Banks, Financial Services, Latvia

International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 09:19

Banks more often have started to offer leasing services instead of loans - Kazaks

BC, Riga, 29.01.2020.Print version
Banks more often have started to offer leasing services instead of loans, said Bank of Latvia president Martins Kazaks at the Saeima budget and financial (taxation) committee meeting today, citing LETA.

Foto Ieva Abele

The Bank of Latvia monetary policy department head Uldis Rutkaste, commenting on the 2020 economic trends in Europe and Latvia, said that corporate lending in the banking sector remains weak, and lending speed has dropped.

He explained that lending terms have tightened in relation to the uncertainty in the financial sector and banks have become more cautious.

Kazaks underscored that it is important for Latvia's economy to diversify financial structure in a long term. He noted that financial structure in Latvia is changing and banks more often have started to offer leasing services instead of loans.

"Leasing has risen significantly in the past years, financial structure might have rotated from lending to leasing," said Kazaks, adding that the largest leasing services providers are subsidiaries of banks. Still, if, for example, leasing increased by 10% in 2018, then in 2019 it has slowed down to 1.4% in September 2019.

In his words, even though monetary policy in Europe is supporting, its positive impact in Latvia has somewhat been reduced by slower lending and higher interest rates. 






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