OREANDA-NEWS. March 11, 2009. The newest "DnB NORD Latvian barometer" reveals that close to one half or 49% of the approached respondents who have taken mortgage loan have encountered considerable difficulties with its repayment, yet they hope to cope by their own, whereas 10 per cent already have experienced very material difficulties, reported the press-centre of DnB NORD Banka.

"It is time for population to revaluate their values and if before the living standard frequently was increased through consumer loans in a situation when wages showed perpetual growth trends, nowadays people have to reconsider their actual needs and opportunities and balance their budget. These 49% of population comprise people, who are ready to act and revaluate their needs when going through difficulties to maintain their precedent living standard. Yet those 10% of population who talk about already arisen material difficulties in loan repayment implying their inability to get through should be recommended to go to their bank and timely discuss the situation in order to search for and find acceptable solutions," emphasizes the Head of Sale Management Department of DnB NORD Banka Ilmars Vamzis.

By asking the usual monthly questions of "DnB NORD Latvian barometer" was detected that already 87% of the respondents believe that the overall situation in our country develops in the wrong direction, which is by seven per cent more than one month before. Considerably has grown also the number of pessimists with regard to assessment of the economic situation in Latvia, since it was described as bad by 93%, which is by seven per cent more than before. 

In turn, by 20 per cent has grown the number of people who have responded that chances to find a good job currently can be assessed as very poor. Just 1% responded that chances are good, 10% were of opinion that chances are medium, and 28% - that chances are rather poor. 

This time the second part of "DnB NORD Latvian barometer" approached the issues of dwelling and the related expenses. The poll revealed that close to one half or 48 per cent of the respondents are of opinion that over the next few months maintenance costs (rent, utility payments), most likely, are going to increase slightly, yet 22 per cent have been more pessimistic, responding that they are going to grow sharply.  

When asked to assess their current dwelling 53% of Latvian population responded to "DnB NORD Latvian barometer" that they are satisfied with its space, and just 5% are completely unsatisfied. Yet, if facing the choice to acquire a new apartment or house right now the most important considerations would be technical condition and construction quality of the new dwelling (54%), good infrastructure (50%), low maintenance costs (47%) and only afterwards - low price (37%). 

"DnB NORD Latvian barometer" has identified that 4% of population are going to make the best of the situation on the real estate market while the prices are down and acquire a new dwelling. "This figure indicates that there exists actual natural demand on the real estate market - people who really need a new dwelling due to changes in family situation or other reasons. Taking into account the fact that 10% of Latvian population already have mortgage loans, such volume of natural demand should be regarded considerable. Therefore, one should say that one of the tasks of the state is to afford comfort and belief in the future to these people, not hampering their wish and willingness to purchase a new dwelling," says I.Vamzis.

Asked about their opinion on the issue whether over the next few months dwelling maintenance costs will change the majority – 70% responded that they are going to increase, and 22% of them even believe in drastic increase. "Taking into consideration unbiased reasons (heating season soon will be over, gas prices may fall, decrease also loan payments to those borrowers who have taken loans subject to floating rate in EUR) one can conclude that 70 per cent of Latvian population assess the situation based on collective representations and certain momentum instead of facts," says I.Vamzis.

"DnB NORD Latvian barometer" appears every month and is focusing on the hottest issues of the given period. Yet at the same time to the general public is addressed a list of regular questions, which month by month indicate changes in the general public sentiments.