bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 18.10.2017 | Name days: Rolanda, Rolands, Ronalds, Erlends

Latvia has the highest proportion of delayed loans among Baltic States

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUApproximately one-third of consumer loans issued last year were provided to residents aged 25 to 35 years. Young people under the age of 24 use banks’ loan offers very rarely, according to data from SEB Bank’s Baltic Households Outlook.

A similar trend is noted in other Baltic States. According to data from SEB Bank, 30% of loans in Latvia were provided for everyday needs (consumer loan, overdraft or credit card) to residents aged 25 to 34. In Estonia and Lithuania, on the other hand, this proportion was 35% and 33%. Less than 10% of provided funding applies to residents under the age of 24.

Residents aged 25 to 34 are not only braver than representatives of other age group when taking loans, but also register loans for larger amounts – the average loan amount for this age category in Latvia was EUR 2,900 last year.

Compared with the previous year, the average amount of consumer loans in Latvia has grown more rapidly than that of other Baltic States – by 11%. In Lithuania, the average size of consumer loans had grown by 8% and that of Estonia had slightly declined. Nevertheless, the average size of loans in Lithuania remains the lowest among Baltic States and is EUR 2,600 (in the category of residents aged 25 to 44 years). In Estonia, by contrast, the average size of loans is the highest among Baltic States – EUR 3,000 in the same age category.

«The difference in the size of the average loan amounts in Baltic States can be explained both with the difference in the level of income of residents and the reasons for taking loans. In Estonia, where the average salary is higher, residents can take larger amounts in loans. In Lithuania, on the other hand, salaries are smaller in comparison, so are the loans. Similar to mortgage loans, it is important to make sure total loan repayments do not exceed 40% of residents’ income. In addition, when taking a loan, it is also important to have reserves for unforeseen situations in order not to experienced difficulties when repaying loans,» – notes SEB Bank expert Edmunds Rudzitis.

Last year, demand for consumer loans in Lithuania and Estonia had increased – loan portfolios of banks in Estonia and Lithuania had increased by 1.8% and 6.3% respectively. In Latvia, on the other hand, the volume of new loans remains lower than repayments of previously provided loans. As a result, the loan portfolio of banks in Latvia was 3.2% lower in comparison with 2014.

Furthermore, Latvia differs from its Baltic neighbours with the fact that it is more difficult for residents to repay their previously taken on loans. Latvia also has the highest percentage of missed loan repayments. For example, the proportion of loans with payments expired for more than 90 days was 12% of the total loan portfolio across the country last year.

Ref: 102.109.109.7982


Leave a reply

Klaipeda transport ticketing system to be installed by Estonian Ridango

In the Lithuanian port city of Klaipeda, Estonian firm Ridango has been selected for installing its technology on public transport.

Policeman in Malta posts he's happy about killing of journalist Galizia

In Malta, where an investigative journalist has been killed this week, a police sergeant has posted on Facebook he felt happy about her death and has been suspended from office a day after.

Exchange indexes reach new records; oil prices increase as well

Dow Jones Industrial Average and Standard & Poor’s 500 index reached new record-high values on Tuesday, 17 October. US dollar value before euro and Japanese yen increased.

Anti-corruption protesters in Ukraine push for reforms

Three protesters and a policeman have been injured in Kyiv, Ukraine, as a crowd of anti-corruption demonstrators voiced their demands for reforms aimed at tackling corruption in the country.

«Islamic state» capital conquered by Syrian Democratic Forces

An alliance of Syrian-Kurdish fighters, which is supported by the U.S., has stated it has gained full control of Raqqa, which has been for three years the centre of the «Islamic state» regime.

Poland hopes Turkey would join EU

Polish President Andrzej Duda meeting his Turkish counterpart shortly before an European Union-Turkey summit has expressed a hope that the country located at the cross-roads between Europe and the Middle East would join the EU some time.

Number of people at risk of poverty in Baltics in higher than the average in EU

The ratio of people subjected to poverty or social exclusion risk in Baltic States is higher than the average in the European Union, according to Eurostat data compiled for 26 out of 28 member states in 2016.

E-voting defended in Estonia after criticism from party leader

Responding to claims from a leader of an Estonian political party that the country’s e-voting system lacks transparency, the head of e-Government Academy’s e-democracy department explained it was possible that the voters of one party are more active e-voters than supporters of other parties.

