As­so­ci­a­tion: co-fi­nanc­ing ser­vice draft has given pos­i­tive sig­nal for in­ter­na­tional arena

Baltic News Network - - News -

Latvia has com­menced work on the Co-fi­nanc­ing Ser­vice Law. So far it has given a pos­i­tive sig­nal on the in­ter­na­tional arena, ad­mits head of Lat­vian Al­ter­na­tive Fi­nan­cial Ser­vices As­so­ci­a­tion Gints Āboltiņš. «The Co-fi­nanc­ing Ser­vices Law will not only im­prove the cre­ation of new and in­no­va­tive fin­tech com­pa­nies in Latvia. It could po­ten­tially at­tract lend­ing plat­forms from other coun­tries. What is most im­por­tant is that the leg­isla­tive draft will ap­ply to all mar­ket par­tic­i­pants and cre­ate reg­u­la­tions for loan re­quire­ments and ad­min­is­tra­tion for co-fi­nanc­ing plat­forms. Com­pa­nies work­ing in the in­dus­try hope work on the law will con­clude in 2018,» said Āboltiņš.

He also notes that Latvia’s mu­tual lend­ing plat­form con­tin­ued re­in­forc­ing po­si­tions on the Euro­pean mar­ket – both the size of fi­nanced loans and in­vestor base in­creased last year. Data com­piled by Lat­vian Al­ter­na­tive Fi­nan­cial Ser­vices As­so­ci­a­tion shows that loans worth ap­prox­i­mately EUR 330 mil­lion were fi­nanced through plat­forms in seven months of 2017.

The as­so­ci­a­tion also men­tions that based on in­ter­na­tional stud­ies in Europe, ap­prox­i­mately 80 mu­tual loan plat­forms ac­tive in 19 coun­tries are in­dica­tive. The to­tal size of in­vest­ments per­formed us­ing plat­forms in Europe ex­ceeds EUR 16.9 bil­lion. In ad­di­tion, Latvia has man­aged to get fourth place to­tal in­vest­ment-wise, which puts it in com­pe­ti­tion with mar­ket lead­ers – United King­dom, Ger­many and France.

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