maksukyky

Maksukyky is a term used in Estonian and Finnish to denote the ability to meet monetary obligations, commonly translated as solvency or creditworthiness. It describes whether an individual, a household, a business, or a government entity has sufficient resources to repay debts and cover recurring expenses as they come due. The concept encompasses both current liquidity and longer-term financial capacity.

Assessment of maksukyky relies on analyzing cash flows, assets, liabilities, and income stability. For individuals, it includes income level, employment stability, existing loans, monthly debt service, and savings. For businesses, it considers operating cash flow, debt service coverage, liquidity ratios, and the balance between assets and liabilities. For governments or municipalities, maksukyky involves revenue prospects, budget balance, debt burden, and the ability to mobilize resources in the medium term.

In financial markets, maksukyky influences lending decisions, credit limits, and interest rates. A stronger maksukyky generally lowers default risk and enables favorable borrowing terms. Lenders use tools such as credit scoring, income verification, and collateral assessments to gauge maksukyky, while policy makers monitor it to assess financial stability and consumer protection and to design appropriate debt-relief or macroprudential measures.

Limitations exist because maksukyky is dynamic and sensitive to economic conditions, policy changes, and shocks such as unemployment or inflation. Illiquid assets, seasonal income, or currency risk can distort assessments. As a result, evaluations are typically updated regularly and may differ across jurisdictions or regulatory frameworks.

See also: solvency, liquidity, creditworthiness, debt serviceability.