November 15, 2022
Loan amounts increased by 10% in the first nine months of 2022 in Latvia. The average amount of a consumer loan reached EUR 6 500. The number of loan transactions, on the other hand, remained unchanged, according to Luminor Bank data.
According to the bank, most residents borrow money to pay for home repairs and energy efficiency upgrades, as well as to buy a car.
Throughout the nine months, the situation changed. Residents borrowed the least in March, when the world was largely in a state of uncertainty following the outbreak of the Ukrainian war. According to the bank, Latvians reduced their spending and increased their savings. The size of consumer loans began to rise in April and reached its peak for the nine-month period in August.
According to the bank, the rise in demand for consumer loans can be attributed to rising electricity prices. This encourages residents to consider improving the energy efficiency of their homes in order to reduce long-term housing costs.
At the same time, with the rise in construction material prices, there are concerns about future price increases. This means that residents are more willing to borrow money to make necessary home improvements.
Source: BNN BALTIC NEWS NETWORK
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