bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Sunday 26.03.2017 | Name days: Eiženija, Ženija

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

Week in Lithuania. Foreign minister dismisses Lukashenko's accusations as fiction

Lithuania's Foreign Minister Linas Linkevičius has dismissed the statement by Belarusian President Alexander Lukashenko about training of armed provokers in Lithuania as fiction out of the blue.

BNN summary of the week: 5G in Latvia, fight against Lembergs, foreign trade balance deficit

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

CC: restoration of trust – way out for cartel participants

This year, Competition Council provided positive conclusion in regards to recovery of trust to two companies previously punished for cartel agreement.

Kristovskis: coalition with Lembergs in Ventspils City Council is not possible

«If the party’s list enters the city council, our candidates will definitely not work with Lembergs,» said Girts Valdis Kristovskis in an interview to Latvijas Radio.

Sadales tīkls: energy industry enjoys stable growth in Baltics

Although the company does not experience the lack of quality labour force, when announcing vacancies it becomes clear that population density in regions continues to decline, and this makes it harder to find young specialists for work in regions, said Andis Pinkulis, CEO of Sadales tīkls, in an interview to BNN.

Airline Nordica not to ban tablets and lap-tops from being brought on passenger cabin

Estonia’s national airline Nordica has stated it would not follow the recent U.S. and British ban on such computer devices as tablets and lap-tops from being brought onto passenger cabin on flights.

Rinkevics invites Canadian companies to use Latvia’s transit and logistics infrastructure

«We’re hoping for more intensive economic cooperation and diversification of exports of Latvian goods, as well as attraction of investments from Canada. Canadian investors are awaited in Latvia,» says Latvian Foreign Affairs Minister Edgars Rinkevics.

Rimsevics: tax changes may increase lending volumes in Latvia

Lending volumes in Latvia may increase because of changes to the country’s tax system, says governor of the Bank of Latvia Ilmars Rimsevics.

Latvian authorities deport 19 Vietnamese citizens

19 Vietnamese citizens caught trying to cross the border of the Republic of Latvia last year have been deported from the country.

Latvia’s export and import volume was the lowest in January

Latvia’s export and import volume this January was below what was noted in Lithuania and Estonia. The largest foreign trade balance deficit among Baltic States was noted in Estonia.

Lithuanian population continues to shrink, some glint may be ahead

The shrinkage of Lithuanian population is nowhere close to a halt. In fact, the recent numbers by the Lithuanian Statistics and Eurostat, the European Union‘s statistics agency, purport the opposite: exodus has picked up last year - 50,000 Lithuanian citizens left the country for a better life abroad, up from 44,500 in the previous year.

Over 200 people could have died in Mediterranean

It is assumed that over 200 migrants might have drowned this week in the Mediterranean, off the coast of Libya, a Spanish humanitarian aid organisation feared.

Proportion of HIV-infected tuberculosis patients in Latvia is 17.4% - the highest in EU

The proportion of HIV-infected tuberculosis patients in Latvia is 17.4%, which is the highest not only among Baltic States, but also Europe, as mentioned by Jurijs Perescikovs, director of Disease Prevention and Control Centre’s Infection Risk Analysis Department in a discussion dedicated to the World Tuberculosis Day.

British police names London terrorist

British police has stated that the March 22 terror attack in London was committed by British-born Khalid Masood. Another of his victims has died.

Air temperature in Latvia to remain largely unchanged in coming days

On Friday, 24 March, high atmospheric pressure will remain in the country. Because of that, some clouds will be seen in the sky, wind speed will stay moderate, and air temperature will rise to +3° C…+8° C, as reported by the State Environmental, Geology and Meteorology Centre.

Kucinskis hopes to find a new director for State Chancellery within two weeks

Latvian Prime Minister Maris Kucinskis hopes to find a new manager for the State Chancellery within the next two weeks.

InnoEnergy business opens an office in Latvia

International business accelerator company InnoEnergy has opened an office in Latvia. This objective of this company is preparing new and innovative technologies developers for attraction of investments as part of InnoEnergy accelerator.

Bank of Latvia increases inflation outlook for 2017 to 2.7%

The Bank of Latvia has increased its inflation outlook for 2017 from 1.6% to 2.7%, as reported by the bank’s press-service.

CC permits Lithuanian company to acquire decisive influence over Latvian businesses

Latvia’s Competition Council has permitted two mutually associated deals to be performed by W.P.Carey and Kesko, allowing the two concerns to acquire decisive influence over Lithuanian Baltic Retail Properties and three companies registered in Latvia – K Prof, Polo LS and Daugavkrasts M.

Estonian military transport firm co-operates with leading Norwegian and British companies

Estonian military transport manufacturer Milrem has made a joint product with Norwegian weapon-maker Kongsberg and British remote system producer Qinetiq North America.

Welfare Ministry opposes diverting part of social budget to healthcare

Experts view Finance Ministry’s proposal to divert certain parts of the social budget to pay for certain healthcare services. Welfare Ministry is especially cautious about this proposal.

Saeima agrees to publish names of disciplinary punished judges

Publication of information about disciplinary penalties applied to judges, their names and surnames will no longer be prohibited, as stated by amendments to the Judicial Disciplinary Liability Law supported by the Saeima in the first reading on Thursday, 23 March.

Experts: internet users open up 30% of fraudulent e-mail letters

Cyber criminals are becoming more and more cunning and their fraudulent e-mails – harder and harder to differentiate from real ones. Internet users open up to 30% of fraudulent e-mail letters, explains eScan antivirus developers.

Minister: Latvia supports International Coalition’s fight against Daesh

«The fight of the International Coalition against Daesh has become a very effective instrument to help reduce Daesh military, financial and recruitment capabilities,» said Latvian Foreign Affairs Minister Edgars Rinkevics.

New pulp factory planned in Estonia

Estonian entrepreneurs have envisaged building a high-tech pulp-making plant near the city of Tartu and have submitted the plan for confirmation from Estonian national special planning authorities.