Lithuanian litas
In term of household mortgage loans, banks in Lithuania were more prudent than the neighbours. In fact, in 2005, Bank of Lithuania has urged domestic and foreign banks in Lithuania to apply conservative principles in establishing the value of properties especially in dealing unfavourable market developments. Similar to Latvia, majority funding for credits in Lithuania were heavily dependent on lending from foreign parent-bank to subsidiaries. In 2005, total mortgage loans denominated in Euro constituted up to 80.3%, while remaining 19.7% of house loans were denominated in Lithuanian litas. House loans constituted approximately 65% of loans approved for households. Interest rate for mortgage loans has declined from 4.27% (2004) to 3.61% (2005).