Latvia's Ministry of Finance announced that the Saeima Budget and Finance (Tax) Committee has supported the finance minister’s proposals to refine the regulation of cooperative credit unions by introducing a framework for lending to legal entities. The changes would expand the eligible borrower base while adding sector-specific safeguards, including a requirement to obtain authorisation from the Bank of Latvia to provide lending services to legal persons. Under the proposed amendments, credit unions would be able to lend not only to existing categories of member legal persons but also to commercial companies and cooperative societies. The package sets minimum thresholds of at least 120 members and at least EUR 120,000 in own capital, introduces a new definition of own capital and a new capital maintenance requirement, and requires a designated board member to be responsible for lending services. The Ministry cited sector data showing 25 cooperative credit unions with assets of EUR 29.4 million and deposits of EUR 19.8 million as of September 2024, and noted that 15% of credit unions currently lend to certain member legal persons. Entry into force for the amendments to the Credit Union Law is planned for 1 October 2025.
Ministry of Finance (Latvia) 2025-03-26
Latvia's Ministry of Finance proposals backed in Saeima committee to widen credit union lending to companies with new capital and membership requirements
Latvia's Ministry of Finance announced that the Saeima Budget and Finance (Tax) Committee has endorsed proposals to refine cooperative credit union regulations, allowing lending to legal entities. The amendments introduce sector-specific safeguards, including Bank of Latvia authorisation for lending to legal persons, and set minimum thresholds for membership and capital. The changes are set to take effect on 1 October 2025.