News2020.03.27 09:13

Third of Lithuania's textile industry may go bust, association says

BNS 2020.03.27 09:13

A third of businesses in Lithuania's apparel and textile sector might go bankrupt because of the Covid-19 crisis and around 7,000 jobs might be lost unless government extends assistance, the Lithuanian Apparel and Textile Industry Association says.

The sector's annual turnover, almost 950 million euros, might slump 35 percent without any major assistance.

Read more: A fifth of the economy could be wiped out – Lithuanian Central Bank

“We have asked the government to defer all types of tax payments to state institutions for Lithuanian apparel and textile companies and to create conditions for commercial banks to defer the payment of loan interests and fees for business clients for at least six months,” Kęstutis Daukšys, the president of the association, said.

The drop in the exports of apparel and textiles this year, compared to last year, will be one of the largest among the country's major manufacturing sectors. The sector's main export markets – Germany, Scandinavian countries and the UK – are facing major challenges.

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