OREANDA-NEWS. October 08, 2009. In view of the situation in the financial market and increasing problems for borrowers, Prime Minister Valdis Dombrovskis has assigned the Legal Department of the State Chancellery to make amendments to the Civil Code and other normative acts that would stipulate that borrower’s liability (natural entity) towards the lender with regard to purchase of the only dwelling is limited to the mortgage value and it is not possible to claim for other property of the borrower after realization of the mortgage. The amendments would also stipulate that it is not possible to require the warrantors to make the payments in the amount that has left after realization of the mortgage.

The Head of the Government has also asked to assess an opportunity to envisage a condition that it is impossible to displace the borrower and his/her family members from the only dwelling if no agreement has been reached on changing the dwelling space. The banks would have to offer smaller dwelling space from dwelling spaces that they possess.

V.Dombrovskis has asked to aggregate the information on borrowers’ liabilities towards creditors and borrowers’ protection mechanism in Sweden.