In the first half-year of 2024 the mortgage loan takers’ protection payments are predicted to reach EUR 48 435 800, according to the report submitted to the Ministry of Finance.
In accordance with the calculations of mortgage protection fees for the first quarter of 2024, a total of EUR 24 235 800 has been paid to the revenue account of the state base budget.
Considering the fees paid for Q1, the state budget revenue growth for the first half-year of 2024 is expected to e EUR 48 435 800.
On the 6th of December 2023, Latvia passed amendments to the law to adopt a fee to help support mortgage loan takers and compensate the growing interest rates on mortgage loans.
In accordance with the Consumer Rights Protection Law, there are credit and capital institutions registered in Latvia that have a licence to provide consumer loan services. There are also permanent representations (branches) of credit institutions and capital companies of other countries, which also hold a license to provide the consumer loan services in Latvia. All of them shall pay the protection fee of mortgage loan takers for each quarter of the calendar year to the revenue account specially created for this purpose. The State Revenue Service manages the processing of these payments.
The fee payer is obliged to calculate the loan interest compensation for each eligible mortgage loan taker and submit information about each eligible mortgage borrower to the VID Electronic Declaration System.
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