Residents’ mood worsens; people become more critical about their finances

Over the course of the past month, residents’ general mood has worsened significantly – declines have been noted on all positions analysed by the survey. Residents were critical the most in the survey about their material state – the index in this category declined from -9 to -11, according to the latest Baltic International Bank Latvian Barometer.

Antāne: Saeima’s National Economy Committee has heard the transit industry’s cry

Inga Antāne, president of Baltic Association – Transport and Logistics, is satisfied with the decision that was made at the recent meeting of Saeima’s Economic, Agricultural, Environmental and Regional Policy Committee, asking the Transport Ministry to develop and present a sustainable development strategy for the industry and putting an emphasis on raising the competitiveness of railway tariffs.

Latvian’s attitude towards combating cancer in late stages seems irresponsible

The attitude towards combating cancer in late stages in Latvia remains very low, says former healthcare minister of Latvia Ingrīda Circene.

Hydrogen-powered transport technology – a reality in Latvia

There are plans to establish a hydrogen refuelling station in Riga before the end of 2017. A publicly available H2 refuelling station in Riga would secure an inter-state network of hydrogen refuelling stations: the closest other station will be established in Pernava, says Association Zero Emission Mobility Support chairman Arnis Bergs.

Estonian ministry to collect 270 000 euros from IT company over failure to build information system

Tieto Estonia, the Estonian branch of Finnish IT firm group Tieto will compensate the Estonian Ministry of Social Affairs 270,000 euros for the failure of the SKAIS2 project, the aim of which was the development of a new information system for the Estonian social insurance authority, but was deemed a failure in August.

Latvia invites Iran to act constructively to ensure security

Latvian Foreign Affairs Minister Edgars Rinkēvičs participated in a meeting of the EU Foreign Affairs Council in Luxembourg, where he discussed about the role of Iran in the region and the Joint Comprehensive Plan of Action in light of the upcoming report from US President Donald Trump to the Congress on Iran’s progress realizing the plan.

Vigil held in Malta over killing of investigative journalist

Several thousand people in Malta have taken part in a vigil held after news broke of the killing of an investigative journalist, who blamed Maltese government for corruption.

American exchange indexes reach record-high values; oil prices on the rise

In response to price rise of bank stocks, three leading indexes of US exchanges reached new record heights on Monday, 16 October. In addition, US Federal Reserve System manager Janet Yellen’s prediction regarding a soon inflation rise has increased confidence that base interest rate will increase in December.

54.14% more alcohol exported from Latvia; most of it to Russia

In the first eight months of 2017, a total of 102.259 million litres of alcoholic drinks was exported from Latvia, which is 54.14% more when compared with the same period of last year.

In pictures: Ireland hit by worst storm in 50 years

Three people have been killed in Ireland in the storm Ophelia, which cut off electricity networks to 120 000 homes and businesses in the country. Gusts of wind in Ireland on Monday, October 16, had reached the speed of 44 metres per second.

Tragic wildfires in Portugal and Spain

No less than 30 people have died in wildfires in Portugal and Spain.

Ašeradens to leave Latvian government at the end of November

Latvian Economy Minister Arvils Ašeradens intends to leave the government after approval of the 2018 budget in the Saeima, which is scheduled for the end of November, as confirmed by Prime Minister Māris Kučinskis.

Islamic extremists blamed for tragic terrorist attack in Somalia

The death-toll in a tragic terror attack in the eastern African state of Somalia has reached 320 people and local authorities have stated that a key member of the cell that allegedly launched the attack on Mogadishu has told them that al-Shabaab was responsible for the crime.

Rīgas namu pārvaldnieks gets new management

From now on Rīgas namu pārvaldnieks will have a new chairman: once the head of Latio Namsaimnieks has been appointed as the new head of the company. The other vacant post has been given to Ardis Pāvilsons.

Catalonia misses ultimatum deadline, Spanish government vows to act after Thursday

The separatist Spainish region of Catalonia has missed the deadline to clarify, if it has declared independence and Madrid has received a letter from the President of the autonomous region, which still needs analysis.

What will be the consequences for companies that cheated with electricity production permits

Businesses that were caught using fake permits for electricity production in mandatory procurements will not have their permits extended, says Latvian Economy Minister Arvils Ašeradens.

Latvian tourist accommodation facilities experience increase of overnight guests

The number of nights tourists and other guests spent in Latvian hotels and other tourist accommodation facilities in the first eight months of 2018 has grown 12.2% in comparison with the same period of last year, reaching 3.524 million.

Newest comments