Within the First Three Months, Banks have Credited Latvian Companies in the Amount of 312 Million Euros

Added: 09.05.2016
Within the first quarter of this year, Latvian banks have credited development projects of Latvian companies amounting to 312 million euros, which is by 8% more than in the relevant period of 2015.*
The largest share of increasing crediting, when compared to the first three months of 2015, was experienced by agriculture (+130%) where 30 million euros have been issued as new loans. Companies of the processing industry received credits in the amount of 22.3 million euros, energy, gas, and heating supply industry received 41.5 million euros, trade companies — 22.9 million euros, transport and storage companies — 18.4 million euros, while accommodation and catering companies received credits in the amount of 23.3 million euros.

“Latvian banks have certainly returned from a very cautious phase of crediting to the moderate growth crediting. Of course, we cannot go back to immoderateness of the good pre-crisis years, still effective business development plans overall can at the moment find a responsible partner, namely, a bank, in Latvia. However, we should remember that each business development phase fits another type of funding, not only the bank loans, but also state support instruments (guarantees, mezzanine loans), risk capital, business angels,” tells the President of Association of Latvian Commercial Banks, Mārtiņš Bičevskis.

The key recipients of funding in the field of crediting are medium-sized, small, and micro-enterprises that have respectively received 23%, 31%, and 30% of the total new loans for development. The new loans to large enterprises amount to 16% of all new loans.

The total credit portfolio of Latvian banks at the end of March 2016 was 14.68 billion euros, including the credits to Latvian companies in the amount of 9 billion euros, while the mortgage loans to Latvian household constituted 4.4 billion euros. In 2015, for the first time after the crisis in 2008, there was an overall increase by 0.1% in the credit portfolio of Latvian banks, which means that the amount of newly issued loans exceed the amount of paid and written off loans.

*Data of FCMC and ALCB

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