Proposal would trigger foreign banks to retreat from Latvia

Oct 14, 2009
Staff and wire reports

RIGA - The Latvian government is preparing legislation that would limit homeowners’ liabilities to the value of the underlying collateral, a move which could boost losses at banks that have lent in the Baltic region, reports news agency bbn.ee. The legislation would prevent creditors from claiming the borrowers’ other assets if the creditors fail to recover the whole loan by selling the collateral. Latvia’s Prime Minister Valdis Dombrovskis (New Era) said that the plan “would be carefully cons ...

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