In 2011 Citadele Bank has mostly issues loans to companies which represent the agriculture sector in Latvia. Farmers received 23% of the total amount of the new loans issued by Citadele. Another 18% of the new loans were granted to companies working in services sector and 15% were granted to transport companies; 11% of loans were issued to companies from the processing industry.
“During the last year agriculture businesses have become very active in implementing new viable and prosperous projects. We see that agriculture businesses in Latvia are becoming increasingly active in implementing projects and they find new, modern solutions for improving production efficiency and thus boosting their competitiveness also in the European market. Construction of biogas production plants has become especially popular. Activity in this field has become so popular also thanks to state aid which enables farmers to make efficient use of agricultural waste by producing heat and electricity and thus decreasing production costs and generating additional income,” says Agnese Paegle, Head of Corporate Banking Sector at Citadele Bank.
Ms. Paegle emphasizes that programs implemented by Rural Support Service, EU funding and support from banks played a great role in Latvian farmers’ activity.
To improve business development, Citadele Bank will continue exercising active corporate lending in 2012. Citadele issues funding from the European Investment Bank and also offers Micro-loans for small and medium enterprises.
These instruments enable entrepreneurs to receive loan funds at a fixed long-term interest rate. Besides, Micro-loan is available without real estate collateral. Both types of funding can also be combined with support instruments offered by the EU or the State.
EIB funding is available at a fixed interest rate for a period of up to three years; the maximum lending period for these funds is 10 years. The amount of funding available for one company is from 4 thousand to 12.5 million Euros.
Micro-loan, on its part, is available at a fixed rate for a period of up to 5 years and without real estate collateral. The amount of funds available for one company is from 3 thousand to 30 thousand Lats or an equivalent in Euros or US Dollars.
Several hundreds of companies in Latvia have chosen Citadele Bank as their collaboration partner in corporate lending in 2011.
About Citadele Bank
Citadele is the largest local bank and it is also represented in Estonia, Lithuania, Germany, Sweden, Switzerland, Azerbaijan, Belarus, Kazakhstan, Moldova and Ukraine. Citadele is the only collaboration partner of American Express® in Latvia and Lithuania who is entitled to issue American Express credit cards. Presently 75% of Citadele Bank is possessed by VAS “Privatizācijas aģentūra” (State JSC Privatization Agency) and 25% plus one share is possessed by the European Bank for Reconstruction and Development.