enough to get around easily, big enough to sustain diversity and interest. As a family we’ve enjoyed plenty of fresh air this year and ironically the kids are actually looking forward to the winter. Snow was always a novelty in London!

I’m also excited about getting involved in my 2 main hobbies in Lithuania - fly fishing and motorcycling. Both pursuits are in their infancy here and it’s wonderful to be involved with pioneers.

My journey in Lithuania has just begun, but I’m relishing it! I’ve been surrounded by Lithuanian culture for over 10 years. My wife jokes it’s my karma! I used to try and resist it, but as a wise man once said…..’If you can’t beat them – join them.’

Prepared by Alistair Day-Stirrat, BCC paper Editor

The risk of recession in the EU is wider than just the eurozone economies. The UK, Hungary, the Czech Republic and Denmark are all at risk of falling into recession once again in 2013. Euromonitor International has identified these countries as having two consecutive periods of expected real GDP growth below 0.4% in 2013. The prospects remain poor, however, the cause of this outlook in these economies differ.

Since the 1990's the Eastern European economies of the EU have enjoyed strong growth as a result of spillover benefits from the large Western European neighbours, benefitting from high capital inflows, stronger demand for exports, as well as technological spillover effects. However, since 2007 these benefits have largely reversed as exposure to the eurozone economies has meant exports have fallen, while the financial sectors of these economies have been forced to restrict lending, leading to contracting output.

Denmark and the UK on the other hand are suffering from poor domestic demand, though problems with their neighbours abroad are worsening the current situation. A fall in Danish house prices has led to a considerable fall in consumer expenditure as the wealth in the population declines. The UK is suffering from government austerity, as well as being in a deleveraging cycle which is lowering consumer and business spending as people pay down debts.

Real GDP Growth in Europe and the Eurozone: 2010 – 2014

The Purpose of Life is a Life of Purpose Some facts about Steve:

BCS, The Behavior Change Specialists, are an international people development organization, dedicated to the practical use of emotional intelligence to improve individual and team performance.

We help individuals, teams and organisations connect or reconnect with their purpose – inspiring fast, effective changes that will produce extraordinary results.

Steve Neale, the MD and founder of BCS, through living his values of passion, authenticity, quality and making a difference, has already helped more than 3,000 Lithuanian leaders connect with their purpose and transform their leadership and results.

• He is a recognised motivational speaker, skilled at energising and inspiring large audiences • He has personally trained or coached trained more than 10,000 leaders with a 100% recommendation rate • His training course “Outstanding Leadership Using The Limbic Learning System™” won the Award for Best Training Course in the UK • He has written a number of internationally published books including “Emotional Intelligence Coaching” which was nominated for the Financial Times Goleman Sachs Award for Best International Business Book 2010 • He developed and delivers an accredited Masters in High Performance Leadership Programme, which is currently recruiting for Class V starting in 2014 in Lithuania So, is it time for you to connect with your life purpose, and take the leadership of yourself and others to the highest level?

Why not contact Steve on 0044 7931 580932 or at steve@bcsinternational.net today and book him for a motivational talk, life changing coaching and mentoring or a training course that will produce lasting results.

Go to the homepage of www.bcsinternational. net to see a short video of Steve presenting BCS and why emotional intelligence is the key to outstanding leadership and team effectiveness.

An ergonomic workstation combats pain

PwC’s Academy in Lithuania gains approval to be a learning partner with global accountancy body PwC’s Academy in Lithuania has gained the Association of Chartered Certified Accountants’ (ACCA’s) prestigious Gold level as an Approved Learning Partner - student tuition.

Approval is given to tuition providers who demonstrate that they meet the challenging performance targets set by ACCA. There are two levels - Gold and Platinum – which are granted only to high-quality tuition providers that ACCA is confident to recommend to students.

When correctly sitting on a chair, the legs should be bent 90 degrees at the knee, the soul of the foot should be firmly placed on the floor, and the thighs should rest on the chair seat.

A backrest helps to prevent fatigue and to maintain correct posture.

Solving complex business challenges and performing everyday online operations means working long hours at a computer.

After such a day of work a person often experiences a drained feeling, aching muscles, and painful joints. Specialists have pointed out that this can be caused by an uncomfortable workstation and too little movement.

computer must be at the proper height so that a correct posture is assumed and the muscles do not become fatigued. A comfortable workstation allows a person to work more productively because there is no need to constantly look for a position where sitting does not hurt and shooting pains are not a distraction.

A person performing seated work should first of all be sure to use a comfortable chair. The best choice is a chair, which allows for the possibility of changing sitting positions and rotating the entire body (i.e. a wheeled chair). This helps to prevent the muscles responsible for rotational movement from tiring.

The chair needs to be raised high enough so that the legs are bent at a 90 degree angle with the souls of the feet firmly on the floor and the thighs resting on the chair seat. The person needs to sit all the way back in the chair with his/her back up against the backrest to avoid lower back pain. An effort should be made to keep the back as straight as possible at a 90–110 degree angle to the thighs.

The desk and chair should be regulated so that the elbows rest on the desktop at a 90 degree angle. The proper height for a monitor is for the top of the screen to be at eye level.

Physicians assert that a badly prepared workstation causes serious health problems: workers can suffer from frequent back, shoulder, and leg pain, joint and tendon ailments, and even spinal injuries. The workstation of a person sitting for long periods in front of a computer reasons must be comfortable, ergonomic, and very precisely adapted to the specific person in accordance with his/her needs.

Ergonomic accessories ‘If a person is tall, there is often no room to stretch his/her legs under the desk, which leads to leg pain. When a chair is too low, the entire load is on the seat muscles and nerve damage can result from sitting for too long,’ notes Regimantas Zitkauskas, an orthopaedist–traumatologist.

Office chairs are generally too high for short people. Such people tire from being unable to place their feet comfortably on the floor and experience additional back muscle strain.

Ergonomic accessories often help those who are tall, short, have posture problems, or simply want a more comfortable workstation. These accessories, e.g. footrests, backrests, cushions, keyboard and mouse trays, etc. can also be found in Biuro Pasaulis (Office World) office supply shops.

‘Cushions reduce seat muscle strain and a backrest ensures proper back support in the shoulder area. Backrests adapt to the body’s shape, ensure a person is comfortable while working, and help to prevent fatigue and maintain proper posture,’ stated Vidmante Butkeviciene, Product Group Manager at Biuro Pasaulis office supply company, in speaking about the top-selling ergonomic office supplies.

Relaxes the muscles According to Mrs Butkeviciene, gel cushions and arm rests, which allow the wrist to rest, are especially popular in office supply shops.

‘Cushions, computer trays, and mouse trays help attain a proper arm position, do not allow the wrist to rub against a hard desktop, and relax the arm muscles,’ explains the Product Group Manager.

