On Thursday, 30 May, the Saeima adopted in the second and final reading second – final – reading amendments to the Consumer Rights Protection Law, stipulating that also mortgage borrowers of credit institutions in liquidation will be compensated for the total interest payments on the loans in the amount of 30 per cent. 

The changes to the law are proposed to support mortgage borrowers who have taken out a loan with a credit institution that is currently in liquidation, in a context where the rise in interest rates has led to a sharp increase in household loan payments.

The authors of the amendments have indicated in the explanatory note to the draft law that currently a large part of ABLV Bank's clients in liquidation have been taken over by Citadele Bank, but a part is still on ABLV Bank's balance sheet. Those customers continue to pay the increased EURIBOR interest on mortgage loans and are not eligible for compensation for the payment of interest on the loan.

In December last year, the Saeima adopted amendments to the law that provide compensation to bank customers for interest payments on mortgage loans, as well as a mortgage borrower protection fee, in order to ensure the payment of compensations.

The amendments will enter into force the day after the promulgation.

Saeima Press Service