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Non-bank lenders plan to issue EUR 570-590 million in loans this year - association
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    Non-bank lenders plan to issue EUR 570-590 million in loans this year - association

    RIGA, Jan 12 (LETA) - Non-bank lenders are planning to issue a total of EUR 570 million to EUR 590 million in loans this year, as the Alternative Financial Services Association of Latvia head Gints Aboltins told LETA.

    According to the association's estimates, competition between banks and non-bank lenders will become fiercer this year. On the one hand, this may impact the amount of new loans provided by non-bank lenders, but that impact will be offset by the improving economic situation and growing wages in Latvia. The total amount of consumer loans issued by non-bank lenders may increase 2 percent to 3 percent this year.

    The association expects that the number of loans with longer repayment periods will continue to rise this year. Meanwhile, the amount of new mortgages will probably remain unchanged as compared to 2017.

    The association also believes that loan interest rates in the non-bank segment will decrease this year.

    Loan repayment discipline is very good currently, commented Aboltins. More than 90 percent of new loans are repaid on time and, at the moment, there are no indications that this could change. Substantial investments have been made in technological solutions, and borrowers have become more reasonable in assessing their ability to repay the loan.

    The association's priority this year will be to cooperate with the Economics Ministry in developing correct methodology for analysis of non-bank lenders' data by the Consumer Rights Protection Center.

    The main focus this year will be on expanding into new markets and development of new products.

    The Alternative Financial Services Association of Latvia unites fintech companies and other organizations operating outside the banking sector and providing financial services to the residents of Latvia.

    • Published: 12.01.2018 15:16
    • LETA
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