Licenced players in the consumer (non-bank) lending market in Latvia issued loans with a value of EUR 811.838 million in 2024, which was EUR 67.58 million (9.1%) more than in 2023, the media were told by the deputy director of the Consumer Rights Supervision Department of the Consumer Rights Protection Centre (PTAC), Andris Prieditis.

The expert said that these were all-time record numbers, pointing out that volumes last year exceeded those of previous years month by month and over the course of the full year. Lending last year ranged from EUR 59.4 million to EUR 72.98 million per month.

There were 37 licenced players in the consumer lending market last year.

Distance loans and leasing grew dynamically for the second year in a row, while consumer loans and mortgage loans stagnated, Prieditis added.

Overall, the sector’s total loan portfolio increased by nearly 15% in 2024 to more than EUR 1.2 billion on December 31, 2024.

PTAC director Zaiga Liepina told the media that her agency thinks that the increase in loan numbers is due in part to digitalisation, pointing out that it is increasingly easy to et a loan without needing to leave the house. Ms Liepina also said that an increase in leasing could be attributed to higher salaries in Latvia.

The agency head also warned, however, that participants in the market must focus more on assessing the ability of consumers to repay their loans. The industry, including banks, must work more intensively with consumers who find it hard to repay their loans so as to enable them to re-enter the financial market as soon as possible.

Mr Prieditis, for his part, insisted that consumers themselves must be more careful in thinking about whether or not they really need a loan.

Source: BNS

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