In the circumstances when the European Central Bank has raised EURIBOR interest rates again, the impact of this increase on the national economy is a cause for concern, as well as the risk of mortgage borrowers not being able to fulfill their credit obligations anymore, said the Saeima’s Minister of National Economy, Agrarian, Environmental and Regional Affairs at the commission meeting on Tuesday, September 12. policy commission chairwoman Linda Mathison. The deputies decided to invite the government and the Bank of Latvia, which is responsible for the supervision of commercial banks, to look for solutions to reduce the impact of this increase.
When discussing the current situation, it was heard at the meeting that it is necessary to continue negotiations with commercial banks about not increasing the overall rate, it should be easier for bank customers to transfer their loans to another bank, as well as the possibility to ask the bank to change the terms of the credit agreement without applying a fee for changes to the agreement.
“We also invite you to consider the possibility of introducing a tax on bank profits and providing support to those households whose burden of interest payments has become unbearable. It is also essential to promote the entry of new players into the banking market, which will create competition in the supply of credit services,” noted L. Matisone.
The representatives of the Bank of Latvia informed the deputies today that in Latvia and the other Baltic countries there is a very high proportion of loans with a variable interest rate, which is most affected by the rise in EURIBOR. On the other hand, loans with a fixed interest rate are practically not issued by Latvian commercial banks, unlike many other eurozone countries, or they are offered with unfavorable terms. The representatives of the bank also presented the MPs with data describing the ability of households to cover credit obligations in the conditions of rising interest rates.
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2023-09-12 12:04:02
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