Financial Services, Latvia, Loan
International Internet Magazine. Baltic States news & analytics
Thursday, 28.03.2024, 15:29
Portfolio of non-bank loans in Latvia grows 16% in 2017
The portfolio showed growth of practically all types of non-bank loans in 2017.
The amount of newly-issued non-bank loans last year totaled EUR 586.63 million which is a growth by EUR 48.17 million or 8.9% compared to 2016. Remote loans prevailed among the new non-bank loans, accounting for EUR 238.58 million or 41% of the total amount.
Quality of the non-bank loan portfolio improved at the fastest rate in the last four years. At the end of 2017, loans without overdue loan payments made up 87.2% of the total portfolio compared to 84.7% at the end of 2016 and 80.2% at the end of 2013.
The PTAC said the improvement was largely due to the non-bank lenders getting rid of loans long overdue by means of assigning them. At the same time, the share of loans overdue for less than 30 days has increased to 5.4% of the total portfolio which is the worst rate in the last three years.
Consumers still actively use the option of extending the remote loan repayment deadline. In 2017, the total number of deadline extensions increased by more than 40%, and the share of loans with three and more deadline extensions soared from 36.4% in 2016 to 43.5% in 2017.
Last year there were 59 licensed non-bank loan providers issuing loans to consumers in Latvia.