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Wednesday 26.02.2020 | Name days: Mētra, Evelīna, Aurēlija
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Savings of Latvian residents grew by one billion euros last year

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULatvian residents have become more serious about making savings in recent years, according to data compiled by the Finance and Capital Market Commission on Latvian residents’ financial literacy strategy 2014-2020.

FCMC has assessed that in 2017 all financial literacy strategic goal accomplishment indexes detail desired progression. Considerably positive trends have been observed for Latvian residents’ habits for making savings, as they have grown by EUR 1 billion. Digitization of financial services is also on a rise. Loan/deposit ratio has been 82/100.

Looking at realization of the strategic goal for planning and formation of savings, it becomes clear that this tradition has become more important for residents, because in 2017 total savings of Latvian households had grown by more than EUR 1 billion. This includes deposits in Latvian banks, finances kept in pension systems’ 2nd and 3rd level, reaching EUR 10.4 billion.

The second strategic goal for Financial Services Environment Integrity is in the process of realization: the number of private pension funds’ 3rd level participants has grown by 14,298 (286,507 people in total), 5,641 accumulative life insurance contracts have been signed, the number i-bank users has reached 1,500,213 people (1,441,124 in 2016). Latvian residents are also more active when it comes to insuring risks – EUR 168 on average per capita (EUR 151 in 2013).

Delayed loans in the banking sector have declined to 3.5% (the highest level of delayed household loans was observed in 2011 – 19.6%). The number of problematic mortgage loans for households has also declined from 4,100 to 3,276 (EUR 180 million in 2016 and EUR 121 million in 2017). More mortgage loans were provided to households this year than a year prior – EUR 423 million (EUR 362 million in 2016). Loans worth EUR 578 million have been issued to domestic micro-enterprises, small and medium-sized companies.

In total, stable domestic economic situation and low interest rates in Eurozone contribute to financial longevity of Latvian households, which realizes the third financial literacy goal – society’s financial longevity and development. GDP per capita has grown to EUR 13,855 (EUR 12,762 in 2016).


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