Another ergonomic accessory is a monitor riser which allows the screen to be raised to eye level in order to avoid neck pain and hunching over. An ergonomic laptop riser, which performs the same functions as a monitor riser, is important when using a laptop.

A special solution has been created for people who need to frequently glance at paper documents while working with a computer: a document holder mounted on the monitor.

Proper height It is important to remember that the chair, desk, keyboard, and monitor of a person working at a

Remember to move An abundance of ergonomic furniture, office supplies, and other gadgets cannot guarantee that an employee will feel great. According to physicians, remembering to move is also very important.

‘People were created to move, not to sit 10–12 hours a day. When an organism’s vigour has drained away, the muscle tone wanes and problems begin which lead to the doctor’s office,’ said Mr Zitkauskas in talking about the consequences of immobility.

The longest a person can sit without a break is four hours. After that, it is imperative to move around, loosen up, and get the blood flowing.

Breaks are again needed at six and eight hours.

At least two times a week it is recommended that people performing seated work be involved in an active pastime at a gym, a swimming pool, a dance hall, or any other such place they prefer.

People should realise that it is not just immobility and an uncomfortable workstation that can make muscles ache after work, stress, such as a tense conversation with a supervisor, can also do it. And remember that relaxation, breathing exercises, and exercise, with or without medicine, also help to reduce muscle pain.

Pain is a frequent companion According to various research data, 80 per cent of the world’s population have experienced pain in the neck-shoulder or sacrum-extremities areas. The most common cause of pain is muscle spasms, which are caused by faulty posture, a passive lifestyle, and mental stress.

About 80 per cent of adults experience back pain from time to time or even frequently. The two most common causes of back pain are strains or small injuries and incorrect posture.

After working roughly a year at an office, about 40 per cent of people begin to feel bone or muscle pain. The most frequently encountered pain is in the lower back.

Gold approval is the first level of the programme and requires tuition providers to meet a range of challenging performance targets covering the institution’s overall management and more specifically its ACCA course management and delivery.

Gold approval is given to tuition providers who are teaching any ACCA qualification – ACCA, FIA and DipIFR – either through face-to-face tuition or by distance learning.

PwC Lithuania Partner of Assurance Services Rimvydas Jogela said: “As an organisation which aims to deliver quality learning and training, we are proud to meet ACCA’s highest standards. High calibre learning delivery is part of our offering and we work with ACCA to train and develop the complete finance professional that is needed by business and the public sector.”

VIRTUAL OFFICES with REGUS

Many of us can work anywhere these days – at home, on the move, or at a business centre. We don’t need a fixed office to do our best work.

But if you set up a business, you need a business ‘presence’ – an address, someone to answer your phone if you’re busy, and maybe somewhere to have meetings. If potential customers and contacts initial perceptions are based on your address and how your phone is answered, these things need to impress.

This is why growing companies all over the world use the Regus Virtual Office package. It’s especially popular among start-ups, home-based businesses, and companies entering a new country or region.

A Regus virtual office gives you an impressive business presence without the expense of renting physical workspace. You get: • A prestigious address at one of Regus’ unparalleled global network of 1500 centres, including

Regus Vilnius Old Town, or convenient locations close to where you live. Anywhere there’s business, there’s Regus.

• A professional receptionist answers calls in your company name, and takes messages, so you never need to miss a business call.

• Mail handling and forwarding.

• Gold membership of Regus’ Businessworld programme, giving you free access to 1500 business lounges. Whether travelling at home or abroad, you can access somewhere to work and use free WiFi. • With the Regus Virtual Office Plus package, you also receive five days’ use of a private office each month at your virtual office location.

All our Virtual Office packages can be set up with a couple of clicks of a mouse, so it’s a fast and easy way to make your business more professional. You could be lounging on the beach, but your business could now be sharing an address with Regus customers like Google, GlaxoSmithKline and Nokia. How’s that for an image boost?

BCC paper issue No 46

BCC paper issue No 46

12

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Stay organized, informed and productive with CWT To Go, a smarter app for smart travelers CWT has joined forces with the No. 1 travel app, WorldMate, to bring CWT To Go™, available exclusively to CWT travelers.

Whether you are a road warrior or an occasional traveler, CWT To Go is your business travel companion. You can rely on CWT To Go to help you stay organized, informed and productive while on the move. Streamlined technology, real-time information and secure access to all your travel details are always right at your fingertips with CWT To Go. CWT To Go is available in English for BlackBerry smartphones and in English, French, German, Italian and Spanish for Android, iPhone and iPad devices.

A smarter app for smart travelers, CWT To Go gives you the premium features and helpful services you need, including: Automated flight alerts. Flight notifications, including delays, cancellations and gate changes, are sent to your device automatically.

Capture all trip details in one app. Air, car and hotel itineraries booked through CWT automatically sync with your device. It is also possible to add meeting information, train details and non-CWT itineraries to the app.

Calendar sync. Your calendar updates automatically with your trip information, so you know where you need to be and when.

Flight status and schedules search. Search the flight status of colleagues arriving on a different flight to see if their plane will arrive on time. If you need to make schedule changes, you can also search for alternative flights with a few simple clicks.

Destination information. Tools, including maps, a currency converter, a tip calculator, local search via Yelp and weather forecasts, are at your fingertips 24/7 to help you navigate the local landscape with ease.

Expanded mobile check-in. With CWT To Go and your smart device, you can check in for flights on more than 250 airlines worldwide.

Financial services regulation among the key priorities of the Lithuanian presidency of EU Council

SORAINEN senior associate Dr. Tomas Talutis is advising the Lithuanian Ministry of Finance

During Lithuania’s first presidency of the EU Council among the key priorities are financial services including development of the banking union (with the main focus on the Bank Recovery and Resolution Directive), the deposit guarantee system and a single resolution mechanism. Law firm SORAINEN has been selected to advise the Lithuanian Ministry of Finance on preparation for the Economic and Financial Affairs Council

(ECOFIN) and other presidency related meetings and discussions. Other priorities during the presidency concern the Markets in Financial Instruments Directive and Regulation aimed to ensure more effective and credible market structures, take due account of the latest technological innovations, ensure better market transparency, and to strengthen investor protection and market supervision. The Solvency II/Omnibus II initiative related to the regulation of insurance services, the Regulation on Central Securities Depositories, prevention of money laundering, and a structural reform of the banking sector for the purpose of separating high-risk banking activities from everyday banking are on the agenda, too. SORAINEN is providing services such as advice on preparation for informal and formal meetings of the ECOFIN Council and other relevant meetings, advice on drafting and analysis of associated strategic materials, advice on presidency related work in the area of financial services. The following legislative initiatives are currently being handled: BRR, DGS, SRM, CSDR, MiFID, ALMD. SORAINEN team in this project is led by Dr. Tomas Kontautas, head of Banking & Finance at SORAINEN Lithuania, and senior associate Dr. Tomas Talutis.

