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Lithuania‘s housing loan market stays frozen

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namasZveryne
Šaltinis: BNS
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Lithuania’s housing loan market stays frozen, the Verslo Žinios business daily reports on Friday.

The number of newly-issued loans declines, some market players have virtually suspended lending for housing and the banks anticipate further rise in margins.

According to the statistical data form the Association of Lithuania’s Banks, 85.788 million litas (EUR 24.87 m) were issued in new housing loans in January, down 8.8 percent year-on-year. In February, the respective amount shrank by 1.1 percent, year-on-year, to 90.999 million litas.

The amount of new housing loans exceeded 100 million litas in each month of 2011 except January and October. In the first half of 2008, during economic upswing, the banks would sometimes issue more than 500 million litas worth of housing loans per month.

The banks explain that they have to take seasonal factors into account when issuing housing loans in the beginning of 2012. However, they admit that the market is shrinking.

BNS
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