Latvia Stability Programme Report
10%
8%
6%
4%
2%
LENDING REMAINS SUBDUED
Lending to NFCs so far remains subdued, however housing loans have demonstrated
steady growth
Key Highlights
Lending had been subdued before the pandemic and
Russia's invasion of Ukraine, and lending to NFCs so far
remained weak in 2022. Housing loans have
demonstrated growth
Loans to domestic households and NFCs stand at 30% of
GDP
8%
6%
Loans to Domestic Clients
(yoy)
لیست
4%
2%
0%
2016
2017
2018
2019
2020
202A
2022
-2%
-4%
The impact of the war in Ukraine on the economy has
not been reflected in the overall quality of bank loan
portfolio; the coverage ratio of 90 days overdue loans
remained high.
-6%
-8%
-10%
NFCs
HHs
*The time series have been adjusted excluding the one-off effects due to
structural changes in the banking sector, sector reclassification, etc.
Source: LB calculations
Total Loan Portfolio Quality
0%
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
16 Source: Credit Register
Domestic Private Sector Loan-to-GDP Ratio
(%)
92.4
2010 1Q 2022
104.2
95.1
88.1
59.1
58.3
37.8
30.2
Estonia
Lithuania
Latvia
Euro area
Source: ECB, EUROSTATView entire presentation