Latvian businesses pay more for loans than firms in the euro area
The margin added to interest rates on loans to Latvian companies is on average about 1.35 percentage points higher than on comparable loans in the euro area. This comes from an analysis by Latvijas Banka.
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Businesses in Latvia pay more to borrow than companies in the euro area. An analysis in the Financial Accessibility Review by Latvijas Banka, Latvia's central bank, shows that the margin added to interest rates on corporate loans in Latvia is on average about 1.35 percentage points higher than on comparable loans in the euro area.
The margin is the part of a loan's interest rate that a bank adds on top of a base rate. The gap therefore shows how much extra borrowing cost Latvian companies face for the same type of loan compared with the euro area.
The source gives only this headline finding. It does not provide a breakdown by loan type, company size or sector.
