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Swedbank hopes to issue several hundred loans under support program for families with children

BC, Riga, 13.03.2015.Print version
Swedbank hopes to issue several hundred loans this year as part of the state support program for families with children that want to buy a home, as Swedbank CEO Maris Mancinskis said after signing an agreement with the Latvian Development Finance Institution Altum today, cites LETA.

Photo: hipo.lv

Ainars Balcers, the head of the Swedbank Decision Making Center for Individuals, said that about 200 families have already shown interest in the opportunity to participate in the state guarantee program. He added that the average amount of loans under this program could be EUR 30,000 to EUR 40,000 for a standard-type apartment.

 

Before signing the agreement, Economy Minister Dana Reizniece Ozola (Greens/Farmers) said she would be pleased if banks offered more support for young families in rural regions.

 

Balcers told LETA that access to credit in the regions is hindered by residents' low purchasing power. The higher the purchasing capacity, the faster the development of real estate market and the better the access to credit, he explained.

 

In 2014, Swedbank issued loans for a total of 1,774 housing purchases by private individuals. Swedbank has decided to participate in the state support program for young families and sign agreement with Altum in order to increase young families' opportunities to buy a home.

 

The Economy Ministry's support program offers state guarantees for families with children that wish to buy a home. The maximum amount depends on the number of children in the family. Families with one child, under the age of 18, are eligible for a 10% state guarantee which covers part of the mortgage of up to EUR 10,000, families with two children – up to EUR 15,000, families with three or more children – 20% state guarantee that covers up to EUR 20,000 of the mortgage amount.






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