Banks, Covid-19, Crisis, Education and Science, Financial Services, Latvia

Many borrowers' monthly incomes have decreased as a result of the Covid-19 pandemic and the state of emergency in Latvia, including those who took out the state-underwritten student and study loans, the ministry told. The amendments are meant to solve this problem. Those who have taken out study and student loans will be offered to put their principal payments on hold.

According to the Education and Science Mission, those borrowers who want to suspend their principal payments have to turn to the credit institution from which the loan was taken out. Those who took student or study loans after May 2001 must turn to either SEB Banka or Citadele.

For state-underwritten loans that were taken before May 2001, borrowers will have to turn to the Education and Science Ministry.

The support mechanism approved by the government today is simple - once a borrower applies to have principal payments on his or her study or student loan postponed by up to six months, the application will be accepted regardless of what industry the borrower currently works in, the Education and Science Ministry explained.

All the other student and study loan terms will remain unchanged - the borrower will have to continue paying interest on the loan, and the deadline for repayment of the loan will not be put off.