The Latvian parliament, the Saeima, has passed in final reading a new tax on local credit institutions, LETA reports. Under the new law, credit institutions registered in Latvia and branches of foreign credit institutions will have to make quarterly solidarity contributions for the next three years. The tax will amount to 60% of their excess…
Latvian monetary financial institutions (MFIs), mainly banks, generated total profits of EUR 461.7mn in the first ten months of 2024, which was down 22.6% from EUR 596.2mn in the same period of 2023, according to data from the Bank of Latvia, LETA reports. The total assets of MFIs amounted to EUR 29.23bn at the end…
Nearly half of small and medium-sized enterprises (SMEs) in Estonia regard the country’s economic climate as being negative, according to a Turu-Uuringute poll for loan comparison platform Sortter, BNS reports. The survey showed that 46% of local entrepreneurs saw the economic climate as negative in August 2024. The main perceived challenges included operating costs (57%)…
Lithuania has asked the European Commission (EC) to disburse EUR 463mn from the EU’s Recovery and Resilience Facility (RRF), BNS reports. This is Lithuania’s third payment request under the facility. Lithuania asked for EUR 174.7mn in grants and EUR 288.3mn in loans. The EC will now assess the request and assess Lithuania’s achievement of the…
Latvia’s banking association, Finance Latvia Association (FNA), opposes a proposed windfall tax on local banks, LETA reports. The association argued that the tax was “disproportionate, short-sighted, and nontransparent.” FNA warned that the tax would have negative long-term consequences, hampering Latvia’s growth, competitiveness, and attractiveness for private investment. The tax would oblige the financial sector to…
The Latvian state will have to borrow at least EUR 3bn annually for the next four years, Kaspars Abolins, head of the State Treasury, announced, LETA reports. He said that the state needed to refinance earlier Eurobonds and finance the state budget deficit and loans to local governments. The plan was to raise the money…
The Latvia-based commercial bank, Citadele, posted a net profit of EUR 50.9mn in the Baltic States in the first half of 2024, which was down 21% from EUR 64.5mn in the same period of 2023, bne IntelliNews reports. The bank’s operating income rose by 2% to EUR 116.1mn, with interest revenue increasing by 9% to…
Lending in Latvia remains slow, with high interest rates compared to the Eurozone, particularly in the housing and corporate sectors, according to the Bank of Latvia, LETA reports. While home loan interest rates have decreased slightly since 2018, they are still two percentage points higher than the Eurozone average, partly due to the dominance of…
The Latvian government may impose a new surplus profit tax on individual banks as of 2025, Economy Minister Viktors Valainis has announced, LSM reports. The tax could be levied for two years. Valainis argued that the tax would incentivise banks to increase their lending significantly. Banks that increased their volume of lending could then be…