bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Sunday 23.07.2017 | Name days: Magda, Magone, Mērija

Baltic companies not in a hurry to use low interest rates for loan resources

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn spite of the fact that most CEOs in Baltic States see no reason for further reduction of interest rates for loans, only a small number of them plan to use the current situation. In the time when interest rates have reached their historic minimum, only 17% of Baltic companies plan to secure long-term financing for their companies.

Only 15% of large companies in Latvia believe low interest rates should be used to attract funding. Another 4% of large companies plan to do this in the near future. 40% of respondents note they are ready to view such an opportunity. Another 40% of CEO say they prefer fluctuating rates.

SEB Bank board member Ints Krasts says: «The base rate of loans issued this year is zero. Added rate is on the same level. This is the perfect moment for the realization of investment plans by using low interest rates. From the perspective of long-term planning, it would be reasonable to review long-term commitments and fixate the rate on the current level. The choice of fluctuating rate is beneficial in moments when rates are low. Nevertheless, fluctuations are typical for this market – rates always go up.»

As for other Baltic States, only 15% of Lithuanian and 14% of Estonian companies have used the period of low interest rates. However, the proportion of CEOs who prefer fluctuating rates is smaller in Latvia’s neighbouring countries: 29% in Lithuania and 31% in Estonia. 54% of large companies in Lithuania and Estonia are prepared to re-assess their plans in regards to the current situation.

«In the current situation, interest rates are so low that it gives large companies an advantage. This is because banks actively compete with one another. Often companies choose the most beneficial offer from 4-5 banks,» – adds Ints Krasts.

This is confirmed by results of a survey, according to which the level of satisfaction of large companies with their current state of relations with banks continues to grow. 87% of large companies in Latvia view their relations with banks as very good or good (80% in Lithuania and 69% in Estonia).

Interest toward financial markets remains low

Considering the current situation, the majority of large companies of Baltic States sees no reason to attract funding on financial markets. 82% of CEOs in Latvia, 74% in Lithuania and 83% in Estonia believe this. Only 12% of Latvian and Lithuanian CEOs and 6% of Estonian CEOs said they plan to enter financial markets in the near future.

Forecast: rates will grow

According to results of the survey, only 4% of CEOs in Baltic States believe interest rates will continue to decline in the next 12 months. The number of those who believe interest rates will grow also increases: 16% of CEOs in Latvia believe so (8% in October 2014), 22% in Lithuania (13% in 2014) and 27% in Estonia (11% in 2014).

Ref: 102.109.109.9826


Leave a reply

BNN summary of the week: Kucinskis in Ridzene’s room and government’s rushed decisions

BNN offers a summary of this week’s topical news in a variety of categories: Change; Fight; Truth; Business and Growth.

Tourists die in Aegean Sea earthquake

A powerful quake that struck in the Aegean Sea has taken the lives of two persons in Greece, local authorities have stated.

Fashion in business: how to be heard in the modern-day world?

It would seem that nowadays strict fashion trends have «died». This is because people for ways to look beautiful and comfortable. One of the minds behind TRÉS fashion line, Enija Mugurevica shares advice how to start a business in the fashion industry from scratch and be heard and noticed in the modern-day world.

FCMC fines Norvik Banka for EUR 1.3 million and Rietumu Banka for EUR 1.56 million

Finance and Capital Market Commission in cooperation with Federal Bureau of Investigation’s Counterproliferation Center found out in a target inspection that Latvian banks – Norvik Banka and Rietumu Banka – have not followed requirements of regulations for the prevention of money laundering and terrorism funding.

Saeima approves controversial amendments to Credit Institutions Law

On Friday, 21 July, Latvian Saeima approved amendments to the Credit Institutions Law, which were previously returned to the parliament for a repeated viewing by President Raimonds Vejonis, completely unchanged.

Bank of Latvia: tax reform is a disappointment; it will not improve competitiveness

The tax reform submitted to the Saeima for approval is one big disappointment that will not improve competitiveness, said head of the Monetary Policy Office of the Bank of Latvia Uldis Rutkaste in an interview to LNT 900 seconds.

Betsafe predicts: will Duklavs remain Latvia’s Agriculture Minister?

Although Unity has asked the Union of Greens and Farmers to replace Agriculture Minister Janis Duklavs with someone else after the scandalous oligarch talks in Ridzene hotel, Duklavs will likely keep his post, according to Betsafe bookmakers. There is a 33% probability of Duklavs losing his post.