Emotional Intelligence in the Classroom – Shaping ‘Sukurkime Užuovėją’ fundraising gets underway the Future of Lithuanian Leadership As part of the initiative to help renovate a chil-

Lead facilitator of the Lithuanian Schools Project “Applying Emotional Intelligence in Education” Steve Neale (MD of BCS, psychologist, international author and teacher on international EMBA Programmes) with Ambassador of the project, Nomeda Marcenaite.

BCC member, BCS International, develops and delivers Project with Lithuanian Teachers Emotional intelligence (EI) is the ability to use emotions effectively to improve the way you lead yourself and others. Leading schools and organizations all around the world integrate emotional intelligence into their programs. It is clear that EI skills are a vital foundation for highperforming students.

In October 2013, Save the Children Lithuania, together with BCS and Vilnius Private Gymnasium,

are starting an innovative project– “Applying Emotional Intelligence in Lithuanian Education”. The aim of the project is to help delegates understand and apply EI in all aspects of teaching – using concrete tools to lead and teach both children and other teachers to use EI. “To be a truly effective teacher you have first learn to teach yourself. The purpose of this programme is to change lives – first by enabling teachers with practical tools to live happier, more successful lives. These teachers will then be given tools to integrate EI into all aspects of their teaching.” says Steve Neale, the lead facilitator on the Project.

After many applications, 16 Lithuanian schools have been selected to join the project this year, with module 1 of the practical training starting in October.

Ambassador of the project is Nomeda Marcenaite, media personality and artist. Nomeda strongly believes that Lithuanian schools will gain great benefit from participating in the project. “There is a huge need of such learning in our schools. EI is emerging as a critical factor for sustaining high achievement, retention, and positive behaviour as well as improving life success and happiness.

It is vitally important to teach children how to become emotionally intelligent from the early age”, she says.

dren’s day care centre in Kaunas, Callcredit Operations has held a fundraising quiz and raised 500 Litas (around £120). The initiative is called ‘Sukurkime Užuovėją’ (Let’s build a shelter) and all other companies and individuals are invited to join and help children to settle in the new premises.

The day care centre (Užuovėja) has had to move from its existing premises and Kaunas city municipality has allocated an abandoned building, but it needs to be renovated. The shelter doesn’t have enough money to do this alone and employees from the Callcredit Operations office together with additional sponsors plan to renovate the building for the children where they can grow and spend leisure time.

Dainius Aksinavicius, Country Manager, said: “13 teams came together in the restaurant at the Zalgiris Arena to help start to raise money for the renovation works! Every participant was asked to donate 5 Litas (around £1) entrance fee.

GESTURE – smart chair for smart work our work, our ability to concentrate and be creative.

Based on this research, „Steelcase“ designed the GESTURE task chair to support our interactions with today’s technologies. Inspired by the movement of the human body. Created for the way we work today. „Steelcase“ didn‘t start with a chair design. They started by looking at the unique movements and gestures of the body.

1. The Core Interface: • The GESTURE back and seat move as a synchronized system moving with each user to provide continuous and persistent support.

• The back cradles the user no matter the posture.

SG&A - Visit Vilnius University for Student Workshop should be an integral part of every manager’s toolkit, after all, staff development is a fundamental responsibility of managers.

Terry Gregory visited Vilnius from 1 – 7 October 2013 and presented a workshop for Bachelors and Masters students at Vilnius University.

Owing to prior commitments his colleague Mike Guttridge was not able to make this trip so Terry flew the flag on behalf of Smith Guttridge and Associates.

Students at Vilnius University debating “coaching and mentoring” His topic was “Introduction to Coaching and Mentoring” and 32 students attended on the Saturday morning (students in UK take note!) for a participative workshop. He touched on the business benefits of coaching and the importance of developing a “coaching culture” within organisations and some of the barriers to achieving this.

He also examined very briefly the core skills required to be an effective coach and why these

As is usually the case with SG&A workshops the students were enthusiastic, challenging and highly focused on learning and development (hence the attendance on a Saturday morning).

For some students this was a relatively new topic whilst others had encountered the topic as part of their academic studies and after a quiet start (perhaps it was Terry’s northern accent that confused them) they embraced the topic in full when asked to do a group exercise.

A special thanks goes to Renata Garckija (Clinical Psychologist and Lecturer at Mykolas Romeris University) who assisted with the workshop and was “master translator” for the students.

Terry and Mike will be back in Vilnius in the New Year when they hope to present a full day workshop on the complexities of spoken and written Business English.

“The atmosphere was great and we received positive feedback regarding the event. There will be 2 quizzes organised in October and everyone is warmly invited to join.”

Užuovėja is a children’s day care centre that was established by the Lithuanian Samaritan Organisation. This shelter takes care of children from disadvantaged families, whose income is not sufficient to meet basic living standards. At Užuovėja children get lunch, play games, draw and learn elementary life skills such as domestic help and cooking. The aim of the day care centre is to help children to shape a positive attitude to life, develop their social, communication skills and improve their education by providing opportunities for self-expression.

Global office solutions leader „Steelcase“ undertook a global posture study in 11 countries, observing 2000 people in a wide range of postures, and uncovered 9 new postures as a result of new technologies and new behaviors. They studied how the human body interacts with technologies and how it responds as workers shift from one device to another. Research revealed ergonomic implications that, if not adequately addressed, can cause pain and discomfort for workers. Because these new postures are not adequately supported, workers are uncomfortable, in pain and doing long-term harm to their bodies. While technology helps productivity, it can cause pain that disrupts

2. The Limb Interface: • The arm moves like the human arm, which allows users to be supported in any position.

• Arms and shoulders remain supported when texting on a smartphone, typing on a keyboard or swiping a tablet.

3. The Seat Interface: • The seat brings comfort all the way to the edges.

• It is flexible at the perimeter to allow users to sit in a range of postures without obstruction.

4. The User Interface: • GESTURE takes into account various body types and sitting preferences, quickly adjustable to meet the needs of each individual user.

• Users can adjust the chair as easily as adjusting their posture.

The big man next to the big brand According to DNB’s chief Baltic economist Jekaterina Rojaka, basketball in Lithuania is not just a sport or form of entertainment, but is also a driver of domestic consumption and small-business growth.

“I was delighted to hear someone talk for the first time ever, not just about how much basketball costs us, but also about what basketball pays back in return“, said one of the greatest basketball centre forwards of all time, Arvydas Sabonis, who now serves as the president of Lithuania’s basketball federation.

Lithuania’s big man was referring to DNB’s economic study, which for the first time ever took a look at the impact of the country’s number one sport on economic growth.

“Looking from an economic perspective, basketball in Lithuania is not just a sport or form of entertainment but also a driver of domestic consumption and small-business growth. The data we collected suggests that basketball‘s popularity and business potential could be a relevant contributor to the country‘s economic growth if addressed properly“, DNB‘s chief Baltic economist Jekaterina Rojaka told journalists at the press conference held on the eve of the European basketball championship in Slovenia, where the country’s national squad, a source of national pride and unity, won the silver medal.

