Citadele Bank (Latvia)

Applications for Loan Breaks Remain Low

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The number of applications submitted for loan breaks both from legal entities and private customers was still low in September and October, not amounting to more than a few applications a week, according to Citadele Bank statistics.

Although the moratorium on a united bank approach to loan breaks ended in September, loan breaks are still available, and Citadele continues to evaluate each case individually. Clients are invited to contact their bank promptly if they face unexpected financial challenges.

In total, until November, Citadele in Latvia received 1345 applications for loan breaks, with 96 % of these submitted during the state of emergency from March to June. Over the summer, the number of applications for loan breaks fell from a few applications a day to a few applications a week, and this level remains today.

Between the end of the state of emergency on June 10th and the end of October, Citadele received 51 applications for loan breaks, largely for putting off leasing, consumer loan and mortgage payments.

“We are seeing a positive trend: neither businesses nor private customers are finding it hard to make payments, despite the increase in COVID-19 cases this autumn. Safety measures and restrictions in the fight against COVID-19 are now more segmented and targeted, and business owners and the public have adapted over the summer and are more prepared for our new reality. Although the moratorium on a united bank approach to loan breaks ended in September, loan breaks are still available, and we continue to evaluate each case individually. Both private and corporate clients are invited to contact the bank promptly if they face unexpected financial challenges, so that we can find the best solution for the client together. Our experience from the spring helped the bank and businesses to strengthen their partnerships to become even closer partners,” explains Vladislavs Mironovs, Citadele Board Member.

In total, 876—or 65 %—of applications for loan breaks received by Citadele in Latvia were from private customers: 481 for consumer loans and 395 for mortgages. 295 applications were received for delaying leasing payments, 112 from private customers and 183 from businesses. 114 applications were submitted by the small and medium business segment, while large businesses submitted 60.

Since March, Citadele throughout the Baltics has received 2496 applications for loan breaks. Of these, 26 % were for mortgage loans, 28 % were for consumer loans and 27 % were for leasing. Meanwhile, 16 % of applications came from small and medium businesses, while 3% came from large businesses.

The number of loan break applications started increasing swiftly after March 12th, when a state of emergency was announced in Latvia, and within two weeks numbers had grown to more than 100 applications per day. Daily applications in April remained at high levels, from 80 to 100, but since the start of May there was a stable reduction. In May, an average of 20 applications a day were received, while the first weeks of June saw no more than five applications per day throughout the Baltics.

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