With a reference to the amendments to the Consumer Rights Protection Law approved by the Latvian parliament (Saeima) that stipulates limitations to the total credit costs for the consumer to 0,07% per day, JSC VIA SMS group (further - the Company) informs that it will continue to provide consumer lending services in Latvia through its subsidiary VIA SMS Ltd. after the approved amendments come into force on July 1, 2019.
JSC VIA SMS group foresees, that limiting total credit costs for the consumer may have an impact on the non-bank lending market in Latvia, but it may also result in a significant increase in the demand for consumer lending products, given that short-term loans with small amounts soon will no longer be available on the market. When developing the product portfolio, JSC VIA SMS group has taken into consideration the fast-changing legislative environment of Latvia and has thus opted to remove short-term consumer lending product from the product portfolio offered in Latvia. In order to expand the credit portfolio and ensure its development in a sustainable manner, the Company has introduced a modern lending product “Flexible loan” – a credit line which allows customers to apply for higher amounts and choose repayment terms according to their needs.
JSC VIA SMS group is continuously developing its financial product portfolio in other European Union (EU) countries where its subsidiaries are present – Lithuania, Sweden, Poland, Czechia, Spain, and Romania. In the following months, the Company is planning to launch its latest product – digital payments platform VIALET, that has acquired a license of an electronic money institution in Lithuania in 2017. The Company is also actively developing existing products, such as peer to peer lending platform VIAINVEST, savings product VIASPAR, besides there is an ongoing effort to expand credit portfolios in all target markets.
According to sustainable revenue and expenditure planning policy, the Company believes that its ability to fulfill the obligations arising from the bonds will remain unchanged. JSC VIA SMS group also emphasizes that it has contributed significantly to the diversification of risks of loan interest rates by offering its services in several EU countries. Interest rates on consumer loans in other markets will remain unchanged.
PR and Marketing Communications Manager
VIA SMS Group
Phone: +371 66102940