Latvia Economic and Fiscal Outlook

BANKS' CREDIT QUALITY REMAINS GOOD, HOUSEHOLD AND CORPORATE INDEBTEDNESS IS LOW Prudent lending practices and low leverage of households and corporate sector supports asset quality 8% 6% 4% 2% Total Loan Portfolio Quality Total debt*-to-GDP Lithuania Latvia 56.8% Slovenia Estonia Slovakia Italy Greece Germany Austria Malta Spain Finland 1.6% Portugal France Ireland ■Non-financial corporations Households 0% Belgium 2016 2017 2018 2019 2020 2021 2022 Share of loan loss provisions in outstanding loans -Share of loans over 90 days past due in outstanding loans Netherlands Cyprus Luxembourg 0% 50% 100% 150% 200% 250% 300% 350% 28 Source: FCMC, Latvijas Banka's calculations *Total consolidated debt vis-a-vis rest of the economy in 2022 Q1 Source: ECB SDW

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