Analytics, Economics, Financial Services, Latvia, Loan

Rimsevics explained that lending volumes have been gradually decreasing the past several years, and that lending institutions are issuing less new loans than they are being repaid from previous loans.

He said that global lending trends have changed in the post-crisis period. Overall loan volume growth in relation to GDP growth in Latvia, as well as in many other countries, is slowing down.

''The activity of lending institutions in issuing more loans will certainly not be helped by new legislation which could hinder this business. I am talking about the recent amendments to the Insolvency Law, which will certainly deter lending institutions from issuing mortgage loans,'' Rimsevics said.

This past July, Latvian and foreign lending institutions had issued EUR 12.9 billion worth of loans to residents.