Nordea Bank Latvia Branch has announced its plans to issue 100 million lats in housing loans in 2010. This manifests the previous pragmatic activity of the Bank in crediting of the housing market and the readiness to play an active and responsible role also in the future. In Nordea Bank, housing loans are available also at present to those clients who can afford and are willing to improve their living conditions.

Under the influence of economic recession competitiveness in the credit market has decreased, however Nordea's crediting policy has remained unchanged throughout the time. Also in 2009 Nordea Bank was in the leading position in housing market crediting by issuing 60 million lats to more than a thousand of Latvian households.

Thomas Neckmar, the Regional Head of New European Markets: “By the announcement of Nordea’s plans to issue 100 million lats in housing loans to Latvian households this year we want to show that, like in previous years, we will continue to be a reliable and predictable cooperation partner. Nordea has successfully survived the global financial crisis, and also in Latvia our operational results have been significantly better than in the banking sector in general. We have always had a responsible attitude towards operation in the Baltic countries and want to play an active role in economical recovery also in the future."

Constant credit policy and lower credit costs

“In the case of Nordea Bank the allegations existing in the public regarding non-availability and high interest rates of housing loans are not true”, indicates Jana Strogonova, Board Member of Nordea Bank. “Nordea has not changed its credit policy since the start of its operation in the Latvian market. Although interest about housing loans has decreased, people with stable income still can receive loans from our bank on the same terms and conditions as two or three years ago."

In 2009, Nordea Bank issued new housing loans to more than a thousand households for the total amount of 60 million lats. The average amount of one loan was 75,000 euros, which is 20% less than in 2008. The average term of loans taken was 18 years, and in 95% of the cases the loan was made out in euro currency. The added bank's rate for a loan is from 2.5%. More than 40% of the new housing loan transactions have been either acquisition of housings in new projects or construction or acquisition of private houses.

The right moment for buying

“At present, due to the low prices, it is most advantageous to buy apartments in new projects in the primary market, as it has to be noted that apartments bought in the secondary market either need renovation or involve additional costs. Besides, apartment prices reached their lowest point at the end of 2009; at present they have stabilised, and it is forecast that they will rise in the future", says Andris Šalgūns, Board Member of “Oher-Haus” Valuation Department.

“This is a favourable moment for buying also because the segment of apartments in new projects is relatively limited and at present buyers have choice. According to "Ober-Haus" data, at present 2,700 apartments are on sale, but entering of new projects in the market is forecast not sooner than after 2 years. The statement of Nordea Bank to continue crediting is a very positive sign for buyers, sellers and project developers, as well as for the national economy and economic stability of the Baltic region as a whole”, says A. Šalgūns.