According to the data collected by the Bank of Lithuania, the microcredit business has expanded from 83 mil litas to 207 mil litas since 2011. The rise in the number of contracts and the loans distributed has alerted the Bank of Lithuania that this business has to be regulated.

The representatives of the Bank of Lithuania suggest that one of the biggest problems of the microcredit sector is the fact that people overestimate their ability to repay their loans. Statistics show that 30 % of microcredit recipients are unable to return their loans on time. This data would be even worse if the contract could not be extended. However, this only extends the duration of the problem for an undefined period of time. The worst part is that a lot of people take another credit to cover the previous one.

According to the Bank of Lithuania, the most alarming case is the loans given to the youth. 35 % of all the loans distributed in the first quarter of 2013 were given to people younger than 25 years old. The youth is more vulnerable as they are not that experienced in dealing with money matters. The chairman of the board of the Bank of Lithuania, Vitas Vasiliauskas, suggests that clients often slip into the vicious cycle of loans and get stuck.

The Bank of Lithuania suggests that the biggest problems - lack of collateral and verifiable credit history - have to be solved at the national level. The Bank proposes the creation of national level legislation that would regulate this sector and protect consumers.