Latvian alcohol industry has an offer to increase excise tax rate

Experience shows – rapid increase of excise tax results in rapid increase of prices and rapid decline of revenue for the state treasury. Based on careful calculations, Latvian Alcohol Industry Association asks the government to stick with the current excise tax increase plan.

Air temperature to reach +24° C… +25° C in Latvia on weekend

Weather is expected to be largely dry this weekend in Latvia. Next week, however, is expected to be rainy, as reported by State Environment, Geology and Meteorology Centre.

Saeima deputies sign agreement on Oligarch talks committee’s formation

So far only parliament members have signed the agreement on the formation of a Saeima committee for the investigation of Oligarch talks. Neither of them represents Unity – Karlis Serzants from Union of Greens and Farmers and Einars Cilinskis from VL-TB/LNNK.

Seaima Praesidium approves parliamentary budget for 2018

On 20 July, Saeima Praesidium approved the parliament’s budget request for 2018. It is planned to be EUR 22.04 million, setting funding to maintain current functions on the level of 2017, BNN was informed by Saeima press-service.

Beer brewers: fooling around with tax reforms could destroy Latvia’s beer industry

By increasing excise tax for beer, the goal of reducing alcohol consumption will not be achieved. This is because consumption of other alcoholic beverages will increase as a result, notes CEO of Latvian Breweries Union Peteris Linins, commenting on the government’s plans to raise excise tax for beer.

4,558 marriages registered in Latvia in first six months of 2017

Over the past three years, Latvian birth number almost has not changed and constitutes 22 thousand annually. 10,175 children were born in the first half of 2017, which means 990 newborn fewer than in the same period a year ago.

Broadcasting organizations ask NEPLP to stop meddling with public media contents

The board of Latvian Association of Broadcasting Organizations urges the government and National Electronic Mass Media Council to continue realizing reforms in public media.

Kucinskis also met with Slesers in the infamous meeting room of Ridzene hotel

Latvian Prime Minister Maris Kucinskis admits having met with Ainars Slesers in the now infamous meeting room in Ridzene hotel a couple of times, specifically when the People’s Party made the decision to join Par labu Latviju.

Pumpurs hands 99% of Užavas alus capital shares to his son

Ildis Pumpurs, up until now the only owner and board member of Ventspils Užavas alus brewery, has handed 99% of the company’s capital shares to his son Oskars Pumpurs.

Repeated elections in Kekava – activity twice as high so far

Repeated election has commenced in Kekava’s 785 election site. 274 voters or 7% of local voting population took part in elections in the first day, according to data from the election site.

Estonia plans accepting from Turkey 160 Syrian refugees

Estonian police are looking into the documents on 160 refugees from Syria that are to be moved to Estonia in line with an agreement reached between the EU and Turkey.

Experts: potato harvest in Latvia may come later than usual this year

Potato harvest in Latvia may come one week later than usual. Still, the harvest is expected to be on the level of last year, BNN was told by Potato Growers and Processors Union.

News feed to be added to Google's website and mobile app

Internet search giant Google has said it would add a continuous feed of news and other content to its homepage and mobile app, which would be displayed before a user makes a search query.

NATO and Chinese ships perform joint manoeuvrer before entering Baltic Sea

This week, Standing NATO Maritime Group One welcomed in international a group of Chinese Navy ships that entered the Baltic Sea through the Strait of Denmark from the North Sea. Ships of both groups performed a mutually coordinated manoeuvrer for the ships to ensure safe entry of ships into the Baltic Sea, as reported by Latvian Defence Ministry.

Russia distances itself from proclamation of «Malorossiya» in eastern Ukraine

The Kremlin has noted that the proclamation of a county entitled «Malorossiya», or «Little Russia» in the pro-Kremlin-separatist-held eastern parts of Ukraine is a personal initiative of the rebel leader.

Expert: oil prices will likely remain zigzag-like

Aside from one week, oil reserves have been continuously declining since April. This trend will likely continue. Oil refining activities were not too high. This reduced demand for oil. In Q3, oil producers will increase production output and compound stores, comments macroeconomics expert Dainis Gaspuitis.

Construction output in Q1 in Latvia – tenth largest in EU

In Latvia, construction production volume in Q1 2017, when compared with the same period of last year, grew 8.4%. This puts Latvia on the tenth place among EU member states, according to the latest data from Eurostat.

Do you have an acquaintance currently looking for a job?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: