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Nicolas de Chamfort
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Share of fast loans extended three and more times increases in Latvia

Photo: pixabay.com
Lending volumes in the non-banking sector in Latvia continue growing in the first half-year of 2018 – the total loan portfolio of lenders’ had grown 7.11%, reaching EUR 655.82 million, by the end of June.

The growth of the portfolio is especially observed fir distance, consumption, leasing and other transport and other object-related loans, according to the account published by the Consumer Rights Protection Centre on the non-banking consumer loan market.

Non-banking crediting service providers issued consumer loans worth EUR 309.04 million in the first half-year of 2018, which is EUR 28.45 million or 10.14% more when compared to the same period of 2017. Distance loans dominated newly-issued loans in the first half-year of 2018, forming 41% of the total volume of issued loans. Guarantee loans for transports and other objects formed 30% of the total loan volume.

Compared to the first half-year of 2017, an increase of issued loans were observed for leasing and other guarantee loans (+12.55%), distance (+10.89%) and consumer loans (+10.39%). Loans in exchange for real estate pledges have declined (-2.04%). There has been a major decline for distance loans with single-instalment repayment (-19.95%).

The quality of credit portfolio is stable and continued growing in the first half-year of 2018 – the share of loans without delays in the portfolio was 87.67%, which is nearly two percentage points better when compared to the same period of 2017. In spite of the slight worsening of the situation, things went better for leasing and other guarantee loans (92.52% of the credit portfolio). The second best loan portfolio is observed for consumer loans (86.87% without delays). The share of distance loan without delays has grown seven percentage points, whereas the share of consumer loans has grown by five percentage points. It should be said that loans worth EUR 1.79 million were written off in the first half-year of 2018. Loans worth EUR 16.39 million were ceded or sold.

Consumers continue actively using distance loan extension services. As of 30 June, the portfolio of non-banking lenders held only 36% of distance loans with single-instalment repayment, when compared to 38% in the previous period.


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