As part of the moratorium, which ended on 30 September, Latvian banks provided customer support to overcome short-term financial difficulties, and fulfilled commitments for 13,393 contracts for a total of 1.1 billion euros.
“The moratorium approach, which provided for a simpler deferral process and based on good practice, has proved its worth. During the moratorium period, 3 117 contracts were suspended for a total of EUR 753.6 million for companies and 10 276 for individuals for In the future, financial institutions will be able to apply individual solutions to each specific case, “said Sanita Bajāre, Chair of the Financial Industry Association Board.
“Since the declaration of state of emergency, Swedbank has applied deferral of principle to the contracts of more than 1 500 companies and more than 5 700 individuals. Clients were proactive in appreciating the information provided about the possibility of turning to the bank and receiving assistance: such a clear and unambiguous message helped in a very unclear overall situation. From a sectoral point of view, the biggest impact was on the transport, warehousing, hotels and tourism businesses. The highest demand for credit holidays was reached in late March and early April, after which companies and individuals had already redirected and adapted to the new conditions. For example, private demand for funding returned to the pre-Covid-19 pandemic in late April. In assessing the industries, it can be concluded that there were companies that were able to overcome this time with little concern, such as farmers, as well as companies that could still feel the impact of Covid-19, such as service firms in the business tourism and hospitality. . As one of the pleasant surprises, we would like to highlight some transport service providers who have adapted to the new situation more successfully than initially expected, “emphasizes Lauris Mencis, Swedbank Head of Enterprise Management.