Lithuanian real estate market is gradually recovering after the crisis. An increasing number of transactions, simultaneously with the cost per square meter. Already 10 consecutive months the credit portfolio of financial institutions in the country is increasing.
At a press conference in early June, representatives of the Bank of Lithuania said that there is no risk of explosion of "price bubble". It was also voiced an assumption that annual increase in property prices will be 10%.
Stasis Kropas, head of the Association of banks, also believes that there are no symptoms of overheating - only signs of recovery. A much more dangerous situation is in Sweden and Norway. Over the past 3 years the increase of prices in these countries was 36%.
If the Scandinavian price bubble will burst, it may have a negative impact on the development of Lithuanian lending, as Swedish banks immediately will try to bring back the part of their funds.
Based on the materials of regnum.ru
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