Last year, Ilmārs Rimšēvičs, the president of the Bank of Latvia, bought an apartment and land in Jūrmala for 750,000 Euros. He now owes 630,000 Euros to Hipotēku un Zemes Banka and the credit is in euros, rather than in lats.
Rimšēvičs would lose a lot if lat was devaluated. And he's also one of the most vocal opponents of devaluation. One can start wondering if Rimšēvičs' decision-making is affected by the effect that devaluation would have on his own finances...
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2 comments:
i don't want to be a doom prophet, but i really don't think that currency of credit will matter - if D-situation should occur, Rigibor will skyrocket, thus increasing the cost of credits in lats. credit in lats can protect your payments only for the time your bank won't adjust the interest rate, e.g. 3 or 6 months (if its floating interest rate on your credit)
Easily I to but I dream the collection should prepare more info then it has.
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