Banks should expand lending and lower loan rates - PM Karins

RIGA - Banks should expand lending and lower interest rates on loans, which in Latvia are the highest in the European Union (EU), Prime Minister Krisjanis Karins (New Unity) said following the weekly coalition meeting on Monday. 

In the context of the publicly proposed idea to charge solidarity tax on banks, the prime minister pointed out the need to resolve three serious problems in banking business, one of which is sluggish lending. 

Also, interest rates on loans should be reduced, bringing them more in line with the EU average loan rates. 

The banks should also increase their interest rates on deposits, Karins believes. 

The Finance Ministry's tax policy workgroup is expected to discuss the proposal to levy a solidarity tax on banks.

 As reported, Finance Minister Arvils Aseradens (New Unity) has proposed a debate in the government coalition on a temporary solidary tax on banks.