Every second resident in Latvia has a loan, and every third – a missed payment

Last year, the number of private person loans had increased nearly 10%, according to the Credit Information Bureau’s data exchange system. Currently this institution’s data archive contains entries for 899 thousand assets in private persons’ contracts. 290 thousand private persons have missed some of their payments.

According to data from the Central Statistical Bureau of Latvia, there are 980 thousand economically active residents aged 15 to 74. According to Credit Information Bureau, 550,611 Latvian private persons have debts.

«Private persons’ loans also include the ones without delayed payments. Still, the volume of loans with delays is considerable: there are 110,000 loan contracts with delayed payments and 180,000 delayed payments – for utilities, electricity, waste disposal, etc. This means nearly every second Latvian resident has a debt of some kind,» says Credit Information Bureau’s commercial director Intars Miķelsons.

According to data from the institution, around 73,000 of private persons (13%) delay payments to their licensed creditors. 128,000 private persons have delayed payments to companies that are not licensed creditors. As noted by a representative of the Credit Information Bureau, not all of those delays overlap in both sectors.

«The typical question we receive from residents on a daily basis: who do I owe money to? This reflects the current situation on the market. This situation formed over a course of many years – creditors refuse to give more loans because of outstanding ones, and the person is unaware of their debts and their recipients,» said Miķelsons.

Credit Information Bureau’s database manakreditvesture.lv is updated every day about new signed loan contracts and debts. Residents are able to check information in this database to see if it is correct.

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