The power of a handshake Arvydas Sabonis, who ended his active sports career in the game’s Hall of Fame, still remains one of the most popular personalities in Lithuania. When asked about his first meeting with the 222 cm tall giant Sabonis , a senior NBA official remarked "If you get the chance, take a close look at those hands. Hopefully he won’t crush your hands with a handshake, but he could if he wanted to".

DNB Bankas’ CEO Bjørnar Lund was able to appreciate that personally when Mr. Sabonis entered his office for a firm handshake with DNB for its 11 year partnership with the nation’s number one sport.

Raidla Lejins & Norcous receive best rankings from Thomson Reuters, Mergermarket and IFLR1000

Dr Irmantas Norkus, Managing Partner of Raidla Lejins & Norcous Vilnius office

Three major law, business and market research directories rank law offices Raidla Lejins & Norcous as leading legal advisors in Central and Eastern Europe throughout Q1 – Q3 2013.

According to Thomson Reuters, the world’s leading business news and market research agency, Raidla Lejins & Norcous maintain their leading position and are ranked second among the best legal advisers in terms of the volume of advised mergers and acquisitions (M&A) deals in Eastern Europe.

Raidla Lejins & Norcous law offices operating in Lithuania, Latvia, Estonia and Belarus were also named among the best in Europe’s TOP50 ranking of M&A law firms.

Deloitte CE TOP 500: Decline in company revenue growth rates in Central Europe continues into 2013 returning in key regional and export markets.

Kempinski Hotel Cathedral Square Named Hot New Hotel by Tripadvisor

Kempinski Hotel Cathedral Square was named one of the top 10 best new hotels in the world by TripAdvisor®, the world’s largest travel site. Kempinski Hotel Cathedral Square was one of two European hotel brands that made it on the list and ranked fifth in the world and first in Europe.

According to TripAdvisor’s press release, included in the ranking were 33 hotels in 18 countries worldwide that opened within the past year and received a minimum of 30 reviews. These properties provided guests with memorable experiences and have earned a minimum of four out of five bubble rating on TripAdvisor.

“TripAdvisor has identified new hotels that have made lasting impressions on our community

since opening their doors,” said Barbara Messing, chief marketing officer at TripAdvisor. “Whether traveling internationally or close to home, we encourage travellers to check out, or ‘check-in’ to these new hotels on the scene that are getting high reviews from other travellers.”

“It is a great achievement to make it to TripAdvisor’s ‘10 Hottest New Hotels’ list,” said Kempinski Hotel Cathedral Square General Manger, Noel Attard. “Kempinski Hotel Cathedral Square is a historic building with architectural prestige. Our team delivers warm, high-level service with attention to detail. In addition, Kempinski Hotel Cathedral Square was listed on Condé Nast Traveler’s 2013 Hot List, which proves our team is dedicated to the success of our hotel. We would also like to take this opportunity to thank our guests for helping us reach this achievement.”

TripAdvisor is the world’s largest travel site, offering trusted advice from real travellers and enabling vacationers to plan the perfect trip. TripAdvisor branded sites make up the largest travel community in the world, with more than 260 million unique monthly visitors, and more than 100 million reviews and opinions covering more than 2.7 million accommodations, restaurants and attractions. The sites operate in 34 countries worldwide.

However, many of the region’s companies did perform strongly during the year. These included the one new entry to the top ten, Ukrainian energy company DTEK, which rose from 32nd to seventh place in the ranking. By displacing retailer Jeronimo Martins, which slid to 12th, DTEK ensured that eight of the top ten were energy companies.

New Deloitte report CE TOP 500 charts the impact of economic slowdown on company performance Growth was an elusive target throughout 2012 and into early 2013 for Central Europe’s 500 biggest companies.

According to Deloitte Central Europe CEO Alastair Teare, “The business environment remains uncertain and full of challenges, making it difficult for the region’s companies to deliver the sustainable growth in revenues and earnings that’s needed to generate the wealth that investors and other stakeholders want to see.”

With some signs on the horizon that better economic times lie ahead, including the eurozone’s recent exit from recession and positive surveys of Polish purchasing managers and German investors and analysts, confidence appears to be

tors that determine and influence people’s decision to travel”. She says.

Norwegians and Danes have been investing in Lithuania for years and have been taking advantage of the affordable Dental treatment prices for years. Dental procedures, from crowns to root canals, cost 40-60% less than western prices. “Norway is very close”, Dr Ieva explains, “people can hop on a plane in the morning and go back on an evening”.

With the ongoing uncertainty in Western Economies, the introduction of the EU legislation on cross-border healthcare, and the diminishing availability of National Health Service dentistry in many countries points to a continued interest for people searching for clinics abroad. Recommendations, and word of mouth, are still the key for people choosing a reliable clinic when travelling abroad for Dental care.

This year CE TOP 500 hosts 12 Lithuanian companies.„Orlen Lietuva“ is still at the top among other Lithuanian companies and holds 16th position. According to Marius Stalenis, Assistant Director of Financial Advisory Department at Deloitte Lietuva, the growth of Lithuanian companies usually surpasses foreign entities growth. Thus, local entrepreneurs successfully implement their business oportunities.

According to Alastair Teare, “Once again the CE Top 500 ranking and analysis provides unique insights into the true relationship between the performance of the largest companies and national economies across the region. In doing so, it confirms how dependent a long-term recovery will be upon how our most dynamic and powerful businesses perform over the months and years to come.”

SAS Makes Your Travel Easier

Odontika pleased to learn Lithuania voted “Best Value Destination for Dental Treatment” ClinicSearch.com has rated Lithuania best value destination 2014 for Dental treatment in Europe by the influential Scandinavian website. 15 Countries were compared for Ease of Travel, Affordability of Accommodation, and Price of Dental Treatment. Turkey, Poland, Hungary and Latvia making up the top 5.

Vilnius majestic Old Town surprised researches for how affordable accommodation was. Presently Lithuania holds the EU presidency, and as a result hotels are busy until January, so if you are looking for a deal 2014 is the time.

Dr Ieva Day-Stirrat, principle dentist at Odontika, “ the price of treatment is naturally lower than in the UK and Scandinavia, with Dental implants at less than £500. Significantly lower than the UK. Wages are a determining factor with the average wage less than ¼ of the UK. However, quality of treatment and guarantee are more important fac-

Twenty-one deals matching Thomson Reuters criteria were credited with a total value of USD 49.1 million. According to the latest Mergermarket Q1 - Q3 M&A Trend Report, Raidla Lejins & Norcous is ranked among TOP5 law firms in the CEE region by deal volume.

Furthermore, based on the report of international M&A directory Mergermarket, Raidla Lejins & Norcous maintain the leading position in this field among Baltic law firms.

