In the first three quarters of 2016, Latvian enterprises were provided with bank loans for a total amount of 1.4 billion euros, up by 40% YoY, according to the estimates of the Latvian Association of Commercial Banks and Finance and Capital Market Commission.
The total loan portfolio of Latvian banks was EUR 15.11 billion at the end of September. Since then, this amount has grown by 3%. Of the total available loan volume, Latvia’s national economy borrowed EUR 7.42 billion. EUR 4.41 billion was issued in the form of mortgage loans.
Banking experts see positive development in store for corporate lending in Latvia. It is expected that the total available volume of new loans for businesses in Latvia will have come close to two billion euros before the end of the year. Credit institutions are prepared and are financially strong enough to finance more quality business projects than they are offered.
In terms of funding allocation among different economic sectors, loan volumes have increased for agriculture, logging, fisheries, processing industry, electrical energy, gas and heating industries, real estate operations, financial and insurance operations, housing and catering services. The volume of financing provided to construction, water supply, waste management and IT service industry has declined over the course of the year. (BNN/Business World Magazine)