Latvia has not yet achieved its target for lending growth, Bank of Latvia Governor Mārtiņš Kazāks said in an interview with TV3’s “900 Seconds” programme on Friday.
He noted that, according to the latest data, lending to both businesses and households has increased by at least 10%, which is positive news because lending contributes to economic growth.
“Have we achieved the lending target? No, we are only at the beginning of the process,” Kazāks said.
As previously reported by LETA, at the end of July this year, the outstanding balance of loans issued by Latvian monetary financial institutions to residents amounted to 16.868 billion euros,
an increase of 11.8% compared with a year earlier.
It has also been reported that Latvia introduced solidarity contributions for credit institutions for a three-year period starting in 2025.
At the same time, the law provides for a mechanism allowing a reduction in the solidarity contribution of up to 100% if a credit institution achieves a specified lending growth target during the relevant period.
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