bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Sunday 24.06.2018 | Name days: Jānis

Business lending volumes in Latvia reach the highest point in the last two years

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn Q3 2015, business lending volumes in Latvia reached their highest point in the last two years. The total growth of new loans was 6% in the last three quarters of 2015.

Banking analysts say the negative impact of the Russian-Ukrainian conflict on Latvian enterprises has been smaller than expected lately. Support from EU structure funds is mentioned as one of the most important business development tools in Latvia.

«Banks are competing with one another for the right to provide business loans to healthy companies. Enterprises that have their own capital are capable of upholding their commitments. They have their own business plans and transparent money flow. Banks offer very favourable conditions to them. Loan requirements in Latvia are much more favourable than those in places like Scandinavia. Unfortunately, Latvian companies’ ability to take loans is currently lower than necessary for rapid development of the national economy. If the country manages to effectively use its funding from the EU structure fund next year, lending volumes may continue growing in Latvia,» – says President of Latvian Commercial Banks Association Martins Bicevskis.

Criteria for loan issue should be high. Banks have the resources and the interest to provide more loans. However, companies are not prepared to receive loans. Even those that appear qualified for investments are not always ready to fulfil their commitments and pay back loans. Latvia still has a large number of enterprises that have problems with paying back loans. In spite of the fact that the volume of unpaid loans has been declining in recent years, the share of overdue loans for more than 90 days was 4.85% this year. Both sides end up in a difficult position because of this tendency.

«We have noticed a rise in lending in the transport and storage sector following a period of lacking activity. It is too soon to consider further development of the sector and potential lending volumes – there are certain political decisions that have to be made. Progress in Latvia’s processing industry has been unstable in the first ten months of 2015 – from moderate growth at the beginning of the year (because of restoration of work of Liepājas metalurgs) to a decline in the second half of the year. Next year promises to be full of challenges. However, the growth of procurement managers index and the index of export orders points to moderately positive possibilities,» – comments Karlis Danevics, co-Chairman of Latvian Commercial Banks Association’s Lending Committee.

Entrepreneurs should pick the financing options that fit their development strategy. Banking loans will soon become the most appropriate solution for experienced entrepreneurs. Alternative funding will be the best option for emerging businessmen. «For example, in order to find funding to build the first factory, enterprises should turn for help to venture capital funds, business angels or the newest forms of funding – crowdfunding, mutual loan platforms and others. To receive funding for the construction of the second factory, it would be best to turn to a bank,» – adds K.Danevics.

«ALTUM adds to the capabilities of the private market, focusing on enterprises that are in their early development and growth stage. The government and ALTUM provide assistance to perspective companies that do not strictly fall in the category of receiving assistance from the private market. Over the past two years, ALTUM has provided financial assistance to 4,300 projects worth EUR 220 million. Finances of the new EU structure fund planning period will become available next year. This means new loan programmes and new venture capital funds,» – notes Jekabs Krievins, ALTUM board member.

Ref: 102.109.109.7344


Leave a reply

SRS uncovers numerous violations more than half of inspected companies

State Revenue Service’s Tax Control Office performed a total of 305 thematic inspections of employers in Latvia in Q1 2018. Authorities recorded violations in 171 inspections, according to information from SRS.

Third level pension plan deposit volumes reach new record value

Residents’ interest for pension savings remains high. The volume of deposits made to private pension funds in the first three months of 2018 has reached a new historic peak: a total of EUR 16.5 million has been paid to 3rd level pension accounts, which is 11.6% more when compared to the same period of 2017, as reported by Finance and Capital Market Commission.

Petrol station network in Latvia caught performing fraudulent activities with diesel fuel

State Revenue Service’s Tax and Customs Police have uncovered and put an end to a fraudulent scheme with diesel fuel performed by some network of petrol stations in Latvia, as confirmed by the service.

Kaimiņš: I believe CPCB is performing a political order

In the evening of Thursday, 21 June, Corruption Prevention and Combating Bureau released three people previously detained as part of a criminal process regarding possible illegal funding of KPV LV party – Saeima deputy Artuss Kaimiņš, his colleague Atis Zakatistovs, and businessman Viesturs Tamužs.

Latvia’s parliament conceptually supports new sanction regulations

On Thursday, 21 June, Saeima supported in the final reading amendments to the Law on International Sanctions and National Sanctions of the Republic of Latvia that are meant to improve sanction regime regulations to ensure efficient application of national and international sanctions, as reported by Saeima press-service.

Storm in Tallinn floods streets, cuts Croatia-Argentina match short on TV

A rain storm has hit northern Estonia on Thursday, flooding some streets in the capital Tallinn, damaged buildings and badly affected the broadcast of an interesting World Cup game.