Raidla Lejins & Norcous advised on 11 deals which meet Mergermarket research criteria. The total value of the deals advised on amounts to USD 1.15 billion.

International Financial Law Review 1000 (IFLR1000), the world’s leading finance and banking law guide, informs that Raidla Lejins & Norcous maintain the highest rankings in the fields of finance, banking, and M&A law.

Dr. Irmantas Norkus, Managing Partner Raidla Lejins & Norcous Lithuania office: ‘We always strive to work every case with the highest involvement possible. Quality is our main scope and the rankings received only prove, that we are moving in the right direction. We are very pleased to receive such high rankings and we understand that these evaluations are the guidelines for us to follow in the future’.

Scandinavian Airlines SAS have asked their customers what they want and what they value the most. It was no surprise that the most important value driver for SAS passengers was time: time related to punctuality, easy check-in, frequent departures and easily accessible airports.

With the objective of optimising travellers’ time in mind, SAS has developed a number of user-friendly solutions. First of all, one of the great time-savers that SAS offers to all passengers is several alternatives to standing in line at the check-in desk at the airport. Instead, SAS passengers can check-in online on flysas.lt, via SMS or the SAS mobile site, by using the SAS Application or at

the SAS self-service check-in kiosks at the airport, where available. If you choose to check-in via text message or the SAS Mobile site, you can also use the SAS Mobile Boarding Pass, which entitles you to updates on your flight status, including any delays or cancellations by a simple text message on your phone.

Yet another great on-the-ground time-saver is the Fast Track service, which is the quickest way through security offered at the airports.

“On average, the waiting time in line for the security check at the airport is around 20 minutes.

Therefore, Fast Track services is a great time-saver offered to all SAS Plus passengers and available at Vilnius, Copenhagen, Stockholm, and London airports, to name just a few,” says Ruta Juciene, SAS District Manager for the Baltic States.

Passengers travelling in SAS Plus benefit from Fast Track and airport priority lines and therefore can have longer business meetings or spend more time with their family members, arrive later at the airport and have less stress. All SAS EuroBonus Gold members can also enjoy Fast Track services regardless of the type of their flight ticket with SAS.

BCC paper issue No 46

BCC paper issue No 46

14 Presenting New BCC Members BCC Corporate Member Lloyd’s

Tomas Kontautas, Lloyd’s General Representative for Lithuania From February 2013 Lloyd’s underwriters have received authorisation to write insurance business in Lithuania on an establishment basis. Lloyd’s has appointed Mr Tomas Kontautas, partner of the law firm SORAINEN in Vilnius as its and underwriters’ General Representative for Lithuania.

The Lloyd’s market is home to 57 managing agents and 87 syndicates, which offer an unrivalled concentration of specialist underwriting expertise and talent in the area of casualty, property, marine, energy, motor, and reinsurance.

Previously Lloyd’s underwriters were operating in Lithuania on cross border (freedom of services) basis.

In addition to that, establishment authorisation in Lithuania allows Lloyd’s market players to develop a network of coverholders – insurance intermediaries authorised by managing agents to enter into contracts of insurance and/or issue insurance documentation, on behalf of the members of a syndicate.

Company contact details: Mr Tomas Kontautas Lloyd’s General Representative for Lithuania SORAINEN Address: Jogailos 4, LT-01116, Vilnius, Lithuania Tel: + 370 52 649 376 Fax: + 370 52 685 041 E-mail: tomas.kontautas@lloyds.com

BCC Corporate Member Provident Finansai product provided by credit Intermediaries directly to customers’ homes. Company has high social responsibility standards as well as a commitment to work for the well-being of community.

OUR VISION Make a difference in everyday life by offering simple financial solutions.

David Parkinson, General manager WHO WE ARE Provident Finansai is a part of the International Personal Finance Group which has history of 130 years and 2,4 million customers worldwide. It operates under the brand Provident in 8 markets: Poland, Czech Republic, Slovakia, Hungary, Mexico, Romania and since 2013 – in Lithuania and Bulgaria. International Personal Finance is listed on the London and Warsaw Stock Exchange.

Provident Finansai business model is built on responsible lending and offers new, clear, transparent and default-free

BCC Overseas Member Marine Forensics

OUR VALUES Our values govern everything we do. They support our vision and are central to delivering the business strategy. They help us provide outstanding customer service, deliver high levels of business performance and underpin our commitment to work responsibly.

-We are respectful Treating others as we would like to be treated.

-We are responsible Taking due care in all our actions and decisions.

-We are straightforward Being open and transparent in everything we do.

Company Contact Details: Website: www.provident.lt E-mail: laura.puidokaite@provident.lt Tel. +370 650 75927 Contact Person for the Chamber: Laura Puidokaitė, Corporate Affairs Manager Marine Forensics specialise in carrying out forensic investigations, asset tracing and due diligence. As well as Phil and Iain, Marine Forensics is directly made up of consultants and associates with many years experience in law enforcement, shipping, legal, military and government roles. As such through their associates and consultants they have access to agents across all global regions but particularly in the USA, Far East including China and Indonesia.

List of BCC Members Andrius Ivanauskas appointed to the Board of the Lithuanian Private Equity and Venture EDT were the first in Lithuania to structure and Capital Association incorporate investment vehicles arranged as LLPs

On 24th September 2013 Andrius Ivanauskas, an Associated Partner of GLIMSTEDT, was appointed to serve on the Board of the Lithuanian Private Equity and Venture Capital Association (LT VCA).

Andrius Ivanauskas has been active in business initiatives promoting new possibilities for organizing investment funds in Lithuania. In addition, he has been constantly working to improve the respective aspects of the Lithuanian legal system in the field.

Participation in the Board is expected to provide more opportunities to develop a better foreign investment environment in Lithuania. GLIMST-

Stress Regress news update In the last year, we have been adding more to the range of services we can offer.

We are still offering stress therapy, identified as needed by use of stress dots, which measure in a very visual way the pressure of stress in the individual. A confidential questionnaire is submitted by you, and we consult with you on the best way forward. We provide this service for individuals and groups, by arrangement; just send us an email, indicating your need.

We have “Mind Machines” of varying types available for wellbeing, augmented with other types of machine to more specifically treat pain and addictive dependencies. We can now also offer MP3 players pre-loaded with binaural beats / soothing music, to your requirement, and also have created our own natural sound recordings, so you can relax totally in your own home Ozonators are also available to produce cleansed water, which is perfect for sterilising meat, fruit and vegetables, or just for drinking, with many

harmful chemicals deleted. These are cheaper than our previous model, but just as efficient.

In addition to the above, we have available a Silver Generator, which adds high quality silver to distilled water. 250ml a day is recommended to help fight bacteria within the body, and to help you achieve a “more fit” self. This type of treatment was first used by the ancient Greeks and Romans for health benefits, and replacement silver rods are cheap and readily available from us.

