Financial Services, Latvia, Legislation, Real Estate

The total amount that debtors owe to Rigas namu parvaldnieks has reached LVL 31 million, of which LVL 7 million is the interest money.

Around 64,000 clients owe money to the company, including 24,000 who have not been paying their bills for a lengthy period of time. The average debt of the latter group is around LVL 1500 per tenant, where interest makes up 40-50% of the amount. "It is abnormal that Rigas namu parvaldnieks has to borrow each year to cover the debts and have heating supplied to all tenants," said Usakovs.

Usakovs believes that it will be impossible to recover the entire debt amount including the interest, therefore it is important that residents at least pay the principal amount, and then continue to pay the monthly bills.

Until now, there were different debt interest rates in Riga, but from July 1, the interest on all delinquent payments will be 0.1% per day for all Rigas namu parvaldnieks clients.

The debtors will be given time until December 31 to apply for interest write-offs. Those who do not do this by January 1 next year could then be taken to court.