Hansabank supports business development in Latvia.
The EBRD subordinated loan to Hansabank allows the latter to
offer loans as well as consultation and training services to local companies.
In this monthly newsletter we continue to introduce our readers with
companies that have supported the preparation of the EBRD Board of Governors’ Annual
Meeting. Our co-operation partner of this month through May is Hansabank. This time
we have an opportunity to learn the opinion of Viesturs Kulikovskis, Hansabanka
Board member and Head of the Corporate Banking Department, on the country’s economic
situation, Hansabank’s co-operation with the EBRD, and business development in
Latvia.
- Latvia’s Hansabanka is part of the Hansabank Group,
which operates in all three Baltic States. Hansabank’s strategic partner is Swedbank,
which is the company’s majority shareholder. I believe that our position in the Hansabank
Group and the alliance with Swedbank offers us a good growth potential. Hansabank
Group corporations have the largest capital in the Baltic, which enables us to
undertake projects of practically any size. Thanks to our co-operation with Swedbank
and Hansabank Group corporations, we can service our international clients, as we
are able to offer the same type of services all over the Baltic.
If we are looking at the development of the banking sector in Latvia
and the economic development in general, I think that starting from the year 2000 the
development of economy can be regarded as positive in general terms, however, expansion of
economic activity has been relatively slow. Large enterprises have just come out of a
history of bankruptcies and failures, and now they are being restructured, new investors
are brought in, and with the assistance of large banks they start to evolve. It should be
noted, though, that the production volumes have dropped doubly or even three times, but at
the same time the changes that have taken place are qualitative, and sales are aimed both
at local and stable western markets.
I have the opportunity to compare the work of colleagues in the Swedbank
with our own work in the Hansabank Group in all three Baltic countries. We can say
that our western neighbours, who for a long while have been working in a stable economic
environment, are more mature and composed. Whereas the Baltic business people are
extremely active, capable and diligent, thus creating good pre-conditions for foreign
investment.
We have been co-operating with the EBRD since 1995 already, when the
EBRD opened the first credit line for our bank. Since that time we work together at joint
projects on financing small and medium sized businesses. The EBRD offers also consulting
and training courses.
We have discovered that it is mainly the small businesses who have the
greatest interest in loans, however, what they lack most of all is not the financing but
experience and training. Both the EBRD and the European Investment Bank, which also has
granted us a credit line, support small and medium sized businesses. Its does not mean
granting funds without return, as a gift, but offering favourable conditions so that
companies could successfully service these loans and repay them. Besides, we are prepared
to work together with entrepreneurs – to explain and show how to work out business
plans, to plan project revenues and organise collateral security issues. These companies
are generally very active - as can be seen from the market information, small and medium
sized companies are an absolute majority in Latvia.
I would encourage the participants of the EBRD meeting to take active
part in the events of the meeting and establish contacts with Latvian entrepreneurs. I
believe it will create an opportunity to ascertain that Latvian economic development is
positive, irreversible and trustworthy.