All machines we supply have the CE mark, to indicate safety.

Our website (www.stressregress.com) will soon be updated, giving you more health information, as well as an online ordering system for our products.

We look forward to hearing from you! We are adding new products all the time, so keep watching this space!

BCC Corporate Member Campanile Hotel Vilnius Airport

daily special lunch menu. Moreover all-you-can-eat healthy Breakfast Buffet available for all hotel guests as well as walkins.

Business amenities include 3 fully equipped conference rooms to accommodate up to 180 pax for company seminars, training sessions and business meetings as well it can be a perfect venue for company’s Christmas party.

Hotel provides free onsite parking for 66 cars and 11 coaches and complimentary shuttle bus to Vilnius Center, Vilnius International Airport and Railway & Bus stations (operates regularly).

City Bee Station (car sharing services) is established onsite – a collective car next to you, for which you pay only when you use it, and you use it when you need to get from point A to point B. Located on the main A3 highway (Minsko pl.), only 4 min to IKEA, 5 min to City Center, 6 min to Vilnius Airport, Campanile hotel is easy accessible for passengers travelling by plane, train, bus or car.

Everything in Campanile Hotel Vilnius Airport is designed to enjoy relaxation, freedom and comfort for affordable price, whether on a family holiday or business trip.

Their main corporate advisory services are: • Investigations into corporate, maritime and transport problems/disputes • Investigation of critical incidents and forensic analysis • Due diligence, compliance and asset tracing • Forensic accountancy and fraud investigation • Maritime intelligence and evidence gathering • Armed guard and firearms advisory services • Provision of forensic evidence and legal reports • Training Marine Forensics has recently become a member of the British Chamber of Commerce in Lithuania. Phil Butler the MD and Iain Logue the Operations Director have just returned from a successful UKTI trade trip and met with potential clients in Vilnius and Klaipeda. Iain said, “Phil and I both felt at home straight away and met some great people who wanted to do business and we would like to thank them for their kind hospitality.” Phil said, “I have so much confidence in the people I met in Vilnius and Klaipeda that I’m thrilled to announce that we will be opening a new office in Vilnius in December 2013.

It’s a big step for us and our first office outside the UK, but we feel it’s a big vote of confidence in the people we met and we believe that given our police background it’s a place where we can genuinely help companies and people facing difficulties.”

BCC Small company Member Nordisk Lietuva

Nordisk Lietuva is a company engaged in language training, consulting, translating/interpreting and publishing. Our specialty is Nordic (Norwegian, Swedish, Danish, Finnish) and Baltic languages.

The first Nordisk language centre in the Baltic states was founded in 2007 in Latvia. The decision to establish Nordisk centre in Lithuania was made due to high quality performance of the primary centre and respectful relations with our clients and teachers. As a result Nordisk Lietuva saw daylight in September 2013 in order to implement best practices of Nordic language services in Lithuania. At the present, the company operates in Latvia, Lithuania, Slovakia and Hungary.

The company has three main business areas: Nordic language training that includes regular programs, evaluations,

Marine Forensics can respond to any global incident . In addition all intelligence and information is gathered forensically and made available in a standard, easy to read, professional report format. Crucially it is also made available as evidence for the benefit of clients. Should you wish to find out more talk to Phil or Iain at: Company contact details: phil@marine-forenscis.com Iain@marine-forenscis.com Tel: 0191 2064654 M: 07545 787559 Fax: 0191 2064001 www.marine-forensics.com

training corporate employees with language courses from various terminologies, translation and interpretation services and publishing. Nordisk’s primary mission is to build bridges between the Baltic and Nordic countries by promoting languages and organizing various language clubs and cultural events in co-operation with the Nordic embassies and culture centres.

These events provide an informal atmosphere where everybody can practice their language skills and listen to various lectures on the Nordic countries.

We prefer long-term cooperation, which leads to stable partnership and good B2B relationship based on effective communication. Nordisk’s core values are: Honesty – we are fair both to the customers and to our employees. We are honest in communicating with the client, informing about the progress of the project. We don’t make promises we cannot deliver.

Surprise – for us it is not enough with the customer satisfaction alone. Our goal is to impress the customer in an effort to give more than is expected.

Quality – Nordisk provides high quality due to our specializing in specific languages. We are continually building up our team of high qualified teachers, translators and advisers in Nordic and Baltic languages. Quality is ensured also by the fact that we respect our teachers’ and translators’ work and pay them fairly.

Company contact details: Nordic languages centre Nordisk Website: www.nordisk.lt Tel.: +370 5 2602558 E-mail: info@nordisk.lt Address: Liejyklos str. 3 – 10, Vilnius 00120

based on worldwide refined architecture of private equity funds. In 2009-2010 the Lithuanian government initiated a legislative process to improve the Lithuanian laws in terms of the investment regulation. The process was based on three major pillars in all of which GLIMSTEDT Vilnius was involved.

It included revisions to partnership regulation, a new Law on Collective Investment Undertakings for Informed Investors, and taxation amendments.

The Lithuanian Private Equity and Venture Capital Association hosts companies engaged in different types of venture capital business activities. These companies include fund management companies, consulting firms, lawyers, public institutions, etc., all of which support and advise investors and entrepreneurs in the structuring and management of the partnerships. The LT VCA is a member of the European Private Equity and Venture Capital Association (EVCA).

First Campanile Hotel in the Baltics opening in Vilnius December 2013 International Chain Louvre Hotels Group is moving to the Baltics and opening their first economy class Next Generation hotel Campanile Vilnius Airport this December.

At Campanile Hotel & Restaurant everything is tailored to ensure a pleasant stay. Cozy 92 air-conditioned rooms with high quality mattresses, free Wi-Fi, tea and coffee making facilities in every room will make a pleasant stay for solo travellers, families with children and pet lovers.

Modern European cuisine restaurant “Le Restaurant” offers contemporary food changing according to seasons. Crispy “Caesar” salad, succulent burger, divine home-made white chocolate ice cream – only one example for appetizing dinner. We offer

Company Contact Details: Address: Minsko pl. 14, 02121 Vilnius, Lithuania Tel: +370 5 203 2282 Fax: +370 5 203 2281 E-mail: sales.vilnius@campanile.com Contact Person for the Chamber: Sandra Barauskienė, Sales Coordinator

15

BCC Sponsor Members

Bunnahabhain rep. by Mineraliniai vandenys, UAB Production of single islay malt Scotch Whisky www.bunnahabhain.com

Baltic Legal Solutions Lithuania Full service law firm www.blslawfirm.com

Carlson Wagonlit Travel Corporate travel management www.carlsonwagonlit.lt www.kalevatravel.lt

DNB bankas Banking www.dnb.lt

GlaxoSmithKline Pharmaceuticals www.gsk.lt

PricewaterhouseCoopers Assurance, Actuarial, Advisory, Tax and Legal services www.pwc.com/lt

Strategic Staffing Solutions International Provider of information technology solutions.

