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Friday 28.10.2016 | Name days: Ninona, Ņina, Antoņina, Oksana

Swedbank’s volume of new loans nears half a billion

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn the first half-year of 2015, Swedbank’s volume of new loans reached EUR 425 million. Most were provided for business development – EUR 328 million, which is 64% more in comparison with the amount allocated the year before.

This year, the bank is prepared to allocate a total of EUR 1 billion to high-quality projects.

«Even though we have already allocated nearly half a billion euro as funding, we remain open to new loan requests. Swedbank is prepared to allocate at least EUR 1 billion for businesses this year. In spite of obstacles that impede demand – general cautiousness of businesses, sluggish realization of structural funds and grey economy – Swedbank’s volume of funding grows every quarter,» – says Swedbank board member Reinis Rubenis.

The volume of Swedbank;s loan portfolio, compared with 31 December 2014, has remained unchanged. Compared with the previous quarter, however, has grown 1%. This is mainly because of demand for loans, which has risen because of the recovering economic situation in Latvia.

Demand is negatively impacted by factors like companies’ cautiousness, the wait for EU structural funds, lack of capital and the scale of grey economy. According to Swedbank’s estimates, there are 25,000 companies in Latvia that are prepared to borrow money and have a free capacity for loans.

It has been noticed that obstacles for taking loans differ depending on the size of the company. Large companies tend to have careful investment plans. For medium and small companies, on the other hand, the main obstacle is often the lack of capital.


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