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Sunday 18.02.2018 | Name days: Kintija, Kora

Nordic Investment Bank President: investors need railways and motorways

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International financial institutions are pleased with Latvia’s results; however, it still has to learn how to draw in the right investors, Nordic Investment Bank (NIB) President Johnny Åkerholm indicates to the newspaper Dienas Bizness.

He admits that Latvia’s intensive implementation of measures suggested by the international lenders as well as the election results were surprising. However, from the bank investors’ point of view the risk in the Baltic States is higher than elsewhere due the fact that these countries are in the middle of adjustment process. To his mind, energy efficiency is the area where major improvements are still possible for Latvia and other Baltic States, as this sphere offers higher yield on investments.

Åkerholm points out that the Baltics developed very rapidly in the pre-crisis years. Moreover, the swiftly introduced European Union (EU) legislation, market flexibility and relatively cheap labour force in terms of the education level was beneficial for investment projects whose execution required a large number of employees. He points that since that time other countries have grown and Latvia does not have very cheap labour anymore. «This means that you are not appealing for human resource investments. Therefore, either companies that manufacture products with high added value have to be established within the country or attracted from abroad,» suggests the bank’s President.

«I think that all Baltic Sea region countries, including Scandinavia, suffer from the fact that we are rather small markets situated in the periphery. People do not start business in China because it is easy to do it there. On the contrary – it is very complicated to operate in China, yet investors want to be in this huge market despite all the challenges. It is vital to develop logistics so that such small markets like ours are able to attract investors. In my opinion, the development of both rail and motorways to the Baltic States is very important,» considers Åkerholm.


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  1. Bub says:

    Investors need a lot of things we cannot provide…

    Thumb up 0 Thumb down 0

  2. Hans says:

    Efficient logistics really is one of the chief elements in doing business.

    Thumb up 0 Thumb down 0

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