To enable Latvian seniors to spend their old age in a family environment while at the same time receiving all the care they need, a social project never before seen in this country, “Lielās ģimenes māja” (Big Family House) has been created in Lapsas, Babīte county, having attracted 360,000 Euro in financing. “Senior Group” has set up this senior care establishment model with financing from Citadele Bank and the development finance institution “Altum.”
As part of the first stage of the “Lielās ģimenes māja” project, two houses have been created in Babīte where 12 seniors will live together. The development of new senior houses in several places throughout the Baltics is already planned for the near future.
As the representative for “Senior Group” in Latvia, Diāna Gžibovska, points out, the idea for carrying out this project came about because a large number of seniors in Latvia live in institutionalised care facilities along with dozens or even hundreds of other elderly people. In this social care establishment model, seniors have the chance to live in a family-like, adapted environment, thus maintaining their ability to look after themselves for as long as possible.
“Latvian society is ageing, but the ability of the average pensioner to pay is low. Pensioners cover the costs of staying in the care establishment from their pension, but those who cannot afford this can receive co-financing from the local council by writing an application to social services. This same model also applies to living at ‘Lielās ģimenes māja’,” said the “Senior Group” representative.
Meanwhile, Santa Purgaile, board member of the project’s lender, Citadele Bank, said, “the business owner has used a unique method of financing for this project, combining a bank loan with parallel or mezzanine financing from ‘Altum,’ which is issued with the same collateral as the bank loan. This type of loan is especially suitable for small- and medium-sized businesses and offers a favourable repayment process to the project.”
“The bank has previously issued loans to socially significant projects including those which improve the lives of seniors. It is crucial that this solution, which is new to Latvia, is both convenient and pleasant for the seniors as well as accessible price-wise,” mentioned S. Purgaile.
“‘Lielās ģimenes māja’ is just one successful example of state-supported financial instruments and bank loans giving the opportunity for business owners to successfully develop their business. ‘Altum’ financing gives the opportunity to receive co-financing even when the business itself does not have enough to receive a bank loan,” says “Altum” Deputy Head of Guarantees Emīls Raiks.