Recruitment Services www.strategicstaff.com

BCC PR Partner

BCC Accounting Partner

BCC Corporate & Group Members AD REM TRANSPORT (www.adrem.lt) / Forwarding and logistics ARIJUS (www.arijus.lt ) / Transport and Logistic services AVIS Rent a Car & Leasing Company (Litideal, UAB) (www.avis.lt) / Car rental and leasing AVIVA LIETUVA, Joint Stock Limited Life Insurance and Pension Company (www.aviva.lt) / Life insurance and pension funds ĄŽUOLYNO Clinic (www.azuolynoklinika.lt) / The first private clinic in Lithuania for psychological problems, psychiatric disorders, alcohol and drug addiction treatment, long – term nursing.

Patients can be consulted or hospitalised Baltic American Medical & Surgical Clinic (www.bak.lt )/ Health Care BALTIC SURVEYS (Baltijos Tyrimai, UAB) (www.gallup.com) / Market research BANKSERVIS (www.bankservis.lt) / Bank and office equipment, security products and solutions

BARCLAYS Technology Centre Lithuania (http://www.lifeintechnology.co.uk/global-locations/vilnius-lithuania/) / one of strategic IT engineering centres providing support for Barclays business activity worldwide.

Best Western HOTEL VILNIUS (www.vilniushotel.eu) / Centrally located Hotel, restaurant, conference centre, fitness centre, swimming pool and sauna BIKUVOS Prekyba (www.bikuva.lt) Retail Building supply and household goods BITĖ LIETUVA (www.bite.lt) / Telecommunications BIURO PASAULIS (www.biuropasaulis.lt) (www.elektromedia.lt)/ /Office supplies, printing management and IT solutions BNTP (www.bntp.lt) / Private equity investment; real estate development and investment; asset management; project management; facilities management Bright Purple Resourcing (www.brightpurple.co.uk) / Technology and financial services recruitment specialists British Council (www.britishcouncil.lt) / the United Kingdom’s international organisation for cultural relations and educational opportunities.

Calenberg Vilnius (www.calenberg.lt )/ International moving/ relocation and dealership of the office furniture- STEELCASE CALLCREDIT OPERATIONS (www.callcreditgroup.com) / Experts in the fields of credit referencing, marketing services, consumer information, interactive solutions and consultative analytics.

CAMIRA FABRICS Ltd (www.camirafabrics.com) / Contract seating & transportation fabric manufacturer CAMPANILE Vilnius Airport Hotel (http://www.campanile.com/ en/hotels/campanile-vilnius-airport) / hotel, European cuisine restaurant „Le Restaurant“, Lounge bar, conference center, modern Camper Parking with state of the art facilities NEW! COWI LIETUVA (www.cowi.lt) / Consulting and engineering services related to building design & engineering, energy, environment, territory planning, topographic survey, hydraulic engineering, technical supervision, water and sewage systems design CSC Baltic (www.csc.com/lt) / IT services and outsourcing DELOITTE (www.deloitte.lt) / Audit. Tax & Legal. Consulting.

Financial Advisory. Enterprise Risk Services DELTA MANAGEMENT SOLUTIONS (www.deltamanagement. lt )/ Recruitment, Executive Search, Temporary Staffing, Employment Services, Personnel Testing & Assessment, Greenfield Staffing Support DPD LiETUVA (www.dpd.lt) / Parcels delivery for business and private customers within Lithuania & EU countries, logistics solutions for business EFT Lithuania (www.eft-group.net )/ Electricity Trading Company EKO RIVI (www.ekorivi.lt) / Consultancy in municipal and environmental infrastructure EUROMONITOR INTERNATIONAL (www.euromonitor.com ) / Provider of strategic market research on countries, consumers and industries EVERSHEDS SALADŽIUS (www.evershedssaladzius.lt) / Legal services G4S Lietuva (www.g4s.lt) / Security Solutions covering cash handling, guarding, electronic security, system maintenance, installation, courier service GrECo JLT Lietuva, UADBB (www.greco.lt ) / Insurance intermediation GUARTIS (www.guartisglass.lt) / Glass processing & container glass manufacturing HIGHLIFE / Manufacturing for export timber components for the furniture and construction industries HOTEL VANAGUPĖ (www.vanagupe.lt) / 5* Hotel, Modern Conference centre and luxury GOLDEN Spa centre, gourmet cuisine restaurant L’Ambra Rossa ISM University of Management and Economics (www.ism.lt) / Higher education JURIDICON, Law Firm (www.juridicon.com) / Legal services, tax consulting, corporate services, legal project & risk management. Member of Warwick Legal Network.

KAREN MILLEN (www.karenmillen.com) / retail, women clothing KAUNAS FREE ECONOMIC ZONE MANAGEMENT COMPANY (www.ftz.lt ) / Real estate development KERNAVĖS BAJORYNĖ, Conference and Leisure Centre (www.kernavesbajoryne.lt )/ Conferencies, leisure and other activities KLAIPĖDA FREE ECONOMIC ZONE MANAGEMENT COMPANY (www.fez.lt) / Management and development of Klaipėda Free Economic Zone KPMG Baltics (www.kpmg.com/lt ) /Audit, Tax, and Advisory services LEINONEN (www.leinonen.eu) Accounting services LE MERIDIEN VILNIUS & V GOLF CLUB (www.lemeridienvilnius.com) / 5 star Hotel, 8.000m2 Conference Centre, Catering Services, Spa, Fitness Centre, Leisure, PGA design Golf course, Over the water restaurant, Real Estate LLOYD’S (www.lloyds.com) / Insurance and reinsurance LawIN (www.lawin.com) / LAWIN is a leading and internationally highest ranked business law firm in the Baltics.

