Latvia

The European Investment Bank will lend Ђ30 million to Vereinsbank Riga to finance SME infrastructure projects.

Financing supplies is a short term (up to 180 days) financing instrument for current assets, applied on supplies of goods of Latvian companies, to be sold in the local market.

The chairman of the board of Nordea Finance Latvia, Maris Skujins, predicts that the factoring portfolio in Latvia could reach around LVL 62 – 65 million (US$93m – 96m) in three years, instead of the present LVL32 million (US$48m).

Seven banks and insurance companies have expressed interest in opening an affiliate company in Latvia. The companies comprise three from Austria and four from the UK.

The ministry of economics and organizations has elaborated a new programme for the development of small- and medium-sized enterprises (SMEs).

The Parliament adopted changes to the VAT law yesterday. According to the law, the reduced VAT rate of 5 per cent will apply to the categories including medical drugs; books, mass media, entry to sports events and cinemas etc.

The factoring and leasing portfolio of the members of the Latvian Lessors’ association grew 16.6 per cent, to LVL332 million (Ђ499m) in 2003. This year 30 per cent growth in the sector is expected.

Latvijas Unibanka achieved a profit of LVL 13.309 million in 2003, down 2 per cent from 2002 when it reached the highest profit among Latvia’s commercial banks.

According to association data, factoring portfolio of the association members as at 1 October was 33.5 million lats, down 7 per cent and the aggregate leasing portfolio 272.6 million lats, up 22 per cent over a year.

Latvia's Unilizings company’s leasing and factoring portfolio has reached 100 million lats (Ђ153.4m) after nine months of this year, rising eight million lats or 8 per cent from the beginning of the year, said deputy director Oskars Lacis.