Taiwan plans to invest 200 million dollars in Lithuania :: Dienas Bizness

In the first half of this year, Luminor issued housing loans in Latvia, Lithuania and Estonia in the amount of 438.2 million euros, which is one and a half times more than a year earlier – in the first half of 2020, when 171.7 million euros were issued to households in the Baltics.

In the first six months of this year, the amount of housing loans issued to Luminor customers in Latvia has increased almost three times compared to the corresponding period last year – if in the first half of 2020 they were 37.3 million euros, then this year already 102.6 million euros. In the second quarter, Luminor customers in Latvia borrowed 10% more than in the first three months of this year.

“During the first wave of the pandemic last spring, we were cautious about real estate transactions in all Baltic countries. In June last year, the market became more active, and the volume of mortgage lending reached a record high already in the autumn. , but in Lithuania – in May.

Clients are actively interested in financing options for various properties this year as well Luminor has provided advice on housing loans to more than 35,000 Baltic residents. The greatest interest is in the purchase of apartments in new projects, followed by standard-type apartments. Most often, customers want to buy a two-room or three-room apartment in Riga with an area of ​​50 to 65 square meters.

The pandemic and work from home have also boosted interest in real estate in the regions, so many are considering buying a cottage or country house outside the capital. “We have taken these trends into account and become more flexible in terms of lending to real estate in the regions. For example, it can buy an older summer house, which would have insufficient liquidity to receive a home loan, “says Lukashov.

Despite the rapid growth of loans, Luminor In general, customers have deposited significantly more than they have borrowed, which in turn has contributed to lower rates on new business. After Luminor It is estimated that the average interest rates on mortgage loans issued in Latvia over the past year have decreased by more than 12%.

Luminor At the end of June this year, the bank’s total loan portfolio in the Baltics was 9.641 billion euros, while its deposit portfolio was 10.632 billion euros.

“It is important to note that we initially expected a negative impact of the pandemic restrictions on customers’ ability to meet their existing obligations and willingness to borrow. However, this turned out to be misleading, as most existing and new customers not only make monthly loan payments on schedule. “We pay special attention to our customers’ ability to repay their liabilities before the financing is granted – in the first half of the year, the share of non-performing loans in our total loan portfolio was only 2.6%, which is the lowest figure in the bank’s history,” emphasizes Lukachov.

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