MOTIEKA & AUDZEVIČIUS, Law Firm (www.ma-law.lt) / Legal services

MIRROR SUPPORT SERVICES (www.mirroraccounting.lt ) / Accounting services NOVOTEL VILNIUS CENTRE (www.accor.com) / Hotel services ODONTIKA (www.odontika.com) / Dental surgery PERITUS SPRENDIMAI (www.peritus.lt) / EU funding, Project Management, Public Procurement, Strategic Research, PPP PROVIDENT FINANSAI (www.provident.lt) / Personal credits provider and responsible lender NEW! PUBLICUM (www.publicum.lt) / Public Relations, Public Affairs, Management consulting and training PZU Lietuva (www.pzu.lt ) / Insurance QUANTUM CAPITAL (www.qcapital.eu ) / Investment banking & strategic advisory boutique Radisson Blu Hotel Lietuva (www.radissonblu.com/ lietuvahotel-vilnius)/ Hotel, biggest centre located Conference and Event centre, Riverside restaurant, Skybar, Lobby bar, fitness centre and sauna Radisson Blu Astorija hotel (www. radissonblu.com/hotel-vilnius) /Hotel, French restaurant „Brasserie de Verres en Vers“, Astorija Bar, Meetings & Events center, Catering services, Health club with swimming pool Raidla Lejins & Norcous (www.rln.lt) / Legal services in all fields of business law in Lithuania, Latvia, Estonia and Belarus REGUS (www.regus.lt ) / The world leading provider of pioneering workplace solutions, with a large range of products and services from fully equipped offices to professional meeting rooms, business lounges and the largest network of videoconference studios SCAENT Baltic (www.scaent.lt) / Investment Enterprise Scandinavian Airlines SAS (www.flysas.lt) / / the biggest airline company in North Europe operating in Lithuanian for 20 years with the regular flights from Vilnius and Palanga SCHAGE Real Estate (www.schage.lt) / Real estate development company. Investing in, renting and selling premises for office, residential and commercial use SHAKESPEARE Boutique Hotel (www.shakespeare.lt) / Boutique hotel, Sonnets restaurant, Globe bar, conference halls SORAINEN (www.sorainen.com) / Legal services in all fields of business law in the three Baltic countries and Belarus Storebrand Baltic (www.storebrand.com) – Shared service centre for Storebrand ASA in Norway and SPP in Sweden. Financial services within life- and health insurance, banking and asset management Sue’s Indian Raja (www.suesindianraja.com) / Indian Restaurant SWEDSPAN Girių Bizonas (www.swedspan.lt) / Particle board production TAEM Urbanistai (www.taemgroup.lt) / technical and spatial planning and mobility management TARK GRUNTE SUTKIENE, Law Firm (www.tarkgruntesutkiene. com) /full-service business law firm in the Baltic region and Belarus TRANSCOM Worldwide Vilnius (www.transcom.com) / International provider of outsourced services and solutions in the field of customer contact (client relationship management & credit management). Near shore outsourced services from Lithuania to UK and other European countries VARUL, Law firm (www.varul.com ) / Legal services in all fields of business law in Lithuania, Latvia, Estonia and Belarus Western Union Processing Lithuania UAB (www.westernunion.com) - Financial Services ZABOLIS PARTNERS (www.zabolis.com) / Finance and Real Estate Žemaitijos pienas (www.zpienas.lt/) / Production and sales of milk products

BCC Small company Members A Hostel ( www.hostelsvilnius.lt) / Accommodation Services AMBER STAFF (www.amberstaff.com) / Temporary staffing and employee leasing ARTAPRO (www.artapro.lt) / Creative property management BCS International (www.bcsinternational.net) / The Behaviour Change Specialists, are an international people development organisation, dedicated to the practical use of emotional intelligence to improve individual and team performance.

CRC Consulting (www.crc.lt) / Core consulting areas: Strategy development, Risk management, Project, Program and Portfolio management, Competence management, Marketing and sales.

CORMACK CONSULTANCY BALTIC LT Ltd (www.ccbaltic.eu)/ Business development, export development, market researches, consultancy in investment, innovation, management - Baltic states, UK, Rusia, India, Italy markets DEKONA, Evaldo Darškaus IĮ (www.dekona.lt ) / Management Consulting: Operational efficiency, Lean, Six Sigma, process improvement DRUSKOS NAMAI (www.druskosnamai.lt) / Restaurant Eurocontinental Limited / Textiles FINREDA (www.finreda.net) / Corporate services provider.

Legal, financial and business consulting & services including translations to Lithuanian and foreign companies GENCS VALTERS, Law Firm (www.gencs.eu ) / full service, general practice international business law firm with offices in Riga, Tallinn and Vilnius focused on tax, litigation, M&A, corporate, immigration, finance and intellectual property law

Growing Talent (www.growingtalent.eu/) / Providing executive coaching, and delivering training for leadership and talent development LONDON INTERNATIONAL SCHOOL OF LANGUAGES (www.londonisl.com) / Business courses, specialized training for both IELTS and TOEFL university admission exams Nordisk (www.nordisk.lt) / Wide range of training, translating and publishing services in all Nordic languages NEW! STRESS REGRESS (www.stressregress.com) / A business partnership dealing with stress issues, including testing, measurement and treatment, and offering advice for a healthier lifestyle including exercise, diet and supplements, among other options.

MAGISTRAI (www.magistrai.lt) / Translation and interpretation services RAIMDA Auditas (www.raudit.lt) / Audit Tauragė Industrial Park (www.tip.lt)/ Industrial premises for rent in Southwest Lithuania Vilnius International School (www.vischool.lt) / International Baccalaureate World School. Early childhood education, primary and middle school VINKLERIS and partners (www.legalconsulting.lt/) / international law firm providing legal advice regarding taxes, company establishment and competition, as well as family and labor law issues

Overseas members Baltic Holidays (www.balticholidays.com) / Tour operator in the UK specializing in Lithuania, Latvia & Estonia Marine Forensics Ltd (http://www.marine-forensics.com) / forensic investigations, asset tracing and due diligence NEW! Today Translations (http://www.todaytranslations.com) / translation, interpreting services NEW! SGandA (Smith Guttridge & Associates) (www.smith-guttridge.eu) / Business Psychology & HR Consulting including training/coaching, career management and team and leadership development.

BCC Social Members Andrius Končius Chris Butler Christian Ranft Erika Cisotti Geoffrey Cohn (Life Member) Hugh Miles Thomas OBE, FCA Dr Helene Ryding Jūratė Rusteikaitė – Bakšienė Mark Whittle Mervyn Richardson Mike Little Ron Sheppard Sigitas Žutautas

BCC Board 2013-2015 Honorary President David Hunt, HM Ambassador to Lithuania Chairman Chris Butler, BCC Social member Field of interest in the board – Events Treasurer Mike Little, BCC Social member Field of interest in the board - finances Algirdas Pekšys, SORAINEN, Field of interest in the board - Goverment relations, Trade & Investment promotion Alistair Day-Stirrat, Odontika, Dental Surgery Field of interest in the board - BCC paper Asta Grabinskė, AVIVA Lietuva Field of interest in the board – Government relations Ben Harvey, Growing Talent Field of interest in the board – CSR Frank Reul, Accor Hotels Field of interest in the board – Events Giedrius Dzekunskas, Barclays Technology Centre Field of interest in the board – Trade & Investment Promotion Nick Price, Bright Purple Resourcing Field of interest in the board – Trade & Investment promotion, Events Robertas Juodka, Law Firm VARUL Field of interest in the board - Trade & Investment promotion, Membership Toma Vevelstad, Amber Staff Field of interest in the board – Membership Viktorija Trimbel, Quantum Capital Field of interest in the board – Trade & Investment Promotion Observer Ieva Binkauskaitė, British Embassy, UK Trade and Investment Section

BCC paper issue No 46