The mood index of enterpreneurs in the Latgale region in March 2013 reached a level of 50.46 points, which shows that cautious optimism is returning to the region – this according to the Citadele Index survey that is organised by the Citadele Bank in partnership with the SKDS market and public opinion research centre.
The last time that the index was above 50 points in Latgale was in September 2007. Optimism is indicated when the index rises above 50 points, while pessimism is clear if it is below that level.
“We have helped several enterpreneurs in Latgale to open up new businesses this year, with Citadele support in this area,” says Citadele board member Santa Purgaile. “One of the largest farms in Latgale, Kotiņi, opened a new grain cleaning system and a rebuilt warehouse in the Viļaka Administrative District, while SIA Seces Koks quite recently opened a cogeneration plant. We are prepared to offer more financing to companies in Latvia this year than we did last year. Our priorities in terms of lending include agricultural and industrial manufacturing, trade and transport.”
The Citadele Index in the first quarter of 2013 rose above 50 points in all of Latvia’s regions – 53.66 points in Zemgale, 53.40 in Vidzeme, 53.28 in the Rīga metropolitan area, 53.19 in Rīga, 52.57 in Kurzeme, and 50.46 in Latgale. In comparison to the last quarter of last year, the index improved most rapidly in Latgale – by 2.4 points. It rose by 2.3 points in Vidzeme, 2 points in the Rīga metropolitan area, 1 point in Zemgale, and 0.7 points in Rīga. In Kurzeme, the value of the index diminished a bit – by 1.7 points.
The March 2013 study involved 750 corporate leaders from Latvian companies in various sectors and of various sizes.
The Citadele Index
The Citadele Index describes the subjective views of Latvian entrepreneurs about the economic situation in the country, also asking them to make forecasts for the next six months in area such as overall economic activity in the country and in the relevant business sector. The Citadele Index is based on a survey of 750 companies’ directors in Latvia who represent firms of different sizes and in various sectors. SKDS conducts the survey once every quarter. The last one was conducted in March 2013.
About Citadele Bank
Citadele is a local Latvian bank, which offers banking, financial and asset management services. Citadele group is represented in the Latvian market as well as in 9 other countries. Citadele Bank is the only collaboration partner of American Express® in Latvia and Lithuania who is entitled to issue American Express credit cards. In 2012 the bank was recognized as the best governed state-owned enterprise in the Baltic States according to a study conducted by the Baltic Institute of Corporate Governance. Citadele’s vision is to become the most valuable local financial group in the Baltic States. 75 % minus one Citadele Bank’s shares are possessed by the State Joint Stock Company Privatization agency on behalf of the Latvian State and the owner of 25 % plus one share is the European Bank for Reconstruction and Development (EBRD).