OREANDA-NEWS. ABLV Bank and the Latvian Development Finance Institution (ALTUM) concluded an agreement on participation in the state support programme for home purchase for families with children.

ABLV Bank is the fifth commercial bank that joined the state support programme ALTUM. Within this programme, ALTUM will provide guarantees for mortgage loans granted by commercial banks to families with children on new home purchase or construction.

Clients who are willing to receive state-guaranteed mortgage loans have to apply for a mortgage loan at the commercial banks that ALTUM has signed a cooperation agreement with. The size of state guarantee depends on the number of children under 18 in the family. Families with one child under 18 can receive a state guarantee of 10% of the mortgage sum (up to EUR 10 000). Families with two children under 18 can receive a state guarantee of 15% of the mortgage (up to EUR 15 000), and a state guarantee of 20% (up to EUR 20 000) is available for families with three or more children.

Head of ABLV Bank Mortgage Loans Division Zigmars Berzinљ said: "Despite our primary focus is at private banking services, mortgage loans is another important business line that we are going to develop further offering new and competitive products. Therefore, we are happy to join the state-guaranteed mortgage loans programme ALTUM that will give our clients an opportunity to purchase accommodation with mortgage loans at more accessible conditions. It is worth noting that now ABLV Bank offers six various mortgage loans programmes. At the beginning of the year the portfolio of mortgage loans amounted to EUR 338 million."

Chairman of the Board of ALTUM Rolands Panko: "We are happy about ABLV Bank participation in implementing the state support programme for mortgage loan guarantees. Since the beginning of ALTUM programme implementation, we have already granted 350 mortgage loans guarantees to families with children. This fact confirms that this state support programme is real aid for those families who have constant income but do not possess savings for the first down-payment. The procedure for issuing guarantees by ALTUM is made as easy as possible for clients and the commercial bank since the client can arrange everything required for receiving a guarantee at the bank granting a loan for home purchase. The guarantee application to ALTUM is sent via a commercial bank, and ALTUM reviews it within no more than five working days."