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Creditors will have it easier to pardon crisis-era debts

On July 9 the Latvian parliament significantly eased creditors' ability to pardon crisis-era mortgage debt.

In particular, creditors will be able to pardon debt that residents have accrued by taking out mortgages until year-end 2008. Likewise, they will be able to cancel guarantee debt and assigned debt. 

Until now, some creditors have carried out programs to cancel debt via a two-party agreement, but the previous regulations made it rather tricky.

Data by the Bank of Latvia suggest there are about 13,000 crisis-era debtors with problematic debt, and their obligations are estimated to be around the tune of 600 million euros. 

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