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Macroprudential measures introduced in Latvia

Published
Updated

Currently applicable macroprudential measures in Latvia:

Measure Rate Effective date

Countercyclical capital buffer (CCyB)

1.0%

18.06.2025

(decision adopted on 18.12.2023)

The need to change the previous decision is reviewed on a quarterly basis

Capital buffer for other systemically important institutions (O-SIIs)

Swedbank Baltics AS – 2.00%
''Swedbank'' AS – 2.00 %
AS SEB banka – 1.50%
AS Citadele banka – 1.25%

22.12.2025
(decison adopted on 15.12.2025)

Reviewed on an annual basis

Loan-to-value (LTV) ratio

90% for all loans to consumers exceeding 100 minimum wages and secured by a mortgage on real estate

12.06.2007
(law adopted on 17.05.2007)

95% for loans secured by a mortgage on real estate and state guarantee in accordance with the Law on Assistance in Solving Apartment Matters

25.09.2014
(law adopted on 18.09.2014)

70% for buy-to-let housing loans or other housing loans generating income as a result of real estate activities*

01.06.2020 (regulation adopted on 27.11.2019)

(amendments regarding differentiated DSTI and DTI limits to loans for obtaining energy efficient housing adopted on 18.12.2023 and in force as of 01.01.2024)

Debt service-to-income (DSTI) (the total monthly amount of debt payments to financial institutions to the borrower's monthly net income)*

40%

45% to loans for obtaining energy efficient housing

Debt-to-income (DTI) ratio*

6 times

8 times to loans for obtaining energy efficient housing

Loan maturity limits*

30 years for housing loans

7 years for consumer loans

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