If this Reuters’ “odd” story is to be believed, Latvian bankers will accept pretty much anything as collateral these days – including intangible and hard to value assets like, erm, your immortal soul:
RIGA (Reuters) – Ready to give your soul for a loan in these difficult economic times? In Latvia, where the crisis has raged more than in the rest of the European Union, you can.
Such a deal is being offered by the Kontora loan company, whose public face is Viktor Mirosiichenko, 34.
Clients have to sign a contract, with the words “Agreement” in bold letters at the top. The client agrees to the collateral, “that is, my immortal soul.”
Mirosiichenko said his company would not employ debt collectors to get its money back if people refused to repay, and promised no physical violence. Signatories only have to give their first name and do not show any documents.
“If they don’t give it back, what can you do? They won’t have a soul, that’s all,” he told Reuters in a basement office, with one desk, a computer and three chairs.
Wearing sunglasses, a black suit and a white shirt with the words “Kontora” (office) emblazoned on it, he reaches into his pocket and lays out a sheaf of notes on the table to show that the business is serious and not a joke.
Mr Mirosiichenko told Reuters his company has been lending customers only small amounts in exchange for their souls: “up to 250 lats ($500) for between 1 and 90 days at a hefty interest rate.” About 200 people have made the pledge over the two months the business has been in operation, Reuters said.
FT Alphaville hopes Mr Mirosiichenko also says a daily prayer for Latvia’s crumbling economy.
Related links:
Latvia’s Achilles heel: deposits – FT Alphaville
Latvia junked – FT Alphaville
When all else fails, beg steal and borrow – FT Alphaville