American banks tested for financial stress show positive results

The U.S. has performed banking stress tests and found that the 35 largest banks operating in the country have enough funds on hand to sail safely through a severe financial crisis.

Saeima fires judge for coming to work in a drunken state

On Thursday, 21 June, Latvia’s parliament supported the proposal to dismiss Rezekne Court judge Arvis Garais from his post. 71 deputies voted in favour, no one abstained and no one voted against.

UK to have three requirements to EU citizens willing to remain in UK

For citizens of the European Union willing to continue living in the UK after the country leaves the bloc, they will have to submit applications and answer three key questions over the internet, according to the country's interior minister.

Weather in Latvia to be rainy and cool during Ligo; next week’s weather to be dry and hot

Weather at the end of the week in Latvia will be dictated by a cyclone. Because of that, there will be instances of rain on Ligo. Weather is expected to improve next week, however, according to Latvia’s State Environment, Geology and Meteorology Centre.

Lithuania’s blood plasma corruption scandal extends to Latvia

The former head of Lithuania‘s National Blood Centre, suspected of corruption and involvement in unlicenced activity, received more bad news this week from Latvia, where investigators of the Lithuanian Special Investigation Service had questioned the Latvian Health minister, Anda Čakša.

Administrative burden to be reduced for foreign students and researchers

The administrative burden will be reduced for foreign students and researchers, as well as all education and research institutions hosting them. This is provided by the amendments to the Immigration Law approved by the Saeima in the third reading on Thursday, 21 June.

Latvian Economy Minister endures no-confidence vote

Saeima declined opposition deputies’ request for dismissal of Economy Minister Arvils Ašeradens.

Swedbank economist becomes new member of Bank of Latvia Council

On Thursday, 21 June, Latvia’s Saeima approved Mārtiņš Kazāks in his new post as member of Bank of Latvia Council, as confirmed by Saeima’s press-service.

Pope Francis’ visit to Latvia will be a national holiday

Latvia’s parliament has approved in the final reading a law that makes 24 September – the day Pope Francis plans to visit Latvia – a national holiday.

ICT specialist numbers in Latvia are below Europe’s average level

In Latvia, information and communication technology specialists form only 2.2% of all employed people in the country, which is considerably below the average level in the European Union – 3.7%. Romania and Greece are the only two EU member states in which the number of ICT specialists is below Latvia’s, according to European Commission’s DESI index.

Hungary adopts prison sentence for helping migrants

Hungarian National Assembly has passed a set of laws criminalising with prison terms some help provided to illegal immigrants by non-governmental organisations.

Harmony plans turning to Constitutional Court to prevent transition to Latvian language in schools

«Why should this reform stay unrealized? It is because schools are not prepared for cardinal changes coming from dozens of other reforms that have already shocked the country’s entire general education system,» says chairman of National Minority School Parents Forum and member of Harmony’s work group in Konstantīns Čekušins.

Deputies detained in KPV LV criminal case not declared suspects yet

Saeima deputy Artuss Kaimiņš and businessman Viesturs Tamužs detained in the criminal process regarding possibly illegal funding of KPV LV party have not yet been declared suspects. Both are currently in police custody. It is likely Kaimiņš will be released later today, 21 June.

Production of mines and grenades planned in Estonia

As the Estonian parliament has adopted new rules on military arms and ammunition production in the country, local defence firm Eesti Arsenal has voiced its plan to build a factory in Estonia to make military explosives.

Total tax debts in Latvia reached EUR 1.224 billion in June

At the beginning of June, total tax debts in Latvia, including topical, halted debts and extended repayment terms were equal to EUR 1.233 billion, which is 0.6% less compared to May, as reported by State Revenue Service.

Switch off internet nationwide during exams – Algerian approach

In an attempt to prevent cheating during secondary school exams, the north African nation Algeria, has turned off internet in its whole territory.

Control Service proposes kicking out shell companies as intensely as offshore companies

Shell companies in Latvia should be combated with the same intensity once shown to offshore companies, says chief of Anti-Money Laundering Service Ilze Znotiņa.

EU imposes tariffs on blue jeans, motorcycles and other U.S. export goods

The European Union will introduce retaliatory tariffs against U.S. exports on Friday, EU Trade Commissioner has stated a top official has stated in the bloc's reaction to Washington imposing steep duties on steel and aluminium earlier in June.

Latvia’s Saeima proposes improving job-combining rules for state officials

On Wednesday, 20 June, Latvian parliament’s Public Administration and Local Government Committee decided to submit for review amendments to the Law on Prevention of Conflict of Interest in Activities of Public Officials.

Newest comments